Inform 26th November 2021

Metro Bank Joint Borrower Sole Proprietor solution is perfect for first time buyers wanting to get on the property ladder, for older borrowers whose circumstances have changed and need support from a close family member to live independently in their own home or even in a separation scenario where one applicant wants to buy out their former spouse.

JBSP offers the opportunity to “layer” key criteria to help you help more customers including;

• 95% LTV residential houses and flats
• New Build up to 90% LTV on both houses and flats. No restriction on number of stories. Maximum loan size of £675k
• Up to four applicants on the mortgage, with a minimum of one applicant on the property deeds
• Income can be accepted from up to 4 applicants at full income multiples, subject to affordability
• Employed, Self Employed and Contractors accepted
• Maximum age 80 considered based on earned income (mortgage term based on the oldest applicant)
• Gifted deposit from an immediate family relative can be accepted
• Interest only and repayment options available (maximum LTVs apply)

For full details, please refer to our Mortgage Lending Criteria Guide and Product Guides or speak to your local Business Development Manager.

For anyone and everyone who has worked in and around the mortgage market for any length of time, the word remortgage tends to be one which screams opportunity, especially in such a competitive lending environment. However, for many consumers sitting outside of this mortgage bubble, it’s a word which can prove tricky to understand and to fully appreciate the potential financial benefits due to some perceived complexity.

In that respect, this is a sector which continues to be held back by a few factors. Lack of knowledge, homeowners sticking with who/what they know and then there are those who continue to adopt a ‘wait and see’ attitude in search of that all-elusive perfect time to act. Which, in reality, is often too late.

These contributing factors were evident in a recent study from Barclays which highlighted that nearly 49 per cent of British homeowners have never investigated what other deals are on the market, even though a third (32 per cent) know it could probably save them money. It also found that 28 per cent of people don’t know what the standard variable rate (SVR) is, and that 45 per cent aren’t clued up on what loan to value (LTV) means. This has resulted in homeowners relying on others for help and guidance on remortgaging, with 46 per cent of people doing whatever their mortgage broker tells them, rather than fully understanding the terminology behind these decisions.

When it comes to those who do remortgage, the vast majority commonly switch to a fixed rate deal. 93 per cent of customers who remortgaged in the first half of 2021 opting to lock in their rate for a fixed term. Two-year and five-year fixed terms were revealed to be the most popular term lengths, with 44 per cent choosing a two-year fixed term and 44 per cent opting for a five-year fixed term. Two-year fixed term deals were most popular with the under 30s, as 57 per cent of this age group decided on a shorter term fixed rate period of two years. By contrast, homeowners aged 40-56 were most likely to commit to longer term five-year fixed rate deals, with 47 per cent locking in their fixed monthly payment for this period.

It’s clear from our research that many find remortgaging a tricky subject to understand, which leads to the question – what more can intermediaries do to help deliver remortgage savings and bolster business levels.

What can you do now?

• Revisit your client database. Pinpoint clients currently sitting on an SVR and highlight those approaching the end of their fixed term
• Pro-actively contact them for a mortgage review where appropriate
• Outline just how much they could potentially save in pounds and pence per month by remortgaging

And in the future?

• Establish a manageable retention strategy for new and existing clients
• Don’t treat customers equally – target and identify the right audience and tailor your campaign/strategy accordingly
• Messaging – keep it simple. One measured, well-executed message a week is better than five poorly planned ones

These are very simplistic measures but, as with most things, the simplest of approaches can often prove to be the most effective.

We are very excited to announce that this December our bridging, development and buy-to-let divisions will be helping you countdown to the big day with our virtual advent calendar.

Throughout the month we will be unveiling a whole range of content, from exciting competitions and games to insightful videos and blogs.

There will be plenty of opportunities to win prizes during the month, in addition, everyone that joins West One’s countdown to Christmas will be entered into a prize draw to win £250 of Selfridges Vouchers, which will be unveiled on the 24^th December!

