Latest FCA Round-up
Checking you’ve registered for RegData
50% of the firm reporting population have successfully moved to our new data collection platform, RegData and have begun using the new system for their regulatory reporting.
Those firms who are still Gabriel users need to register for RegData in advance of their planned moving date. We encourage firms to do this as soon as possible.
To check you’ve registered, log in to Gabriel using your Gabriel login credentials.
If you are not prompted to register for RegData, this confirms you have already completed the registration process and do not need to take any further action.
If you are prompted to register, follow these steps.
Publication of Directory Persons data for Solo-Regulated firms on The Financial Services Register
Solo-regulated firms must submit their Directory Persons data via Connect by 31 March 2021Submissions of 10 persons or more using the multiple upload functionality must be done between 11 January and 18 March to ensure submissions are processed ahead of the deadline. A failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action. There is a £250 admin fee for late or incorrect submissions.
Highlighting business opportunities for brokers with Buy to Let clients
The team at Coventry for intermediaries has written to brokers ahead of the forthcoming BTL maturity period.
With a record number of products coming to an end soon, reflecting the surge of fixed rate business that followed the government’s 3% increase in Stamp Duty on BTL properties in 2016, it promises to be a busy time for the Buy to Let market.
Jonathan Stinton, Head of Intermediary Relationships, says, “These maturities will bring some great business opportunities for brokers. Now is the time for them to get in touch with their landlord clients so they can discuss their product transfer and remortgage requirements and secure the right deal for them.”
Jonathan suggests that brokers look for lenders with a real commitment to the BTL market and flexible products, in particular those that allow for a client’s changing circumstances.
He says, “A product like our Flexx Fixed is a good example because it gives landlords the security of fixed monthly payments but also allows them to make unlimited overpayments without penalties.”
Coventry for intermediaries has improved its affordability calculations for Buy to Let lending, opening up more options for landlord clients looking to borrow more. And because their standard BTL policy also applies to portfolio landlord applications, this applies to clients with one rental property or several.
Jonathan says, “We’re here to help brokers find the right deals for their BTL clients by offering a range of competitive products, a straightforward approach to lending and an outstanding level of support as we head towards what’s going to be a particularly busy period.”
To view the full BTL product range, which includes 2 and 5 Year Fixed Rate products from 65%-75% LTV, go to: https://www.coventrybuildingsociety.co.uk/intermediaries/products/btl
BTL product changes: HMOs and MUFBs can offer landlords more security in uncertain times
Summary
This month LendInvest introduced a series of changes to their Buy to Let proposition. The changes opened up their products to more property professionals with expanded criteria. In particular, they have created more opportunities for landlords looking at Small HMOs, MUFBs and Large HMOs.
Professional Mortgages from Platform
Platform are delighted to announce we now offer a Professional Mortgage product. It’s designed specifically for qualified professionals, across a variety of sectors, and allows them to borrow up to 5.5 times their income.*Eligibility applies.
As part of the original ethical bank, we’re always asking brokers for feedback and responding to their needs – and that of the market. When brokers told us they’d like a mortgage product to better suit their professional clients’ needs, we acted on it.
It’s a great opportunity for professionals looking for a new mortgage – and it’s a great opportunity for the brokers will work with too.
LV= have made some recent improvements to their underwriting process
LV have made some recent improvements to their underwriting process, now making it even easier to business with. They have been able to increase their Income Protection non-medical underwriting limits.
LV have made it easier for you to get valuable cover in place quickly for your clients by reducing the amount of medical information needed to underwrite Income Protection applications:
What has changed:
- Removed the requirement for automatic medical telephone interviews which won’t be replaced with additional evidence requirements.
- Significantly increased their limits for obtaining paramedical screening reports and cotinine levels for your clients up to age 41 and 47-51 (next birthday).
View their non-medical limits here
If you would like to find out more about LV=’s underwriting processes please visit their adviser site or call your usual account manager on 0800 032 4219.
Four steps to a successful application
Help speed up your application!
Paragon have recently reviewed their application process to see what they can do to help reduce the time it takes for your applications to move from submission to offer of loan.
Paragon understand that delays to your cases are not ideal and can often cause frustration for both you and your landlord customers. Therefore, they have put together four simple steps to ensure that your applications are processed as smoothly and as efficiently as possible, minimizing the risk of any delays occurring.
By following these steps, you could significantly reduce the time from application to offer.
Zephyr’s here for your High-Rise cases
Have no fear, Zephyr is here! With no heigh restrictions on blocks of flats, think of us when a high-rise case comes in. With our broad criteria and competitive products, plus our knowledgeable BDMs on-hand for support, we’ve got BTL covered from A to Z. Here’s more detail on our offering:
No height restriction on blocks of flats
- Any blocks over 10 stories will require approval via an AIP
- Any property with four or more floors to be serviced by a lift
- Deck or balcony access acceptable
- Ex-Local Authority to be in a minimum of 50% private ownership
Flats Above commercial:
- New Build Blocks – any commercial is acceptable
- Existing high street – acceptable subject to valuers comments and no adversity due to noise or smell pollution.
