Criteria Changes
Buy to Let (UK residents, UK Expats and International residents)
- Minimum finance decreases to £75,000, from £150,000.
- Minimum property value decreases to £100,000, from £230,000.
Home Purchase Plans (UK Expats and International residents)
- Minimum finance amount decreases to £75,000, from £100,000.
- Minimum property value decreases to £100,000, from £150,000.
Buckinghamshire Building Society temporarily suspends new applications to deal with unprecedented demand
As of Monday 7 December 2020, we are temporarily suspending new Decisions In Principles (DIPs) and will only be accepting applications where the DIP has been accepted prior to this date.
We have continued to experience very high demand across our product range. We have taken the decision to prioritise serving our brokers on cases already in our pipeline, as our operational and underwriting resources will be stretched over the Christmas period. Maintaining the quality of our service is our top priority and this temporary suspension of taking new enquiries over the holiday period is the best way we can ensure this.
Tim Vigeon, Head of Lending at Buckinghamshire Building Society, said; “We pride ourselves on offering and maintaining exceptional service standards. Our award winning product range is perhaps the widest of any small society, serving first time buyers, movers, landlords, lending into and in retirement, self build and all points in between. Our individual human underwriting approach is time consuming but ensures that we can offer our products to many borrowers who are rejected by the standard “computer says no” approach. We look forward to re-opening for new DIPs again in the new year”.
Please do not hesitate to call our team if you would like further information regarding this.
Our Key Account Managers are on hand to help:
Claire Askham (North) – 01494 418257
Julie Hanif (South) – 01494 418254
We wish all of you a very happy Christmas and everything good for 2021.
Introducer Internet Downtime
Introducer Internet won’t be available from 9pm on Saturday 12 December until 6am on Monday 14 December.
Your brokers won’t be able to submit cases during this time. We’re sorry for any inconvenience caused.
Parents Help Children Get on the Property Ladder with Bridging Finance
Since September 2020, the current national average house price is at a high of £245,000 according to the Office of National statistics. On top of this the average deposit size in the UK is around 10-15%. This can make initially getting on the property ladder a difficult first step.
When possible, parents or close family members are eager to help their children get on the property ladder.
In a recent case, their clients required a net loan of £150,000. The funds are to be gifted to their daughter to help towards the purchase of her new home. The security property has been valued at £315,000 and is currently sold STC. Once the sale of the security property completes, the clients will pay back the loan facility in full.
The net LTV is 47% and the terms for the loan are for 12 months.
To get in touch and discuss your case, send an enquiry to Greenfields’ team or give them a call on 0121 233 1188.
Royal London webinar – Tools and Support
Shelley Read, Senior Intermediary Development and Technical Manager, speaking about how Royal London have the tools and support for customers and clients to help hit your own targets.
Follow the link here to view the webinar.
Specialist or complex? Referral service available via Impact Specialist Finance
Why Not Refer?
The market is becoming complex and unpredictable. The aim of this offering is to assist you with access to specialist advice on cases that may be potentially time-consuming, require expertise outside of your core business or where you don’t have the necessary permissions in place.
Impact will deal with the client directly and cover all compliance and regulatory needs.
Key points to note:
- As you will probably expect, we have a formal agreement to be completed. This is important for both of us, and the client too.
- Appropriate FCA permissions may be required in certain circumstances.
- If you hold Appointed Representative status under the FCA it is incumbent upon you to advise your Network and obtain their agreement to work under this arrangement. Once approved, Impact SF will commence liaison with the introduced client in respect of the mortgage/finance. This helps ensure Impact SF meet Legal and Regulatory obligations.
- A proc fee will be paid on completion for the referral.
To speak to one of their team to find out more, call them on 01403 272625
THREE WEEK BRIDGE SAVES PROPERTY DEVELOPMENT
Crystal Specialist Finance and MT Finance pull out the stops with £1.4m loan
Crystal Specialist Finance (CSF) and MT Finance have completed a three week, £1.4m bridging finance deal for a foreign national to pay off a highly geared development finance arrangement.
Having been served notice to complete, the client’s broker contacted the specialist distributor and explained that the money would be taken out against a vacant newbuild with exit by way of sale of the remaining properties on the original site.
CSF immediately contacted MT Finance who agreed the application, and a valuation was arranged as a matter of priority with drawdown taking place well within the original timeframe.
Jason Berry, Group Sales and Marketing Director at CSF, said ““Throughout 2020, MT Finance has consistently delivered exceptional support to Crystal and our supporting brokers.
“We always strive for excellent customer outcomes and aim to work with lending partners whose values match our own. On this particular case Tomer and his team did an amazing job, initially taking time to understand the residence complexities then truly pulling out all the stops so the valuation ensured a speedy completion could occur. This inevitably resulted in a very happy broker and client.”
Tomer Aboody, Director at MT Finance, added: “The client needed us to move quickly as he had been served a notice to complete, and although the nature of his residence meant that the legal process was not as straight forward, we worked closely with the team at Crystal to keep the deal moving forward as swiftly as possible.
