Mortgage Strategy articles from September 2006

Mortgage Strategy archives from September 2006

COMMENT: Interesting times for interest-only.
September 4, 2006... A total of 74% of brokers say they would advise on the deathbed mortgage launched by Kent Reliance. Its an impressive statistic for what has proved to be a highly controversial product and a popular point of debate in this week's Mortgage...

Link Lending launches.
September 4, 2006... Link Lending, the bridging finance firm backed by Commercial First founder David Johnson, officially launched last week. The lender is headed by Johnson, Paul Gower, Philip George and new managing director John Maclean. Johnson and...

Claims firm targets sub-prime market.
September 4, 2006... Loancheck has disclosed that it is investigating a shocking 50% of the sub-prime mortgage market for mis-selling scams. The claims firm has disclosed the names of some of the sub-prime firms it has cases against and anticipates that it...

Gap between sub-prime and prime blurring.
September 4, 2006... Lenders are starting to relax their criteria and accept sub-prime cases as prime as competition hots up, say brokers. Traditionally mainstream lenders have been strict about what cases they would accept, but increasing competition in the...

IN BRIEF: Deutsche joins GE bidding war.(Brief article)
September 4, 2006... Deutsche Bank is believed to be bidding for GE Life. The German bank has reportedly joined Swiss Re and XL Capital in the auction for the insurance arm of General Electric, which was put up for sale earlier this year. Copyright: Centaur...

IN BRIEF: AXA UK in acquisition talks.(Brief article)
September 4, 2006... AXA UK is in advanced discussions with Thinc Destini about acquiring a 100% shareholding in the business. Simon Chamberlain, chief executive of Thinc Destini, says: "A number of major institutions have followed our progress and we are at a...

IN BRIEF: Sturley to leave Mortgage Express.(Brief article)
September 4, 2006... Tim Sturley, head of intermediary mortgage distribution at Mortgage Express, has decided to leave the specialist lender. He joined the company in 1989 and worked on the relaunch of Mortgage Express in 1995. Copyright: Centaur Communications...

IN BRIEF: 250 DA brokers for Mortgage Times.(Brief article)
September 4, 2006... The Mortgage Times Group enlisted over 250 directly authorised brokers in August for its mortgage and insurance services. And subscriptions to its white labelled version of Trigold have now passed the 700 mark. Mortgage Times is continuing...

IN BRIEF: Binding decisions from Primrose.(Brief article)
September 4, 2006... Brokers will have access to binding decisions via Primrose's evaluate system from today, with real-time integration of lenders to be rolled out over September. Strategic partnerships director, Kevin Friend, says a staggered roll-out will...

AHIPP drawing up code of practice to set HIP standards.
September 4, 2006... The Association of Home Information Pack Providers is drawing up a mandatory code of practice for its members that sets guidelines on how HIPs are marketed and sold, how complaints are handled and the training of staff. As well as setting...

74% would advocate intergenerational mortgage.
September 4, 2006... A whopping 74% of Mortgage Strategy Online readers say they would advise a client to take out a deathbed mortgage. Just 26% say they'd have concerns about advising clients to take out the interest-only mortgage, which can be passed from...

Leaper quits MD role at Vesta.
September 4, 2006... Mark Leaper has resigned from his position as managing director at Vesta Packaging but is believed to be on the verge of reappearing in a role at another packager on the South Coast. Chris Wright, chief executive officer and the majority...

Flexishare mortgage goes on the road.
September 4, 2006... Advantage has taken its Flexishare product on the road in association with Mortgage Strategy. The roadshows feature a presentation about Flexishare - an initiative that complements the government's HomeBuy home ownership scheme - and a...

TV programme slammed for being irresponsible.
September 4, 2006... Brokers have slammed a TV programme showing people attempting to pay off their mortgage in a year with an overseas property as encouraging amateurs to take a risky gamble. The Channel 4 series One year to pay off your Mortgage - hosted by...

Victoria moves to boost lending.
September 4, 2006... Victoria Mortgages has revamped its product range in an attempt to achieve #2bn in lending by the end of next year in the hope of selling the firm. The lender is part of US firm Venturion Capital, which also owns The Mortgage Operation in...

IN BRIEF: Roadshows boost equity release.(Brief article)
September 4, 2006... Research from Prudential shows the majority of financial advisers think roadshows play a key role in terms of them learning more about the equity release market. The research also found their clients would benefit from more information about...

