Mortgage Strategy back issues from May 2006:
COMMENT: FSA has to target rogue brokers.
May 01, 2006 ... Just as the mortgage industry starts to recover from the Financial Services Authority's mystery shopping exercise into self-cert, another shocking investigation has unearthed brokers taking advantage of those in financial difficulties and charging them higher fees. As we ...
Brokers are overcharging vulnerable customers.
May 01, 2006 ... Shocking results from a mystery shopping exercise have exposed bad practice among some mortgage brokers who are overcharging vulnerable customers in financial difficulties. Worryingly, the results show that some brokers are quoting fees of up to #5,000, depending on clients' ...
Ex-Blue star serenades staff at BM Solutions.
May 01, 2006 ... The equity release sector was rife with rumours last week about potential entrants to the market looking to acquire firms. One industry source says: "There are a lot of big players keen to get into this market and an acquisition is a good way in because it provides an ...
IN BRIEF: Abbey trading results on the up.(Brief article)
May 01, 2006 ... Abbey's results for Q1 2006 show that statutory profit and trading profit before tax, trading income and retail balances are all ...
IN BRIEF: Equity release training package.(Brief article)
May 01, 2006 ... The Institute of Financial Services has teamed up with equity release specialist Just Retirement to offer a training and examination package for up to 1,000 financial advisers. In partnership with the IFS, Just Retirement is ...
IN BRIEF: 100% Deal from Catholic.(Brief article)
May 01, 2006 ... Catholic has launched a mortgage deal that will allow potential applicants to borrow up to 100% of the property value, with ...
IN BRIEF: Join in MS survey on equity release.(Brief article)
May 01, 2006 ... Mortgage Strategy is calling on all brokers to take part in our equity release survey at www.mortgage-strategy.co.uk. The ...
IN BRIEF: Bungalows and beans at Asda.(Brief article)
May 01, 2006 ... Asda says it is planning to be the first UK supermarket to move into the property market. From this summer, customers in 10 of its North-East stores ...
IN BRIEF: April sees house prices spiral.(Brief article)
May 01, 2006 ... Hometrack's latest house price survey reveals that April saw the highest monthly rise for almost two years with values rising across 36% of the ...
IN BRIEF: #20,000 Fine for insurance broker.(Brief article)
May 01, 2006 ... The Financial Services Authority has fined insurance intermediary Besso #20,000 for failing to apply for approval of an employee who held a significant management role at the firm when it first ...
IN BRIEF: Swift lending 73% up on last year.(Brief article)
May 01, 2006 ... Swift Group has revealed that its gross new lending for the first quarter of 2006 is running 73% higher ...
Advantage launches range through Morgan Stanley.
May 01, 2006 ... Advantage Home Loans has launched its first suite of mortgage products through Morgan Stanley, causing concern among some of its lending partners. The sub-prime products will make Advantage the seventh branded lender on its own online sourcing platform e:valuate. ...
65% Of brokers feel confident about self-cert.
May 01, 2006 ... A majority of 65% of Mortgage Strategy Online readers feel confident about selling self-cert mortgages. But with seven out of nine respondents in this week's Word on the Street saying they would happily lie about their income to get ...
Branded lender funded by MPLC.
May 01, 2006 ... Solent Mortgage Services, The Finance Centre and em-financial have clubbed together to launch a branded lender called Spectrum, funded by Mortgages PLC. The range of products offered will include jointly branded deals which each company will market to their own broker base. ...
ING rumoured to be eyeing B2L market.
May 01, 2006 ... ING Direct is rumoured to be poised to enter the buy-to-let property market, after it sponsored a Channel 4 TV programme about investing in rental property. In October 2005 the Dutch-owned savings bank confirmed speculation that it was consulting its customers before setting ...
Equity advice franchise launched to help brokers.
May 01, 2006 ... The Equity Release Advisory Service is launching a national franchise proposition called Equity Advice to encourage more brokers to advise on and sell equity release products. Stuart Wilson, managing director of ERAS, says the public doesn't have enough access to equity ...
Packagers win sub-prime business.
May 01, 2006 ... Research from GMAC-RFC reveals that 60% of brokers place their sub- prime business with packagers. GMAC-RFC says this shows the considerable backing packagers have from brokers, despite some in the industry predicting their demise after regulation. The number of ...
