Mortgage Strategy articles from October 2005

Mortgage Strategy archives from October 2005

COMMENT: Brokers trapped in a MPPI minefield.
October 3, 2005... With consumer debt at record levels, most mortgage borrowers should consider some form of financial protection. Indeed, our sub-prime cover feature starting on page 39 this week looks at some of the problems borrowers who fall into financial...

FSA blasted for ignoring retail practices.
October 3, 2005... The Financial Services Authority has been slammed for failing to carry out a detailed audit of the sales and advice process in the retail mortgage sector nearly a year after taking on the responsibility of being the industry's statutory...

Report uncovers endemic mis-selling in the PPI sector.
October 3, 2005... A major industry report on payment protection insurance by Advice UK reveals commission loaded, over-priced products and volume sales are combining to produce "endemic mis-selling" in the sector. Looking at the relentless drive for profits...

BREAKING NEWS: MEX looks into poor advice claim.
October 3, 2005... Mortgage Express is investigating allegations that one of its sales team has been incorrectly advising brokers on how to fill in self-cert mortgage applications. One source tells Mortgage Strategy that a broker has voiced concerns to...

IN BRIEF: Mansfield cuts rates on two deals.
October 3, 2005... Mansfield has cut its rates on two mortgages. The rate on its two-year fixed rate deal has been slashed to 4.5%, while its three-year fixed rate mortgage has been reduced to 4.7%. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: HoC online solution.
October 3, 2005... A new Focus Business Solutions contract with Home of Choice includes the development of an online solution to enable HoC to recruit, register and support new mortgage advisers. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Approvals climb in August.
October 3, 2005... The Bank of England says the number of new mortgage approvals for home purchases in August was up 8.1% in July. Approvals are 15.1% higher than last year, the first annual increase since June 2004. Copyright: Centaur Communications Ltd....

IN BRIEF: Briault outlines retail challenge.
October 3, 2005... Clive Briault, managing director of the FSA, outlined the challenges that face retail firms in his first speech in Northern Ireland. These centre on the quality of advice available to consumers and the fair treatment of consumers by firms....

FSA rules have not achieved sustainable housing market.
October 3, 2005... Regulation by the Financial Services Authority has resulted in a zero contribution to a sustainable housing market, and if anything has worked against it, says Halifax. Speaking in Monte Carlo, Alan Cleary, director of Halifax...

81% Of brokers think MCOB should be reviewed.
October 3, 2005... A massive 81% of Mortgage Strategy Online readers think the Financial Services Authority should review the Mortgage Code of Business. Last week the Institute of Mortgage Lenders Association called for an urgent rethink, arguing...

Industry gathers in jet set setting.
October 3, 2005... Monaco, home to the world famous casino, the Grand Prix and playground of the rich and shameless played host to this year's Bankhall sales conference and gala awards dinner. The event last Wednesday evening began with a cocktail reception...

Multi-tie tool for DA firms to be unveiled.
October 3, 2005... Bankhall has revealed the impending launch of Bankhall Connect, its multi-tie proposition for directly authorised intermediary firms. Advisers who join Bankhall Connect will have access to investment, pension and protection products from...

Bankhall unveils fresh look at Monte Carlo event.
October 3, 2005... Bankhall unveiled a new corporate identity at its annual sales conference in Monte Carlo - the first change to its look since its launch in 1993. The introduction of a fresh corporate identity is just part of a major overhaul at Bankhall...

Beacon may already be in IMLA fold.
October 3, 2005... Rumours are rife that Beacon Homeloans has been accepted into the fold of the Intermediary Mortgage Lenders Association. Beacon was launched earlier this year by the enigmatic Mark Abbott, former Future Mortgages chief executive, and sales...

Shaun Godfrey to quit Bankhall this month.
October 3, 2005... Shaun Godfrey, commercial director at Bankhall, is set to leave the company this month to pursue other business interests. Peter Mann, chief executive at Bankhall, says: "Shaun has played a key role in the growth and development of the...

IN BRIEF: MortgageStream online offer.
October 3, 2005... MortgageStream has launched a special offer to all 24,000 Trigold users. By visiting the MortgageStream website brokers can sample the case management software free for 14 days. Benefits include the ability to import data and documents to...

IN BRIEF: Prefab boom.
October 3, 2005... A report by Standard Life Bank says 41% of thirty-somethings would consider buying a prefabricated house. The market for prefabs is worth #1.6bn and growing by 30% per year. Penthouses built off site and delivered by helicopter to your rooftop,...

