Inform Friday 1st October 2021

In his fifth blog in the series looking at the myths and misconceptions of protection, Robert Betts, Market Development Manager at Legal & General, discusses the fourth most common reason why clients don’t have income protection – because they feel they can rely on their savings. Here, Robert shares the reasons why advisers are ideally placed to help clients understand the benefits of a combination of both savings and insurance, and how you can dig deeper to show the need for protection

Read Now.

The buy-to-let team at West One are myth-busting the most common myths around specialist buy-to-let. This week they are tackling one of the most common myths ‘specialist finance is only suitable for individuals with adverse credit’. Find out the truth behind this statement and how to be in with a chance to win a luxury hamper here…

Myth #2

Specialist Finance is only suitable for individuals with adverse credit

Aside from adverse credit, there are a number of other reasons why a specialist lender may be right solution for the borrower.

The type of property that the buyer is looking to borrow on can affect a high street lenders decision.

Properties above or next to a commercial unit may be considered high risk as the lender may worry that the property will either fail to deliver the expected rental price or to be consistently rented out, or that it will have limited re-saleability on the open market.

Homes of Multiple Occupancy (HMO), student lets, and multi-unit blocks can also be considered no-goes for high street banks, while a specialist lender will have products specifically for these types of properties.

There are a number of red flags for high street lenders when it comes to the profile of the borrower:

• The age of the borrower is typically capped at 70, whereas a specialist lender will consider applicants beyond this limit. West One, for example, have an age at entry up to 80 and a term of up to 25 years can be considered.
• Ex-pats often struggle to find a high street lender that will offer them a buy-to-let mortgage, West One can consider ex-pats where we take a personal approach to underwriting and look at the circumstances of the individual.
• Many high street lenders have to undertake a different approach to underwriting a landlord with more than 4 properties taking personal affordability of the portfolio into account, which means that professional landlords will need to look to a specialist lender if they wish to grow their portfolio.
• The purpose of the buy-to-let property can also impact a high street banks decision to lend, many high street lenders will not consider applications for holiday lets, Airbnb properties or long-term corporate lets, whereas a specialist lender will have products specifically for these uses.

West One are offering you the chance to enter their free prize draw to win a luxury hamper from Fortnum and Mason.

Click here.

Entries must be received by 5 pm on Friday 22nd October. We will be announcing the lucky winner on Monday 25th October!

Last year AMI carried out comprehensive consumer and adviser research on the mortgage protection market. This formed our Viewpoint 2020 report and launch event ‘The New Protection Challenge’.

AMI, alongside sponsors L&G and Royal London, are pleased to confirm that they are carrying out further research, undertaken by Opinium, to help shape and inform Viewpoint 2021.

Click here to complete the survey.

There are 15 questions and it should only take 5-10 minutes to complete. All responses are anonymous.

The survey includes questions from last year to compare and contrast results and new questions designed to provide fresh insight to the industry.

AMI received positive feedback to last year’s research, with many firms using the research to re-consider how they raise protection and to understand the motivations and barriers amongst consumers when buying protection.

They would be grateful if all advisers, whether members or not, complete the survey to give them the best possible set of representative results. They plan to publish the results in November.

We’d like to remind you that you’re required to collect and retain a signed copy of the Customer Declaration, proof of income and evidence of identity on all residential and Buy to Let applications in line with our Mortgage Terms of Business.

Please note we may request evidence of this documentation from time to time.

Your security is our priority
So you know that an email is genuinely from us, we’ll:

• Address it to you personally.
• Only include links that take you to information pages.
• Never ask for your personal information, such as passwords or security details.

If you get an email that’s suspicious or doesn’t follow the rules above then please forward it to phishing@santander.co.uk.

Protect yourself against fraud and scams:

• Never share a Santander One Time Passcode (OTP), with another person, not even a Santander employee.
• Never download software or let anyone remotely log on to your computer or other devices following or during a cold call.
• Never enter your Online Banking or bank card details after clicking on a link in an email or text message.

For more information about fraud and scams visit our online Security Centre.

Introducer Internet improvements

Great news! We’ve simplified our full mortgage application (FMA) process in Introducer Internet to help improve our service and reduce your client’s time to offer.

• Removed some of the questions we ask you in the residential FMA including our eligibility policy check questions to help reduce the time it takes to complete.
• Tailored our evidence requirements outputs to provide further guidance and reduce the amount of information we need post-submission.
• Added a new warning message to let you know when a product you’ve selected has been withdrawn.