Take a closer look at our Criteria
NEW product range!
We’ve just launched our new product range, featuring reduced rates across the majority of products in both our Standard and Specialist range, plus we’ve introduced a NEW 1% fee product option to give you more choice for your BTL clients. With such competitive rates and broad criteria, there’s never been a better time to get in touch with Zephyr.
Find your local BDM here or call 0370 707 1894 – Monday to Friday 9am to 5pm
Buy-to-let is ageless
Jane Simpson, managing director at TBMC says:
The size of the Buy to Let mortgage sector has been pretty stable over the last couple of years at around £36 billion. However, IMLA is forecasting an optimistic £283 billion for the total amount of mortgage lending in 2021 and some industry pundits are predicting growth in the Buy to Let sector, perhaps beyond £40 billion.
There are certainly reasons to support the continued viability of Buy to Let property as an attractive investment strategy, particularly in the current economic environment. With interest rates at near zero and the unpredictability of the stock market, the yields associated with tangible bricks and mortar are a serious contender.
The Buy to Let mortgage sector may also see new interest among larger mainstream lenders looking to widen their propositions with products that provide a good margin, so specialist lenders may experience some additional competition for market share.
Holloway updates Income Protection offering
Click on the guide below to see what has changed.
Stamp Duty Holiday Webinar
With the Stamp Duty Holiday currently set to end on 31st March, now is a good time to speak with clients and remind them how important having appropriate home insurance cover in place is and demonstrate how invaluable your advice is.
Join Paymentshield on Tuesday 2 March at 11am as they host a Stamp Duty Holiday webinar. The webinar has been designed to help guide you through the remainder of the holiday and beyond.
The webinar will cover;
- When to talk GI with your clients
- Pitfalls of letting your clients rely on a last-minute comparison site deal
- How to navigate the 3 possible outcomes from the budget announcement on 3 March;
The stamp duty holiday is extended
The stamp duty holiday ends but there is a transition period
The stamp duty holiday ends on 31st March
- 3 things you can be doing to protect your business regardless of when the holiday ends
Register for the webinar now and #BeAdmired by your clients
Landlord Panel Regional Snapshot Report
A regional view of landlord trends.
TMW are pleased to share the final report from this quarter’s BVA BDRC Landlord Panel research.
For a regional view of landlord confidence levels, profitability and more, download our
Regional Snapshot Report or click below for the individual reports by area:
Stamp Duty reduction ends 31 March 2021
The Stamp Duty reduction is due to end on 31 March 2021. It’s important you’re aware of the following information:
- The latest date for legal completion to qualify for the Stamp Duty reduction is 31 March 2021
- If the purchase does not reach legal completion on or before 31 March 2021 Stamp Duty will be payable where applicable
The Conveyancer will be able to advise on the progress of the purchase transaction and will be aware of what action is required to progress the transaction
The above message has been communicated as a reminder of the deadline on stamp duty and we require your help to ensure that any potential impacts to our customers can be minimised. We would suggest if a new application is progressed at this late stage with expected completion on or before the 31st March 2021 that you ensure that the customer enters the purchase aware of the implications of not being able to meet the above deadline.
Important residential lending criteria changes
On Wednesday 24 February, we’re making some important changes to our residential lending criteria:
Interest only sale of the mortgaged property equity buffer increasing to £250,000
We’re increasing the minimum equity buffer where sale of the mortgaged property is the repayment vehicle to £250,000 (previously £150,000).
Reminder – for part and part applications the equity buffer includes the repaid capital and interest element at the end of the term. Please see our guide for more information.
Affordability update
We’re updating the Office for National Statistics (ONS) data we use to calculate how much your client could borrow. Our affordability calculation will be updated to reflect these changes.
Further information
Our usual pipeline rules will apply. All full mortgage applications (FMAs) already submitted on Introducer Internet by 9pm on Tuesday 23 February won’t be affected by these changes. Any FMAs submitted from 6am on Wednesday 24 February, or where a material change is made to an FMA submitted before 9pm on Tuesday 23 February, will be assessed on our updated lending policy.
Re-enters shared ownership market
The Melton Building Society has re-entered the shared ownership market.
“We temporarily withdrew our Shared Ownership offering last year to maintain our service levels,” said Dan Atkinson, Head of Intermediaries at the Melton. “The Melton has long supported first time buyers with a range of shared ownership mortgages and innovative lending criteria to help them get on the housing ladder. Together with our competitively priced high LTV Standard Residential mortgage, we have a great offering for first time buyers.”
The Melton’s broker website, www.themeltonbrokers.co.uk, provides an online end to end mortgage processing system that enables brokers to register, obtain a DIP, submit an application, upload documents and track cases online – all in one easy to access place. They can also access current service levels, affordability calculators, product guide, lending criteria and a Broker Live Chat service.