Fill in our short form to join us as we countdown to Christmas here: https://www.westoneloans.co.uk/west-one-christmas-countdown

On Wednesday 8 December 2021, we’re offering you the chance to meet with representatives of five mutual building societies in an online webinar starting at 9.30am. All the mutuals involved will be presenting and answering questions on some of the key mortgage market sectors:

• Assisted purchase: Mansfield Building Society
• Short-term lending: Furness Building Society
• Holiday Lets: Principality Building Society
• Larger loans and new criteria: Newcastle Building Society

Self-employed: Tipton and Coseley Building Society.

REGISTER ONLINE

After you’ve registered online, our National Account Manager, Tom Molloy, will be in touch via email to confirm your attendance with details of how to log on to the webinar.

Reliance Bank are pleased to share with you the product Sheets from our newly launched mortgage range which went live this morning via our Sourcing platform partners at Twenty 7 Tec and our intermediary website.

These changes will help maintain the Bank’s overall product offering to the UK mortgage market and in particular our 2 key sectors, where we as a Bank want to stand out more to your members. Shared Ownership + our Key Worker Product Range.

Remember, if your members wish to check affordability or look to find out how to submit a application with ourselves, we do need your members to pick up the phone and give our dedicated Mortgage Underwriters a call.

At Vantage we work quickly to obtain the most suitable solution for the client, either on your behalf or by guiding you through the process. This case study highlights how we were able to work with a new broker to help their client obtain a buy-to-let mortgage as a bridging exit in just 16 days.

Loan: £296,250
Property Value: £395,000
Term: 15 years

Client: The client had one buy-to-let property which had originally been purchased via a bridging loan.

Situation: The bridging loan which the client had used to purchase the buy-to-let property was close to reaching the term expiry date. If the client did not repay the bridging loan before the term expiry date, then she would be faced with daily interest charges. As a result, it was essential that a solution was reached quickly in order to avoid the expensive interest charges.

Our Solution: After carefully reviewing the case we decided that a remortgage would be the best solution for our client. As it was imperative that the remortgage completed within our strict timeframe we kept in regular contact with the lender, ensuring they had everything they needed to progress the case with.

The case qualified for fast track legals, however the valuation report requested full title investigations. The broker and client were concerned that this would delay the application. Because of our experience dealing with complex buy-to-let cases we were able to reassure the broker and client that using the dual representative service offered by the lender would be beneficial for speed.

Benefit:  By working with us the client was able to benefit from our good working relationship with the lender, which meant we were able to convey the urgency of the case to ensure it was treated with urgency. In addition, by liaising with the lender and their solicitor we were able to avoid a delay with the full title investigations, instead the case completed a mere 5 days after solicitor instruction.

Result:  The team at Vantage Finance are experts in complex buy-to-let cases and have excellent relationships across our extensive panel of lenders. As a result, our expertise meant that we were able to arrange the buy-to-let mortgage for our client in just 16 days, from enquiry to competition.

1. Overall Indebtedness of 10 x income

We have now removed the need for a limit of 10 x indebtedness on BTL applications. This is on the basis that we have other protections that reduce the risk of an applicant being overly indebted and unable to meet any potential rental voids. These include a max of 3 BTL property portfolio, a minimum BTL income and our credit search/manual underwriting. Underwriters will still underwrite cases manually so if there are concerns with the total mortgage debt on an application, further clarity on how any rental voids would be covered may be requested (i.e. proof of savings).

2. ASTA’s for professionals

Previously we have insisted that our BTL security must be let to a single family unit. However, we have updated this to now accept up to a maximum of 3 professionals instead. The property must still be let via a standard ASTA agreement and not be classed as a HMO.

3. Family applications

Historically we have been fairly comfortable with parents and children buying together but less comfortable where it’s siblings etc. This has now been updated and we are now happy to consider applications for related parties. The relation must be a close family relative, for guidance this would be the same as our gifted deposit definition of what we class as close family (parents, children, grandparents, siblings and step & adopted of these).

The team at LendInvest are looking ahead to the future of the property market. To support landlords and developers making smart investments in energy efficient properties, our latest Buy-to-Let launch has included a new, cheaper product range – called EPiC – to incentivise investing in greener properties. Find out more about the new catalogue here.