Please note you’ll still be able to find our eligibility questions in the residential lending guide for information purposes only.

Residential self-employed applications

You’ll now be asked in Introducer Internet whether your client’s business or income was adversely affected by Covid-19?

We’ll consider your client as adversely affected where any of the below apply:

• A business which is not currently trading or has been re-opened for less than three months.
• Where the business has taken an SEISS, JRS grant (for limited companies) or Bounce-back, BBIL or CBIL loans in the 12 months prior to the date of application.
• Staff have previously been furloughed due to business trading conditions in the 12 months prior to the date of application.

We’ve updated our self-employed webpage and our self-employed packaging guide.

Where your client’s business or income has been adversely affected by Covid-19, please call us before case submission so we can discuss our case packaging requirements.

Mortgage Brain recently announced a major rebrand, which includes a new look and a consistent naming convention across its suite of products.

The rebrand is part of a drive to bring together its broker propositions into an integrated ‘one-stop-shop’ whilst underpinning its ambition to support and promote the use of technology and data across the industry.

A new website has launched at www.mortgagebrain.co.uk, highlighting the diversity of the offering to brokers and featuring enhanced customer contact methods. Live chat functionality has been improved, allowing advisers to select from pre-set options to help direct enquiries, such as a password reset, and receive support quicker than ever. Additionally, there is a new resource library that is searchable and features articles/videos accessible on mobile, tablet, laptop, MAC, or PC.

To provide clarity around the naming of products below is a quick reference guide:

Affordability Hub – Affordability Brain
ConveyancingBrain – Conveyancing Brain
Criteria Hub – Criteria Brain
Lendex – Submissions Brain
MortgageBrain Anywhere – Sourcing Brain
MortgageBrain B2C – Web Brain
MortgageBrain Classic – MortgageBrain Classic
UKMortgages – UKMortgages

Mortgage Brain looks forward to continuing its journey with you and is happy to answer any questions you may have regarding the changes. You can contact them at sales@mortgagebrain.co.uk.

Six in 10 people could borrow more, or get a better interest rate to reduce their borrowing costs with the Just For You Lifetime Mortgage medical underwriting option.

They have added medical underwriting across their Just For You Lifetime Mortgage range so it’s easier for you to deliver solutions unique to every client.

Learn more here.

Mansfield are delighted to be returning to their pre-pandemic income criteria, allowing applicants to use up to 50% of their regular bonus, overtime and commission payments in our affordability calculations.

If you have a case that needs more flexibility on income, use their affordability calculator to see how they could help:

Affordability Calculator

Increased Versatility with debt consolidation

In addition to this change, Mansfield have also increased the mortgage amount available for debt consolidation in their Versatility range. Up to 20% of the loan can now be used for this purpose on Versatility and they will continue to offer up to 10% of the loan for debt consolidation in their prime range.

Mansfield have a full range of Versatility products available online via their intermediary mortgages page.

For more information about the products and services, including their affordability calculator and applying through the online portal, visit the Mansfield website.

Zephyr have updated their product range and now lend up to 80% LTV for Standard properties, with a max loan size of £750k. You can see full details of their products & criteria on the website.

With the Stamp Duty deadline looming it’s been a busy period but our service levels in the first half of September have remained strong.

• DIPS assessed within 24 hours
• Valuations assessed within 72 hours
• Fully packaged applications reviewed within 72 hours
• 94% of calls answered in less than 30 seconds

Their latest average turnaround times are published on the website every morning, so you should always know where you stand.

Meet the expert Team
Zephyr are now recruited a new team of telephone BDMs who support our field based Regional Sales Managers (RSMs). They are a friendly bunch and are always on hand to help with your BTL queries, no matter how tricky they may seem. Got a question? Give them a call!

To discuss a new case and quickly find out if this will fit with Zephyr – please find the contact details for your RSM and Telephone BDM on our website.

For general enquiries about Zephyr, please contact us on 0370 707 184 (Mon to Fri from 9am to 5pm) or just send us an email.

To find out more about our people visit our Meet the Team web page.

Take look at some cases we’ve recently supported:

• Purchase of a four-bed HMO where the applicant only has one background BTL – applying on a Standard product under one AST, as the Local Authority do not require a licence.
• Purchase of property with an existing tenant from Son-in-Law, at below market value – we accepted this on basis of our client’s foster income with a new AST being in place.
• Purchase of ex-housing association stock – two related applicants using a mix of pension and salary income to expand their portfolio.
• Client with background portfolio where over half of the properties are on the same road – Not an issue as we look at our exposure within a block or postcode area, not the clients.
• Two brothers, one a first-time landlord and a first-time buyer, moving a MUFB property into a new SPV, then remortgaging next-day to raise cash to fund a property purchase on the same street – We accept new Ltd Co (SPV) applications from related Directors and allow remortgaging for capital raising purposes.

