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FLEET
Looking Ahead At The BTL Market In 2023
KEYSTONE
Multi-Title Split For Portfolio Landlord
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It’s Time To Get On The Front Foot
Home Builders Federation
New build houses to save homeowners over £3,100 a year on fuel bills as homebuyers increasingly prioritise energy efficiency
Research published today by HBF has found that buyers of new build houses in England will save an average of £3,100 in energy bills compared with typical older properties when the Government’s Energy Price Guarantee (EPG) cap increases on 1 April 2023.
The updated ‘Watt a Save!’ report analyses Energy Performance Certificate (EPC) data from the Department of Levelling Up, Housing and Communities (DLUHC) to reveal the potential energy bill cost savings of new build homes versus existing properties.
The analysis finds that under the new EPG prices, the annual energy bill of the average new build (flats, maisonettes, bungalows and houses) is likely to be £1,707, saving £2,510 compared to buyers of older properties who will be facing bills of an average of £4,218.
Buyers of houses, rather than flats or bungalows, will see the greatest savings, estimated at £3,118 a year.
The report also finds that:
- New build properties require significantly less energy use, at approximately 95 kWh per m2 each year, as compared to older properties which require an average of 252kWh per m2.
- 85% of new build houses had an A or B (EPC) rating; while less than 4% of existing dwellings reached the same energy efficiency standard.
- Average new build properties emit 2.2 tonnes of carbon less than older properties each year, with the newer homes in this dataset reducing overall carbon emissions by over 500,000 tonnes a year.
Alongside the report, research commissioned by HBF has found that consumers are increasingly prioritising energy efficiency when considering a house move, with more than half of respondents to a recent survey (53%) stating that lower utility bills and running costs due to increased energy efficiency would encourage them to buy a new home. Despite this, most mortgage affordability calculations are based on a national average energy bill.
The same consumer survey found that just under 1 in 5 felt the top issue preventing them from buying a house was uncertainty over whether they would be able to secure a mortgage.
HBF is calling on mortgage lenders to accelerate the introduction of genuine ‘green mortgages’ that take into account these savings when assessing applicants such that more people can realise their ambition of home ownership.
The report comes ahead of New Homes Week, 27 February to 3 March, which will showcase the benefits of new build homes and raise awareness of the schemes available to support aspiring homeowners to secure a new property. Further information on New Homes Week can be found on the HBF website.
The updated ‘Watt a Save’ report can be read here.
Impact Specialist Finance
Is your client’s bridging loan nearing its term end, but they are not ready to exit?
Re-bridging, also known as refinancing, can be used to settle an existing bridging facility by taking out another loan. There are many reasons why this might be required, but most likely, it will be because the original loan term will stop before an exit through sale or longer-term finance is possible.
Whether it is a development that has stalled and requires additional funds to complete or an applicant who has been let down at the last minute by another lender and requires finance immediately, speak to Impact Bridging today for a fast solution.
Access a fast bridging solution, call the Impact Bridging team on 01403 272625 or email bridging@impactsf.co.uk
Mansfield Building Society
Brokers value lenders that embrace flexible way of working
There’s no shortage of reasons why some older homeowners might be keen to tap into the equity held within their home.
For example, the role of the ‘Bank of Mum and Dad’ has become ever more central in recent years, with significant numbers of first-time buyers – and second steppers for that matter – relying on some level of financial support from their parents or grandparents in getting together a deposit. And while those older family members may have the funds to hand in savings accounts, there will be times when they don’t and so the only way they can support their loved ones is by releasing money from their property.
Alternatively, the homeowner might be hoping to raise some money to supplement their pension savings, or even to carry out changes to the property which improve their quality of life.
With the incredible house price growth that we have seen in recent years, many homeowners of all ages will have seen their equity stakes increase. While that will obviously come in useful when the time comes to sell up, it’s equally true that some will want to unlock at least a portion of that money in the here and now.
Halifax
Affordability changes
With effect from today, Monday 20 February, we are making some changes to our affordability calculations.
Your feedback has indicated a growing need for a more tailored approach to affordability to support the borrowing of a wider range of homebuyers. In response, we are introducing changes to our affordability model for specific criteria that will offer some more financially resilient customers greater lending.
This targeted enhancement ensures responsible lending while increasing the maximum amount available to customers who are borrowing at a maximum loan to value (LTV) of 75%, on a fixed term product of five years or more or are remortgaging to us without taking on additional borrowing. This could see the maximum lending amount increase by up to 9%, or around £25,000 on an average application.
From today our affordability calculation will show an enhanced maximum loan amount available up to 75% LTV for:
- Remortgage customers applying for a like for like loan amount with no extra borrowing
- Purchase or remortgage customers selecting a fixed rate product with a term of 5 years or more.
The affordability result at Decision In Principle (DIP) will include any enhancement which applies. A new question – ‘Fixed rate product with a term of 5 years+’ Yes/No – is being added to the ‘Loan screen’ at DIP stage so if the term of the product preferred by the customer is known this enhancement can be reflected even when a particular product has not yet been selected.
