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INFORM 28TH AUGUST 2020

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INFORM 28TH AUGUST 2020

Catch up on the latest news from our partners below.

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FCA Introduces Paper Admin Fee

The Association of Mortgage Intermediries released this news item earlier this week in relation to the FCA’s introduction of a paper admin fee:

The FCA is aiming to move to 100% paperless invoicing. From April 2020, it has introduced £50 administrative charge for firms who require paper invoices to be issued by post (i.e. any firm that has not registered for the FCA’s online portal).

This charge will be included in firms’ fee invoices for 2020/21 and affected firms will receive written notification shortly.

Firms who register for the FCA’s online portal before 18th September 2020 will not be charged.

How to go paperless

Firms will need to register for the FCA’s online portal and will soon receive a letter with instructions on how to do this that includes a Unique Validation Code.

Self-registration should only take a few minutes.

Once registered, firms can choose to either:
1) Use the full portal service (i.e. log into the application) to:

  • view/download invoices, credit notes, payments and statements
    pay fees online using debit, maestro, credit or American Express cards
    set up/manage Direct Debit mandate
    provide bank details to obtain fees refunds
    query invoices online and
    have easy access to useful online fees information

Or
2) Use the application as an email service:
once registered, firms can request the email service. This means every time the FCA raises an invoice firms will receive an email with a copy of the invoice attached (pdf format). This service doesn’t require a user to log in to the application.

Firms can change from being a “portal user” to an “email service user” (or vice versa) at any time. For both options, firms can register more than one user, if required.

If firms have any questions or require assistance in registering, they should email fcafees@fca.org.uk

Coronavirus Update: Evidence of Income requirements for employed customers – Furlough Scheme

What’s happening

With the UK Government withdrawing the Furlough Scheme at the end of October this year, we are pleased to confirm that we have reviewed and updated the policy and treatments for customers who were furloughed due to Covid-19.

What you need to know

We will be unable to help customers who remain furloughed and cannot provide evidence of a return to work date

If evidence can be provided, this should be in the form of a letter from the customers employer stating the return date, confirm the returning income, contract basis and be on the employers letterheaded paper or be sent from a recognisable business e-mail address. The guidance is effective from Thursday 27th August 2020 for all new mortgage applications.

What you need to do

Updated guidance can be found on the NatWest Intermediary Solutions Coronavirus Hub.

Self employed policy remains the same and guidance can be found on the NatWest Intermediary Solutions Coronavirus Hub.

Click here to download NatWest’s Furlough Packaging Guide

Important Update on Furloughed Income

Criteria Update – 26 August 2020

From today, we will no longer be including furloughed income within our affordability assessment for Residential and Buy to Let applications. The furloughed scheme is scheduled to end at the end of October and, in our capacity as a responsible lender, we want to ensure customers will be able to afford their mortgage over the long term.

For applications where your client is returning to work prior to the 31st October, if the loan to value does not exceed 60% and furloughed income is needed to meet affordability requirements, please speak to your BDM to see if an application can be made on an ‘exceptional’ basis.

For further information, please visit our website.

If you have any questions, please feel free to get in touch with our Broker Support team, we recommend using web chat or email us at bdmsupport@skipton.co.uk.

Non-standard income

There are numerous reasons why a borrower may fall under the “complex” case category and need the services of a specialist lender. While it’s clear that a one-size-fits-all approach won’t work in these cases, they can be difficult to place and throw up obstacles and challenges that are unpredictable.

What if your client has non-standard income?

There are many professions where evidencing your income can be complicated. If you have clients that are self-employed, work on a contract basis, are sole traders, or have an inconsistent income, they could face problems when applying for a mortgage with mainstream providers.

Individuals with “unconventional” professions – such as actors, musicians, and athletes – may find it hard to evidence the level and consistency of their income, even if they have significant accumulated wealth and reliable sources of cash flow.

Even those who work in traditional industries, such as lawyers and tradesmen, can still have inconsistencies in their income, and may find it difficult to secure a mortgage.

Could Kent Reliance for Intermediaries provide the solution?

Specialist mortgage providers like Kent Reliance for Intermediaries offer tailored loan solutions that give flexibility to clients with unique needs. The specialist lender is experienced with self-employed and contractor clients and has a range of products with more flexible criteria.

Current key criteria include:

  • Options for self-employed and contractors
  • 100% of a second income
  • 50% overtime, bonuses and commission considered
  • 100% of guaranteed permanent allowances
  • 100% of child maintenance by court order (up to 13 years old)
  • State pension, provided it isn’t the sole source of income
  • Furlough income acceptable

So if you’ve got an ‘odd’ case in mind, why not get in touch with your local senior business development manager today or speak to the broker liaison team on live chat or on 01634 888260.

CFI Chat Launch

Coventry for intermediaries adds web chat, telling brokers we’re still here to talk

Coventry for intermediaries is continuing to strengthen its commitment to the broker community by adding its new web chat feature, CFI Chat, to its industry-leading telephone support. In 2020 Coventry for intermediaries has an average call wait time of just 21 seconds, and adding web chat gives brokers another channel to easily reach an advisor to answer policy or product questions.

  • CFI Chat will be operated by advisors, not a bot
  • Phone lines remain open to brokers, to support more complex queries
  • Coventry for intermediaries is committed to making it as easy as possible for brokers to get in touch

CFI Chat comes at the request of brokers, to provide another avenue of customer support, but telephone lines remain open. Brokers are encouraged to call the contact centre as much as they need. Web chat will provide a flexible option to get answers to simple questions, while telephone advisors are available to talk through the more complex cases.

Keith Williams, Intermediary Operations Manager at Coventry for intermediaries, said: “In times like these, we want to spend more time speaking to brokers, not less. We successfully deployed home-working telephony early in the pandemic, and we are proud to provide one of the fastest phone support services in the industry.

