Get your free 30Day trial for MBT!
All TMA members will receive MBT Criteria Search free as part of MBT Affordability for at least 3 months. If you haven’t yet, sign up to MBT today for a free 30 day trial.
MBT Criteria Search: Access from MBT navigation bar, or after you have run an affordability case
- Free text search bar allows you to search for any term, just like Google
- Results are accurately pulled directly from lenders’ criteria PDFs, with quick view and access
- Filter for affordable lenders
- Coming soon – integration of additional criteria into MBT results table
As a quick reminder: MBT Affordability provides accurate results from 42 Resi and 65 BTL lenders in under a minute, and was named the Best Affordability Solution in 2020. Sign up here.
If you have any questions you can always contact MBT at support@mortgagebrokertools.co.uk. If you have tried MBT in the past, and want to try it again then just ask MBT to extend your trial period.
Join your weekly demos
Need more guidance on how to use their system, you can also always join one of their weekly demos if you want to see it in action. Register for our weekly demos, every Thursday at 09:30am:
https://zoom.us/meeting/register/tJ0qceigqTMsH9PDu1YzFoBKKVfLRM5cYd7-
New dedicated broker support line to help customer applications benefit from stamp duty holiday extensions
Do you have customers looking to complete before the extended stamp duty holiday deadline? At NatWest Intermediary Solutions we’re doing all we can to help.
Starting today, we’re opening a new dedicated support line exclusively for brokers, to help answer your queries relating to applications that need to be completed in time to benefit from the stamp duty holiday.
The number to call us on is: 0345 600 0205, selecting option 2. Lines are open from 9am – 5pm Monday to Friday.
Please ensure you have your Customer name and Account Number, or Postcode and first line of address to hand when calling us. Our agents will also ask two random questions from the following:
- Customer’s Middle Name or Customer’s DOB
- Correspondence address and postcode
- Loan amount within £5k or balance within £5k
- Current account number and Sort code
We would also like to highlight that we have spare capacity within our underwriting teams. This means that provided cases are fully packaged with all required documentation, and there’s no delayed access to the property for the Valuer, then we have a high degree of confidence in being able to issue the Offer of Loan prior to 30th June. Our fully packaged application time to offer is circa 2 days.
You’ll be aware that we will also take search indemnity insurance which puts us ahead of many lenders in the market and makes hitting the deadline more likely.
We will also instruct your valuation on day 1 for cases under £500K. For cases above this amount, the instruction will happen after we have underwritten the case which is currently 2 days given our present underwriting service standards.
We can also support customers who have been delayed with their house purchase to help them take advantage of the stamp duty holiday extension. You can apply for an existing mortgage offer to be extended on behalf of the customer:
- For up to 3 months. where a customer is one month from expiry of their current mortgage offer
- For up to 6 months, in 3 month increments, for New Build properties
To help make sure that your customers are ready to complete on their house purchase, we have created a top tips guide, which you can download from our website to share with your customers.
Turning ‘Generation rent’ into ‘Generation buy’
In the wake of the chancellor’s introduction of a 95% mortgage guarantee scheme for homebuyers with lower deposits, David Forsdyke, Later Life Finance expert at Knight Frank Finance, points out that parents and grandparents can also make a real difference when it comes to the younger generation buying their first property.
Launched into Near Prime market
Metro Bank has expanded its product range further and launched a near prime residential range for customers with a “less than perfect credit profile or a low credit score”, offering greater flexibility for those that may be struggling to get a mortgage elsewhere.
Near Prime highlights
- Lower credit score requirement
- Loans available from £50,000 – £500,000 for purchase and re mortgage
- Maximum LTV of 80%
- 2 & 5 fixed rates starting from 3.79%
- Capital and interest repayment only
- Capital raising, including debt consolidation accepted – new Debt Consolidation Form required for debt consolidation applications
- Joint borrower, sole proprietor – only where the additional borrower(s) is a close family relative
- Maximum age 80 (mortgage term based on the oldest applicant)
- Up to 4 applicants on the mortgage can be considered
All cases are subject to full assessment and a credit score pass. For full details on the points above and our full near prime lending criteria, please visit our Feature of the Week or refer to our Lending Criteria Guide and Product Guides.
Got a case to discuss?