Not all customers will see an enhanced maximum loan because if a loan to income (LTI) cap applies this will cap the maximum loan amount available as normal. No enhanced maximum loan amount will show above 75% LTV.
We will be updating our website affordability calculator with a new question for ‘Loan purpose’ with options for ‘Purchase’, ‘Remortgage with capital raising’ or ‘Remortgage with no extra borrowing’. The maximum loan returned by the calculator will therefore include any enhancement on a like for like remortgage.
Additionally, the calculator will show two maximum loan amounts including ‘An enhanced Loan amount may be available where a fixed rate product with a term of 5+ years is being chosen’. This second max loan amount will always be displayed but the figure may be the same as the standard maximum loan amount based on the LTV or if a LTI cap applies.
These changes will apply to applications, including DIPs, immediately.
Aria Finance
BTL opportunities
With increased interest rates and the costs to upgrade properties to meet changing EPC requirements there are fears of an exodus of landlords from the market.
However instead of exiting the market we’re seeing landlords taking advantage of regional locations for higher yield opportunities, and less conventional property types such as HMOs, MUFBs and holiday lets.
How can Aria help?
Complex BTL mortgages cater for borrowers in many everyday scenarios that High Street lenders will not consider. At Aria, we can provide a range of complex BTL solutions to suit your client’s situation. Here are just a few examples of complex situations we can assist with:
- Portfolio landlords – High Street lenders typically won’t consider landlords with more than four properties
- Limited companies
- Foreign or expat buyers
- Sub-prime credit borrowers
- Self-employed individuals
- Residential and commercial properties, or a mixture of the two, e.g. student houses, HMOs, multi-unit properties with one title deed, a shop with flats above it.
Find out more about how Aria can help with your client’s complex buy-to-let requirements here.
Contact Aria Finance now for further information:
Call us on – 020 3839 9998
Send us an email – info@ariafinance.co.uk
Lendinvest
Case study: From fee paid to offer in 1 day for Buy-to-Let purchase
How did we take a Buy-to-Let from fee paid to offer in 1 day? Our underwriters explain how Buy-to-Let deals can move more quickly.
MPowered
Launches into residential
At MPowered Mortgages, we’re super excited that we’re expanding the distribution of our prime residential range, so you can access our suite of products by registering today.
Why your customers will love MPowered?
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Free valuation – Available on every application
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£500 cashback – For every remortgage case
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Up to 5.5x LTI – Available for employed applicants
Register now to access our suite of products
1. Fill out our quick and easy registration form
2. We’ll verify your FCA number and details
3. Within 24 hours, we’ll notify you to confirm your access
Keystone Property Finance
HMO & MUFB cases under the spotlight!
The demand in brokers looking to place either an HMO (House in Multiple Occupation) or MUFB (Multi Unit Freehold Block) case for their landlord clients has been persistent throughout these last few months. Keystone Property Finance understands that landlords are eager to maximise the returns on their investments.
At Keystone, they can help you find the right solutions for your landlord clients and can complete on a case within honest timescales. Not only are they able to finance standard buy to lets and higher-yielding properties, but they can also provide solutions for those tough to place cases.
Did you know…
- Keystone can lend HMOs up to 15 beds
- MUFB lending up to 15 flats
- Keystone can provide client solutions for ex-pat landlords, including retired applicants
- Landlords are required to have 6 months BTL experience.
- Bed sits are considered
- HMOs with self-contained units are considered
View Keystone’s FAQs on HMOs here.
View Keystone’s lending criteria here.
Both Keystone’s internal and external sales team can help with any HMO or MUFB case enquiries you may have. You can speak with the team on the broker hotline on 0345 148 9086 or email enquiry@keystonepropertyfinance.co.uk.
If you have a case which you are ready to place, you can always take a look at Keystone’s service levels daily on their homepage. That way you will always be made aware of how long it will take to get your case through to completion.
The Mortgage Lender
Half of homeowners view affordability as the main challenge for the property market in 2023
Half of homeowners (55%) think affordability is the biggest issue facing the property market in 2023 according to new research from The Mortgage Lender (TML).
Within TML’s research, homeowners expressed their concern about the impact the rising cost of living is having on the housing market. Buyers and sellers have halted plans leading to a cooling off period in the market. Indeed, sales in December 2022 dropped 3% on the previous month as high interest rates and the cost-of-living impacted buyers’ plans.
Legal & General
A new podcast by advisers, for advisers – Listen, learn and grow your business
From Consumer Duty to brand building and more, Just Covered is a must-listen if you’re looking for expert commentary, thought leadership, and actionable insights on financial services that you can start applying to your business today.
Join hosts Hazel Johnson, Wayne Holcombe and special guests as they dissect the topical issues facing our industry, all designed to help you grow your business.