For many years Income Protection was seen as a closed door to self-employed people or anyone with a fluctuating income.

Luckily that’s not the case anymore, but sadly old myths die hard, for both intermediaries and clients. There are a few options available, with products out there specifically designed for clients with fluctuating incomes. But even with a range of solutions available, sadly Income Protection is still undersold especially amongst self-employed people.

Here’s a few ways we can help you overcome these myths and show your clients that Income Protection is a great option for them, even if they are self-employed or have fluctuating incomes.

Myth 1 – Your clients must prove a regular Income when applying

Myth 2 – It’s too complicated to explain to clients

Myth 3 – It’ll never pay out

Myth 4 – It’s too small a demographic to cater for

Myth 5 – It’s too expensive

Read more.

Each adviser is assigned a case management team that are responsible for submitting applications to your chosen insurer, progressing any requirements until the policy is placed on risk. Case updates will be emailed to you and added into LifeQuote’s case tracking system, accessible 24/7.

Your client always remains yours, and LifeQuote will never offer advice or promote any other products. With LifeQuote acting as your back office protection team providing valuable support, you can say goodbye to chasing GP reports, missing information and requirements for multiple cases.

LifeQuote’s administration service is positioned to make your life easier.

If you arrange the advice, we will process the cases on your behalf. Speak to the team today on 01243 791199 opt 3 or visit www.lifequote.co.uk.

Watch the case tracking video now.

When applying for a mortgage as a Construction Industry Scheme (CIS) worker or self-employed sub-contractor, it can be a tricky process. Some lenders are concerned that an applicant will not earn a steady enough income to make their monthly payments and as such are often reluctant to lend to applicants that fall under this category.

However, at esbs, we take the time to carefully consider each mortgage application individually, to enable as many house hunters as possible the opportunity to move onto, or up, the property ladder, or to simply refinance an existing mortgage.

At esbs we have traditionally considered CIS workers to be self-employed, but in an effort to simplify the application process for these short-term contract workers we have created tailored criteria.

What do I need to apply for a CIS mortgage?

esbs can now loan up to £250,000 on CIS income, without accounts or tax returns, provided the following is met:

• Employment reference received and stating that there are no plans to change the employment
• Proof of 24 months in the industry
• The applicant must have been with the same employer for at least six months with no more than two employers in the previous 12 month period
• Gross income is calculated at hourly rate x7, or daily rate x 5, x 46 weeks
• Net income for affordability would be an average of the last six months’ payslips. National Insurance contributions would also need to be deducted for affordability purposes

Unfortunately, we cannot consider applicants on seasonal contracts.

Some self-employed clients have complex business structures, whereby someone can be both employed and self-employed, or be working across different employers. In these circumstances, they would be considered to be self-employed and we will therefore need to see those accounts and tax returns.

To apply for a mortgage you must be aged 18 or over. All applications will be subject to valuation, status and the Society’s Mortgage Conditions. We offer an advised sales process where we ask questions regarding your mortgage requirements/needs and your income and expenditure to ensure that we recommend the most suitable product for you from our range. We will accept applications from applicants purchasing or remortgaging in England or Wales. For further information, or for a European Standardised Information Sheet (ESIS), please call on 01455 844422 and speak to one of our mortgage advisers, visit one of our branches, email mortgage@esbs.co.uk, or visit www.esbs.co.uk

Paymentshield are updating their telephone and IT systems this weekend.

Phoneline closures

Both their customer and adviser phonelines will be closed from 5pm on Friday 1st October and will reopen at 8.15am on Monday 4th October.

Adviser Hub downtime Saturday 2nd October

Adviser Hub and their APIs will be unavailable from 5am until 8pm this Saturday 2nd October. Unfortunately, this means you won’t be able to quote or apply during this time or access any of our other online tools and resources.

Why are we making these updates?

They’re moving our IT systems over to a new network and taking the opportunity to upgrade our phone system at the same time.

What does this mean for you and your clients?

This activity is part of their ongoing work to update and strengthen their systems. From the outside you probably won’t notice any difference but behind the scenes lots of improvements will have happened to help improve our technical capabilities.

