Inform 22nd September 2023

Our CEO Leon has written a great paper on interest only mortgages that I wanted to share.

Recently, we helped a borrower reduce their monthly outgoings by £920 by taking out an interest only mortgage and consolidating their existing debt.

Given the impacts of the cost of living and increased mortgage rates, we are finding that interest only mortgages can be a useful tool if your client is consolidating debt or even if they need to manage their monthly outgoings.

You can read the white paper here with case study here.

Summer might be over, but that doesn’t mean you have to give up relaxing just yet.

With the time-saving technologies built into every single one of our mortgage products; you and your customers can save time on paperwork, phone calls and the bits that get in the way, and more time back.

Here’s some things we do to save you time:

• Automatic* DIPs, online applications

Waiting for a decision – especially in a market as up and down as the last year – can be a pain. So that’s why we’ve built in automatic DIPs for our Tier 0 and Tier 1 residential mortgages, as well as our bridging and Buy-to-Let deals.
Give your customers the certainty they’ve craved for the past year, and don’t waste any more time sat around waiting.

• Full case management online

We’re quite proud of this one; you can get live progress of every residential and bridging mortgage through our portal, as well as speak directly to our team through it. This means you can keep your client as up to date as possible, and have full access to our experts when you need it.

• Lots more in the portal

Not everything we’ve done to make your life more simple – and give you your time back – is that visible because it is for our team to speed up things like searches and case management. But it is all there. And you can experience it yourself in our portal.

Download our rates guides, get an instant quote, and register for more free time by signing up for simple mortgages.

Market Harborough Building Society

Mortgage options to support client affordability

There is a growing need for specialist lenders who take a different approach. At MHBS, we understand that each case comes with unique requirements, so we don’t rely on computers or credit searches to make our decisions. Instead, our daily credit committee assess each case individually to make a swift decision that you can rely on.

When it comes to affordability, here are some of the options that we offer to help intermediaries and their clients:

• Interest only mortgage solutions – affordability based on repayment method chosen
• No LTI cap – affordability assessed
• A variety of income sources accepted – including foreign currency, SIPPS and investment income. And combinations of income types too!
• Joint borrower sole owner and multi-generation solutions, which allow up to four incomes. No family connection is required
• Top-slicing considered for buy to let and holiday let
• Lending into retirement (max age 85 for residential, no maximum on let)

With the ongoing challenges of the mortgage market and the cost of living, we are committed to providing a fresh approach to lending. We look beyond income calculations and consider overall affordability to find ways to say yes to your clients’ simple and more complex cases.

Ready to find out more? Call one of our friendly Specialist Business Development Managers today on 01858 412345 or visit mhbs.co.uk/intermediaries.

Complete Financing

Customer reviews and client case studies…

Mr & Mrs Craik 

Mr Ciaran & Mrs Claire Craik, applied for a further advance at Nationwide which was rejected due to the amount of outstanding debt they had.

They came to us at Complete Financing for assistance, as they wanted to consolidate everything. We were then able to secure finance for them to clear all the outstanding debt. We were able to place this case with Equifinance on a 5-year fix term to match the 1^st charge term with Nationwide, this means that in 5 years’ time, the client will be able to re-mortgage with no concerns as all debt has now been settled.

This in turn, saved the client just over £1400 p/m which helped them massively.

Customer review:
The team at Complete financing are, hands down, the most helpful, diligent, friendly, and proactive people I have ever dealt with on any aspect of our finances. Being self-employed often puts barriers in place for a mortgage etc, however they were able to make it seamless and kept us informed throughout the whole process through completion, not to mention saving us a huge amount of money. I cannot recommend them highly enough.

Mr & Mrs Miller

Clients were trying to purchase the adjacent property; they had been to their high street bank and another broker who both said this could not be achieved.

The case was referred to Complete Financing from Monarch Financial Services (Iain Greer) and after a fact find call with the client, we were able to establish that this was indeed possible if structured correctly.

The clients required a 1^st charge bridge on the property being purchased and a 2^nd charge bridge on their residential property. This allowed us to work the case through to completion.

Working in partnership with Together Commercial Finance, they reviewed the case and agreed to lend to the client. This means they will let it out for at least 6 months, but the long-term goal is to convert this into one dwelling.

It was a pleasure working with the clients, to help them achieve their dreams.

Customer Review:
Absolutely fantastic service! From first contact to funding, very fast and I completely trusted them as they done what they said they would do. What a team, they have restored my faith in the financial world. We were trying to do a simple house purchase, but it didn’t fall into the the high street lenders tick boxes, we went to complete financing, and they sorted it all out for us. They will always be my first port of call in the future regarding mortgages, bridges, and funding. I cannot recommend this company highly enough. They literary made our dreams come true. A massive thank you to Carlos, Marc, Justin, and the rest of the team, what a service. Mr. & Mrs. Miller.

