CeRER Qualification Helps Capture FTB Market
October 31, 2008
The CeRER (Certificate in Regulated Equity Release) is an important aspect of being able to survive in today’s market, not simply because it helps a mortgage advisor diversify their business, but also because of the current tighter lending criteria required by many mortgage lenders.
Deposit requirements are much higher at the moment. 100 percent mortgages no longer exist and 95 percent mortgages are rare and only for those with an immaculate credit history.
First time buyers are watching in dismay as house prices have fallen, however, although the price might be more affordable, few can afford the ten percent deposit.
As a result, we are seeing more Read more
Teaching About Money in Schools – Part 2
October 30, 2008
Yesterday, we discussed Nationwide’s Money Week initiative to help teach about money in schools, however, the Nationwide is not the only financial institution to have become involved in recent years. In 2007, HSBC committed £3.4 million over a five year period to a similar project in primary schools called What Money Means, and other companies such as West Bromwich, Britannia and Coventry building societies, Natwest bank, insurers Mutual Assurance and Standard Life and GE Money, the credit card provider, have all taken part in different education projects.
However, these projects are often Read more
Teaching About Money in Schools – Part 1
October 29, 2008
The current generation of children are bombarded with more information than ever about finance and money, and financial institutions, including mortgage lenders, are keen to ensure that this generation learn about how to manage their money so they know what they can afford to borrow and can make informed decisions.
Teachers in primary schools are starting to gently introduce our children to money matters, such as learning the various coins, learning to add and subtract using coins and how to save their pocket money for things they want. As they get older, they are learning the difference between credit cards and debit cards and about interest rates.
This can only be a good thing, as we note on CeMAP training courses, that many people are not aware of different financial products at all. Luckily, the syllabus covers everything very comprehensively, but it is important in our personal lives that we know these things, rather than only learning them if we want to train as mortgage advisors.
Initiatives such as ‘Money Week’ involve activities on budgeting for children as young as six or seven years old. Money Week is funded by Nationwide Building Society, which pledge £500,000 in a three year plan to boost schools financial education.
Activities include stories such as one about twins who want to buy a hamster from their local pet store. They work out how much pocket money they need, how much they can save and when they can get their hamster. They find they can save money and it has a happy ending.
The Nationwide is not the only company to be involved in this sort of project and in Part 2 tomorrow, we will discuss the other initiatives running, their failings and future plans.
The FSA’s Role In Teaching Children About Money
October 28, 2008
If children grow up learning the true value of money and how to handle it, it makes our role as a mortgage advisor much easier. It also helps those taking their CeMAP training if they have a genuine interest in money management, as CeMAP 1 covers Read more
Modern Mortgage Advisors Need CeRER Qualification
October 27, 2008
The CeRER (Certificate in Regulated Equity Release) is essential for any mortgage advisor in today’s fluctuating mortgage market.
Being able to give only basic mortgage advice is no longer sufficient and mortgage advisors and financial advisors need to diversify their business.
Despite falling house prices at Read more
Relocation, Relocation
October 26, 2008
Not to be confused with Location, Location, Location, the other property buying show with Phil Spencer and Kirsty Allsop, Relocation, Relocation features couples looking to buy not one, but two properties, usually in the UK. The notion of the show is that couples who have managed to profit from the housing market are able to sell their large house in the city and buy a much better property in the country, and still be able to afford a small flat in the city for their working week.
Typically when couples are looking for properties they’ll find that their budgets are unworkable because they don’t allocate enough Read more
Mortgage Lending Increases
October 25, 2008
Following record lows in the number of approved mortgage loans this summer, September’s figures show a slight increase.
Estate agents also showed an increase in the number of sales going through, according to the National Association of Estate Agents, the first increase since early this year.
This increase in mortgage lending has Read more
Joy For Millions – Cheaper Mortgages
October 24, 2008
No doubt we have all heard the news that today we expect to hear figures showing that the economy has shrunk for the first time in 16 years, meaning the dreaded R word may indeed have hit Britain.
With fears of a recession, experts predict the Bank of England will cut the base interest rate to just 4 per cent.
Yesterday, several lenders Read more
TCF Deadline Approaches
October 23, 2008
Mortgage advisor companies should be aware that the ‘judgement day’ deadline to implement the Financial Services Authority’s (FSA) Treating Customers Fairly initiative is less than ten weeks away and all mortgage firms must comply.
The FSA stated all firms:
“must be able to Read more
Lifetime Mortgages: Pru On Top
October 22, 2008
Quarter 3 results for the Prudential show that it has around 25 per cent of the market share for lifetime mortgages at the moment.
Their results show lifetime mortgage advances of £71 million, which is an increase of 8 per cent on last quarter. That makes the total so far this year a huge £188 million, a 74 per cent increase on 2007.
The group’s UK business has grown to £732 million, an increase of 38 per cent.
At a time when many Read more