Why the Budget is good news for the housing market
Precise Mortgages’ Group Sales Director, Adrian Moloney shares why after a year of lockdowns and self-isolation he believes that the recent Budget announcement is good news for the housing market.
Why the Budget is good news for the housing market?
Adrian Moloney – Group Sales Director
Published 05.03.2021
As someone who likes an occasional flutter, I love this time of year. If you’re a fan of horse racing, not only do you have the Cheltenham Festival in March, there’s also the Grand National and the 2,000 Guineas at Newmarket just around the corner in April.
As a responsible gambler, I only ever put down a small stake; what I really enjoy is studying the form, separating the front runners from the also-rans and trying to predict a winner.
It’s just one of the reasons why I’m so interested to see how the Chancellor of the Exchequer’s Budget, described by Labour leader Sir Keir Starmer as “betting on a recovery fuelled by a consumer spending blitz”, plays out.
Joint Borrower Sole Proprietor reintroduced
Hinckley & Rugby Building Society has reintroduced its popular niche joint borrower sole proprietor (JBSP) mortgage at 90% loan to value (LTV). The product lets older people put their name on a mortgage to help younger borrowers who cannot afford the total loan based on income and/or circumstances. The society also offers reverse joint borrower sole proprietor mortgages, which allow younger people to support older buyers who are retired or close to retiring.
Updating names on the system
This is an important update on application amendments relating to customer names.
Once you’ve started keying an application if you wish to change the order of the applicants or add/remove an applicant, it is extremely important that you do not just amend one customer details to another customer. Please follow the steps below to ensure the data is correctly allocated to the right customer:
To change the applicant order:
- In the Applicant Summary table at the bottom of the Personal Details screen use the ↓ and ↑ arrows on the left-hand side to amend the order
- Click ‘Submit’ button
To remove an applicant:
- In the Applicant Summary table at the bottom of the Personal Details screen use the ‘Delete’ button on the right-hand side to remove an applicant
- Click ‘Submit’ button
To add an applicant:
- Click ‘Add Another Applicant’ button on Personal Details screen
- Complete new applicant details
- Click ‘Save Applicant’
- Click ‘Submit’ button
From ex-pats to portfolio landlords, could a Shariah compliant bank be a solution for your complex BTL cases?
Whilst a lot of focus has been on purchase activity since the announcement of the stamp duty
At Gatehouse Bank, we have found many non-Muslims actively choose Shariah-compliant products and services because they view them as ethical, fairer, more socially responsible and transparent. In addition, Shariah finance leads to the same outcomes for your customers – we can help to buy and re-finance properties across England and Wales.
It is a myth that because Shariah finance derives from Islamic teachings it can only be used by those of the same faith. Another misunderstanding is that Shariah finance will not lead to the same outcomes as a conventional mortgage. This article aims to dispel these misconceptions and provide a brief introduction to Shariah finance whilst also highlighting some key differences and similarities with a conventional mortgage.
Shariah finance derives from the Islamic teachings of social responsibility and fair play. This means that the Bank cannot participate or invest in certain activities, such as gambling, tobacco and the arms industry. Gatehouse Bank can therefore be deemed as ‘ethical’ and provide a finance solution to customers with those needs.
Whilst the outcome is the same, there is a major difference – the Bank cannot charge interest. This is because money must be put to good use to generate profit supported by a genuine trade or business-related activity. The giving or receiving of interest (making ‘money from money’) is prohibited. Instead, the Bank and customer jointly buy the property with each having a beneficial interest according to the amount each has contributed. The customer leases the part of the property owned by the Bank and pays a monthly ‘rental payment.’ The Bank is the registered owner for itself and the customer. At the end of the finance term, if all payments have been made, ownership of the property transfers to the customer. The table below helps to explain this further:
Q is for Quick answers
Our BDM team are experts in BTL and are on hand to answer any of your questions. Just get in touch for any help and support you need, whether it’s a quick query on a case submission or a more complex question – they’re always happy to help.
Find your local BDM
Get in touch today with our BTL experts today
Call 0370 707 1894 Mon to Fri 9am to 5pm
Go to zephyrhomeloans.co.uk
Extra bonus to your annual bonus earnings
Teachers for Intermediaries (TFI) has announced it will now include up to 75% of bonus payments within mortgage affordability calculations
The move is designed to aid high earning financial services borrowers for whom a large percentage of their renumeration package comes from an annual bonus.