Accord Mortgages has increased its maximum loan-to-value (LTV) on buy-to-let (BTL) new-build flats and enhanced its criteria for contractors.

From today (Wednesday 20th September), the intermediary-only lender increased the maximum LTV to 75% for landlords looking to purchase a new-build flat, bringing it in line with criteria for landlords purchasing a new-build house.

Products are available through the lender’s standard buy-to-let range.

Accord also introduced changes to its contractor criteria for both residential and BTL lending, to consider applications from a wider range of borrowers.

For day rate contractors the changes include minimum experience requirements reduced to six months instead of 12.

The lender will also consider income from two contracts instead of one, for loan affordability, where income is sustainable.

Find out more here.

With the value of outstanding mortgages with arrears rising by 28.8% over the past year*, we know your customers may be worried about their repayments.

So, Precise Mortgages are pleased to let you know we’ve signed up to the government’s Mortgage Charter, which has been set up to support residential customers who are up to date with their payments but may be feeling the cost-of-living pinch.

As a signatory of the Mortgage Charter, we’ve agreed to:

• Allow customers to reduce their monthly payments by either extending their term or switching to interest only payments.
• Ensure your customers’ credit files won’t be impacted by the switch, even if they ask for advice or guidance around their mortgage repayments.
• Allow customers to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability check.
• Provide well-timed information to help customers plan ahead should their current rate be coming to an end.

Take a look at the support we could offer your clients.

The support offered will be dependent on your customer’s personal circumstances and is available on first charge mortgages only. It’s important to note, that the option chosen could increase the overall cost of your customer’s mortgage.

If any of your customers are worried about their mortgage repayments, please let them know they can get in touch with us by calling 0800 298 5714 or visit our support page here.

Are your clients looking to seek additional property investment options to diversify their portfolio? Molo’s new large Houses of Multiple Occupation (HMO) and large Multi-unit Freehold Blocks (MUFB) offering gives landlords even more choice in the market.

Your clients can purchase a property with up to 12 lettable rooms/ units on a 5-year fixed rate.

At Molo, we are committed to providing customers with first-class standards of customer service. With that in mind, all large HMO and large MUFB cases will have a dedicated underwriter to ensure a smooth and systematic process.

By choosing Molo for their mortgage needs, landlords have a plethora of options to help them maximise investments and achieve more success in the property market.

Molo’s buy-to-let lending criteria for large HMO and MUFB

HMO

• Maximum of 12 lettable rooms on one mortgage
• Up to 75% LTV
• Physical valuation applies for 6 lettable rooms
• A red-book valuation is required for properties from 7 to 12 lettable rooms
• Minimum 12 months’ landlord experience required
• HMO licence may be required

MUFB:

• Maximum of 12 units on one mortgage
• Up to 75% LTV
• Physical valuation applies for 6 units
• A red-book valuation is required for properties from 7 to 12 units
• Minimum 12 months’ landlord experience required
• All units must be separately saleable and serviced for utilities
• All units must be held on the freehold title. There should be no leases in place at the time of completion

Our eligibility criteria and product guide have all the details you need for price change specifics.

See how Molo can help you and your clients by visiting our Broker Page for more information. As always, if you have any questions don’t hesitate to get in touch with us by email at brokersupport@molofinance.com.

It’s hardly surprising that mortgage affordability is such a hot topic. Even with a slight easing of the UK house price / income ratio from 7.3 to 6.7,* the fact is that typical monthly mortgage payments have increased by around 20% during the last year.**

To maximise their buying potential, some borrowers are fortunate enough to be offered help by a third party – a boost in the form of a Joint Borrower Sole Proprietor mortgage. Of course, not every lender offers this type of mortgage. And of those that do, most lenders restrict JBSP borrowing to immediate relatives.

Hinckley & Rugby takes a more flexible approach.

For a start, we can accept joint borrowers who are not family members. Not only that, we can accept up to four borrowers on a joint application. And with a Tailored Term – where multiple applicants share the mortgage over separate timescales – we can be even more flexible.

It was our flexibility that enabled Evie, aged 23, to recently achieve her dream of home ownership – supported in a JBSP mortgage by her mother and a family friend.

In some circumstances, we can even consider a higher income multiple than our standard x4.49, by accessing our Income Flex range.

So, if you need a bendable approach to your JBSP cases, pass them to a lender with its eyes firmly on the goal. Our specialist Intermediary Team is keenly awaiting your call.

Find out more.