TMA Broker BTL Survey: Tell us how we can help better support you and your business…
Over the last few years sourcing Buy to Let mortgages has become even more complex, with new rules introduced by the PRA, changes in affordability calculations and regular changes to lender’s criteria. As a result, it is becoming ever more difficult for brokers to effectively source the best product for your customer without considerable research which is very time consuming.
This might mean that customers may not be receiving the best possible deal and even when you do look to help your client you typically receive a lower return as it is often challenging to
cross-sell protection to such clients. We are hearing that some brokers are actively avoiding BTL clients.
Please complete our short survey to help us understand your attitude to BTL and gain your insight on how TMA might be able to assist you in providing your customers with a better service. Please answer all questions to be entered into our prize draw* to be in with a chance of winning a bottle of champagne!
Take part in the survey here.
The Mansfield returns to 95% LTV residential lending
Mansfield Building Society has increased its product offering above 80% LTV with three new fixed rates, including a 95% LTV house purchase product for both first time buyers AND home movers.
Along with 2 year and 3 year house purchase products up to 90% LTV, the new products all come with a free basic valuation, to help keep costs down, and are available across England, Wales and Scotland, subject to postcode restrictions in Scotland.
Head of Mortgage Sales, Andy Alvarez, said that he expected demand to be high because product options for borrowers at a higher LTV remain limited and because of the Society’s flexible approach to mortgages:
“We’re pleased to be offering more availability in the high loan to value space as brokers and their clients will appreciate how our real-world, common sense assessment on a case-by-case basis can be applied with attractive product features.
Brokers will be able to utilise flexible features such as gifted deposits, guarantors and Joint Borrower Sole Proprietor lending for their clients.
It’s so important that lenders enable borrowers with more complex needs to benefit from these higher LTV products.
We envisage that these will be popular products and therefore to help us maintain the high levels of service brokers expect from the Mansfield, we ask that brokers ensure the cases come to us with all relevant documentation. This will ensure we remain efficient for both brokers and their customers.”
95% LTV Mortgages
Virgin Money 95% LTV fixed rates
Virgin Money is delighted to be back helping customers with a range of 95% LTV mortgages, offered through the Government’s Mortgage Guarantee Scheme. They have 5, 10 and 15 year fixed rates, available to the following application types:
- Purchase or remortgage
- Maximum property value of £600k
- Up to a maximum term of 30 years
- Property types: houses, flats and maisonettes
Flats and maisonettes must be in buildings with four storeys or fewer and must not be ex-local authority or ex-MOD. They’re unable to accept applications for capital raising during a remortgage or for new build properties.
To qualify for the Scheme, applicants must not have an interest in another property and this must be verified by completing a Mortgage Guarantee Scheme Customer Declaration.
Virgin Money’s new range of 95% LTV mortgages are available with £300 cashback on purchases (£500 for first-time buyers) or free valuation and free legals on remortgages, and are fully portable. These deals may be withdrawn at any time without the usual notice.
To find out more, take a look at their sales aid, talk to your dedicated Business Development Manager, or contact your Regional Service Team.
Aldermore insight
How proposals on tighter energy standards could affect landlords. Start the conversation now about minimum EPC C-ratings to give your clients chance to prepare their portfolio.
Find out what James Young, National Key Account Manager thinks.
What do IR35 changes mean for self-employed clients?
If your client is a contractor, they could find their borrowing power cut by new rules from April.
NEW ONLINE PAYMENT OPTION FOR ANNUAL PAYERS
To make the service you and your clients receive from Paymentshield shine even brighter, they’ve have launched a new online option that enables policyholders who pay annually credit or debit card to renew and pay for their policy at a time that works for them.
What this means for your clients
For any of your clients that pay annually by credit or debit card, it means they no longer need to call Paymentshield to provide payment details over the phone and can do it all online. To promote awareness of the new payment option facility, the renewal documents sent to customer who pay annually by card now explains the option to renew and pay online.