Every week, one in six people experience a mental health problem¹, but that doesn’t mean they shouldn’t get the cover they need. It’s more important than ever that people feel comfortable sharing their health information so that advisers can recommend the right protection.

Joanna Scott will be joining us from the ABI to talk through their new mental health standards and what they mean for people when accessing insurance. And our very own Helen Croft and Rachael Bradbourn will talk about how we’ve made it quicker and easier for customers to get insured.

The panel

Helen Croft – Head of Underwriting Strategy | AIG

Joanna Scott – Policy Adviser, Health & Protection | ABI

Rachael Bradbourn – Claims Strategy Manager | AIG

Learning objectives

• Discover the importance of using customer-friendly language when talking to customers.
• Understand the new ABI mental health standards and what they mean for people when accessing insurance.
• Learn how to identify vulnerable customers and understand how to service their needs.

Thursday 9th December | 2.00pm – 3.00pm

Book your place

Saffron’s recent criteria changes, have not only been in reaction to the impact the pandemic has had on the industry, but also the changing needs of your clients. They have listened to you, through all channels and have enhanced their proposition to make sure they better support your clients.      

Following the overhaul, this week Saffron are pleased to announce further improvements, to ensure we can better meet the needs of your clients, helping to secure their dream home in 2022.

One of the big improvements is the introduction of a new product at 95% LTV, available to existing homeowners. Allowing you to support your clients in making their next steps on the housing ladder, where they may have limited equity or a smaller deposit available. We know this is important to you and something you requested from us.

Find out more about the new 95% LTV product, along with all of the other improvements to our residential mortgages and retro-fit mortgage below.

Reasons why intermediaries are choosing us for their cases:

• Unsettled CCJs/Defaults considered up £250
• Applicants on probationary period now considered
• Annexes accepted providing they are not being sublet
• Properties with up to 20 acres of land (including hobby farms)
• Builder gifted deposits accepted
• Bespoke pricing available for strong cases that might not meet our lending criteria.
• Debt consolidation to 90% LTV
• Second homes to 80% LTV

The team at LendInvest are looking ahead to the future of the property market. To support landlords and developers making smart investments in energy efficient properties, our latest Buy-to-Let launch has included a new, cheaper product range – called EPiC – to incentivise investing in greener properties. Find out more about the new catalogue here.

Kensington are running a Product Webinar for the Flexi Fixed For Term on Thursday 9^th December, where they will cover off the key features and benefits of the product for customers in more detail, and will use it an as opportunity to answer questions from advisors too.

The link to register is below, and if possible, please can I ask you share this with your advisory network so they too can register their place to gain more knowledge of the proposition, and ultimately, allow them to help more customers and write more business.

Register here.

• Loans available up to 95% (90% on New Build Houses, 85% New Build Flats and Remortgages)
• Long term fixed rates from 11-40 years
• Affordability boosted – up to 6x income available
• Competitive Pricing
• Flexible ERC’s, waived ERCs in the event of:
  • Sale of the property/moving home (all life circumstances);
  • Redemption in full, financed by own funds (bonus, savings, gift from parents)
  • Death or Critical Illness

This week’s Tech Tips focus on Special Purpose Vehicles. An SPV is a great way to leverage expansion on a portfolio.

A lot of lenders insist on the SPV being up and running for a minimum time. Not us. We think setting up an SPV is a savvy tactical mood, so we’ll lend to them when we can. Even when they’re brand new.

KSP’s:

• Minimum ICR at 125%
• Trading companies and LLPs acceptable, with relevant sic codes
• Utility and telecoms defaults or missed payments won’t be considered impaired credit
• No minimum time for SPVs to be in place
• Speak direct to our underwriting and portfolio teams once you’ve submitted a case

We know every case is different, and every client’s special. Read more about our BTL proposition by clicking the link below.

Link to products – https://themortgagelender.com/buy-to-let/
Contact number – 0344 257 0418
Find your local BDM – https://themortgagelender.com/intermediary-sales-team/

Struggling to place a case with a flat roof property? Have a couple who can’t find a lender to mortgage their timber framed home?