Catch up on Just Covered
Listen to the series so far:
- Can social media help you prepare for Consumer Duty? – Hazel and Wayne are joined by Adrian Benjamin, a Wealth Protection Adviser at Precise Protect to discuss what the new rules mean for advisers, and what opportunities there are in social media
- Building financial resilience in a cost-of-living crisis – Priyesh Patel of Ablestoke Financial Planning joins Hazel and Wayne to talk about why insurance can be the key to long term financial planning
- It’s all about the client, not about you – Hazel and Wayne are joined by Nicola Crosbie, owner of Moran Wealth Management to talk about why a strong personal brand helps you find the right clients
Don’t forget to subscribe to Just Covered so you’re the first to know about future episodes, and to rate and review the series.
If you’d like to feature on future episodes or have suggestions for any topics you’d like us to cover, please contact hazel.johnston@landg.com
Landbay
Refreshed HMO and MUFB range
Landbay has reintroduced its range of HMO and MUFB products for first-time landlords and reduced rates on its existing small HMO/MUFB products.
For more information, visit Landbay.co.uk or speak to your local BDM.
Pure Retirement
Latest over 50s market reports
The Silver Marketing Association have launched a new report offering insight into segmenting the over 50s market, in collaboration with Pure Retirement, and with a range of expert contributors including Let’s Talk Ageing.
The report segments the over 50s demographic into categories split by age, lifestyle and life-stage, examining key attributes and points of interest as well as detailed communications preferences, offering a practical and pragmatic guide for use by marketers as a reference tool to understand the over 50s audience and to develop meaningful campaigns by segmenting and engaging this diverse consumer group.
The project was initiated by the Silver Marketing Association, following the success of 2021’s award winning Brand Research Report into the over 50s market, led by Rachel Pease, Head of Marketing at Pure Retirement.
You can access both reports on Pure Retirement’s online Portal here.
Santander for Intermediaries
How to get a more accurate affordability calculation
- Always use our affordability calculator before you start the application in Introducer Internet.
- Check the net pay as we use the lower of the payslip or our affordability calculator figure.
- Input all non-discretionary payslip deductions, e.g. company pension contributions, student loans, season ticket loans or childcare vouchers*.
- Capture the income as it appears on your client’s payslip. For bonus, commission or overtime, our affordability calculator will work out how much we can use.
*Some payslip deductions where the applicant confirms the deduction is discretionary may be excluded from our affordability assessment, subject to confirmation in the Introducer Internet general notes.
Foundation Home Loans
How the self-employed are getting back on track
According to the 2022 Simply Business SME Insights Report, half of small businesses are planning to increase their prices to help get them through the rest of the year.
The self-employed community and small businesses across the UK have faced a wave of major economic shocks recently in the form of Brexit, the pandemic and the cost-of-living crisis.
MBS Lending
Returning with full range of products!
MBS Lending, a subsidiary of Melton Building Society, specialises in residential adverse cases to a maximum LTV of 70%.
At MBS Lending (MBSL) we understand that not all mortgage applications are straightforward. We consider a wide range of client profiles, so if your client has had difficulty in securing mortgage finance due to adverse credit history, we may be able to help.
MBSL is a responsible lender utilising a full affordability process to assess your client’s ability to repay a mortgage. We work with the intermediary market through our association with brokers nationwide to help people buy their own homes.
What kind of adverse can MBSL consider? (The below is based on our Credit Recovery product – a worst case scenario)
- No maximum value or number of unsatisfied / satisfied defaults, MBSL can consider any default that has been registered for 3 months ago
- A maximum value of £6,000 in satisfied CCJ’s in the last 2 years (0 in the last 6 months)
- A maximum of the 3 missed mortgage payments in the last 12 months (1 in the last 3 months)
- Existing IVA / DMP considered if conducted satisfactorily
- Discharged Bankrupts
- Repossession that occurred over 2 years ago
- A minimum credit score on Experian of 476 is required
For full details on the full product range, please see our product guide.
To discuss a case in detail, call our dedicated Sales Team on 01664 414144 option 1.
Key Group
How the cost-of-living crisis has changed the way customers use equity release
The last three months of 2022 saw a significant shift in consumer behaviour within the equity release market.
Using the product for discretionary purposes, such as cruises and conservatories, has declined and is being replaced by more needs-based uses; repaying an existing mortgage, gifting and managing unsecured debt. And while economic uncertainty and the pressures on everyday spending persist, it’s likely this trend will continue.
So how and why has customer behaviour changed? And what learnings can we take from last year to continue delivering great customer outcomes for today’s clients?
Market Harborough Building Society
Greater flexibility for bridging cases!
In his latest update, bridging specialist William Edwards shares how MHBS’ flexible approach to short-term lending helps them cater for a wider variety of customer circumstances. Whether it’s a complex property or a non-standard exit strategy, MHBS can provide solutions to even the trickiest of bridging cases. Read William’s article here.
MHBS also offer rolled-up bridging for up to five years for your high net worth clients.
To find out more, contact William and the team on 01858 412345 or intermediaries@mhbs.co.uk.