Our customer experience
This is the first of a number of initiatives planned for this year to enhance the capabilities available to your clients and enable them to them manage their policy in the way they want. This year has also seen Paymentshield launch an FAQs centre and chat functionality via their website.
Review your renewing clients in Adviser Hub
You can easily view which of your clients are coming up to renewal and may want to take advantage of the new online payment facility by logging into Adviser Hub and reviewing ‘My GI Book’.
Accord Buy to Let has moved on to their Mortgage Sales and Origination (MSO) portal
Brokers can now make all their new Buy to Let and residential applications to Accord in one place and having BTL on MSO means the lender can now accept top slicing, lending in Scotland, BTL new build and a wider range of BTL products and features.
Accords’ Mortgage Sales and Origination portal or MSO makes it quicker and easier for brokers to submit new cases. It cuts out a lot of those boring repetitive tasks like having to type the same information over and over again. It has a range of great features including DIP certificates, real-time case tracking and the ability to view and print offers and brokers can amend a case at any stage in the process.
Top Slicing – The flexibly for your client to use their income to top up a rental shortfall
Accord’s BTL rental calculator will help you work out the minimum rent required, and if there is a shortfall it’ll confirm if top slicing is available for your client and take you to their surplus income calculator.
Please click here for more information about top slicing.
BTL in Scotland – They’ve extended their reach further north
If your landlord client has a property in Scotland, including New Build, the Accord BTL product range is available for them to choose from. And, if you’re client needs to use some of their surplus income to ‘top up’ a rental shortfall, they’ll offer top slicing too.
Please click here to see the BTL in Scotland eligibility information.
BTL New Build – A new build lender not just a lender that does new build!
Accord will be offering new build to your BTL clients on both houses up to 75% LTV and flats up to 65% LTV. All of the lenders current BTL purchase products are available for new build properties subject to meeting the standard LTV and loan amount criteria. Click here to see all BTL products.
Please click here to see the BTL New Build eligibility information.
Interest Coverage Ratio (ICR) and ICRR (Interest Coverage Ratio Rate) changes for background BTL properties via MSO
For cases via MSO Accord are changing their Interest Coverage Ratio (ICR) and ICRR (Interest Coverage Ratio Rate) for background BTL properties. A BTL portfolio will now meet the lenders affordability where the rental income of background BTL lending is of the mortgage payment(s) with a reduced interest rate.
Please go to the Accord Mortgages website for full details.
Top slicing returns to support your buy to let customers
Precise Mortgages has announced the return of top slicing across their entire buy to let range, offering landlords greater flexibility, which could help them get the loan amount they need.
Top slicing enables customers to use surplus portfolio and/or earned disposable income to prove they can meet any financial stresses, rather than using the rental income of the property alone.
For further information visit precisemortgages.co.uk or contact your BDM to discuss the options top slicing can offer.
Bridging Loan Purposes
The team at Complete FS have recently contributed data towards the Q1 Bridging Trends, and it doesn’t come as a surprise to us that funding a chain break was once again the most popular reason for obtaining bridging finance. The second most popular use of bridging finance was purchasing an investment property.
Key Bridging Trends in Q1 2021:
• Bridging loan market stabilised
• Chain-break most popular use
• Average LTV climbs to 55%
Q1 has seen strong year on year growth in bridging demand widely estimated at over 10% and at Complete we have seen an increase of almost 20%, as more and more introducers see the solution benefits of this type of lending.
Why use Complete FS for Bridging?
- Rates as low as 0.48% per month
- Terms from 1 month up to 2 years
- Comprehensive panel of bridging lenders
- Dedicated bridging team dealing with the enquiry/application
- Often we can use lenders on our ‘term’ panel to exit the bridge
- Competitive procuration fees – we always aim to pay the same to you as the lender would
- We ONLY charge your client £99 on application
If you are unable to offer bridging advice to your clients, we also run an introducer service where we can advise your client on your behalf.
