Buckinghamshire Building Society
Helping FTB’s overcome affordability challenges
The BSA has called for the Government to work with lenders, the wider housing market and the public to ‘make homes more affordable, more available and more appropriate to the needs of those living in them and the world we live in’.
As lenders, we have to play our part in solving this issue. We must recognise the difficulties that our customers are facing. We have to listen to feedback from intermediaries about which criteria first-time buyers are struggling to meet and the factors that put them at risk of exclusion from the housing market.
We can then use this information to design products that meet the needs of people trying to get a mortgage today.
At Buckinghamshire Building Society, we understand that traditional routes to buying a home are not viable for everyone. We want to reopen doors that people may feel were closed to them.
That’s why we have launched our new joint borrower sole mortgage proposition, JBSP Deposit Lite. This combines the benefits of two existing products – JBSP and Deposit Lite – to help buyers take that first step onto the property ladder.
Solving the deposit and affordability challenge in one product
It provides a solution to both the deposit and the affordability challenge in one product from one lender, making life easier for all concerned; buyer, broker and lender.
A JBSP Deposit Lite mortgage makes it easier for parents to help their children buy a home. It comes with low to no deposit options enabling borrowers to purchase their first property by leveraging the equity from parental property.
Then to assist with affordability, up to two parents can also join the borrower on the mortgage, significantly improving their borrowing potential, but without the need for them to be co-owners of the home.
Parents can use up to 60% of the value of their own property to help their child onto the housing ladder and up to a 40-year term is available.
Subject to individual approval, we may also be able to accept equity in second homes or holiday homes.
We’re always looking to innovate, particularly where first-time buyers are concerned, as we appreciate it’s currently much harder to get onto the property ladder.
This combined product also simplifies the process for intermediaries and hopefully gives their customers a viable option for finally buying a first home.
Should you have any questions or require more information, please contact your dedicated Key Account Manager or call us on 01494 879500.
You can find your Key Account Manager here: https://www.bucksbs.co.uk/intermediaries/find-your-key-account-manager/
Claire Askham is Head of Mortgage Sales at Buckinghamshire Building Society
Virgin Money
3 Red Hot Things our BDM’s are talking about this week:
We LOVE Limited Company Directors and the way we calculate the incomes usually means you can get more lending for your clients than with other banks, example below:
How do we calculate our income:
- Virgin Money uses profit AFTER tax plus salary, average over 2 years or latest year if lower.
- Clydesdale uses profit BEFORE tax plus salary, averaged over 2 years or latest if lower.
How old can the account be:
- Virgin Money may accept accounts up to 20 months old (if older than 18 months, a projection for latest year will be required).
- Clydesdale accepts accounts up to 18 months old.
What documents do we need:
- Virgin Money need 2 years full finalised accounts plus and accountants reference.
- Clydesdale need 2 years finalised accounts, showing 3 years figures plus accountants letter confirming your client’s percentage share in the company and their salary for the last 3 years
- Latest months business bank statements required for both brands.
Here is an example of the difference using the profit of the business can make on the max affordability:
Scenario:
- 100% director
- Profit before tax : £70,000
- Profit after tax : £56,000
- Dividends: £38,000
- Salary: £12,000
Based on above examples (subject to clients outgoings)
- Lender accepting Dividends + Salary x 5 times income= £250,000 lending
- Virgin Money – (Profit after tax + Salary) x 4.49 = £305,320 lending
- Clydesdale (Profit before + Salary) x 4.49 = £368,180 lending
Service at 28th May 2024:
Virgin Money:
- Initial Assessment: 2 days
- Correspondence & Valuations: 1 day to assess documents and 1 day to assess valuations
- Speed to Offer – rolling month: 9 days
- Post Offer: 2 days
- Calls: Webchats answered 100% and calls answered 99%. Average call wait time 00:15 & longest wait 08:04
- Policy Exceptions: 4 days
- New adviser registrations: 1 day
- Product Transfers: Offers 4 days; Correspondence 3 days; Underwriting 2 days
Clydesdale Bank:
- Initial assessment: 2 days
- Correspondence & Valuations: 2 days to assess documents and 3 days to assess valuations
- Offers: 2 days
- Speed to Offer: 11 days
- Cases fully packaged at outset are achieving lower speed to offer timescales
- Average speed to offer is working days based on applications received since April 2021.
- New adviser registrations:
- Adviser already on VM panel and firm already on CB panel: 1 day
- All other registration requests: 1 day
- Product Transfers: 2 days
e.surv Chartered Surveyors
The survey to give customers confidence
Buying a house – whatever stage your customers are at on the property ladder – is a big deal. It can mean battling some big obstacles and parting with big money.
But you can give homebuyers the reassurance they’re looking for that their investment is nothing short of sound. By doing that, you’ll get the warm and fuzzies, big time.
Introduce them, then, to the multi-award-winning e.surv HomePlus Digital Home Survey, which offers all these benefits and lots more:
• A pre- and post-inspection call
• Defects identified, with advice provided by a RICS-qualified surveyor
• A copy of the digitally interactive report, delivered via email (as a PDF, ready to print at home)
• The functionality to easily send sections of the report to tradespeople for repair quotes
• Relevant legal issues highlighted, which can also be easily sent to a conveyancer.
What’s more, customers will receive an Energy Efficiency report, with their surveyor reviewing the Energy Performance Certificate (EPC) of the home, if available. They’ll also check for any obvious discrepancies between the EPC and the property.
