Inform 14th October 2022

As of Monday 17th October, the following mortgages will be available through hodge:

• 50+ Mortgage 5 year fixed at 75% LTV (fee paying and fee free)
• RIO Mortgage 5 year fixed at 75% LTV (fee paying and fee free)
• HBTL Mortgage 5 year fixed at 75% LTV (fee paying and fee free)

Emma Graham, Business Development Director at Hodge says “As challenging as this period of financial turbulence continues to be, at Hodge we’ve never lost sight of what’s important – you, your customers and the solutions our mortgages can offer.

We’re never afraid to take a pause when we need to, to reflect and regroup so that we can offer responsible lending as well as great service and I’m so pleased we’re back to market with mortgages spanning our entire product range, all be it for now in limited form.

I think it’s important to add that we appreciate your continued support, as a smaller specialist lender we pride ourselves in the human approach, this sometimes means we need to take a step back before we can move forward. Thank you for always working with us and for understanding the challenges we and the market continue to face”

Hodge for Intermediaries

0800 138 9109

hodgebank.co.uk/intermediaries/

On Tuesday 11 October, we’re increasing all our residential and Buy to Let affordability rates to make sure that customers can afford their mortgage payments. This is due to the unprecedented rise in mortgage funding costs, projected future Bank of England base rate increases, and in line with our obligations as a responsible lender.

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

Pipeline rules
Our usual pipeline rules will apply. All full mortgage applications (FMAs) already submitted on Introducer Internet by 10pm on Monday 10 October won’t be affected by these changes. Any FMAs submitted from 6am on Tuesday 11 October, or where a material change is made to an FMA that was originally submitted before 10pm on Monday 10 October, will be assessed using our updated lending policy.

How are we supporting the change?
We’re updating the SFI website affordability and BTL calculators and our lending criteria.

Send me an email – Jeffrey.Krampah-Williams@santander.co.uk
Give me a call – 07936 032 243

Why are Second Charge application numbers surging?

It has been a familiar story throughout 2022, as another month passes by the Finance & Leasing Association (FLA) report another sharp increase in Second Charge mortgage applications.  With August figures now complete the FLA have reported a 45% increase in Second Charge business year to date.

As mortgage rates continue to rise those customers locked into lower fixed rates will not want to lose them. The prospect of remortgaging away from a competitive rate at perhaps 2% – 3%, to a much higher rate of say 6%, is not an attractive one. Therefore, if a client wishes to raise capital, a Second Charge loan might be the best option.

There are many reasons why customers find Second Charge loans useful with the most common being; debt consolidation, and home improvements.

Some of the advantages of Second Charge Loans

• Loan to value up to 100%
• AVMs are common – often there is no need for the cost and time of a valuation
• Speed – Lenders tend to carry out in-house conveyancing so no solicitor needed
• Flexibility – there is a wide range of criteria allowing for employed, self-employed income
• Credit criteria with most lenders is based on just the last 12 months

Damian Cain, Director of Complete FS Ltd says

“Second Charge loans are once again becoming an attractive alternative to remortgaging and are an essential tool in any adviser’s toolkit. Whilst a familiar product to some advisers, many will have limited experience which is why Complete FS Ltd offer both a placement and a full referral service. If I had to give just one top tip – shop around, fees can vary greatly, our typical completion fee is 1%”

Complete FS have a number of new exclusive products available with Landbay.

Click here to find out more.

Quantum Mortgages is an intermediary-only specialist lender, focusing on the needs of experienced landlords offering a range of Buy to Let products.

Criteria Highlights:

• Borrower Types: Foreign Nationals, Expats, Up to 4 applicants, Individuals, No limit on portfolio size, No max age on the specialist range
• Available in England, Wales and Northern Ireland
• Credit: No credit scoring, CCJ’s, Mortgage Arrears and Adverse Credit Event
• Ex council with deck access are acceptable and they have no minimum private ownership requirement
• Structures: Professional Landlords, SPVs, Complex Ltd Company structures, Contract Assignments acceptable
• No minimum size units in a MUB, and will lend on HMO’s and MUB’s with up to 12 units.

Download Quantum’s product guides:
Take a closer look at Quantum Mortgages product guide which are available through Impact Packaging.

Have a case you would like to discuss? Call the impact packaging team now on 01403 272625

Our specialist Versatility range is for complex circumstances and this case study shows how we’ve helped where there is an unusual property, debt consolidation and property downsizing involved:

• Remortgage with debt consolidation and capital raising
• Unusual property type – windmill in commercial use 2 days per year
• Interest only with property downsizing at the end of the 6 year term

We worked with a mortgage broker on a remortgage application from joint borrowers who owned a property attached to a windmill. The remortgage was at 30% Loan to Value and the applicants were looking to consolidate credit card borrowing and raise money for home improvements.

The application was on an interest only basis with property downsizing as the repayment strategy at the end of the 6 year term as there was enough equity in the property to meet the minimum requirement for downsizing (£150,000).

A restrictive covenant meant that the windmill must be open to the public 2 days per year and although unusual, we were happy to accept the restriction.

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 or visit https://www.mansfieldbs.co.uk/intermediaries/.

The cost-of-living crisis is impacting millions of people in the UK, with families and businesses feeling the squeeze.

With less disposable income, the importance of protection is more significant than ever, meaning you will be having some difficult conversations with your clients about the role protection plays.

From protecting their income to safeguarding their financial future, in this situation, keeping protection policies in place wherever possible is vital.