With an extensive bridging panel, extremely low application fee and an introducer service, Complete FS are ready to help you in this ever increasing market.
Contact the Bridging Team on 023 8045 6999 option 3 or you can submit an enquiry online.
You have to be in it to win it!
We’re delighted to confirm that between now and midnight Friday 21 May 2021, you can enter to win 1 of now 77 signed shirts or signed footballs from a selection of Premier League clubs using the link to the entry registration form included below.
Please keep in mind the draw is only open to mortgage brokers, and their directors and administrative staff that have an active registration with Barclays Bank UK PLC and we will only accept one entry per person.
Please view our full Terms and Conditions
Important – When completing the entry form, please ensure you provide the full address of where you would want your item to be delivered.
Also, please be advised that using the email address provided on your form, we will email you within 5 working days after the draws have taken place on Tuesday 25 May, if you are selected as a winner .
Please click here to complete our simple entry registration form
Quarterly Report
Pure Retirement’s latest Quarterly Report is now available to read, designed to help you gain greater insight into equity release customer needs and the market opportunities Q1 has presented.
The report is divided in to three sections, allowing you to unlock the customer and market trends spanning the first few months of 2021. Firstly, the report takes a closer look in to Demographic Trends allowing you to access general patterns among retirees spanning the first quarter of 2021 and gain insight into likely future demographics.
The second section then explores Customer Patterns when it comes to their affairs and finances and the way they interact with financial services. Finally, the third section details Q1 Market Trends through a thorough market commentary on research from key figures in the industry including the Equity Release Council.
What’s next for short-term lending technology?
LendInvest’s Head of Lending Operations looks ahead to the future of short-term lending technology and how our new broker portal will make applications simpler.
Self-employed clients? We’ve got them covered
We know that many things have changed over the past 12 months, including our policy for self-employed clients. As part of our commitment to making things easier for you, we want to share our approach when assessing business accounts for the year to 5 April 2021 (which may include income via one of the government support schemes).
Want to know more?
Our BDMs are hosting a series of webinars dedicated to discussing our policy for self-employed clients, so get in touch with your local BDM to find out more.
Impact Insights – Watch The Series Today!
Our Impact Insights and Lender Webinars continue to be very popular and you can find them all on our YouTube channel here.
Please subscribe to our channel to be notified of new editions, which will be added over the coming weeks and months.
Impact provide brokers with an extensive range of specialist lending solutions, leading edge technology via the impact portal and relationships in areas such as bridging and commercial finance, buy-to-let, credit impaired and specialist residential mortgages – amongst others.
Impact also provides a Referral Service, as there may be occasions where, for a variety of reasons, brokers may wish to pass the customer over to impact. For example, where a case is highly complex or you may not have the relevant permissions. Referrals can be accepted for both regulated and non-regulated cases across bridging, specialist lending, buy to let and commercial.
Speak with the impact today on 01403 272625 to find out more.
M is for More reasons to choose Zephyr
Lately we’ve been making some enhancements to our offering, which in turn helps you to provide a great service to your BTL clients. Here are just some of the improvements we’ve made…
- New enhanced Products now available – the highlights include:
- Reduce rates on 75% 5 Yr STD and HMO products
- New 2% product option introduced across entire range
- Max loan on 65% Standard is now £2m
Take a look at the full range here >
- We’ve joined Lender Exchange – We understand how important it is for you and your clients to work with a solicitor you know and trust.
- Turnaround Times updated daily – to keep you updated on how quickly we’re processing cases, our average service levels are updated on our website each working day by 9:30am.
Conveyancing panel information
Give Zephyr a try to see how we’ve got BTL covered from A to Z.
Find your BTL expert by region | Call 0370 707 1894 Mon-Fri, 9am-5pm
RESIDENTIAL LARGE LOANS
At Metro Bank, we have the expertise to discuss complex cases and find the right solutions for your customers. We understand the complexities that come with various income streams and the requirement for a lender to individually underwrite and assess each case on its own merits.