IN BRIEF: FMO offers World Cup tickets in prize draw.(Brief article)
May 01, 2006 ... First Mortgage Options is offering two England vs Sweden VIP hospitality tickets for England's final Group B game in the World Cup this summer. Provided in conjunction with GMAC-RFC, the tickets are available to all advisers via a prize draw which will take place at noon on Friday June 9 ...
Future says service is fine.
May 01, 2006 ... Future Mortgages says its service is back on track as it makes plans to bring back its 100% LTV mortgage. Ken Horsburgh, head of sales at Future Mortgages, says the lender is planning to expand its business and products now its service is sorted out, and will be bringing back ...
Impaired life equity plan launched.
May 01, 2006 ... Partnership Home Loans launched a medically underwritten impaired life equity release plan through 12 brokers last week. The sister company of insurer Partnership Assurance gained approval from Safe Home Income Plans in February and intends to roll the product out nationwide as ...
Mortgage lending to pass #1trillion soon.
May 01, 2006 ... Total mortgage borrowing in the UK will pass the #1trillion mark early next month, says the Council of Mortgage Lenders. The CML says despite growing rapidly in recent years, borrowing is dwarfed by the amount of unmortgaged property wealth held by home owners, which stands at ...
Oakwood Group appoints Klemmer as president.
May 01, 2006 ... The Oakwood Group has appointed Richard Klemmer as president. Klemmer, formerly CEO of Oakwood's Australian lending subsidiary Pepper Homeloans, will be responsible for overseeing the operations of all Oakwood Group companies, specifically its six subsidiary firms, one of ...
Owen says LMC will retain brand after sale.
May 01, 2006 ... Speaking exclusively to Mortgage Strategy as the sale of London Mortgage Company to Lehman Brothers is set to complete, LMC chief executive Robert Owen insists the company will retain its brand as the business expands. Owen set up LMC just under five years ago and took the ...
70% Would lie about income to get on housing ladder.
May 01, 2006 ... Mortgage Strategy's Word on the Street survey this week shockingly reveals that 70% of consumers would lie about their income to help them get on the property ladder. Seven out of 10 people say they would lie about their income if they felt they could get away with it. ...
IN BRIEF: Call for rural housing action.(Brief article)
May 01, 2006 ... A report by the Joseph Rowntree Foundation says the government must address the housing problems facing growing ...
IN BRIEF: Retirement Plus appointment.(Brief article)
May 01, 2006 ... Retirement Plus has appointed Chris MacMahon senior relationship manager. He has 30 years' experience in mortgages ...
IN BRIEF: Abbey relaunches buy-to-let range.(Brief article)
May 01, 2006 ... Abbey has relaunched its buy-to-let range, introducing fixed and tracker rates, low booking fees and free valuation fees plus #250 ...
IN BRIEF: Halifax cover deal with Sesame.(Brief article)
May 01, 2006 ... Halifax General Insurance has agreed a deal with Sesame to become a provider of household and accident, sickness and ...
IN BRIEF: Pink online DIP.(Brief article)
May 01, 2006 ... Pink Home Loans is offering its appointed representatives an online decision in principle facility. This is available for packaged adverse cases and will search ...
Watford FC seeks partners.
May 01, 2006 ... Watford Football Club is seeking a range of affinity partners to offer fans financial services and products from mortgages to pensions. Tony Yorke, spokesman for the club, says it can enhance its relationship with supporters by introducing them to reputable companies via its ...
HMO rules could affect B2L deals.
May 01, 2006 ... Legislation brought in to cover homes in multiple occupancy could lead to more innovative products from lenders in the buy-to-let sector. The HMO regulations require landlords of properties with five unrelated tenants or that are over three stories high to acquire licences. ...
Call for brokers to push MPPI.
May 01, 2006 ... The mortgage sector is failing to ensure consumers are adequately covered by mortgage payment protection insurance, says MPPI provider Commitments Protection. Commitments is encouraging brokers to ask clients whether mortgage payment protection is not more important than the ...
Buyers turned off by petty sellers.
May 01, 2006 ... Sellers taking garden plants, light fittings and toilet rolls when they leave their homes is rated the top complaint by buyers in a survey by Halifax. More than a quarter of the people surveyed by Halifax admitted to digging up their favourite flora and taking it with them, ...