Brokers ridicule buy-to-let predictions.
September 4, 2006... Brokers have slammed property expert David Lawrenson's prediction that by 2026 over half of UK houses will be buy-to-let or second homes as ridiculous. Lawrenson, who works for property consultancy Letting Focus, is set to explain his...

Scarborough unveils plan to enter equity release.
September 4, 2006... Scarborough has revealed plans to enter the equity release market in the next couple of years. Despite the society having just announced the launch of its specialist lending brand, Scarborough Specialist Mortgages, it says it also has...

BM Solutions links to Trigold.
September 4, 2006... BM Solutions is linking up with Trigold to allow brokers to download agreements in principles for its products direct from Trigold's Prospector AAA sourcing system. The integration, due to take place from October, should speed up the...

Two-hour completions no threat to bridging market.
September 4, 2006... TWO-HOUR mortgage completions, which could become a reality next year, will not affect the bridging finance market, industry pundits have claimed. With bridging loans traditionally used when buyers need money quickly, it has been...

Gay advisers face no discrimination.
September 4, 2006... Gay men and lesbians employed in the mortgage industry do not experience the same discrimination as those in the legal sector, says gay mortgage brokerage Compass Independent Financial Advisers. Research from the Law Society last week...

IN BRIEF: Five members for FSA panel.(Brief article)
September 4, 2006... The FSA has appointed five members to the Financial Services Consumer Panel. Kay Blair, Stephen Crampton and Lindsey Rogerson will join on September 1, while Michael Chapman and Jenny Hamilton will do so from January 1 2007. The new members...

IN BRIEF: UCB joins PMPA panel.(Brief article)
September 4, 2006... The Professional Mortgage Packagers Alliance has added UCB Home Loans to its lender panel. UCB will launch with a three-year buy-to-let tracker product at the base rate plus 0.49%. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Shortage of new homes for families.(Brief article)
September 4, 2006... Research by SmartNewHomes.com found that 94% of participants thought there were not enough new homes available for families to buy in the UK. An overwhelming 86% of participants indicated they were looking to purchase a typical family home,...

IN BRIEF: Nationwide cuts fixed rates.(Brief article)
September 4, 2006... Nationwide last week cut the rates on its range of fixed rate mortgages. The new rates include a two-year fixed rate mortgage with a rate of 4.88% (#699 fee) or 4.97% (#399 fee). There is a three-year fixed rate deal (#399 fee) with a rate of...

Consumer confidence needs a boost.
September 4, 2006... As the housing market goes in the US, so goes the residential mortgage market. Historically speaking, these two industries have been joined at the hip, Siamese twins shaped by three key drivers - interest rates, the job market and consumer...

IN BRIEF: More flexibility from Lloyds TSB.(Brief article)
September 4, 2006... Lloyds TSB has launched a fully flexible mortgage to give customers control of the structure and cost of their loan throughout the mortgage term. This means they never have to switch their mortgage. Copyright: Centaur Communications Ltd....

IN BRIEF: Telephone leads service launched.(Brief article)
September 4, 2006... Paaleads.com has launched a telephone qualified mortgage leads service called Qualified by Telephone. The scheme gives brokers the opportunity to access quality leads and boost business profitability. Copyright: Centaur Communications...

IN BRIEF: CMLS expands its lender panel.(Brief article)
September 4, 2006... Complete Mortgage & Loan Services has added Salt to its lender panel. A Salt underwriter will work inhouse at Complete's premises enabling fast decisions and service. This brings its packaged lender panel to a total of 31 lenders. ...

Lenders hit back at claims of complacency over PPI.
September 4, 2006... Lenders have rebutted accusations that they are not taking Office of Fair Trading criticism over payment protection insurance seriously. Britishinsurance.com claims the biggest players in the market refused to defend their PPI practices...

Knowledge gap costly for first-time buyers.
September 4, 2006... Around half of UK consumers looking to get on the property ladder mistakenly assume it is out of their reach, research by Unisys reveals. Unisys, a worldwide technology services and solutions firm, says there is a mortgage knowledge gap...

SPML offers 95% LTV on near prime deals.
September 4, 2006... Southern Pacific Mortgage Limited has introduced 95% LTV on near prime as part of its revamped product range. The lender has also increased discounted rates and reduced self-cert loadings. The one-year discount has risen from 2.25% to...

IN BRIEF: Buy-to-let proves good investment.(Brief article)
September 4, 2006... UK buy-to-let has seen the best returns in the 21st century, research from Landlord Mortgages shows. Investors who purchased a buy-to-let property with a deposit of #25,000 could expect to see a #39,309 profit, 157%, over six years. ...

