Inform 7th January 2022

Welcome to our fourth edition of The Link. Our newsletter has been designed to reinforce our shared purpose through education, support, knowledge and tools.

In this inaugural edition, you’ll hear a round-up of 2021 including service updates, product releases and research.

We hope you enjoy. If there are any topics you’d like us to cover, or if you’d like to be interviewed for a future issue, please contact your usual account manager.

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Mansfield Building Society has appointed Tom Molloy as its Intermediary Sales Manager following the departure of Andy Alvarez.

Tom has been the Society’s National Account Manager for mortgage intermediaries for over a year and is already well-known among the Society’s broker contacts. The promotion also provides an exciting development for Tom, who first joined The Mansfield as its branch manager for Chesterfield in 2016.

In his new role, Tom will be leading the Intermediary Sales team and playing a key role in helping the Society develop relationships with brokers, networks and clubs.

Commercial Development Executive, Richard Crisp, said the promotion reflected the hard work that Tom had shown and that the Society was willing to extend opportunity to young talent:

“Since joining The Mansfield, Tom really has made an outstanding contribution to the success that we’ve achieved so far. It’s an absolute pleasure to be welcoming him into this role and I’m convinced that, with his passion and dedication, he’ll ensure that we can continue to meet the increasing needs of brokers requiring our services.”

Newly appointed Intermediary Sales Manager, Tom Molloy, said that he was looking forward to working with key broker relationships and leading the Intermediary Sales team at the Society:

“We have an excellent team here at The Mansfield that’s committed to seeing the people beyond the profile and who work tirelessly with brokers to understand their clients’ circumstances. By doing all of this, we can help add value to the crucial service that mortgage intermediaries provide.

I’m really looking forward to helping grow Mansfield Building Society’s presence within the mortgage industry in 2022 and beyond.”

In this short video Andrew Ferguson shares his insights into what’s in store for the buy-to-let industry in 2022 and what West One buy-to-let has in store for the year ahead.

Andrew discusses his optimism for the year ahead, particularly the opportunities in the specialist market. He also touches on his plans for building on the foundations laid by the buy-to-let team at West One and continuing to work closely with broker partners.

Watch the video in full here.

The new year brings new opportunities to support your clients in securing a prosperous retirement. Did you know you may have lots of clients that are considering a lending solution in later life? You can help.

Your clients aged 55 and over could be sitting on a big opportunity to unlock a better financial future for themselves and their families by accessing wealth tied up in their home.

Take a look at our new and improved interactive tool, which shows you what lending opportunities exist locally to you.

See the later life lending potential in your region

• How many equity release cases were created
• How much clients have unlocked from their homes
• Average interest rate
• How much introducers have earned from their referrals

Try the Equity Release tool here.

Have a client in mind? We’re here to support you.

We can support you to maximise the potential in your client base in 2022. Arrange a call with your Telephone Account Manager to find out how we can help or if you have a client in mind, refer now.

We recently discovered that while our RL1 product allowed some missed payments, or unsecured credit events in the profile, 55% of our applicants on that product didn’t have any at all. These findings are in addition to our research that we conducted earlier in the year finding that the impact of the pandemic on earnings has also impacted those self-employed workers with 51% of self-employed people surveyed believing it is now more difficult for self-employed people to get a mortgage compared to a year ago. As a result of these findings we have introduced RL0, an appropriately priced product created to serve the self-employed and those with complex incomes, so if you’ve met with clients that feel left out by high street lenders, you could come to us.

KSP’s:

• We use share of profit before tax plus salary for affordability
• We consider using previous year’s trading accounts where the most recent year’s accounts have been impacted by Covid, if their last 3 months business bank statements show a return to a similar level of turnover (speak to a BDM before submitting an application)
• And we consider applicants with just three months of contracting (with 12 months previous employment in a similar role)
• We accept 100% of bonus, overtime and commission earnings
• We accept applications with a minimum of 12 months in self-employment
• For those trading 2 years+ we use their latest year’s figures without averaging

Suggested social post: The Mortgage Lender has announced it has launched a new residential product aimed at supporting the self employed and borrowers with complex incomes.

Quote from Steve Griffiths, Sales & Product Director;

“The self-employed and those with untraditional income streams are becoming more and more common in the UK- but the lending industry has failed to adapt as quickly to this trend. Our new RL0 product range will offer competitive pricing for borrowers that don’t have adverse credit history but do have complex incomes. We are pleased to be supporting these customers by taking a RealLife approach to affordability such as using pre covid accounts where appropriate, as well as 100% of bonus and overtime for employed borrowers.

The question of whether to borrow through a limited company structure is one which all landlords have faced and continue to face. Considerations must be taken over the landlord’s number of properties, future plans, financial circumstances and exit strategies. Elements which also point to the importance of a good, professional mortgage advice process, as well as separate tax advice.

With all this in mind, let’s take a look at data from the latest BVA BDRC Landlord Panel research for Q3 2021 to gauge how landlords are currently approaching limited company lending.

The research outlined that almost one in five (17%) of landlords hold at least one of their properties as part of a company; this rises with portfolio size with 63% of 20+ property landlords holding some or all of their portfolio in a Ltd Company.

In addition, just over 4 in 10 landlords intend to purchase their next BTL property within a limited company structure whilst 36% plan to purchase as an individual. Those with smaller portfolios continue to be more likely to purchase as an individual, with this being the case for 40% of landlords with 1 – 10 properties vs. 24% of those with 11+ properties.

When considering a lender in this area, intermediaries need to ensure that they are looking for ones with transparent mortgage products, consistent lending decisions, excellent customer service and expertise in limited company lending.

Do you have landlords buying or remortgaging within a limited company structure? Contact Foundation Home Loans today.