IN BRIEF: Manchester Expo on May 17 and 18.(Brief article)
May 01, 2006 ... The 2006 Mortgage Business Expo in Manchester is to take place at the G- Mex exhibition centre on May 17 and 18. The free event is organised for the second year by Clarion ...
IN BRIEF: Commercial appointment.(Brief article)
May 01, 2006 ... Davenham Property Finance has appointed Andy Matley as its commercial mortgage manager. Matley joins from the Royal Bank of ...
IN BRIEF: MT self-cert exclusives.(Brief article)
May 01, 2006 ... The Mortgage Times Group is launching two prime self-cert exclusive products with free valuations in conjunction with The Mortgage Business. The products ...
IN BRIEF: Rightmove joins AHIPP.(Brief article)
May 01, 2006 ... The Association of Home Information Pack Providers grew last week as Rightmove.co.uk signed up.It joins over 30 organisations in ...
FTBs are giving up hope.
May 01, 2006 ... Half of prospective first-time buyers are so scared about getting mortgages and homes that they've given up hope of ever buying properties, says Bradford & Bingley. B&B's latestreport on first-time buyers finds that although 37% want to stop wasting money on rent, 43% have ...
C2 extends its proc fee offer on adverse deals.
May 01, 2006 ... c2-financial has extended its C55 offer whereby it will only retain 0.25% of the proc fee on most of its medium and light adverse products. Justin Caffrey, operations and sales director at c2, says: " We listened to our brokers who were desperate for this offer to be extended ...
Amber launches self-cert range.
May 01, 2006 ... Amber Homeloans has launched a range of prime self-cert products including a 5.79% three-year fix available up to 95% LTV. It has also unveiled a selection of 90% LTV fixed rate products including a 5.19% two-year fix up to 90% LTV, a 5.09% three-year fix up to 90% LTV and a ...
JRF floats equity care plan.
May 01, 2006 ... The Joseph Rowntree Foundation has called on the government to pilot a voluntary equity release scheme for home-based care to enable home owners to access capital tied up in their homes. JRF estimates this would cost about #100m a year depending on take-up, but because the ...
TBMC joins Intrinsic Services' packager panel.
May 01, 2006 ... The Business Mortgage Company has been appointed to Intrinsic Financial Services' panel as its only commercial packager. Intrinsic says the specialist commercial and buy-to-let packager was chosen because of its experience and systems designed for commercial and buy-to-let. ...
Pink extends its sub-prime offer.
May 01, 2006 ... Pink Home Loans is extending its Turning the Adverse World Upside Down campaign until July 31 2006. Pink launched its sub-prime campaign at the beginning of the year with the aim of adding value in the adverse market. It kicked off the campaign with a #99 valuation fee and in ...
IN BRIEF: Fixed deals from Rooftop.(Brief article)
May 01, 2006 ... Rooftop Mortgages has launched several fixed rate deals, reduced its Right to Buy fixed rates, and ...
IN BRIEF: Advisers won't put in study time.(Brief article)
May 01, 2006 ... Many advisers are losing out on gaining specialist qualifications, deterred by the prospect of long hours of study, says the Institute of Financial Services. But the ...
IN BRIEF: Society appoints director.(Brief article)
May 01, 2006 ... Market Harborough has appointed Kerry Spooner as a non-executive director. Most of Spooner's legal career ...
Buyback issue could threaten mortgages.
May 01, 2006 ... If you buy a defective toaster the store you bought it from either gives you a new one or your money back. But what happens when one of America's mighty investment banking houses - via one of its conduits - buys a residential loan from a mortgage banking firm and within 90 days the loan ...
IN BRIEF: TMB appoints sales manager.(Brief article)
May 01, 2006 ... The Mortgage Business has appointed a regional sales manager to cover the Midlands, North, Scotland, North Wales and Northern Ireland. Martin Garfoot has ...
IN BRIEF: Golden oldies.(Brief article)
May 01, 2006 ... Pensioners' property equity stands #54bn higher than last year, research reveals. Over the past 12 months pensioners have benefited to the ...
IN BRIEF: PMPA offers semi-exclusives.(Brief article)
May 01, 2006 ... The Professional Mortgage Packagers Alliance is offering two semi- exclusive deals from The Mortgage Business, ...