IN BRIEF: TFC promotes Emery.
October 3, 2005... The Finance Centre has promoted Jayne Emery to head of field sales. Emery, who has been with TFC for three years, had previously been regional sales manager and brings nearly 15 years of experience to her new role. Copyright: Centaur...

Calls for The Woolwich to rethink its retention policy.
October 3, 2005... Brokers are calling on The Woolwich to rethink its client retention policy which leaves customers unprotected by regulation if their policy was completed before M-Day and they later switch deals. As it stands, a customer with The Woolwich...

GE rebrands lender as GE Money Home Lending.
October 3, 2005... GE Consumer Finance Home Lending is to be rebranded as GE Money Home Lending from Tuesday October 4, as part of a GE global initiative to align all worldwide businesses under a single brand. In the secured sector, due to the brand values,...

Lenders hit back at Nationwide.
October 3, 2005... Lenders have hit back at Nationwide after it accused them of making unnecessary lending charges. Stuart Bernau, executive director at Nationwide, says Halifax and Abbey run the risk of being accused of blatantly profiteering by charging...

IN BRIEF: Online application for clients' use.
October 3, 2005... Enterprise Finance has created a customised online application for clients to use on intermediaries' own websites. Paul Rose, managing director of Enterprise, says: "This is a tantalising proposition for the busy broker. Enterprise does...

IN BRIEF: Renewed interest.
October 3, 2005... Nationwide's latest house price report reveals that the annual rate of house price growth in this country is now 1.8%, showing that softer house price growth and lower interest rates have renewed buyer interest and bolstered activity....

Easy route to holiday homes B2L launched.
October 3, 2005... Scarborough has launched the country's first completely self-funding holiday buy-to-let mortgage. The base rate tracker and fixed rate products offer interest rates from 5.39% and applicants' eligibility will be judged by the property's...

Suitability service could restore public faith in products.
October 3, 2005... MoneyExpert.com is attempting to tackle the general public's disenchantment with financial services products by launching a suitability service for customers. Research commissioned by MoneyExpert.com and conducted by MORI shows that up to...

Flexible BCI launch at Expo.
October 3, 2005... D&D Homecare is to launch its flexible building and contents insurance product at this year's Mortgage Expo in London. The flexible nature of the product means home buyers can mix and match options to suit their needs rather than paying...

Keogh joins FSPP Practitioner Panel.
October 3, 2005... The Financial Services Authority has appointed Colin Keogh, group chief executive of Close Brothers Group - owner of Mortgage Intelligence - to the Financial Services Practitioner Panel. The FSPP is a statutory body that represents the...

IN BRIEF: Leeds record.
October 3, 2005... Leeds has seen record half-year interim results with assets increasing 9% to #6.7bn. Pre-tax profits were #24m, and mortgage completions increased by 8%. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Family way.
October 3, 2005... Yorkshire has launched a family offset account that provides family and friends with a way of giving financial help to their nearest and dearest without handing over their own life savings. Offset Plus, which is most likely to appeal to...

IN BRIEF: Brokers back B2L benefits.
October 3, 2005... Research by UCB Home Loans shows brokers believe in the benefits of buy- to-let, with 46% already owning buy-to-let properties themselves. And even if they do not already own a buy-to-let property, 68% will consider putting one into a self...

Call for SPASU to be banned.
October 3, 2005... Paymentcare has called on the government to ban single premium accident, sickness and unemployment cover. This comes on the back of an appeal from Citizens Advice to the Office of Fair Trading to launch a probe into the multibillion pound...

TMW slashes rates on self-cert range.
October 3, 2005... The Mortgage Works has made a number of significant changes to its self- cert mortgage range including substantial rate cuts and an LTV increase from 75% to 85% on several products. End dates have been extended to December 31. All changes...

Trigold is rated a top 20 tech firm.
October 3, 2005... Trigold is celebrating achieving 17th place in The Sunday Times' Microsoft Tech Track 100 that rates Britain's fastest growing technology companies. The Tech Track 100 ranks the country's private technology firms according to sales over...

60% of brokers see costs jump due to FSA control.
October 3, 2005... A full 60% of intermediaries have seen their costs increase by more than 10% due to regulation, research by the Intermediary Mortgage Lenders Association reveals. The research among the intermediaries that provide IMLA members with most...