“We couldn’t have managed this without the help of our solicitor, surveyor and of course, Crystal who all working together seamlessly in order to meet the deadline.”
What’s the latest with Mortgage Prisoners?
The FCA estimates there are currently 200,000 mortgage prisoners in the UK[1]. Some are trapped on interest-only mortgages with ‘inactive’ lenders. However, figures show that the number of interest-only mortgages had fallen by 54%, from 2.5 million in 2012 to 1.23 million in 2018 with regulated mortgage lenders committing to contacting all interest-only borrowers with loans due to mature at the end of 2020 to check repayment would be achievable or to find a new solution[2].
Last year the FCA relaxed some of its affordability checks, allowing lenders to assess affordability based on a borrower’s track record to make it easier for mortgage prisoners to find a new cheaper deal.
Capping lenders’ SVRs, which are a major factor for Mortgage Prisoners, has also been put forward by an all-party parliamentary group to help. There is currently no limit to how high a lender can set the standard variable rate and a cap of 2% above the Bank of England base rate for all SVRs would automatically see mortgage prisoners making instant savings of hundreds of pounds2.
In October 2020, Halifax began accepting remortgage applications of up to 75% LTV from mortgage prisoners, using the modified affordability assessment measures put in place by the FCA[3]. Other lenders may take the same path, taking advantage of the change in FCA rules to try and make it easier for mortgage prisoners to switch to a cheaper deal. Recently, NatWest introduced lending criteria specific to mortgage prisoners and Santander started accepting applications from those trapped in expensive mortgages. The West Brom Building Society is now implementing the new affordability rules with seven lenders in all starting to offer products[4].
How technology can help
At Mortgage Brain, we understand the problems faced by mortgage prisoners and how hard it is for mortgage advisers to find suitable products for them. That’s why our product sourcing solutions MortgageBrain Classic and MortgageBrain Anywhere include a ‘mortgage prisoner’ filter to make it easier to find suitable remortgage products for those clients and help them to escape from a life sentence of expensive mortgage deals.
It’s as simple as adding the applicant and mortgage details, ticking the ‘mortgage prisoner’ filter and clicking ‘source now’. Then the adviser will be presented with a list of suitable products. To see the filter in action, watch the video for MortgageBrain Classic and MortgageBrain Anywhere here.
To find out more about Mortgage Brain’s suite of powerful solutions that together offer a seamless end-to-end journey from sourcing through to conveyancing, email sales@mortgage-brain.co.uk or contact your relationship manager or BDM.
[1] https://www.which.co.uk/news/2020/07/mortgage-prisoners-is-capping-rates-the-answer/
[2] https://www.mortgageintroducer.com/number-interest-mortgages-falls-13/
[3] https://www.yourmoney.com/mortgages/halifax-to-accept-mortgage-prisoner-remortgages/
[4] https://www.ftadviser.com/mortgages/2020/11/10/fca-rule-change-for-mortgage-prisoners-bearing-fruit
Can Equity Release help protect my clients’ assets?
There are two questions that you will certainly come across when dealing with possible Equity Release clients,
Can equity release help protect my assets?
Can I make sure my assets are protected for my children/grandchildren?
The answer to both of these questions is Yes, being smart about equity release can benefit a client in multiple ways and our video gives a great example of the kind of issues that clients face and how we can help.
Remember giving advice on services you are not experienced with can get you in trouble with the FCA, don’t put yourself at risk, let us use our expertise in the field.
Our fully qualified advisers are dedicated to Equity Release and will ‘own’ and see your case through personally from initial contact through to smooth completion; no ‘case handlers’ in the back office to deal with at Access Equity Release – if you want the swiftest route to your equity release completions and prompt commission payments, speak directly with;
Des O’Hara, Adviser Development Manager, dohara@accessequityrelease.com or call 0333 443 9829
Martin Wade, Director email mwade@accessequityrelease.com or call 0333 443 9825
New! Automatic ID & Verification
We’re pleased to introduce Automatic ID & Verification, which is designed to speed up our mortgage application process and make things easier for you and your clients.
How it works
The new functionality will automatically attempt to verify your client’s identity when you submit a Full Mortgage Application (FMA) using a system called ‘CallML’. Which means you don’t have to log details of the ID you’ve seen as part of the initial submission process, which could reduce the time you spend submitting the case.
If successful, because we’ve already automatically identified your client’s ID, our underwriters won’t have to check this which will reduce their processing time too.
In the small number of cases where it isn’t possible to immediately verify your client’s ID, we’ll try again using a different system called ‘Call Validate’, this process contacts your client directly in a further attempt to verify their ID.
If we’re still unable to capture the details required, then we’ll send you an email to let you know what additional information we need you to provide. The ‘outstanding items’ list in eMortgages will also be updated to show what’s required to progress the case.
When is this happening?
Automatic ID & Verification will be live from Monday 14 December, so any cases submitted from this date will go through this new quicker process.