Join us on November 30^th at 12:30pm for our 30-minute webinar on then different property types we lend on.

The webinar will be hosted by:

Matthew Evans – Head of Underwriting
Kylie Alder – Senior Underwriter

You will be provided with a brief overview of LiveMore and the underwriting team, as well as how the team manually assess each case that comes through the LiveMore doors.

Also covered will include;

• Property types we consider lending on (non-exhaustive)
• Case studies of where we have been able to lend thanks to our flexible criteria.
• Unacceptable property types we cannot consider (non-exhaustive)
• A live 15-minute Q&A at the end of the session

We encourage attendees to ask questions during the event, but if you would like to provide us with any questions you have in advance, please supply when registering below. We will do our best to get through as many as possible.

Register for FREE webinar

For those with less-than-perfect credit histories or Debt Management Plans (DMPs) getting a mortgage could feel like an uphill battle.

Well, we have great news! Precise Mortgages’ range of residential mortgage products has now been expanded to include options for your customers that have an active or newly satisfied DMP or debt arrangement scheme (DAS).

Key highlights

• Active DMPs and DMPs settled within the last 36 months accepted
• 2 year fixed from 3.29%
• 5 year fixed from 3.44%
• LTVs up to 85%
• Fixed fees and refund of valuation on all products

Download the latest product guide

Those with complex income need a specialist lender like us, one who’s experienced with these types of situations. We’re on the case!

Visit the Precise Mortgages website today for more information.

You’ve heard Accord talk about their common-sense approach to lending and how they consider each case on its own merits, so it made no sense that they still ask all landlords to have a minimum earned income. So, from Wednesday 24^th November 2021, Accord removing their BTL minimum income requirements.

What’s changing?

The removal of our minimum income requirements

To help more landlords, including those who would normally meet Accord’s lending criteria and risk profile but wouldn’t meet their minimum income requirements, Accord will no longer be asking for a minimum income of £25k.

Minimum income requirement of £50k still applies to top slicing applications.

Affordability will still be based on the existing rental thresholds

In addition, if you have a landlord client who’s also a first-time buyer, rather than just ‘computer says no’ Accords’ underwriters will have the flexibility to review each case on its merits and give your broker a lending decision based on good old common sense. Accords’ criteria will stay the same, but if your broker has a landlord client who’s also a first-time buyer they can contact their Business Development Manager, because Accord might just be able to help.

To see all Accords’ buy to let criteria, click here.

On Thursday 25^th November, Foundation Home Loans launched a new specific range of owner-occupied mortgage products with enhanced Loan-to-Income limits specifically for Professionals.

Joint applications are permitted up to a maximum of two applicants, one of which must be the Professional, qualified in and currently practising in one of the eligible professions, and over the age of 25.

Available to first time buyers and non-first-time buyers, for purchase or remortgage, on a capital and interest repayment basis only.

Professionals Mortgage

• Loan-to-income ratio of up to 6 x income
• 2-year discount rates with no ERCs
• Maximum loan £750k
• Minimum age 25
• Rate tiers up to 75% and 85% LTV including for first time buyers
• One free standard valuation

On the affordability calculator, simply select ‘Professional’ from the specialist mortgage type dropdown to enable the enhanced income ratios.

Find out more about the Foundation Professionals mortgage (including a list of eligible professions) here

The return to 95% LTV

First-time buyers were hit hard in 2020 and returning back to ‘normal’ lending was never going to be straightforward. Discover how we reintroduced 95% LTV to a nervous market in this latest podcast with Mortgage Solutions. In this edition, Mortgage Solutions Commercial Editor Shekina Tuahene talks to Skipton’s Mortgage Product Lead Victoria Bradley, and Senior Credit Risk Analyst Diane Harrison, about how the pandemic affected first-time buyers and how the industry responded.

Up for discussion this time:

• Skipton’s approach to 95% LTV.
• first-time buyers and rising property prices.
• responsible lending.
• product pricing, base rate and green lending.

Listen to the podcast.