Commercial exam set for 2005.
October 3, 2005... A specialist commercial mortgages exam module is being developed by the Institute of Financial Services, with a launch expected early next year. Though the final syllabus has yet to be confirmed, it is anticipated this module will...

Quarter of all landlords entered market this year.
October 3, 2005... The Association of Residential Letting Agents says a quarter of all landlords entered the buy-to-let market in the past year. The research is published in the latest quarterly Association of Residential Letting Agents Review and Index of...

Take a mortgage, get an iMac free.
October 3, 2005... Scarborough has built on the success of its recent plasma TV give-away with the launch of a mortgage which throws in a Apple iMac G5 computer as part of the deal. The country's second oldest society is offering the computer package with...

IN BRIEF: Malkin takes Assurant role.
October 3, 2005... Assurant Solutions has appointed Anna Malkin to join its client relationship management team. Malkin joins the business from Genworth Financial (formerly GE Financial Insurance) where she spent eight years in client management working with...

IN BRIEF: Tenet aims products at DAs.
October 3, 2005... Tenet has launched two offerings providing mortgage and insurance solutions for directly regulated advisers. Mortgage Professional and Insurance Professional, part of the IFA Professional suite, offer a high level of business support and...

Will new plans curb rogue estate agents?
October 3, 2005... Last week the government revealed its intention to crack down on rip- off estate agents. Speaking at the Labour Party Conference in Brighton last Monday, Alan Johnson MP, Labour's secretary of state for trade and industry, pledged the...

100% Football scores 2,035 players.
October 3, 2005... Mortgage Express' 100% Football online prediction game seen had a record number of players, totalling 2,035 - up 10% over last season. Now in its third year and sporting a new website 100% Football allows brokers to predict the outcome of...

ANALYSIS: Market Watch.
October 3, 2005... Swaps rose sharply last week, reversing recent drops. * One-year money is up 0.06% at 4.56% * Two-year money is up 0.10% at 4.52% * Three-year money is up 0.10% at 4.53% * Five-year money is up 0.11% at 4.54% Bank of...

Should lenders offer offline services alongside online technology?
October 3, 2005... Though useful when internet access in not available, such as in clients' homes, offline systems can't provide binding decisions, say our experts Jeff Scott ishead of intermediary mortgages marketing and specialist lending at Abbey ...

ANALYSIS: Please most people most of the time.
October 3, 2005... You can only please some of the people some of the time, and of course some people you can't please any of the time. So when confronted with the dilemma of helping your children or helping yourself, where do you turn for advice? If you...

ANALYSIS: Clued up clients make better buyers.
October 3, 2005... The findings of Mortgages Direct's recent customer survey were depressing to many in the industry but in a way, inevitable. Some findings beggar belief. For example, one in four people thought a tracker mortgage tracked their salary increases...

ANALYSIS: Smokers are doomed to pay higher premiums.
October 3, 2005... Nothing stays the same. Even the health effects of what we eat and drink seem to be constantly changing, according to the medical profession. And the good news for coffee drinkers is that the most recent research shows at least one cup a...

ANALYSIS: BM branch closures were tough but fair.
October 3, 2005... It must have been with heavy hearts that the staff of the former society Birmingham Midshires received the news that their 150-year heritage was to be brought to an end. But in a world of pressurised profit margins the decision was inevitable...

ANALYSIS: Lifetime rate war appears to be over.
October 3, 2005... Finally there has been a period of steadiness in the lifetime mortgage market, which at least allows us to take stock of where the market leaders are positioned. New business levels, as many will be aware, have been disappointing in the...

ANALYSIS: Labour housing views in the spotlight.
October 3, 2005... Housing was one of the main issues dominating the Labour Conference this year, both on and off the floor. In Tony Blair's speech, increasing home ownership by one million was at the heart of his vision for a third term. He told delegates: "Over...

ANALYSIS: Possibility of lighter touch regulation.
October 3, 2005... For all the media coverage of Gordon Brown's newfound willingness to say New Labour in his key address last week, the ears of industry policy watchers were primed for two different words. As it transpired, 'regulation' and 'mortgages' were...

LETTER: Good cover products must not be lumped with the bad.(Letter to the Editor)
October 3, 2005... From Steve Clowes In response to the super complaint lodged with the Office of Fair Trading by the Citizens Advice Bureau, as a responsible practitioner in the payment protection market I welcome any independent review that helps the FSA...

