The FCA’s published its Finalised Guidance on vulnerability. Benchmark your knowledge…
The FCA published its Finalised Guidance (FG21/1) on 23 February and highlighted Just’s online training module as an example of good practice.
How good are you at spotting vulnerability and helping clients experiencing it?
Use Just’s popular training module, updated for 2021, to benchmark your vulnerability knowledge.
Find out more here.
Look out for HMO and Short Term Let business in 2021 – from Foundation Home Loans
The extension of the Stamp Duty Land Tax tiered exemptions and anticipation of lightened lockdown has fuelled both the property and mortgage markets, resulting in heightened opportunities for mortgage intermediaries right through to September and potentially beyond. But what types of clients and landlords can you expect to see active over the next six months?
It goes without saying that the residential market momentum has been boosted, with the additional measures coming from government to mobilise first time buyers, we can also expect buyers up the chain to be mobilised.
However, the buy to let sector also holds additional promise this year, particularly in the case of specialist properties or criteria. Additionally, the tax changes for buy to let and second homes (begun in 2016) are now in full force, and so landlords continue to seek value and yield on their investments in specialist areas. Here are three of those which are worth exploring and gaining confidence in this year.
- HMOs
With incredible annual rental yields of 7% compared to an average of 5.8%, it is no surprise that more landlords are branching into this genre of property. As appetite for HMOs increases, so has the availability of competitive mortgage products and, importantly, the ease with which you can now arrange one. Foundation Home Loans are experts in HMO lending, and we have just launched a suite of new and highly competitive HMO products to support you in proactively reaching out to your professional landlords with some added value.
Read the article in full here.
Fleet Mortgages Case Study: Portfolio Landlord
2021 presents many possibilities for property investors to diversify their portfolios, especially with the storm of supply and demand pushing the average house price and increasing rental yields.
The many emerging hotspots across the UK only increase the opportunities for investors, offering affordable prices and promising growth for the coming years.
Fleet Mortgages is a specialist Buy to Let lender based in Fleet, Hampshire. Lending exclusively through the intermediary sector, we offer Buy to Let mortgages for residential landlords as well as limited companies and those seeking finance for HMOs and Multi Unit Freehold Blocks. Our rental cover calculations mean that, if required, applicants can often borrow more from us. We don’t stress test background portfolios and always strive for 24 hour turnaround times.
Here are some of our unique selling points:
- Rental Calculations – Starting at 125% @ 3.44%, available for all rate taxpayers
- Day 1 re-mortgages – we will lend against the new property value if significant works have been completed.
- Up to 10 self-contained units in one freehold title
- 2 self-contained units under one title qualifies for our standard products
- Properties next door are acceptable
- Free/discounted valuations on all standard and Limited Company cases (Not HMOs or MUFBs)
- Tracker rates starting from 3.30% with no ERCs
- Minimum income £15k (Minimum income 25k for first time landlords)
Read the article in full here.
Underwriting during uncertain times
In this article we consider the impact of COVID on our underwriting philosophy and the measures we put in place to support you and your clients. Find out more here.
Making Things Easier for You
We knew March was going to be busy for completions, so we made sure we were prepared by upskilling our underwriting colleagues to help during peak times. As a result, we successfully helped 3428 customers complete on their mortgage, which is 43% higher than March last year, and 24% of these were first time buyers.
As always, we’ll aim to continue this level of service over the coming months. However, we’re expecting to be extremely busy as we hit the new stamp duty holiday deadlines in June and September. So please use our eMortgage system for quick case updates, which will free-up our teams and allow them to help more of you. Thank you for your continued support. If you have any questions, please speak to your local BDM.
The equaliser
We’re closing our spring webinars with a discussion about inclusivity in financial services. Join Skipton’s Diversity & Inclusion Lead Zahoor Ahmad, on an exploration into how structural inequality may be potentially affecting financial services, not just from a cultural and moral perspective, but from a commercial one too.
Webinar details:
Thursday 15 April 9:30am – 10.30am
Featuring Zahoor Ahmad, Diversity & Inclusion Lead at Skipton Building Society. Inclusivity in financial services and tips on how to make your advice more accessible and inclusive. Register here.
Ipswich announce upcoming rebrand
Find out more about Ipswich’s upcoming rebrand here.
Nationwide update lending criteria for EU/EEA applicants
From Monday 26 April 2021, Nationwide are updating their lending criteria for EU/EEA applicants who do not have indefinite leave to remain in the UK. For further details click here.