Joint Borrower, Sole Proprietor (JBSP) Relaunched
Mortgages are increasingly needed for people who are struggling to get on the property ladder. The newly launched JBSP mortgage from TFI, aimed at FTBs, is perfect for family support onto the property ladder.
Key highlights of our JBSP mortgage product…
- Parents and grandparents can join their child or grandchild on a mortgage by including their income in the affordability assessment
- Available under TFI standard mortgage range, and for those with more complicated income sources also under the TFI complex mortgage range (includes interest only solutions)
- Up to 80% LTV (70% where term age is past 70)
- Residential use
- Maximum loan size of £1.5m
- Open to borrowers from all professions
3 example scenarios where a JBSP mortgage could help your clients…
Bank of mum & dad boosts income for newly qualified teacher
The proprietor: Lucy is a newly qualified teacher with an entry level salary who needs a home in the vicinity of her new school.
The property: A new build property in an ideal location a short drive from her new teaching post.
The joint borrowers: Lucy’s dad is a GP and her mum is also a teacher. They know her salary will increase over the next few years. Mortgage free with no other financial dependents supporting their daughter is financially comfortable.
Mass affluent parents fund first step onto London property ladder
The proprietor: Annabelle, 22, has recently joined the graduate scheme of an Investment Bank in London.
The property: A two bedroom Victorian terraced house in Clapham for sale at £750k.
The joint borrowers: Annabelle’s father, 55, expects to work for a further 5 years in a senior accountancy role, when he will draw on a substantial pension. The family home in Surrey is mortgage free. Avoiding the tax implications of a second home.
HNW parents fund Fulham failsafe while influencer son seeks stardom
The proprietor: George, aged 28, describes himself as a social media ‘influencer’ although currently has no regular fixed income.
The property: A garden flat in Fulham where George can both live and work.
The joint borrowers: George’s HNW parents have significant wealth (a large portfolio is split across many different asset classes) but their income can be irregular. Their Hampstead home is valued at £5.5m, with an outstanding mortgage of just under £2m.
To discuss a case call the intermediary team on 0800 378669 or visit our website https://www.teachersbs.co.uk/intermediaries
Case Study: Stop your property-chain collapsing with bridging finance
When plans go out the window unexpectedly, it can be difficult to see a clear solution. At the beginning of the current lockdown our client was in the process of selling her London three-bed flat and was purchasing a new two-bed flat. The client’s buyers unexpectedly pulled out of the sale, jeopardizing the new purchase falling through. She did not want to loose the opportunity so she spoke to Greenfield Mortgages.
Our client’s current home had a small mortgage outstanding and had personal savings to clear this. Greenfield Mortgages was able to take a first charge over both properties and provide the full £751,250 purchase price of the new property. An interest rate of 0.65% was agreed with terms up to 12 months with rolled up interest and no monthly payments. The loan will be paid back in full once the sale of her current home completes, fingers crossed this will happen in the spring.
Our experienced Relationship Managers will be able to guide you through the process to seamlessly stitch back together your property chain. Give our team a call on 0121 233 1188 or email Enquiries@Greenfieldmortgages.com to discuss your case.
Her original plan to purchase was sale of her current home to realise the full v alue of £475k as she was porting and increasing her mortgage to £385k (which meant she would realise £195k from the increased mortgage) and also has £200k so total av ailable funds of £870k (£475k+£195k+£200k) but the sale of her current home fell through which means the plan has fell through an cannot proceed.We are providing a first charge bridging loan of £760k secured across both properties which with her £200k cash savings (so a total of £960k) is sufficient to repay the existing mortgage of £194k, fund purchase at £751,250 and leaves £13,750 towards additional costs.
We had both securities valued for us by Belleview Mortlakes Chartered Surveyors who attributed a valuation of £475k to Flat 20 Briers House and a v aluation of £751,250 to Flat 1, 32 Arterberry Road, SW20 8AQ.With security total value being £1,226,250 our net loan of £760,000 equates to £61.98% and with the total repayable at end of term being £858,073.71 equating to an LTV at end of term being 69.98%
Exit
Exit from our facility will come via sale of current residence ‘Flat 20 Briers House, Meadowview Road, SW20 9AN’ at £475k – see Rightmove listing: https://www. rightmov e. co. uk /properties/72156252#/ combined with refinance of the property being purchased ‘F lat 1, 32 Arterberry Road, SW20 8AQ’ to a residential mortgage with DIP provided showing £385k is available so a total of £860k to cover our total repa y a ble of £858,073. 71
Background
Morag Spence is 44 years old and has been living at her current home for over 9 years, she is employed by ‘Just Group’ as ‘Head Of Compliance Dev elopment’ for 1 y ear with her net income stated at 55,804 with prov ided pay slips showing a gross monthly y ear to date of £38,045 at pay period 6 so an average of £6340 per month