We’re working hard to make our mortgage application process as efficient as possible and the Automatic ID & Verification technology is just the latest in a number of digital enhancements we’ve made to help speed-up the application journey for you and your clients.
For more information, contact your local BDM.
Top tips! Get your Limited Company case submissions right first time
We’re here to support you and your BTL clients and understand how tricky Limited Company case submissions can sometimes be. That’s why we’ve included these tips from our underwriters, to make your Limited Company client applications an absolute breeze.
Top tips for you…
When submitting Limited Company cases, remember:
- To input the correct SIC Code. Relevant SIC Codes are: 68100, 68209 and 68320
- All directors must be named on the application
- We allow up to a maximum of 4 Directors providing at least 60% of shares are held and the company has been set up for the sole purpose of buying, selling or managing residential property
- All portfolio landlords must provide a Business plan, Cashflow Statements and Property Schedule. All templates can be found on our website.
Don’t forget to double check our our easy-to-follow Application Submission Guide or give our expert BDMs a call.
Get in touch with our BTL experts today
Call 0370 707 1894 Mon to Fri 9am to 5pm
LV= are continuing to support you now and through 2021
This year has been like no other and LV= have been there for you and your clients every step of the way. As we draw closer to the end of 2020, we want to remind you of the support that we’ll continue to provide going into 2021.
Whether you’re looking to submit new business with us or require additional support on an existing application we’ll continue to be here for you and your clients over the Christmas period and into next year.
You can find out more about the key areas of support we provide here.
You can read more about these initiatives on our dedicated Coronavirus Hub, but should you have any further queries, please contact your account manager, or call us on 0800 678 1890.
Mansfield Building Society launches online Buy to Let affordability calculator
Mansfield Building Society has launched its online Buy to Let Calculator to help landlords and mortgage intermediaries check affordability against the Society’s rental income requirements quickly and easily online.
This latest innovation from The Mansfield makes it easy to calculate affordability against the Society’s extensive Buy to Let range including its Standard, Consumer, Family, Limited Company and Expat products.
Available via the Society’s website at mansfieldbs.co.uk/buy-to-let-calculator, the calculator will offer a simple Pass, Refer or Decline decision based on the loan amount, product pay rate and monthly rental income.
Where a Refer or Decline result is presented to the user, the tool will helpfully calculate the maximum loan available based on the rental income. In contrast, the tool will also calculate the minimum rental income necessary to support a particular loan size.
National Development Manager, Paul Lewis, said that the Buy to Let Calculator is the latest development in the Society’s quest to make it easy for mortgage brokers to access the information they need, quickly, without having to hunt for information on websites or in product guides:
“With the new online buy to let affordability calculator, brokers will be able to check rental income requirements for their clients based simply on the product pay rate and loan amount. This will help brokers provide prompt accurate advice across our Buy to Let range without the hassle of trawling through criteria guides and product rules to understand the calculation.
Furthermore, our calculator is flexible enough to accommodate our niche lending segments, so brokers across the Buy to Let sector can be confident when helping their clients make investment choices and assessing their borrowing needs.”
How to package your cases for faster processing times
With many clients now rushing to take advantage of the current Stamp Duty Holiday and the March deadline fast approaching, it is more important than ever to ensure that your client’s application is fully packaged to ensure that a mortgage offer can be issued as soon as possible.
Laura Allcock, Intermediary Mortgages Team Manager at Leek United Building Society, said ‘A well packaged application will help us to progress a case quicker so we are urging all of our intermediaries to ensure that they are carefully checking the information they have provided on the application form and refer to the dedicated packaging page that is on our website.
While there will always be some more complex applications, where additional information is required, many will only need the standard documents, which are detailed on our packaging page.
We also recommend that you carry out an affordability check ahead of submitting a residential or regulated buy to let application.
Intermediaries can also help by utilising the additional information section of our application form to tell us important information, such as whether income has been affected by the pandemic, or how the mortgage would be individually affordable to each borrower if the mortgage term takes one or both past the age of 83.’
Their helpful BDM team are at hand to answer any of your packaging questions on 0808 281 9309 or intermediary.mortgages@leekunited.co.uk.
Full packaging requirements can be located under their ‘Help and Advice’ section on their website.
TAKING ON A HEALTHY LIFESTYLE
With an increased focus on health, diet and BMI, we speak to Dr Mike Mosley about how your clients can make changes to their lifestyle in the first of a new 3 part Expert Series on Taking on a Healthy Lifestyle.
Equity Release Product Updates
We often see case studies from clients about the reasons why they have taken one of our Equity Release product. However this particular cases study has highlighted how by taking an option with a percentage cash back it has actually saved them money by reducing the interest payable* and yet still achieving the planned amount required to fulfil their dreams.
Remember to register as a TMA member when contacting Just, either:
via their support team on 0345 302 2287,
via email support@wearejust.co.uk
or find your Dedicated Business Development Manager here.
*The savings quoted are an indicative guide as interest rates can rise or fall.