IN BRIEF: Impaired credit deals from Unity.(Brief article)
May 01, 2006 ... Unity Home Loans has launched two impaired credit ranges. The two-year fixed rate for light impaired and the three-year stepped ...
IN BRIEF: Paymentcare offers free cover.(Brief article)
May 01, 2006 ... Paymentcare.co.uk is offering four months' free cover and reduced rates on its latest mortgage payment protection insurance product. Free-4-all ...
IN BRIEF: Kensington wins Queen's Award.(Brief article)
May 01, 2006 ... Kensington Mortgages has won the 2006 Queen's Award for Enterprise in the innovation category. This is the first time a specialist lender has won the award. Lenders and brokers have faced allegations in the past over the mis-selling of self-cert mortgages which is why some ...
Vox pop: Would you lie about your earnings to get a mortgage?
May 01, 2006 ... Lenders and broker shave faced allegations in the past over the mis- selling of self-cert mortgages which is why some intermediaries still feel uneasy about selling these types of deals. But it's not only lenders and brokers that should shoulder the responsibility - ultimately it's the ...
ANALYSIS: Market Watch.
May 01, 2006 ... Swaps surged last week to an annual high, bringing about a swathe of rate rises and withdrawals. * One-year money is up 0.04% at 4.85% * Two-year money is up 0.07% at 4.96% * Three-year money is up 0.10% at 5.04% * Five-year money is up 0.13% ...
Should all buy-to-let have to be sold with home information packs?
May 01, 2006 ... There does not seem to be much justification for the exemption of buy- to-let properties from HIP legislation, say our experts paul broadhead is deputy director-general of the Association of Home Information Pack ProvidersHouses or flats in which tenants are in occupation are ...
ANALYSIS: Leads that can lead borrowers astray.
May 01, 2006 ... Hardly a week goes by without a call from yet another company looking to sell the mortgage leads it has generated. Of course, many of these companies have grown along with the public's expanding access to and use of the internet. The generation of online leads is big business ...
ANALYSIS: Honest Tuan Le is the real winner.
May 01, 2006 ... BBC's The Apprentice makes fascinating viewing. A bunch of reasonably clever people chuck in their well paid jobs to fight it out on national TV for a non-specific position on Sir Alan Sugar's payroll. The success of the first series obviously allowed the programme makers to ...
ANALYSIS: HMO rules challenge all B2L lenders.
May 01, 2006 ... In the past few months much has been written about the merits of houses in multiple occupancy legislation, which finally came into force on April 6 this year. The shape of the regulation has been known for some time, but it is becoming clear that some will be able to seize this as an ...
ANALYSIS: iPad idea seems like a marketing ploy.
May 01, 2006 ... In a bid to make what could be seen as living in a box appealing to trendy first-time buyers, house builder Barratt has started selling its iPad apartments. One and two-bedroom Barratt iPads will be available from #80,000 at some 17 sites across Great Britain, from the Isle of Wight to ...
ANALYSIS: Getting together to Release it Right.
May 01, 2006 ... The first meeting of the AMI working party on equity release was held recently. This was an opportunity to bring together those firms that specialise in equity release and wish to support Mortgage Strategy's Release it Right campaign. Looking around the table, AMI had ...
ANALYSIS: IHT is poised to be political hot potato.
May 01, 2006 ... Research from Portman shows the number of property millionaires increased 12-fold in the past decade. There was a time when being a millionaire was a big deal. Then along came Chris Tarrant and that annoying National Lottery unicorn and suddenly being a millionaire seemed small ...
ANALYSIS: Lenders should not encourage claims.
May 01, 2006 ... Sixteen years ago, in the financial services equivalent of a land before time, my wife briefly ran a mortgage brokerage. It seemed like a good idea. She had the expertise, we'd both been in financial services for decades and the business would be low key and run from home to fit in with ...
ANALYSIS: Lenders must catch up with the city living trend.
May 01, 2006 ... Recent years have seen huge growth in urban living. British cities are outgrowing themselves and developers are having to think of new ways of maximising the use of city centre space, leading to a marked rise in the number of inner city developments. The traditional view of ...
ANALYSIS: Brokers hold client information on trust.
May 01, 2006 ... Information is the raw material of the business world. Vast amounts are transferred daily in our personal and professional lives. The Data Protection Act lays down legal guidelines about how this data should be handled by organisations. Lenders hold huge amounts of ...