IN BRIEF: Detached houses up 6% in price.(Brief article)
September 4, 2006... The severe shortage of detached family homes in the UK has resulted in an average 6% price rise, compared to a 2% rise in apartment prices over the last 12 months, says Linden Homes. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: AVM market to treble in two years.(Brief article)
September 4, 2006... The market for automated valuation models is set to treble in the next two years as mortgage lending remains strong and lenders increase their uptake of online valuation services to improve the mortgage application process, predicts...

IN BRIEF: SPPL's sales team strengthened.(Brief article)
September 4, 2006... Southern Pacific Personal Loans has appointed two members to its sales team. Debbie Mace joins SPPL as account manager for the North and Scotland, and Charl Brown has been appointed as business development manager for London and the South....

Market share will determine growth of equity release.
September 4, 2006... The future of the equity release market could depend on the division of market share, with one provider warning that Key Retirement Solutions' dominance is putting new entrants off. A source at an equity release provider warns: "We need...

Wrong population data affects prices.
September 4, 2006... The Centre for Economics and Business Research says the UK population is 1.4 million higher than official figures suggest, which could be contributing to house price inflation. Although official figures show the UK population has just...

CHL launches system to offer online DIPs.
September 4, 2006... CHL Mortgages has launched an online mortgage application service which provides intermediaries with an online decision in principal. Mike Healy, head of sales at CHL, says: "We now have in place a totally paperless application procedure....

DB Mortgages reveals latest appointments.
September 4, 2006... DB mortgages has appointed Martin Swann as national account manager and Debbie Webster as business development manager. Swann has joined DB from Woolwich where he has held a similar position for the last couple of years. He will be...

Droplocks to become popular.
September 4, 2006... The popularity of droplock mortgages is likely to increase as more customers opt to switch between a variable rate and a fixed rate deal, says John Charcol. A droplock mortgage starts on a variable interest rate, such as a tracker, then...

Online application system to boost MPPI take-up.
September 4, 2006... Cassidy Davis has launched an online application process for mortgage payment protection insurance. The protection specialist insurer is offering a choice of payment options including single or renewable monthly premiums and a choice of...

Mortgage market is in rude health.
September 4, 2006... The July figures from the Bank of England show the UK mortgage market is in excellent health with an increase of some #10.9bn in the total net lending to individuals. In comparison, net lending to individuals in June increased by #9.8bn,...

IN BRIEF: Cartel improves customer care.(Brief article)
September 4, 2006... Cartel Group Holdings has signed up Amcat to provide a customer interaction system. Ian McCormick, head of international communications and associate director at Cartel, says: "Our mission is to offer customers long-term solutions that...

IN BRIEF: Inheritance Tax seminars.(Brief article)
September 4, 2006... Inheritance Tax planning specialist The WAY Group is to hold a series of seminars starting in Southampton on October 4 to alert independent financial advisers to its Inheritance Tax planning products. Copyright: Centaur Communications...

IN BRIEF: Beacon moves to ENC listing.(Brief article)
September 4, 2006... Beacon Homeloans is the latest lender to support the Enhanced Non Conforming sourcing module on Trigold. All its products will be listed and verified on ENC, enabling advisers to make comparisons. Copyright: Centaur Communications Ltd. and...

Equity rates lower than SVRs.
September 4, 2006... Equity release rates are now lower than the average standard variable rate on mainstream mortgages, says Safe Home Income Plans. In research examining the annualised interest rates for the top 10 equity release providers, SHIP has...

Co-operative Bank customers get share of profits.
September 4, 2006... Co-operative Bank mortgage customers stand to receive a share of its entire businesses profits, based on their loan amount outstanding. Under new plans, a customer with a mortgage of #50,000 would receive a payout of #25 annually. ...

Beacon adds to packager panel.
September 4, 2006... Beacon Homeloans has widened its distribution net with the appointment of Just Mortgage Packaging to its packager panel. Beacon was launched in 2005 as a standalone specialist lender, distributing sub-prime, buy-to-let and self-cert...

IN BRIEF: Free seminars on commercial loans.(Brief article)
September 4, 2006... InterBay is launching a free nationwide programme of 11 seminars to give brokers commercial mortgage knowledge. The series of seminars are designed to give brokers advice on how to target clients and how to build their businesses with a new...