TFI bonus acceptance details:
• Annual or quarterly bonus with 2 years history[1]
• Up to 75% of bonus considered, based on two year average
• Considered on mortgages up to 80% LTV
• Loan sizes up to £1.5m[2]
• Up to 5 times Loan to Income considered (basic + up to 75% bonus)
• Interest only solutions available
• Suitable for borrowers where total renumeration package exceeds £125k p.a.
Bonus time! Are you ready to help clients benefit from their bonus?
Find out more and call Ralph and the team now…
Ralph Punter, BDM at Teachers For Intermediaries, said:
“For many high earners in financial services a significant part of the renumeration package comes from the payment of bonuses. Having this income recognised for the purposes of mortgage affordability not only impacts total borrowing but it also opens the doors to additional property choices that would otherwise be out of range, despite having the means to service the loans.”
LV= How much difference does £11 really make??
Over the past year, the COVID-19 pandemic has challenged us all to adapt and consider the importance of being financially resilient. But did you know that at LV= we offer affordable protection options to give your client peace of mind if the unexpected were to happen?
Back in the first lockdown in March 2020, the UK saw the majority of people’s spending habits shift to bulk buying everyday household items like toilet roll, pasta and hand sanitiser in case the supermarkets had to shut.
Your client could get all these in bulk for around £11, and yet for around the same amount they could protect their income and their financial resilience. That really would make a difference.’
Find out more about LV= Protection
*Based on a male, aged 35, non-smoker, retiring at 65, 3 month waiting period, £500 monthly benefit level cover for Budget IP (1 year claim period), £500 monthly benefit for FIB, 30 year term, level cover. Both policies guaranteed rates with waiver of premium included. ** Prices correct as at December 2020 and are subject to change. Prices will vary depending on individual circumstances.
Providing an immediate view on likely acceptance
We have made improvements to the way we communicate decisions to you on applications where the customer may already have an existing policy with us.
Giving you more transparency
OLP Connect will now display the expected decision immediately, while in the background as a priority, we will assess your application to complete our final checks.
The decision will appear as ‘Agreement in Principle’. This enhancement will give you more transparency over the likely acceptance of cover, enabling you to manage your client’s expectation.
You are still able to input their preferred start date at the point of the initial decision which will allow it to go on risk automatically where the decision has not been altered.
Getting the most from OLPC
- Contact preferences – Ensure your profile is up to date and that you have chosen how we communicate with you to keep you up to date on your application’s in progress.
- Documentation – Remember all application documents and correspondence can be found under the ‘Documents’ tab on the OLPC ‘Manage Application’ screen.
- Multi Product Discount – You can submit up to 40 policies on a single OLPC application*.
Improving the way, we protect your customer data
To help, protect your customer information. We’ll be introducing our new password reset prompt in OLPC over the forthcoming months. You’ll simply confirm your current password and change it to something new.
This will be an immediate change so there will be no disruption to your access.
*Combination of life,cic,ipb and business protection. Max 2 clients and a combination of single or joint policies. They’re eligible for multi product discount when they do this. Its £1.50 for every additional product added.
Specialist lender innovation and flexibility will be key post Covid-19
The past six months have seen such a frenzy of property-related activity that we’ve barely had time to catch our breath and dig that bit deeper into potential future trends generated by this artificial housing market boost and the underlying economic effects of the pandemic.
Green Mortgages
Foundation Home Loans’ innovative Green Reward Mortgage gives your client £750 cashback upon completion. Landlords just have to have made sufficient improvements to their property to warrant an energy performance certificate (EPC) of C or above. Find out more about Green Mortgages here
Coventry for intermediaries launches new range for existing borrowers
Coventry for intermediaries has announced the launch of a new Residential product transfer range for existing borrowers. The range has been specifically designed for clients who are looking to change product or take out further borrowing.
The new range contains 2 year fixed products available up to 85% LTV and 5 year fixed products up to 75% LTV, and also includes no product fee options.
In more good news, the lender has also widened the availability of their 90% LTV Residential range from first time buyers to all new borrower types.
