Inform 4th February 2022

As one of the UK’s leading specialist lenders, Precise Mortgages know that customers often want to secure a buy to let or residential mortgage as quickly as possible.

From Monday 7 February, valuations will be instructed via the system once the application fees have been paid and a case reaches full submission stage.

It means you and your customers will now benefit from:

• Quicker turnaround times
• Improved process experience
• Underwriter case ownership from submission to completion

To check the documentation required when submitting a case, take a look at our new combined buy to let and residential submission guide.

Download our submission guide

For more information or if you’ve got a question about a case, speak with a member of our sales team or call our dedicated intermediary support team on 0800 116 4385.

We’re making various changes to our residential and Buy to Let criteria on Wednesday 9 February.

We’re updating our residential affordability rates to reflect December’s Bank of England base rate increase.

We’re also updating our Buy to Let rental cover thresholds (ICRs) to allow us to better consider your client’s tax position:

• At least one applicant’s income tax band is 20% or less Will decrease to 125% (was 130%)
• All applicants’ income tax bands are higher than 20% Will increase to 150% (was 145%)

Our affordability and Buy to Let calculators will be updated to reflect these changes. So please use these calculators to make sure you get an accurate reflection of what we can lend your clients.

At the same time, we’re simplifying rules for Buy to Let owner occupiers. So now at least one applicant must still own a residential property (which will be checked with Land Registry), but they don’t need to be living in it.

There is a new decline rule for Buy to Let applications where applicants are looking to buy a property that they’re currently renting.

Pipeline rules
Our usual pipeline rules will apply. All full mortgage applications (FMAs) already submitted on Introducer Internet by close of business on Tuesday 8 February won’t be affected by these changes. Any FMAs submitted from 6am on Wednesday 9 February, or where a material change is made to an FMA submitted before close of business on Tuesday 8 February, will be assessed using our updated lending policy.

How are we supporting the change?
Updates to the SFI website affordability calculator, Buy to Let calculator and lending criteria.

I am pleased to share with you that effective from today, 1st February 2022 Reliance Bank for Intermediaries have announced a new partnership with Mortgage Brain to appear on their sourcing platform as well as their Criteria Brain function.

This new partnership will support Reliance Bank for Intermediaries, creating greater visual exposure and presence when Sourcing our mortgage products in the intermediary sector which we know from feedback was lacking but wanted.

By working with 2 leading sourcing providers in the mortgage industry we are providing brokers with more choice as well as looking to provide a greater reach within the intermediary market with this addition.

Once again, on behalf of the rest of the team at Reliance Bank, we thank you for your ongoing and continued support for our small ethical bank, which is looking to provide a positive social impact to the UK Mortgage Market.

Aldermore Bank has added various capabilities to its residential mortgages Business Development Manager (BDM) structure to improve the experience provided to brokers.

The developments mean brokers will now have access to a BDM team to handle cases. Should a BDM be unavailable, brokers will be able to get a response from another member of the same team.

The bank is also increasing the number of telephone BDMs by 60% and cutting its ten sales regions down to three.

The new model is focused on three main areas across the UK – the North (Scotland, Northern England and Yorkshire, and North Wales), Central (The Midlands, South Wales, and East Anglia), and the South (London, South West and South East).

The impact of policy changes made five years ago, as well as more recent measures introduced in response to the Covid-19 pandemic present well-timed opportunities for brokers to discuss remortgage options with their clients.

Industry data highlights how the incentive offered by the Stamp Duty holiday created surges in buying activity that were followed by dips- mortgages written for buy-to-let purchase totalled £2.8bn in June, a figure that fell to £800m in July and £1.1bn in August. A further £2.1bn was written for buy-to-let purchase in September, with post-Stamp Duty purchases of £900m recorded in October – this suggests that some buyers brought forward their planned sales in order to take advantage of savings. As a result, some brokers may be experiencing a slowdown in purchase activity but remortgaging offers an alternative source of business.

Find out more about why now is the time to remortgage.

Access The Family Building Society’s Buy-to-Let products through TBMC!

Whether your client is looking to purchase or remortgage a buy-to-let property, The Family Buiding Society have a range of products available.

Criteria highlights include:

• Semi exclusive rates available through TBMC.
• Offset mortgages available for buy-to-let.
• Limited companies accepted.
• Ex-pats accepted.
• Portfolio landlords accepted.
• No minimum income requirement.
• Foreign Nationals accepted.
• Will accept debt consolidation.
• Can consider Corporate Lets.
• Gifted deposits.

At The Mansfield, our personal and flexible approach allow us to consider circumstances that don’t tick every box but do represent common sense lending.

In this case study, we draw attention to a case in which we helped build a solution which enabled Directors of a limited company to purchase a buy to let investment property, in spite of Coronavirus’ best efforts to stifle their plans!

The property itself was priced at £235,000 and the company were looking for a mortgage of £176,250 over 25 years, at 75% loan to value. This term would take the oldest director to 68 at the end of the mortgage term.

The limited company was made up of four directors, each holding a 25% share.  One of the directors was also a sole director of another company they owned but had furloughed themself as a result of Coronavirus. Another director was renting as a tenant whilst at the same time being party to a residential mortgage stemming from an earlier marital split.

