LATEST PARTNER BLOGS:
LendInvest
Creating the future of BTL Mortgages
TMA Club
Are you including GI in every conversations with clients?
The Nottingham For Intermediaries
Alternative approaches
Skipton Building Society
Supporting more people into home ownership
Aria Finance
Second Charge Mortgage for Clients with Complex Affordability Structure
Aria Finance’s clients, a couple running 3 Limited Companies – 2 of which were start-ups – were facing a time crunch with a looming bridging loan redemption for their 5-bed detached home. The clients needed finance quickly to redeem the bridge and avoid any additional charges from the outstanding bridge. The challenge laid with the nature of their businesses, due to 2 of the 3 being startups, only the income from one of the businesses could be used. Find out how Aria Finance quicky found a solution within the client’s strict timeframe here: https://www.ariafinance.co.uk/broker-hub/case-studies/second-charge-mortgage-clients-complex-affordability-structure
Vitality
We can no longer ignore later life care needs
With an inexorable rise in conditions requiring later-life care and the public sector already under pressure, it’s time for the protection sector to step up and do more to support clients prepare for the future, writes VitalityLife Managing Director Justin Taurog.
Anyone with a relative suffering from a later-life illness – such as dementia, Parkinson’s or frailty – knows only too well the current situation of adult social care in the UK.
Often stretched resources are competing against ever-growing demands, leading to many older people having prolonged stays in hospital, causing issues for their family and public healthcare services.
Meanwhile, the high cost of care – typically around £100,000 for a condition like dementia1 and in many cases much more – places a significant financial burden on individuals and their loved ones.
e.surv
We streamline every aspect of the survey process
So much smarter than traditional surveys.
When your customers are buying something as expensive and complex as a home, you want to be able to give them the best advice and service.
This also includes making sure they have the right level of home survey. Our digital surveys are more accessible and thanks to the integrated third-party tools and data, lead to better conclusions.
Give your customers the knowledge and expertise of a local surveyor, with insight delivered via our leading digital platform.
Our state-of-the-art platform streamlines every aspect of the survey process, from initiation to completion, providing you with real-time updates.
You can opt to receive emails tracking the progress of your referrals, and log into your portal at any time to see the status of all your referrals.
Mansfield for Intermediaries
Versatile lending on satisfied and unsatisfied CCJs
We can accommodate up to £6,000 in CCJs in the last 36 months on our Credit Repair range up to 70% LTV. There must be none in the last 12 months and the CCJs can be satisfied or unsatisfied.
We can also accommodate up to £500 in CCJs on our Versatility range:
- Versatility Plus up to 80% LTV: unsatisfied in the last 36 months
- Versatility up to 85% LTV: registered and satisfied in the last 36 months
We’ll ignore CCJs over 36 months ago, whether satisfied or not, with Versatility too. Find out more in our criteria guide below.
All applications are subject to individual assessment and underwriting. Our credit criteria can also be accommodated alongside debt consolidation and capital raising, complex incomes, lending into retirement and more. T&Cs apply.
For more information about our products and services, including our affordability calculator and applying through our online portal, visit our website at mansfieldbs.co.uk/intermediaries.
Santander for Intermediaries
Universal Credit and New Build update
From Monday 18 March, Universal Credit will be an acceptable source of secondary income.
There are no other changes to our existing benefit income types.
| Benefit income type | Income used for affordability |
| Working Tax Credit | Primary income (100%)* |
| Child Tax Credit | Primary income (100%)* |
| Child Benefit | Primary income (100%)* |
| NEW! Universal Credit | Secondary (70%) |
| State benefits (DWP/HMRC) confirmed as indefinite | Secondary (70%) |
*Income would be restricted to 70% for these benefits if they are paid as part of your client’s Universal Credit payment.
Eligibility
Your client must be in receipt of another source of earned income (employed or self-employed), and this must be evidenced on the Universal Credit award statement.
Evidence requirements
The following documents are required to evidence Universal Credit income. These can be found in your client’s Universal Credit online account:
o Proof of the last 6 months’ payments, and
o Latest Universal Credit payment summary with a breakdown of payments and deductions. The document must show all the sections as below:
o Entitlement
o Deductions
o Total payment for the month.
Please note we won’t accept bank statements as proof of income for Universal Credit.
Calculating Universal Credit income
We’ll take an average of the last 6 months’ payments minus the latest month’s housing benefit.
Please use our affordability calculator as it will automatically work out how much income we can use and calculate the net monthly income figure.
more2life
How much do you know about Flexi’s personalised pricing?
As the market goes through changes, so do your clients. With Flexi’s flexible pricing, we can make sure your clients’ access to further borrowing is always based on their current circumstances.
If they need further lending, Flexi has the capability to re-evaluate your clients’ eligibility, which could result in a wider range of solutions, including a potentially lower rate than their initial advance!
If you have a client that you think could benefit from Flexi, create a KFI today
The Coventry
Coventry for intermediaries enhances affordability for landlords with changes to reference rates
Coventry for intermediaries has made it easier for landlords to borrow more by reducing the reference rates for Buy to Let applications.
Using the new calculations, a basic rate taxpayer receiving a rental income of £900 and opting for a 5 year fixed rate, could borrow £181,895 – previously £157,091 – subject to the 75% loan to value limit.
The reference rates are now as follows:
- 75% (previously 5.5%.) for 5 year fixed rates, for purchase and remortgage applications – OR product pay rate (whichever is higher)
- 5% (previously 5.5%) for 2 year fixed rates, for remortgages with no additional borrowing – OR product pay rate (whichever is higher)
- 5% (previously 7%) for 2 year fixed rates, for purchases and remortgages with additional borrowing – OR product pay rate +2% (whichever is higher)
The minimum rental income required is 125% or 145% of the monthly mortgage interest payments, based on the above applicable reference rate.
Brokers can easily find out the maximum loan amount, or the maximum rental income required, using the affordability calculators on the intermediary website.
Jonathan Stinton, Head of intermediary Relationships at Coventry Building Society, said: “Landlords help provide homes for those who are waiting to buy or simply not in a position to buy. Our affordability changes should help make it easier for new and existing landlords to finance their rental properties and help keep up with tenant demand.
“We try to make it as easy as possible for brokers to help their landlord clients, which is why we don’t ask for a minimum income – we simply look at rental income. Our Buy to Let calculator helps brokers easily see how much their landlord clients can borrow, and these new changes to our reference rate will likely mean many of those clients can borrow more if they need to.”
Principality Intermediaries
Shared Ownership
Our Shared Ownership mortgages are available now.
And, following broker feedback, we’ve enhanced our new build proposition to make our new build mortgage offer more accessible for your clients.
Additional changes include:
• We’ll lend up to 95% on new build houses (90% for new build flats)
• We no longer net off builder’s incentives from the purchase price reducing the deposit required.
Metro Bank
LTV Limit Increases
We have made some enhancements to our residential maximum loan sizes, providing your customers with greater flexibility and choice.
So, what’s new?
Maximum loans up to 90% LTV increased from £675k to £1.125m
Maximum loans up to 85% LTV increased from £1m to £2m
Please note – New Builds are still restricted to maximum loans of £1m at 85% LTV and £675k at 90% LTV.
For full details on the points above, please refer to our Mortgage Lending Criteria Guide and Product Guides.
