Inform 27th May 2022

On Wednesday 1 June we’re launching 95% LTV mortgages without the need for support from the Government’s mortgage guarantee scheme (MGS), which is due to end for new applications on 31 December 2022.

Key information
• Our lending policy for loans above 90% LTV will remain the same as existing lending policy.
• The 95% LTV standard rates will be the same as our existing MGS products.

Pipeline rules
For full mortgage applications (FMAs) over 90% LTV already submitted on Introducer Internet by close of business on Tuesday 31 May, we may not necessarily process the FMA as an MGS case. Where a Mortgage Guarantee Scheme Customer Declaration (MORT1181) has not already been uploaded to us via MATS, we’ll send you a MATS message telling you that it’s no longer needed. There’s no impact to you or your client if they have an MGS product or a 95% LTV standard product.

All new FMAs over 90% LTV submitted from Wednesday 1 June will no longer need the Mortgage Guarantee Scheme Customer Declaration (MORT1181).

How are we supporting the change?
This change will be updated on the SFI website 95% LTV page, lending criteria and evidence requirements from Wednesday 1 June.

On Tuesday 24 May, we’re introducing new First Time Buyer Exclusive products which offer £500 cashback, as well as reintroducing £250 cashback to selected purchase rates. We’re holding our new business rates and making reductions to selected product transfer rates.

New business

• 85% and 90% LTV first time buyer exclusive rates with £500 cashback.
• £250 cashback added to selected residential purchase, new build and Help to Buy rates.
• No changes to BTL range.

Visit our website for full details of our new business changes.

Product transfers

• Selected fixed rates reduced by either 0.05% or 0.10%
• Santander product transfer rates are personalised to each customer, so you won’t find them on sourcing systems. Please log on to our Online Mortgage Transfer Service in Introducer Internet on behalf of your client to view the rates available to them.

Monthly Housekeeping

• Roll on of our charge and benefit end dates by one month.
• Completion deadlines have been rolled on to:
  • 5 October 2022 for product transfers
  • 4 November 2022 for remortgages
  • 30 November 2022 for purchases
• Fixed product codes will be replaced on all new business products.

Further information

For full details of our new business mortgage range please see the Rate Bulletin (Issue 9) which will be available on our website on Tuesday 24 May.

Mansfield Building Society has made positive changes to its buy-to-let and residential criteria including an increase to its maximum buy-to-let loan to value (LTV) from 75% to 80% on selected products.

With buy-to-let, the Society has reduced the minimum age for applicants to 21 and can now accept first-time landlords. If the applicant is not a first-time landlord, The Mansfield can now also accept gifted deposits.

In addition, The Mansfield has further improved its residential mortgage criteria for both income and property. On the income side, it will allow zero hours contracts and piece rate work up to 95% LTV, subject to three years income over 80% LTV and two years income up to 80% LTV. It will also allow employment within a probationary period, where there is a track record of a similar position, and income from umbrella companies will be considered.

For properties, it will lend on new build properties up to 90% LTV and consider Grade 1 Listed buildings.

Tom Denman-Molloy, Intermediary Sales Manager, Mansfield Building Society, commented:

“These changes to our buy-to-let and residential criteria highlight our increasing lending appetite. Mansfield Building Society takes an individual approach to underwriting and we embrace diverse circumstances as much as possible. These enhancements to criteria and an increase in maximum LTV for buy-to-let mean we will consider even more applications and help brokers find solutions for their clients with our versatile lending approach.

We anticipate increased demand for our products following these changes and brokers can expect further updates to our offering over the coming weeks.”

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/.

A ‘How to’ guide by Gemma Lang, Regional Area Manager at Foundation Home Loans.

As you know, we lend on Short Term Lets in England, Wales and Scotland, but what does “Short Term Let” really mean? Our BDMs are often asked by brokers, “What’s the difference between an Air BnB and Serviced Accommodation?” or “What’s the difference between a Holiday Let and a Short Term Let?”

Click here to read the full story and find out!

Upturns and downturns. We’ve all been there and know things never stand still for long. In one fell swoop interest rates and the cost of living has risen, and inflation has soared into the stratosphere.

So, this month LiveMore are focusing on helping their customers to live their best lives – with their 10yr Fixed Rate & Fixed for Life Mortgages specially designed to beat inflation rises.

And thanks to their brand-new product structure, LiveMore are also able to offer customers aged 50-90+ a much wider choice of other mortgage options to match their individual circumstances. Allowing them to fund pretty much anything; from debt consolidation, housing projects and hobbies to travelling and so much more.

Their research below also shows that there’s a significant portion of LiveMore customers within the past year that have used their loans to fund these lifestyle and home improvement projects.

The Loan Partnership have access to the Selina Finance drawdown facility on a second charge with LTV’s up to 85% with no ERC. An ideal product for:

• school fees
• paying for the home extension in stages.
• Interest only BTL seconds up to 90% LTV.

Great for releasing capital to improve, renovate or use as a deposit on another property.

A second charge can also be a great way of avoiding an ERC on a fixed rate. It gets the client the funds at a decent rate and with no ERC the broker can re mortgage at the end of the fixed rate term. It’s a beneficial situation all round and can prove to be a double income source for the introducing broker.

Talk to The Loan Partnership on 01923 250 090 or contact us online and see how we could help you and your customers. Ensure you quote TMA.

At the start of the year, it was predicted that the rate of inflation could reach 7%, which as of May we surpassed. The Bank of England now predict that inflation may rise to 10% this year. To combat rising inflation the Bank of England’s Monetary Policy Committee voted to increase the Bank of England base rate to 1%, which is the highest it’s been since 2009.