Taking into account the combined income of all Directors and their financial commitments, the Society was able to look at the bigger picture rather than looking at each director independently.

Based on a rental income of £1,250 per month, the Society was satisfied that rental demand was sufficient to meet their new monthly mortgage commitment even though Coronavirus was doing its best to impact personal earnings.

The Directors were happy to offer personal guarantees which enabled them to access the Society’s best Limited Company BTL products, opting for the 2 year discounted variable rate mortgage option.

Although there were issues that would have ordinarily caused concern, we were able to see the bigger picture. We used our common sense approach to help the applicants secure the property rather than risk losing it waiting for life to return to normal.

Our Limited Company Buy to Let Mortgage Criteria

Lending to a Special Purpose Vehicle (SPV) Limited Company registered at Companies House with up to 4 UK resident directors or shareholders is allowed.

SPV Limited Companies with shareholders or directors who are Expats or another Holding Company are excluded. The borrowing of any SPV Limited Company must be registered at Companies House within 21 days of mortgage completion.

A guarantee from all directors/shareholders is required for lending up to 75% LTV and all individuals providing a guarantee are required to take Independent Legal Advice.

Guarantees may not be required up to 65% LTV, subject to product availability.

A common sense approach

If you’ve got a case on your desk that requires a common sense approach to lending then please pick up the phone to our Broker Support team on 01623 676360

Wednesday 9th February, 10am

In February 2021, the FCA issued its final guidance for firms on the fair treatment of vulnerable customers. This highlighted a need to make consumers aware of the support available to them, including relevant options for third party representation and specialist support services.

In this session, Founder of My Care Consultant, Jacqueline Berry, will present:

• MCC’s specialist care navigation service
• How it can be used to support your clients in need of care
• How they extend their expertise and make it available to you via their online technical resource called Care Box

Sign up now.

Great news! On Friday 11 February from 10am, we will be hosting our next webinar – focusing on a number of our key criteria enhancements including buy to let, insights into scenarios our underwriting team frequently come across, as well as hints and tips on how to get a quicker mortgage offer with Metro Bank.

Register here

11 February Agenda
10.00am – 10.20am Buy to Let and recent enhancements

10.20am – 10.35am Professional Range, Interest only and second homes

10.35am – 10.50am Joint Borrower, Sole Proprietor and Near Prime

10.50am – 11.05am Self–employed, contractors and complex income

11:05am – 11:15am Acceptable property types, New Build and general hints and tips

11.15am – 11.30am Ask the Expert Q&A

Register here

You can either join for the whole webinar or drop in and out of the topics you would like to listen to.

If you are unable to attend but would like a refresher on our products and services, please contact your local BDM to book in a meeting – they’d love to hear from you

LiveMore has launched their new Term Interest Only (TIO) mortgage for the over 50s!

TIO allows borrowers to get an interest only loan, with terms matching their needs.

Helping customers over 50 is at the heart of what they do, so naturally, launching new products to suit these customers needs is the next step in LiveMore’s evolution. LiveMore are pleased to be able to offer more options and choices to later life borrowers.

View the full product range on their website page here.

Key Highlights:

• Open to borrowers aged 50-80 years old
• 30 years maximum loan term
• Up to 65% LTV
• 55% gross proc fee upfront, plus an additional 0.13% gross every year thereafter, for up to 15 years.

With their market leading fresh approach to affordability, paired with a common-sense approach, this is just another route where LiveMore can assist your over 50s customers.

Contact LiveMore to find out how we can help your clients, or register with LiveMore here.

You asked, we listened – We always take your feedback on board and we’re excited to announce some criteria enhancements. We’ve made these changes so you can help even more customers and grow your business, at Hodge, we’re always working with you.

Our criteria enhancements:

• We’ve reduced our minimum property value from £120,000 down to £100,000 across all our mortgages.
• We’ll now accept traditional Scottish tenement flats.
• We’ll now accept properties with private drainage (septic tanks) and we’ll consider properties with shared drainage provided legal arrangements are in place for maintenance and access.

See more about our criteria

At LifeQuote we provide support to thousands of advisers for any personal and business protection applications, quoted using our quoting tool via the LifeQuote platform, or from one of our integration partners.

Our quoting tool is designed to simplify the research stage of the process, providing up to 24 quotes at a time and buildable popular menu solutions so you can produce a bespoke package of products for each or your clients.

Within minutes you can generate and share quotes with your clients with options to view more information or filter the results.

Log in

Application options

We offer three application options so you can select the one best suited to you and your client.

Telephone Application

Arrange for one of our skilled tele-interviewers complete the medical questionnaire at a time that best suits your client.

Online Application

Prefer to fill the questionnaire in yourself alongside your client? No problem, complete all underwriting questions online.

Email Application

If your client would rather fill out the questionnaire in their own time, opt for emailing a link to them. Full information will need to be provided.

The limited company BTL market has been growing rapidly in the past few years, with more landlords setting up companies in 2020 than in any other year. When completing deals under this structure, Andy Virgo, Buy-to-Let Director at LendInvest, explains why experience is the key when choosing your lender.

Find out more here.