NEW WEBINAR NOW AVAILABLE
There is a new webinar available on TMA Vision from The Mortgage Works. Watch the video here, and request your 30 minutes CPD by emailing marketing@tmaclub.com.
Generous ICRs and competitive rates
Could your Buy to Let clients borrow more? Try Foundation Home Loans new calculator to find out if they could help your landlord get more bang for their buck.
Here are just a few examples based on client borrowing up to 75% LTV:
Limited Company client mortgaging a standard property. Rent is £1,200 per month:
- ICR @125%.
- 2 year fixed of 5.50%
- Max loan of £209,455
Limited Company client buying HMO. Rent is £1,500 per month:
- ICR @125%.
- Rate of 3.94%
- Max loan of £365,482
These are example rates which may vary from rates available at the time. Try their new BTL calculator for an accurate loan amount based on a true rate.
When it comes to life cover, it’s time to get real
As a Mortgage Association adviser, you know that every single one of your clients is unique. Whether it’s their medical history, financial commitments, or their future aspirations, every conversation you have will be different.
Being unique can have its challenges, especially when it comes to finding adequate insurance for those with a complex medical history. But that’s where they come in.
Real Life cover from The Exeter
Real Life is designed to provide valuable access to life insurance for your clients living with serious or multiple health conditions. Just because someone has a complex medical history doesn’t mean that getting cover needs to be difficult.
A different approach for your clients’
With one in four people in England living with multiple health conditions, the need for a more inclusive approach to providing life cover is clear. At The Exeter, they do more to cover more people, helping you to provide valuable reassurance and peace of mind to even more of your clients.
To find out more about Real Life cover from The Exeter, why not book a personal product briefing with one of their Adviser Account Managers here.
Winter Webinar Series
Join Skipton at their next webinar to discuss the changes to Help to Buy.
Rachael Hunnisett and Natalie Brown are ready to host the third webinar of their winter series. And this time they are joined by Skipton’s Intermediary Strategy Manager, Simon Tipton, to talk about his views on what opportunities and challenges may arise when the current Help to Buy scheme, as they know it, ends.
Life after Help to Buy Featuring Simon Tipton, Intermediary Strategy Manager
3 December 2020 at 9.30am.
Let’s discuss…
Skipton Intermediaries know that the current Help to Buy scheme, as we know it, will end on 31 March 2021 and a new scheme will be introduced. But how could that affect you and your clients? Join Simon as he explores:
- What is Help to Buy as they currently know it?
- What opportunities could come from the change?
- Could the new scheme present challenges to the New Build market?
- How might lenders respond?
Mental health is a key priority in the current climate
Mental health issues in the UK are more common that you might think, with one in four of us affected at any one time. 1
In recent years there’s been great progress in bringing a focus on mental health wellbeing into everyday lives, driven by charities such as Mental Health UK who have championed the need to have better understanding of mental health issues and helping people recognize the mental health indicators in themselves and others.
The global pandemic has impacted on the nation’s mental health. An August 2020 ONS survey2 found there’s been an increase in UK levels of mental distress during this year. Almost one in five adults (19.2%) were likely to be experiencing some form of depression and this has doubled from 1 in 10
pre-pandemic.
In England, the Centre for Mental Health has predicted that up to
10 million people – almost a fifth of the population – will need mental health support as a direct consequence of Covid-19, with 1.5 million of those expected to be children and young people under 18.3.
It’s clear that a lot of people who require assistance will find it
a struggle to get the treatments needed in a timescale that will help them.
If a doctor refers a patient for talking therapy, such as cognitive behavioral therapy (CBT), the average wait is 12 weeks for a first face-to-face assessment, with a further wait of up to 12 weeks for treatment. That’s a long time without the help and support that might be needed.
Advisers can help customers understand that there are inexpensive alternatives to mental health support through new
or even existing insurance policies.
Many life insurance and critical illness providers offer a range of added value health care services attached to their policies. These services are often available through the life of the policy not just at claim stage. Services available are not just mental health, cancer care and medical screenings. Some policies can give nutrition and sleep advice too either through 121 counselling or the provision of a wellbeing app.
Informing customers about these services is a great way to help clients, but there are also simple steps firms can take to help make things easier when it comes to mental health.
TAKING PROTECTION FURTHER
Download their simple body diagram to support you in explaining the reality of Critical Illness to your clients.
Stamp Duty Deadline
The mortgage industry has seen a surge in activity due to the stamp duty freeze with homebuyers wanting to take advantage of the savings.
This has caused delays in the buying process, mainly due to the overwhelming increase in demand and the impact lockdown restrictions are having on business continuity.
Searches are taking longer to come back, with some local authorities experiencing average turnaround times of 40* days and others have suspended services to manage backlogs.
Many conveyancers are now warning they’re unable to guarantee meeting the 31 March deadline. So, if your client hasn’t already started the application process, they may miss out on the stamp duty saving.
Given the significant volume of activity in market, it’s unsurprising that many ongoing purchases will be part of a chain. This may lead to some needing to “break the chain” and look to short-term finance options such a bridging to complete before the deadline.