For a more detailed look at what the survey offers, head here – and see how it compares, also, to that of the RICS Standard Level 2 Survey. If you’re keen to refer your customers to the HomePlus Digital Home Survey, which has over 6,200 Trustpilot reviews, just click here, book a demo (via 03339 997 578 – option 2), or email sales@esurv.co.uk. By referring your customers, you’ll also receive £75 commission per completed referral. Just 5 successful referrals per month would give you £4,500 commission annually.
More2Life
“Why I Love Flexi”
Watch as more2life’s National Sales Manager, Fran Green, explains why she loves Flexi lifetime mortgage and how it can help you deliver better customer outcomes, including:
- How Flexi travels with your clients throughout later life
- How they can secure both the best deal today, and in the future
- more2life’s Core4 features
Watch now: https://bit.ly/franflexi
Melton Building Society
Melton Building Society boosts maximum loan size across all LTVs
Melton Building Society have increased the maximum loan across all loan to values with effect from 24th May to support a broader range of borrowers with the challenges of rising house prices.
From 24th May the maximum loan size across the Melton Building Society’s loan to value range will increase.
For those borrowing between 75-80% LTV, maximum loan size will now be increased to £1m, 90% LTV, up to £750,000 and 95% LTV, can now borrow up to a maximum of £500,000.
For those looking to lend up to 75% LTV and in excess of the current maximum loan of £1m, the Melton will also be launching new 2 and 5 year products available up to £2.5m. These new products will be available on a capital and repayment basis or for those borrowing on an interest only basis will be available up to 60% LTV.
“At Melton Building Society we are always looking for ways to support a broader range of borrowers, whether that’s through our products, criteria or responding to client and broker feedback.” Said Dan Atkinson Head of Intermediaries at Melton Building Society.
“It’s well documented that house prices have gone through a period of sustained growth for a number of years now. It’s clear the impact this has had on buyers, particularly those buying in the south, who have been experiencing significant challenges with higher than average house prices. Our aim is to offer a broader range of clients the option of a mortgage with Melton Building Society, and we’re committed to helping prospective home owners and those looking to take their next steps on the property ladder. “
More details of the current product range and criteria at the Melton are available on their website themeltonbrokers.co.uk or by contacting the sales team on 01664 414144.
Aviva
Online Digital Roadshows – Health and Well-being for yourself, your business, and your clients
DigiCare+ Adding Real Value
Month: May 2024
CPD 30mins
Synopsis: We all know looking after our day‐to‐day health and wellbeing should be a top priority, but life often gets in the way. Find out how you can be proactive with your health as DigiCare+ helps Prevent, Detect and Manage your health and wellbeing. The Aviva DigiCare+ app can help your clients take control.
Supporting your Mental Health – Underwriting
Month: May 2024
CPD 30mins
Synopsis: Talk about mental health. We’ll discuss the affects that mental health conditions have on claims, what it means for underwriting and see what benefits and the support we offer to your clients with mental health issues
Supporting Your clients health – Underwriting
Mental Health Special – Ask the Expert
Month: May 2024
CPD 30mins
Synopsis: As we enter Mental Health Week, we will explore what Aviva DigiCare+ offers your clients to help them prevent, detect & manage common health conditions related to mental health. We will explore market statistics to help support your sales conversations & we will have Aviva DigiCare+ provider, Square Health on hand to offer personal advice on how to effectively manage your mental health in this hectic world we live in. It will be an insightful event, led by experts
Mental Health Special – Experts
Event: DigiGP
Month: March 2024
CPD 30mins
Synopsis:
Aviva DigiCare+, Digital GP – Ask the Experts
Healthy Habits for your customer
Month: January 2024
CPD 45mins
Synopsis: Discover what’s available with Aviva DigiCare+ to support your clients with their health and wellbeing goals
Healthy Habits for your customer
Healthy Habits for your business
Month: January 2024
CPD 45mins
Synopsis: We’ll walk through the materials available to enhance your client conversations and customer journey.
Mansfield Building Society
Mansfield adds criteria search function to its website
Mansfield Building Society has introduced a new criteria search function on its website, making it easier for intermediaries to search the Society’s lending options.
The new search function is available from the home page of the intermediary section of the Mansfield Building Society website. The search covers the mutual’s range of both residential and buy-to-let lending, including its Versatility and Credit Repair offer.
The criteria search functionality is provided through an integration with mortgage technology provider Mortgage Brain. Brokers will also be able to make use of an A-Z of criteria, allowing them to quickly pinpoint whether the case falls within the Society’s criteria.
Brokers can now search Mansfield’s criteria, check affordability and view product availability from its website, quickly allowing them to screen a case before submitting a DIP request or application.
Intermediary Sales Manager Tom Denman-Molloy commented:
“As a criteria-based lender, Mansfield Building Society understands how crucial it is for brokers to be able to swiftly determine where they may be able to place their more quirky cases. Too often brokers are having to set aside time in their day to chat through individual cases with lenders, time which could be better spent in other ways.
“We know that a broker’s time is incredibly valuable, and we are committed to supporting our intermediary partners in using their time effectively. Introducing the criteria search functionality to our website through our work with Mortgage Brain is just one example of how Mansfield is committed to working closely with intermediaries, and our determination to make it easier for brokers to place cases with us.”
Sales & Marketing Director at Mortgage Brain Neil Wyatt added:
“We are delighted to launch this API integration with Mansfield Building Society. The partnership will make it much faster and easier for their brokers to access the information they need. This latest development continues our work to utilise technology in order to streamline and enhance the mortgage process where possible.”
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/.
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