Kensington Mortgages
How brokers can use specialist mortgages to help new kind of adverse customer
Kensington’s Head of National Accounts, Eloise Hall, explores how the cost-of-living crisis has created a new type of adverse customer – those whose credit scores have dipped despite making regular mortgage payments – plus the importance of brokers in giving crucial guidance to customers, and mortgage lenders in providing solutions outside of traditional mortgage options.
Read the article here.
HSBC UK
New Build Policy Enhancements
We’ve enhanced our lending criteria
Good news – following on from the recent change to our ‘offer extension’ process, we have further enhanced our new build proposition. For Capital Repayment applications, we have increased our maximum LTV tiers for new build houses and flats.
We have also increased our maximum LTV tier for Capital Repayment applications on non-new build flats.
With immediate effect, the following changes have now been implemented for residential mortgage applications:
The £25k minimum deposit that we required for new build houses and flats has been removed.
Please note, flats impacted by cladding will remain maximum 85% LTV. For further information on cladding please refer to the ‘Valuations’ section on our broker website.
Our broker website will be updated shortly with the above changes.
The Mortgage Lender
Economic Update – August 2024
We’ve teamed up with 4most Economic Consultants to provide you with a monthly economic update. The update for August is now available to download.
The update covers:
- Inflation and interest rates
- Labour market
- Housing market
- Rental market
- Mortgage market activity
- Rate analysis
Read the update here.
Market Financial Solutions
Key Criteria and Rate Enhancements
Highlights of our enhancements include:
Buy to Let
- Maximum term increased to 10 years (previously 5 years) for our Buy to let range.
- First Time Landlords now available on Tier 2 including HMOs as opposed to Tier 3 (Tier 4 for OMV)
Commercial and Semi-commercial
- Maximum term increased to 10 years for our Commercial and Semi-commercial ranges
- Commercial and Semi-commercial maximum loan increased from £1.5 to £2m
- Light industrial with metal frame/shell now considered up to 65% LTV (Brick construction up to 70%)
Bridge Fusion
- Simplified ERC structure, now a flat 2.5% instead of 3 months interest
- Rate reductions across range by up to 95bps
Bridging
- Bridging term maximum reduced to 18 months (Bridge Fusion allows longer terms up to 24 months (extension to 3 years available) on loans up to £20m.
- Fixed rates from 0.9%
I hope you will agree that these changes are an example of how MFS are constantly reviewing, adapting, and implementing solutions that can assist your customers in achieving their borrowing aspirations, especially when combined with our flexible criteria and market leading affordability.
Product Guides
Should you have any questions in relation to the above or cases that you wish to discuss, please do not hesitate to contact your local BDM.
Natwest UK
Regional Growth Tracker
The NatWest UK Regional Growth Tracker provides a snapshot of regional economic performance tracking monthly changes in business activity, demand, employment, backlogs, prices and year-ahead outlook.
The tracker uses data compiled from companies that participate in S&P Global’s UK manufacturing and services PMI surveys.
The latest July Growth Tracker shows an increase in UK nations and regions reporting higher business activity, marking an encouraging start to the second half of the year.
Nationwide
Nationwide is increasing its support for the new build sector by increasing the maximum loan-to-value (LTV) available for those looking to purchase a new build house from 85 per cent to 90 per cent – providing further support for the housebuilding sector and the government’s housing ambitions.
The change, effective from today, means potential buyers will be able to apply for a Nationwide mortgage on a newbuild house with just a 10 per cent deposit.
As a building society founded to help people into a home of their own, Nationwide is always looking for new ways to make homeownership more accessible and affordable and increase the appeal of newbuild homes.
Ian Andrew, Nationwide’s Director of Intermediary Relationships, said: “As a mutual, we are committed to creating a vibrant and growing housing market and believe this change will demonstrate that we are fully behind the Government’s housing ambitions. By increasing our maximum loan-to-value on lending for new-build houses, we hope to help even more people into their first home or move onwards to their next.”
Leeds Building Society
Increasing our LTVs for new build and standard properties
We’re taking another step to unlock doors for aspiring homeowners by increasing LTVs on a number of residential mortgages for new build and standard properties.