IN BRIEF: BDS relationship manager.(Brief article)
September 4, 2006... BDS has appointed Di Moore as group relationship manager with immediate effect. This is a new role created to develop and manage BDS' affinity and network relationships. Copyright: Centaur Communications Ltd. and licensors

IN BRIEF: Charcol improves its online system.(Brief article)
September 4, 2006... John Charcol has incorporated the xit2 Valuation Exchange into its branch and online application process to provide an online system for its panel managers, SecureMove Panel Management Services and Colleys. Copyright: Centaur Communications...

Postcodes predict CCJ rate.
September 4, 2006... A mere Two CCJs were registered for every 100 people over 18 years of age in England and Wales in the last 12 months, says online credit repair service MyCallcredit. However, in some towns this was as much as three times higher, with more...

Brokers respond positively to Amber DIP system.
September 4, 2006... Amber Homeloans says its underwriters and sales team have received positive feedback from brokers following the launch of its online decision in principle on June 27. The system provides a binding decision to lend, either an automated yes...

Changing face of Ayia Napa market.
September 4, 2006... Ayia Napa has long been associated with booze, Brits and bad behaviour, but Assetz says it is now turning into an upmarket holiday destination and hotspot for property investors. Cypriot authorities have clamped down on nightclubs and...

IN BRIEF: LIME commercial proposition.(Brief article)
September 4, 2006... Tenet's Lifetime Insurance Mortgage Experts network has launched LIME Commercial to simplify the process of commercial lending and the different routes to do business. The proposition includes two routes - direct to lender and via an...

IN BRIEF: IFA appoints sales director.(Brief article)
September 4, 2006... Flexible-mortgage.net has appointed Arron Bardoe as sales director. Bardoe was previously business development manager at Legal & General. Bardoe will be responsible for the development of the existing team, as well as actively recruiting...

Do you think Gordon Brown has helped the economy?
September 4, 2006... The mortgage industry has formed its own opinion about whether Gordon Brown has had a positive or negative effect on the economy since Labour came into power in 1997. A recent Guardian/ICM poll shows that just 37% of Britons feel the...

IN BRIEF: Rise in expatriate mortgage rates.(Brief article)
September 4, 2006... Rates on The Derbyshire's range of expatriate mortgages have risen by 0.25% following the last rise in the base rate. Expatriates looking for a buy-to-let deal can take advantage of a three-year fixed rate of 5.50% until November 30 2009....

IN BRIEF: Three-year B2L deal from M-Next.(Brief article)
September 4, 2006... Mortgage Next has launched two three-year buy-to-let mortgages available exclusively via members of the Mortgage Next Network and directly authorised brokers registered with Mortgage Next Partners. Copyright: Centaur Communications Ltd. and...

ANALYSIS: Market Watch - 04.09.06.
September 4, 2006... Swaps edged back up reversing some of their falls of previous weeks. On a daily basis they seem to edge slightly up and down each day without any discernable reason or pattern. It was good to see at least one lender cut their fixed rates but...

David Cameron's plans to revolutionise Right to buy market good idea?
September 4, 2006... Our experts are sharply divided on the merits of Conservative proposals to overhaul the Right to Buy scheme Alex Hammond is PR manager at Kensingtom Mortgages A report by Datamonitor says owner occupation "can give individuals a...

ANALYSIS: Property is seen as the solution to all problems.
September 4, 2006... It is incredible how the media can grab hold of a topic and create a huge debate, seemingly from nothing. August is often given the title of 'silly season' as news items become hard to find and pages, whether printed or electronic, still...

ANALYSIS: Watch out for all the regulators.
September 4, 2006... As a number of government departments issue their six-monthly progress reports it is easy to overlook these as irrelevant for mortgage brokers. Now that the main regulatory focus of brokers is the Financial Services Authority it is often...

ANALYSIS: Another wave of network consolidation.
September 4, 2006... The mortgage network market seems to be constantly on the verge of consolidation. Ever since the number of networks ballooned with the arrival of regulation, we have been waiting for the amount of players to be trimmed down to a sustainable...

ANALYSIS: Offset benefits for the self-employed.
September 4, 2006... A year of self-employment has made me more convinced than ever that I need an offset mortgage. Each time I've switched deals or lenders I've considered the offset route but something has always deterred me. For example, Nationwide...

ANALYSIS: Watch your waste or be prepared to pay for it.
September 4, 2006... While the government spent the Bank holiday exhorting Brits to watch their waists, a new report showed that Britons are also one of the worst at handling their waste. As a result, pay-as-you-throw charges should be introduced for...