“We are here for our brokers. CFI chat is our latest tool, but we are always committed to being a lender that keeps quality service at the forefront.”

CFI chat will be available during normal operating hours Monday to Friday 9am – 5pm (closed on bank holiday)

To chat with them visit https://www.coventrybuildingsociety.co.uk/intermediaries

Landlord confidence recovers by a fifth in the wake of COVID

Landlord Confidence Recovers by A Fifth In The Wake Of Covid – Foundation And BDRC Data Q2 2020

Research from Foundation via BVA-BDRC shows an increase in confidence from 2020 Q1’s previous all-time low.

A survey of more than 1300 landlords revealed that landlord ‘confidence in their own business’ has increased by up to +18 in just one quarter – and this was prior to the announcement about reduced stamp duty.

Year-on-year, confidence is up for Rental Yield prospects, the UK Private Rental Sector and landlords’ Own Lettings Business. However, landlords’ area of concern is the UK Financial Market: only 7% feel ‘good’ or ‘very good’ about prospects in the next 3 months.

The percentage of landlords who would rate their own business expectations for the imminent 3 months as ‘good’ or ‘very good’ now stands at 37%, up from 19% in Q1.

Landlord confidence in their own business had risen to 31% in 2019, only for it to take a dramatic drop to 19% as the UK went into Covid lockdown.

However, in a promising upturn, the landlords now report that they anticipate the impact of Covid to be less severe than originally thought. 7 in 10 of them now believe that their lettings business will be negatively impacted by the pandemic, down from 8 in 10 in Q1. Also only a fifth of landlords expect a ‘significant’ negative impact of the pandemic now, half as many as thought so in Q1.

Landlords in the North West & Yorkshire & Humber particularly are most confident in their own business, where half of landlords rated their business expectations as ‘good’ or ‘very good’ compared to a quarter in some other areas.

Thought of the week…

Thought..

Are your clients struggling to pay premiums due to the pandemic?

 

Call to Action!

Don’t worry we’re here to help. With British Friendly, they can take a benefit reduction, lower their premiums temporarily or even suspend their cover (meaning they cannot claim) with no premiums to pay for at least 3 months.

Learn more here:  https://www.covermagazine.co.uk/news/4017262/british-friendly-adds-benefit-reduction-option

#IncomeProtection

Mental Health Webinar

Our latest #ExpertSeries webinar takes a look at mental health and underwriting throughout the years alongside current challenges and opportunities in this area.

Watch the playback now.

https://globalmeet.webcasts.com/starthere.jsp?ei=1346910&tp_key=a3ac53b646

87% of BTL landlords still generated a profit in Q2 2020

Did you know that despite the challenges faced by landlords in recent months, 87% of them still generated a profit in Q2 – the highest level of profitability since the end of 2018*?

According to BVA BDRC’s latest Landlords Panel report, the average rental yield has also increased to 5.8% – its highest point for more than a year –with landlords with between 11 and 19 properties generating the highest average yield, at 6.5%.

Precise Mortgages’ range of Buy to Let Mortgages is designed to help portfolio landlords, limited companies, those looking at HMOs and even first time buyer and first time landlords. The range includes our exciting Summer Sizzler limited edition 5 year fixed rate mortgage that’s designed to help single dwelling limited company landlords make the most of the Stamp Duty holiday.

Click here to find out more.

*Source: BVA BDRC Landlords Panel Report Q2 2020 (slide 33)

Simple and speedy affordability sourcing has arrived!

We are delighted to announce that Affordability Hub is now available to the whole market and can be accessed from within Criteria Hub.

Affordability Hub provides an accurate, simple, and speedy way to undertake affordability sourcing for your customers. Simply input your customers’ property, income, debt, and expenditure information into a standardised form and send it to multiple lender affordability calculators, with results returned within 60 seconds.

Join thousands of advisers today – new users can register for a free 30-day trial!

Benefits of Affordability Hub

  • Submit a single form and receive multiple responses from lenders within 60 seconds
  • Real-time product data checks are performed with each submission, ensuring relevant products are available
  • Key information is cross-checked with Criteria Hub data to highlight any known issues
  • Each submission will highlight which information has been used, ignored, and if any assumptions were made.

To find out more about Affordability Hub, watch the short video below or or visit our dedicated page today!

Any questions corporatesales@mortgage-brain.co.uk

Portfolio Lending

We are continually looking at ways to enhance our proposition and also support landlords that are looking to grow their portfolio’s.

 

Earlier on this year we removed the cap on the number of properties that we will lend on for a portfolio landlords, now accessing based on aggregate borrowing alone. More recently we introduced our portfolio multi-loan product.

The multi-loan product allows:

  • Multiple applications within a 6 month period to be submitted with no additional application fees
  • Reduced completion fee of 1.25%
  • Available for individuals and Ltd Co’s

For more information give our sales hub a call on 0344 257 0418.

Exclusive BTL Range

Exclusive access to Limited Edition Buy-to-Let mortgage range

At a time where landlords are looking to grasp hold of available opportunities and take advantage of the stamp duty holiday, unfortunately not all financial avenues are as available as they were previously.

The good news is – we continue to have a very competitive level of access for you with a broad range of Buy-to-Let lenders. So much so, we’re delighted to announce exclusive access to two Limited Edition Buy-to-Let mortgage products. Here are some of the key features:

Key features

  • LTVs up to 75%
  • First-time landlords considered, including HMOs (must own the main residence)
  • No credit scoring. Underwriting based on credit assessment
  • Loan terms from 5 to 30 years

Don’t miss out! Drop us a line to find out more – or give us a call today on 01753 883195.