This change aims to support our commitment to accept applications on a wide and varied range of new build cases, including those less well served by the wider market. When paired with the A/B EPC affordability boost that we offer, our lending criteria on new builds has never been stronger.
What’s changing?
New build
• New cases for standard residential new houses for Max LTV increasing from 90% to 95%
• New cases for standard residential new build flats Max LTV increasing from 80% to 85%
Standard
• New cases for standard residential non-new build flats Max LTV increasing from 80% to 95%
CHL Mortgages
Client looking to buy a large or complex HMO/MUFB property?
With the potential for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) to earn average rental yields of 7% compared to 5.8% for standard buy-to-lets*, it’s no wonder investors are looking at properties that can accommodate more tenants.
Our relaunched CHL 2 large HMO/MUFB range is designed for properties with up to 10 bedrooms or units. It also supports landlords whose properties are considered complex, such as HMOs that have been adapted to offer bespoke accommodation, multi-units with shared utilities and hybrid multi-units which incorporate both self-contained and HMO elements.
- Rates from 4.45%
- 2 and 5-year fixed rates available
- Up to 75% LTV
- Choice of fee options
- Suitable for both individual and limited company/LLP applicants
Central Trust
Consumer vs unregulated Buy To Let Mortgages
At Central Trust, we offer consumer buy to let products. This means that unfortunately we cannot help with applications deemed as unregulated buy to let applications.
What is the difference between a ‘consumer buy to let’ and an ‘unregulated buy to let’?
Consumer buy to let mortgages are aimed at those customers who have become ‘accidental landlords’ and are not professional investors. They offer protection to people who are renting out a property who have a borrowing need, and where they or a family member have previously lived in the property.
The most common example is when someone inherits a property from a family member which they then decide to rent out. In this scenario, the person has become an ‘accidental landlord’.
Unregulated buy to let mortgages are pursued by those with business intentions. Their goal is to generate income by entering the rental property market or to raise money against a rental property that they already own. They usually have a portfolio of investment properties, but even if they just own the one, it is still classed as an unregulated application if they or a family member have never resided in it. This is because they are not an accidental landlord and bought the property from the outset with the intention of renting it out.
When can we help?
We can lend…
- If your client becomes an ‘accidental landlord’ and is looking to raise capita against the property.
- If your client is looking to rent out their property to a family member.
Contact us now to discuss your cases! 0880 980 6086
Virgin Money
We’re expanding our Shared Ownership proposition
Great news! We are expanding our Shared Ownership proposition to allow additional borrowing for existing customers when staircasing.
Here’s the lowdown
Existing customers who have a Virgin Money Shared Ownership mortgage are now able to purchase additional shares to increase their property ownership, which could help them towards owning their own home. This builds upon improvements already made to our Product Transfer range.
Getting into the detail
- Our standard procuration fee will apply.
- The additional shares being purchased must be a minimum of 5% of the property value.
- We’ll need to know your customer’s current rental payment.
- Your customer will need to contact their housing association to gain permission for the application to go ahead and to receive the memorandum of sale.
- Customers can apply for additional borrowing alongside a Product Transfer.
For more information, please visit our A-Z lending policy.
How to apply
Simply call us on 0345 601 0680 with your customer’s application details. We’re here 9am to 5pm on Monday, Tuesday, Thursday and Friday, and 9.30am to 5pm on a Wednesday.
Any questions?
If you’ve got questions about this or any other updates to our lending criteria, your Business Development Manager will be happy to help.
More 2 Life
How to Increase your Revenue
This summer at more2life, we’re guiding you through all things later life lending with our online Learning Lab Live series. The main focus: how to increase your revenue.
Watch now as our team of experts explains what you can expect from Learning Lab Live over the summer and how it can help boost your business.
Make sure you keep an eye on our LinkedIn for details of what topics we’ll be covering, and how you can register.
Precise
Our new app is here. The first of its kind.
It’s packed with features to make your life easier, including:
- Real-time case updates as soon as you place a case with us
- Customisable push notifications for the latest residential, bridging and buy to let updates
And that’s not all. So, what are you waiting for?
Intermediaries only
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