LETTER: Making advertising material compliant hitting smaller brokers.(Letter to the Editor)
October 3, 2005... From Lee Martin How is the industry getting on with advertising and marketing, especially small brokers like me who can't pay design agencies to come up with brilliant, eye catching designs? I am having to send everything I have to...

LETTER: After sales lender service reflects on intermediaries too.(Letter to the Editor)
October 3, 2005... From Simon Fisher Most of my recommendations to clients are rate and product based. When comparing similar deals I consider which company offers the best service and is likely to produce an offer in the most timely fashion to assist both...

LETTER: I have not signed up a single client from leads I bought.(Letter to the Editor)
October 3, 2005... From Chris Platt An advert for paaleads.com in your last edition prompted me to write about my experience with this company. The advertisement is misleading as it suggests that an intermediary would earn #2,200 from an outlay of #325....

LETTER: Income multiples are totally inappropriate nowadays.(Letter to the Editor)
October 3, 2005... From Keith Butler I was stunned to read in Mortgage Strategy (September 12)somebody as respected in the industry as John Wriglesworth suggesting income multiples could be raised to 6 x income. Speaking as somebody who has been in the...

LETTER: I caught Mortgage Trust nicking our cricket ad idea.(Letter to the Editor)
October 3, 2005... From Wesley Budd We successfully ran a summer advertising campaign around the amazing game of cricket. This included headlines such as 'Knocking the competition for six,' and 'Howzat for a self-cert mortgage?' So imagine how...

Dangerous liaisons.
October 3, 2005... With the focus on the potential for sub-prime mis-selling, brokers will have to take steps to protect themselves from client complaints and increasingly cannibalistic fellow brokers, says Harvey Jones Given industry paranoia about...

New players mean better deals for sub-prime clients in the future.
October 3, 2005... Linda Will is managing director of Accord Mortgages As a new entrant to the sub-prime mortgage market - and still only in pilot mode with six key partners - Accord Mortgages does not have the experience of pre- Mortgage Day sub-prime business...

In my ideal world all brokers would be DA and have access to all deals.
October 3, 2005... Gary Dixon is managing director of compliance.co.uk The majority of complaints in the mortgage industry will be prompted by information provided by the next broker. Customers are increasingly switched on about financial products but...

Brokers should focus on after-sales service.
October 3, 2005... John Webster is managing director of Preferred There's nothing unusual about a customer requiring a further loan but if they do, they should always see whether there is a further advance or second charge option available instead. A borrower...

Lenders can help brokers avoid mis-selling.
October 3, 2005... Liz Sully is head of compliance at GE Money Home Lending The financial services industry has had its fair share of mis-selling scandals and in recent weeks we have seen the media spotlight turn on the mortgage industry. As a number of...

INTERVIEW - ALISON HUTCHINSON: Making her mark.
October 3, 2005... In less than a year Kensington Mortgages managing director Alison Hutchinson has made a big impression on the business, says Rosemary Gallagher Kensington Mortgages managing director Alison Hutchinson has come a long way from her early...

FEATURE: Study the options.
October 3, 2005... Social changes mean the assumptions lenders use to target graduates with special deals are increasingly open to debate, says James Cotton First-time buyers have it tough. The price of the average house in the UK has doubled in the past few...

COMMENT: No grey areas allowed in self-cert.
October 3, 2005... With the sector in the media spotlight, brokers turning a blind eye to dodgy practices that allow self-cert clients to inflate their incomes could come back to haunt us all, says Brad Baker Just as the busy autumn business season begins,...

COMMENT: Alarm bells sound for sub-prime.
October 3, 2005... The FSA's decision to investigate three firms for non-compliant sales practices is a drop in the ocean as there could be hundreds more rogues to be rooted out, says Richard Griffiths There has been a flurry of reports about the Financial...

Experts see good and bad in a growing market.
October 3, 2005... Andy Watson is head of mortgage and credit union department at the FSA "Sub-prime is a growing area of the mortgage market and we have identified it as a priority area for our mortgage supervision. Where we find examples of possible...

Dear Delia: Freelance marketing consultant.
October 3, 2005... Dear Delia My client became a freelance marketing consultant two years ago and has an annual income of #52,000. He had several County Court judgements in his first year of trading and a couple of mortgage arrears. He has not missed any...