We have created some a dedicated page, including case studies, research, support with retention and useful article

Find out more.

This year was always going to be a busy one for the Buy-to-Let remortgage market, and for the latter part of the year onwards landlords will be doing that in a volatile and rising rate environment.

With lots of lenders withdrawing their two-year products, brokers face an unenviable task of finding the right deal for landlords who may get locked into high-rate, 5-year deals or face being locked out of lending entirely when ICR stress tests are set at a pay rate.

Here’s what our broad bridging range can offer your landlord clients approaching their remortgage:

• Short-term: by choosing a 12-month loan, you and your clients can see how the market adapts and if it returns to something resembling normal by the end of the loan
• No exit fees: we offer no exit fees on all of our bridging loans if they find the right exit sooner
• Comparatively priced: right now bridging loans aren’t much more expensive than some of the Buy-to-Let rates on the market, if your clients are going to pay higher rates, they should consider doing it for a short period and assess the market, rather than locking themselves in for five years.

The expertise of your BDM in helping you navigate this market will be essential, contact one of our local ones now to discuss your needs and how we can support you, or view our bridging products.

Find your BDM.

Is your client considering a further advance on their lifetime mortgage?

Whether your client has a Lump Sum or Drawdown plan, if they have one of our lifetime mortgages and they’ve used their initial advance and any reserves, they have the option of additional borrowing through a
further advance.

Visit our website to read the guide in full, and learn more about how you can help your client secure a further advance on their lifetime mortgage.

We’re pleased to confirm that from today, Wednesday 12th October, we are extending the period that you can secure a new rate for your clients with an existing Barclays mortgage, by a further 30 days, meaning we will now accept rate switch (product transfer) applications up to 180 days prior to existing product maturity.

What does this mean for you?
We understand that, particularly in the current economic and interest rate environment, more of our mortgage customers are looking to you, our intermediary partners, to guide them with advice and offer them the reassurance and security of knowing what their future rate and mortgage payments will be.

Our extended 180 day product booking period will mean you are now able to provide your clients even greater assurance and peace of mind, by supporting them to secure a new rate even sooner. We’ll arrange for the new rate to automatically take effect as soon as their current rate ends, if this is within 180 days.

Frequently asked questions

When will my clients new rate take effect? This will depend on your clients current rate that they’re switching from:-

• If they have less than 180 days on the product, the new rate will take effect when the current one ends
• If more than 180 days, but no applicable ERC, it will be applied as soon as the request is processed
• If more than 180 days, and an ERC applies, we need to receive the ERC within 30 days of applying, following which, if the new rate is lower, it will be applied as soon as processed. If the new rate is higher, it will be booked to commence 180 days following the date the rate switch application was submitted

How can my client pay their ERC? If your clients’ existing rate has more than 180 days to run and an ERC applies, we require receipt within 30 days of you submitting their application to switch rates. They can contact our Mortgage Servicing team on 0800 022 4022 to arrange payment. Please note, the application will not progress until the ERC has been paid.

When do you charge the product fee on a rate switch application? If the selected product has a fee, this is payable upon application. Therefore, if the preference is to add this to the loan, this will be added when the application is processed, meaning your clients’ mortgage balance will increase prior to the new rate taking effect (if this is pended for a future date) and they will pay interest on it at the same rate as the mortgage. This will also result in their mortgage payments being recalculated.

What rates are available for product transfers? Rates from our preferential Reward range are exclusively available to existing Barclays mortgage customers for product transfers and further borrowing.

View our competitive Reward range

How can I apply? You can apply quickly and easily using our online rate switch tool with no documentation or signed declarations required. Available for both Residential and Buy to Let applications, the easy to use tool is located within the tools section of the Barclays Intermediary Hub.

With the cost of living rising, and everyone finding times tougher financially, it’s more important than ever to ensure your clients have a safety net should the worst happen. That’s why British Friendly are dedicated to working with advisers, providing client-facing content, to ensure you can build your clients’ financial resilience through an Income Protection policy.

Did you know, 1 in 3 people reported that they were unable to save for the year ahead, and wouldn’t be able to afford an unexpected expense of £850?* If an illness or injury results in a loss of earnings, it’s important to think about how the everyday living expenses will be paid, and your clients shouldn’t have to dip into their hard-earned savings.

It’s essential to highlight just how vital an Income Protection policy can be in helping to ensure your client can continue their current lifestyle should an illness or injury leave them unable to work. As the Cost-of-Living crisis hits, it’s more important than ever to remind your clients how their policy could act as their financial ‘plan B’, reducing unnecessary stress and providing a safety net when it comes to paying the mortgage or rent, utility and food bills. Through education, and a reminder of the extra benefits available, British Friendly are dedicated to helping you avoid policy cancellations, at a time your clients could benefit from their policy the most.

In addition, British Friendly have offered a range of client-facing content to registered advisers, including ‘Tips on how to be Financially Resilient’, ‘What’s your Plan B?’ and ‘The Value of Income Protection’ flyers. Their recent case study, with British Friendly member Paul, offers further client-facing content showing just how his Income Protection policy provided Paul with the security to pay the bills whilst he focused on his recovery.

You can view Paul’s story here.

For more information and sales tools visit their adviser website, or contact their Sales Team on 01234 348 007 or sales@britishfriendly.com with any questions or to register an agency.

*Personal and economic well-being in Great Britain – Office for National Statistics (ons.gov.uk) (2020)