Reasons to choose us:
- Loans up to £5m available
- Personal service – one single point of contact through your mortgage process
- Higher earners can now benefit from enhanced income multiples of up to 5.5 times earned income as part of our Professional Range (minimum income requirements and maximum loan amounts apply)
- Multiple income streams can be considered using standard multiple income multiple of 4.49 times income
- The maximum age at the end of the mortgage term is now 80 for all repayment types including interest only
- No funds under management are required
- Flat product fee with reduced fees for existing customers
- Security – properties with large acreages and annexes considered
For full details on the points above and acceptable repayment vehicles, please refer to our Mortgage Lending Criteria Guide and Product Guides.
How we can provide HMO and MUFB solutions
At Kent Reliance for Intermediaries we can consider the following for your HMO and MUFB cases:
- HMOs and MUFBs with up to 10 bedrooms/units accepted
- First-time landlords accepted with up to 6 bedrooms/units
- Properties with 7 or more beds/units valued on a commercial basis
- Limited company structures welcomed
- Less-than-perfect credit profiles considered
We’ve also launched a brand new range of limited edition products to provide more options for these cases. You can see them here or, contact your local business development manager to find out how we could help provide the solution.
Reliance Bank Ltd – Key Mortgage Partner update
I wanted to reach out to you today to provide you some key updates / changes which we are announcing to you in advance of a wider announcement, as we wanted to ensure that you were briefed accordingly.
New Reliance Bank Ltd Mortgage Product Range – Launching tomorrow – 18th May 2021
As per my note last week, I am now delighted to share with you details about our new mortgage product offering, which will go live with our sourcing partner Twenty7 Tec and our Website from tomorrow morning. I have attached the detail for you which your members will be able to access
We have updated your criteria spreadsheet earlier today to reflect the changes in our proposition and this was issued to you in advance of this note
Please see below the following enhancements which we are launching from tomorrow
- Introduced a £500 Cash back for all Remortgage applications where the customer is looking to borrow £200,000 or more*
- Continued to provide free basic valuations for Remortgage applications for properties valued up to £750,000 **
- Continued to offer a fee free dedicated Remortgage product Range
- Increased the Maximum loan size for 90% LTV products from £250,000 to £500,000
- Introduced 95% LTV products with a maximum loan size of £350,000
- Added 4 NEW Key Worker 95% LTV products (2 year fixed rates & 5 year fixed rates) Both the 2 year and 5 year come with Product fee and no Product fee options.
- For our Key Workers, they can now look to utilise our Key Worker product range, even if they are first time buyers***
- Added 2 NEW Shared Ownership 95% of share LTV Products ( the 2 year fixed rate comes with a £995 product fee, while our 5 year fixed rate option comes without a product fee.)
- For Shared Ownership range, we have increased the maximum loan size from £250,000 to £500,000 for cases up to 90% of the share.
- For Shared Ownership range, introduced a 95% LTV of share range, with a maximum loan amount of £350,000
- We have also taken the opportunity to make a number of rate reductions across our House Purchase / Remortgage / Shared Ownership & our Keyworker product ranges
* Cashback is paid within 60 days from date that the remortgage completes with Reliance Bank Ltd. Cashback does not apply to cases where borrowing amount is less than £200,000 qualifying amount
** Staircasing and shared ownership remortgage applications are excluded from this incentive
*** keyworker product range cannot be used in conjunction with any schemes, such as shared ownership or right to buy (RTB)
Please be aware of the following;
- Reliance Bank do not offer product Transfers (retentions) via the intermediary channel, hence these have not been shared with yourselves – these are conducted via the Direct Channel ONLY and rates are available for our customers on our website
- Reliance Bank do not offer Further Advances via the intermediary Channel, hence these products have not been shared with yourselves – these are for Direct Channel ONLY and rates are available for our customers on our website
These changes will help improve the Bank’s overall product offering to the uk mortgage market.
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.