COMMENT: Jump the FSA record-keeping.
October 3, 2005... The recent FSA review once again shows that if firms write suitability letters there is considerably less chance of them falling at the regulator's record-keeping hurdle, says Bill Warren The recent Financial Services Authority review of...

Insight: Internetinsite.
October 3, 2005... Mortgage Strategy's weekly guide to what's hot and what's not on the web. Kevin Paterson takes a look at lender websites, working his way from A to Z Kensington Mortgages www.2.kmc.co.uk Content: **** Usability: *****...

COMMENT: Rightmove sets the stage on HIPs.
October 3, 2005... Rightmove's plans for a scheme that defers payment of Home Information Pack costs until sellers complete on a property means rivals will have to fund HIPs upfront to compete, says Frank Eve The development of Home Information Packs is a...

COMMENT: Net must be cast wide for best deal.
October 3, 2005... Research showing intermediaries do 58% of their business through just three lenders is worrying and begs the question whether clients' objectives are being met, says Sue Read I am always delighted to advise new clients and remind existing...

CurriculumVitae: Trevor Child.
October 3, 2005... Name: Trevor Child Age: 45 Job title: Senior manager, marketing and customer care Where do you live? Petersfield, Hampshire Describe your current job: Heading up marketing at Capital Home Loans, the self-certification...

RACING: Taylor's Tour.
October 3, 2005... Henry Taylor's day job is running a mortgage broking business in Eastbourne on the south coast of England, when not taking part in the Seat Cupra Championship This weekend sees the SEAT Cupra Championship make its visit to the famous...

COMMENT: B2L pundits keep it close to home.
October 10, 2005... One of a broker's main raisons d'etre is to help people invest their money by buying property. But where would advisers put their own cash? Mortgage Strategy examines this question in this week's cover feature starting on page 44 in...

BM Solutions fights back after walkout.
October 10, 2005... BM Solutions launched its annual money sale last week with a batch of mainstream products starting at 3.75%, in a move described by some pundits as a bid to stave off negative publicity following the high profile departure of key staff last...

Brokers don't understand retention policies, says Accord.
October 10, 2005... Accord Mortgages has warmed up the debate over client retention policies and says brokers must understand the legal requirements for lenders. The Woolwich came under fire last week for leaving clients unprotected if they took out a...

Halifax accused of cross-selling insurance.
October 10, 2005... Halifax has been accused of using cold calling and dirty tactics to cross-sell buildings and contents insurance. Anne Robson, consultant at Mortgage Experts, is submitting a complaint to Halifax after what she describes as a blatant...

BREAKING NEWS: Optimism over equity release.
October 10, 2005... The majority of advisers believe the equity release market will continue to grow over the next six months. A survey by Norwich Union Equity Release reveals 87% of advisers expect to be writing more business in the next six months compared...

BREAKING NEWS: Lenders could miss out on online sales.
October 10, 2005... Lenders are in danger of missing out on millions of pounds worth of online sales by ignoring the requirements of online mortgage shoppers. Research by Foolproof, the web usability company, shows lenders are failing to acknowledge needs and...

McConechy leaves M-Next.
October 10, 2005... Mortgage Next director Mal McConechy has quit the company after eight years to pursue other interests. And rumours are rife that more departures are on the way. One source tells Mortgage Strategy: "McConechy has left Mortgage Next and it...

Three-quarters want FSA to look at retail sector.
October 10, 2005... Three-quarters of Mortgage Strategy Online readers think the Financial Services Authority should carry out a detailed audit of the sales and advice process in the retail mortgage sector. The FSA was criticised last week for failing to...

Pru accused of non-compliance.
October 10, 2005... Prudential has been accused of bypassing IFAs and ignoring compliance procedures in a recent mailout. Dave King, director of ASK Financial Management, contacted Mortgage Strategy after a colleague received an endowment warning letter from...

MEX probe into self-cert allegations continues.
October 10, 2005... Mortgage Express is continuing its investigation into allegations that one of its sales team advised brokers how to fill in self-cert mortgage applications fraudulently. A source tells Mortgage Strategy that one broker voiced concerns to...

Small brokers criticise cost of FSA workshops.
October 10, 2005... Small brokers have branded Financial Services Authority workshop costs "horrendous". The FSA has embarked on a series of workshops to help brokers understand issues such as Treating Customers Fairly and complaints handling, but a one-day...