So, how can Aldermore help?
In response to this, they’ve temporarily amended their underwriting guidance to support homebuyers using bridging finance to beat the stamp duty deadline and they’ll now accept:
• Refinance from bridging for owner-occupied – less than 6 months
• Property must have been owned for at least 1 month
• No additional borrowing permitted (other than fees)
How can you help your clients?
Aldermore are expecting unprecedented levels of demand for March completions. Delays in services across the home buying process will inevitably mean some purchases don’t complete in time to meet the 31 March stamp duty freeze deadline.
It’s important to set realistic expectations with your client. You could ask them to pay local authority search fees upfront to help speed up the process, as well as making sure all documentation needed is provided in plenty of time.
The changes they have made are designed to support customers using short-term finance to meet the stamp duty deadline. Aldermore will continue to look for ways to support applications at this time and will keep you updated with any changes.
If you need any further information, contact your relationship manager or BDM.
SUPPORTING BROKERS THROUGH THE HELP TO BUY TRANSITION
Accord Mortgages has confirmed it will continue to support Help to Buy applications into 2021 and beyond, having already enabled the purchase of more than 2,600 new homes since it launched its new build offering in October 2018.
The new build lender is still accepting current scheme applications, but will be launching new products ahead of reservations for the new scheme commencing on Wednesday 16 December 2020.
What’s more, to help brokers navigate the interim period between the two schemes and understand more about the new offering, a free to access guide has been created as part of the Accord Growth Series. It details the proposed timings and answers the top 10 questions from brokers on the transition period.
Nicola Alvarez, corporate account manager – proposition development at Accord Mortgages said: “In just two years we have established ourselves as a new build lender, offering brokers dedicated support and underwriting and a fast and efficient service. Accord were proud to be able to offer a range of products for the current Help to Buy and they are delighted they will be continuing that support as the new scheme launches.
“They know there are still a number of queries from brokers about the transition so their Growth Series guide aims to address some of those key questions. Accord business development teams are also happy to offer practical support, checking eligibility and affordability for example, to brokers who are working with clients considering the new scheme.”
To see their free copy of the Growth Series Help to Buy Guide, please click here.
Focusing on special Purpose Vehicles
Did you know that nearly half of landlords say they intend to buy their next buy to let property within a limited company structure*? With so many investors thinking of incorporating, our Special Purpose Vehicles (SPV) factsheet gives an insight into what you need to know about the process and how Precise Mortgages could help them get the mortgage they need.
Click here to find out more about SPVs.
Efficient Case Processing
At Zephyr they know how important it is to get your cases processed efficiently, that’s why they’ve recently updated their Application Submission Guide to make sure it includes all the key guidance you need to get your case submissions right first time.
If in doubt, give our experts a call.
Our BDMs are always on-hand to provide you with any support you need – a quick sense check before you submit a case, could minimize delays later.
They’ve got the A to Z of BTL covered
With their broad criteria, knowledgeable team and flexible approach, they will always strive to help you place your specialist Buy to Let cases. Zephyr are here with support and top tips for any complex queries you have, to help your case applications breeze through without a glitch.
Here’s a quick reminder of what they offer…
- No upfront application fees and ZERO product fee options across entire range
- Standard and Specialist HMO & MUFB products available up to 75% LTV, with Max Loan size of £1.5m to 70% LTV and £1m to 75% LTV.
- Specialist New Build & Flats Above Commercial products available up to 75% LTV, with Max Loan size of £750k.
Call their expert team 0370 707 1894 Mon-Fri, 9am until 5pm.
Updates BTL product with reduced rates and new products
LendInvest has recently announced new updates to their BTL range. They have introduced a new 5-year fixed product at 75% LTV with lower rates and rate reductions on 2-year products. The lender has also re-introduced tier 2 credit criteria for landlords. Visit their website for more details.
Current Service Levels – Help us to help you
Currently like many lenders we are experiencing record volume of applications and this in turn is causing some processing issues.
In order to help us, it is important that all applications sent to us must be accompanied by the documentation that we have requested with our DIP acceptance email. This will enable us to process the cases in a timely manner and ensure that they can be passed to an underwriter without further delay.
We are also asking for valuation fees to be paid when the application is submitted to us so that we can instruct a valuation as we are finding that valuations are taking up to three weeks to be booked in at the moment. Cases will not be passed to an underwriter for an assessment unless a valuation fee has been paid.
It is also important that if your case is a residential application that we have assessed at DIP stage. If we receive residential cases which have not had a DIP acceptance decision then these will be passed for a DIP review before being reviewed. Currently, we are operating on 5 working days for a DIP decision.
Please help us to help you.
Let us help solve your specialist buy to let cases
Do you have a landlord client with a large HMO property?
The underwriters at Kent Reliance for Intermediaries have experience with most scenarios, and apply common sense when assessing cases. This, combined with loans as high as £3m, LTVs of up to 75% and HMO/MUFB options of up to 10 bedrooms/units means their buy to let products could be exactly what your client needs.