ANALYSIS: Football clubs get in on the investment act.
September 4, 2006... While some of you may be lucky enough to have clients who are football stars or managers with bucket loads of cash to invest, most ordinary punters can only dream of earning anything like Mourinho or Beckham. But it seems football clubs...

ANALYSIS: Get proactive to combat growing fraud.
September 4, 2006... For many people in the mortgage industry, the threat of fraud is covered in mystery. They know it is an increasingly important issue and costs the industry millions of pounds each year. But not many are aware of all the forms it can come in and...

ANALYSIS: Kent deal certain to attract interest.
September 4, 2006... I wear my heart on my sleeve when it comes to my feelings for building societies. Even though their idealistic aspirations may seem positively anachronistic in today's world of high commerce and corporate greed, their presence is a force for...

ANALYSIS: Student buy-to-let is an area worth pursuing.
September 4, 2006... With the recent 0.25% rise in the Bank of England base rate, first-time buyers are even less likely to be able to afford to get onto the housing ladder, although newspapers are increasingly reporting how parents are much more likely to give...

ANALYSIS: ARs face fallout of failed network.
September 4, 2006... The homepage of the First4Brokers website boasts - "It makes good sense to join a network that is run for brokers by brokers. The team at First4Brokers is dedicated to first class service to all its members." I guess that will have a...

ANALYSIS: What happens when you have principles.
September 4, 2006... Principles - we all have them. Or at least we should. As a former journalist you might well be questioning my right to preach to you, the readers of Mortgage Strategy, about having principles and I may have to agree with you. Well, even if...

ANALYSIS: Giving brokers information they seek.
September 4, 2006... It's a funny old game, writing a regular column in a financial publication. On occasions I have penned comments which I was certain would have the phone ringing off the hook and send the e-mail system into terminal meltdown in Strategy HQ. The...

ANALYSIS: Equity release market at a turning point.
September 4, 2006... The Council of Mortgage Lenders recently released its latest figures for equity release for the first six months of the year and, while it cited these with positive comment, the figures do not - as can be said for the half-year figures from...

ANALYSIS: We must put a higher value on our lives.
September 4, 2006... Apart from Andy Murray breaking into the world top 20 on the tennis circuit, the biggest news recently and the most relevant to the protection market was the decision by the National Institute for Health and Clinical Excellence (NICE) not to...

LETTER: Industry must support OFT efforts in PII market.(Letter to the editor)
September 4, 2006... From Adrian Fowler As a leading provider of mortgage payment protection insurance, Assurant Solutions was happy to have the opportunity to participate in the Office of Fair Trading feedback session held on August 24. It was encouraging to...

LETTER: Enough criticism - industry should support brokers.(Letter to the editor)
September 4, 2006... From Eddie Royce I read Mortgage Strategy every week and feel it is the most useful publication for brokers and advisers. Most articles by your commentators have valid points to make but occasionally I feel they have just filled up a gap...

LETTER: Woolwich shies away from TCF with diabolical service.(Letter to the editor)
September 4, 2006... From Stephen Yates I read with interest last week's letters page where lenders again appear to be letting us all down despite our combined broker power. Of particular interest was the comments from Woolwich's David Finlay. He felt...

LETTER: Halifax came to the rescue in style to save client's deal.(Letter to the editor)
September 4, 2006... From Kevin Duffy At Hamptons we are thankfully used to excellent service from our panel of lenders. But a recent example of this set the bar even higher. Last week a self-employed client of ours was left high and dry by First Direct only...

LETTER: FSA should tackle lenders that refuse to divulge information.(Letter to the editor)
September 4, 2006... From Nigel Pamment I read with interest the article regarding access to information on clients (Mortgage Strategy August 21). I think it is about time that lenders who are the least helpful in divulging information should be singled out...

FEATURE: Healthy interest.
September 4, 2006... Opinion over interest-only mortgages is divided but there is no denying that in the right circumstances they can prove to be a worthwhile tool in dealing with clients' mortgage needs, says Mira Butterworth Love them or hate them,...

The public perception of interest-only mortgages.
September 4, 2006... Do you think it is a good idea to pass on your mortgage to your children and would you take on an interest-only mortgage? Bill Davis, 44, cleaner I think it's a good idea. If you have the money to invest, the house could eventually...

INTERVIEW: The future is Pink.(Interview)
September 4, 2006... David Copland is synonymous with the Pink Home Loans brand and has been responsible for leading it to its status as a top packager, says Barney McCarthy If you cast your mind back 10 years, you may remember 1996 for a variety of reasons....