Due to these changes we’ve seen an increase in rates – from both mortgage lenders and savings providers. A mortgage advisers’ role has never been more important in supporting a generation of home-buyers and home-movers who have never experienced a rising rate environment.

This month we have focused our criteria update on Flexi Fixed for Term, a mortgage offering the chance for your client to fix their mortgage from 11 to 40 years with a fixed monthly payment that will never change. Available to FTBs, home movers and remortgagers, it provides your clients with extra peace of mind in a rising rate environment.

Criteria spotlight:
Flexi Fixed for Term

Providing extra peace of mind in a rising rate environment, Flexi Fixed for Term gives a boost in borrowing power, allowing up to 6x LTI for first time buyers.

Available up to 95% LTV, supporting borrowers with lower deposits.

Credit criteria at-a-glance:
*Secured Loan Arrears and Defaults acceptable if older than 36 months.
*All Communications and Insurance defaults ignored.
*Utility defaults of £250 or less ignored.

Find out more.

When it comes to financing large complex buy-to-let portfolios, selecting the right lender is crucial. For complex cases you need a safe pair of hands and at West One our individual approach to underwriting means that we review each case on its own merits, ensuring we support clients to secure the purchase or remortgage that they require in a smooth and timely fashion

Our latest case study, in which we successfully assisted a high-net worth individual with a £6.86m refinance of their property portfolio in just 6 weeks, really highlights the benefits of our flexible approach to portfolio landlord cases.

Key Figures

• £6.86m Loan Value
• 75% LTV
• 54% Rate
• 10 Years Loan Term

What was the situation?

• The client was the director of a company.
• Client owns 31 buy-to-let properties and 3 commercial units in a limited company alongside another shareholder.
• £10m unencumbered residential property.
• Funds were needed to repay an existing £3.5m facility and expand the company.

What was the solution?

• Refinance 25 of the clients’ buy-to-let properties (values of the properties varied between £190k – £650k) in order to raise the required £6.8m
• Manual underwriting enabled the team to get comfortable with the client circumstances.
• Overall DSCR was 127.89%.
• Significant funds in the client’s company and limited company.
• Bespoke rate and fee for the client was agreed.
• Offer of up to 75% LTV.

What was the result?

• Our pragmatic approach meant West One refinanced of the 25 properties completing in just 6 weeks.

Why West One?

• Portfolio lending up to £15m per borrower – more than 20 applications or £3m lending by referral
• Leasehold Block exposure to 20 units with up to 100% exposure possible – over 20 by referral
• No background portfolio stress test
• Additional verification (like E-Tech or EDM) is not required
• Great turnaround times from enquiry to application and offer
• Limited company lending with no rate loading
• Fast-track remortgage options to speed up completions
• No minimum income requirements

Find out more about West One’s products here.

To discuss a case or register as an introducer please get in touch with the West One team here: https://www.westoneloans.co.uk/buy-to-let-mortgages#introducer
0333 123 4556
btlbrokersupport@westoneloans.co.uk.

A number of worldwide events have really sharpened many people’s outlooks and interest in the economic plight of the UK and on a worldwide scale. This is especially apparent with the scars from the pandemic living long in the memory and in the pocket of a vast number of people.

This is also a period which concentrated the minds of many landlords. A major positive arising from this were the positive stories which emerged around the empathy being shown by various landlords towards their tenants during these challenging times and the subsequent strengthening of these relationships. Professional standards also appear to have improved across the board which has resulted in an increased focus on longer term tenancies and improving the quality of rental properties to attract such tenants.

In addition, we have seen a greater number of professional landlords rise to the fore when it comes to seizing opportunities and really taking stock of individual properties within their portfolios and the structure of these portfolios. Within this, there has been a well-documented flight to limited company offering – a webinar poll conducted by CHL Mortgages back in December suggested that an overwhelming 96% of brokers expect to write more limited company business in 2022 – and a growing trend towards House in Multiple Occupation (HMO) as we emerge from the pandemic.

HMOs have long been a popular option for more experienced and hands-on landlords who are comfortable managing the extra challenges that can arise from this particular property type. By this I mean having separate contracts for each tenant, as well as finding new tenants more often and dealing with individual issues which can prove to be time consuming for those dealing with this themselves, or a little more expensive if a management company is doing so on their behalf.

From a tenant perspective, historically speaking, HMOs tend to attract a student population and young professionals who are looking for affordable accommodation close to campuses, places of work and/or good transport options. Of course, the pandemic affected the demand for student housing and urban living as office life closed for prolonged periods. However, whilst remote working options remain for some, we are seeing a return to these urban areas from young professionals who are looking to get back to a ‘normal’ working and social life where possible.

Moving forward, HMOs will provide more affordable housing options for more people and, in light of rising living costs and soaring inflation (the Bank of England has recently revised its forecast to suggest inflation will see a 10% rise by the end of the year, up from 7%), such properties are likely to grow in popularity over the course of 2022 and beyond. As such, here at CHL Mortgages, we recently moved further into the complex multi-unit/tenanted buy-to-let market by launching a new product range for large HMOs and multi-unit freehold blocks (MUFBs), designed to cater for properties with 7 to 10 bedroom/units.

As always, such a decision came on the back of extensive research, testing and feedback to provide our intermediary partners with options to meet increasing demand for these property types which continue to generate high yields and meet ever-shifting landlord and tenant needs. As landlords look to diversify further in a bid to maximise yield and minimise risk, the appeal of HMOs is likely to further intensify and become an even more critical component within a professional landlords portfolio. Thankfully, the specialist BTL market continues to deliver a range of solutions to meet these demands in a competitive and responsible manner. And long may this continue.

• Andy Valvona, National Account Manager