If you have any questions about this email, please get in touch by booking a callback

BOOK A CALLBACK

The Guardian brand turns 200 years old this year, and to celebrate its birthday, the protection challenger has announced a special offer for new applicants. Clients who apply for its award-winning Critical Illness Protection or Combined Life and Critical Illness Protection between 1 October and 30 November 2021 will be eligible for two months’ cashback, each of which will be equivalent to one month’s critical illness premium – to mark each 100 years of the brand. The two cashback payments will be paid in December 2022 and December 2023.

Jacqui Gillies, Marketing and Proposition Director, Guardian, said: “This is an opportunity that doesn’t come along too often, so we wanted to celebrate the brand’s bicentennial by doing something special to mark its birthday. As well as arranging a big party for our valued partners, we thought let’s give out some presents! So, between now and the end of November, we’re giving all clients who apply for our Critical Illness Protection or Combined Life and Critical Illness Protection, not just one, but two months’ cashback. That’s one to mark each 100 years.”

Roy McLoughlin, Director, Cavendish Ware, said: “It’s always nice to celebrate a birthday, and 200 years is a milestone worth shouting about – especially when Guardian is celebrating the event with a special offer for clients. Two months’ cashback for people applying for Guardian’s Critical Illness or Combined Life and Critical Illness cover can represent a significant amount of money, up to a maximum of £400 for each cashback payment.”

The special offer applies to all types of adult critical illness cover; Level, Decreasing, Increasing and Family Income Benefit. The offer doesn’t apply to Life Protection or Children’s Critical Illness Protection. Policies that start after 30 November will still be eligible, providing Guardian receives the application within the offer period. There’s no minimum premium requirement. Each cashback payment is subject to a maximum of £400 for each qualifying critical illness cover.

To be eligible for the first cashback payment in December 2022 the policy must be in force and premiums up to date on 15 December 2022. To be eligible for the second cashback payment in 2023, the policy must be in force and premiums up to date on 15 December 2023. Full terms and conditions are on Guardian’s website. Each cashback payment will be made direct to the bank account used to collect the monthly premiums.

Pure Retirement are pleased to announce that their BDMs are back doing in-person events, stopping off at locations across the country, allowing advisers to learn more about the lender and the broader equity release market. The team are fully booked throughout October for a range of events, allowing you first-hand access to their award-winning adviser support and free resources at events including: Financial Reporter Later Life Lending Roadshow and Mortgage Business Expo.

In addition to the welcome return of in-person events, Pure’s BDMs continue to offer remote opportunities for later life advisers, with virtual meetings still available and a host of free, online webinars for you to learn about the market from the comfort of your own home.

Find your local in-person event and reserve your place today.

Registered advisers can catch up on Pure’s recorded webinars via their online portal.

The newly launched Green Together Reward is an initiative to help customers try and reduce the energy they use in their properties. Under the scheme, clients can claim a £500 reward when they spend at least £2,500 on improvements aimed to make their property more energy efficient.

The Green Together Reward is open to both residential and Buy to Let customers who apply for a new mortgage with Coventry Building Society or change their existing mortgage or terms before the end of the year. The list includes first time buyers and clients who apply for further borrowing.

More than 20 types of energy-efficiency improvements qualify for the reward. Clients can choose up to six from the list on the website as long as they spend at least £2,500 and the work is carried out by a TrustMark Registered Business.

Kevin Purvey, Director of Mortgage Distribution at Coventry Building Society says, “According to the Energy Saving Trust, around 22% of the UK’s carbon emissions come from our homes and buildings. That’s a significant amount but we can take steps to reduce our impact on the environment if we improve a property’s insulation, change the way it’s heated, or switch to renewable energy. It could also mean lower energy bills.

We’re aiming to reduce the energy and resources we use in our branches and offices – and we feel it’s important that we also play our part in improving the environmental impact of the property industry. If you have clients currently applying for a mortgage, it’s worth making them aware of schemes that set out to help with the cost of energy-efficiency improvements.”

The Green Together Reward is completely separate to the mortgage application and won’t delay a client’s borrowing being considered. Brokers should submit their application as usual, then ask their client to fill in a simple, separate application form for the Green Together Reward. Both applications must be submitted before 31 December 2021.

Clients will have until 31 December 2022 to choose their energy-efficiency improvements, get the work carried out and claim their one-off payment of £500.

To see who’s eligible, the types of improvements that qualify and the full terms and conditions, click here.

And there’s plenty more information about the Green Together Reward for clients here.