Inform 4th November 2022

On Tuesday 8 November we’re making the following changes:

• Household expenditure figures are being updated to reflect the most recent Office of National Statistics (ONS) data.
• National Insurance is being reduced by 1.25 percentage points in line with government changes.

Our residential affordability calculator will be updated to reflect these changes. So please use this calculator on our website to make sure they get an accurate reflection of what we can lend your clients.

Pipeline rules
Our usual pipeline rules will apply. All full mortgage applications (FMAs) already submitted on Introducer Internet by 10pm on Monday 7 November won’t be affected by these changes. Any FMAs submitted from 6am on Tuesday 8 November, or where a material change is made to an FMA that was originally submitted before 10pm on Monday 7 November, will be assessed using our updated lending policy.

How are we supporting the change?
This change will be reflected in our residential affordability calculator.

Joint Borrower Sole Proprietor mortgages are where a mortgage is in joint names but home ownership rights remain with only one of the borrowers. This is particularly useful for enabling close family members to help a loved one onto the property ladder by contributing to mortgage payments without having any ownership rights.

In this case study, we enabled a father to support his daughter to purchase a flat. We were flexible in allowing a split term so that the father could pay off his contribution to the mortgage more quickly than his daughter.

The property itself was a converted flat in a block of 4 storeys with an overall mortgage of £460,000 required. The father was able to take out a mortgage of £280,000 over an 18 year period, taking him to age 85 at the end of the mortgage term. The remaining £180,000 was taken out by the daughter over a 35 year term.

Both father and daughter passed independent affordability assessments based on their incomes and consideration was given to the father’s existing mortgage commitments as the non-occupying borrower together with the potential risk of him becoming unable to continue to contribute to his part of the mortgage.

We agreed to the mortgage as the daughter is a trainee solicitor with future earning potential, which was expected to increase after her training period, and that the father’s existing residential mortgage will be completed in three years.

Our Joint Borrower Sole Proprietor lending is available across our standard residential and buy to let mortgage range, subject to underwriting requirements.

Residential lending is subject to the occupying borrower being on a progressive career path and being able to afford the debt in their own right in the medium term. The non-occupying borrower must seek independent legal advice and we will assess the affordability of their existing mortgage using our own residential affordability calculator.

A common sense approach
If you’ve got a case on your desk that requires a common sense approach to lending then please pick up the phone to our Broker Support team on 01623 676360 or visit https://www.mansfieldbs.co.uk/intermediaries/.

Complete your client’s bridging mission faster with Shawbrook available through Impact Packaging. Shawbrook offer an innovative platform for instant decisions, personalised service, and simple product offering.

Highlights:

• Instant Heads of Terms with AVM (Automated Valuation Models)
• Committed to fixed rates for the duration of the loan term
• Up to 85% LTV (when funding the cost of residential works)
• Loans from £50k-£25M
• No ERCs

And Shawbrook will support you client once their bridging loan comes to an end by switching them to a buy-to-let mortgage. By staying with Shawbrook your client will receive a discount on their arrangement fee, and if your client’s property has an EPC rating of ‘C’ or above, they’ll benefit from their Energy Efficiency Discount too.

Take a closer look at Shawbrook Bank’s product guide to help find a solution for your bridging cases.

Have a case you would like to discuss? Call the impact packaging team now on 01403 272625

Designed by advisers, for advisers, our new ‘Just Covered’ podcast explores topics of interest for those working across the financial services industry.

These short conversations are designed by advisers, for advisers to explore current topics of interest for those working in the financial services industry. So, grab yourself a cuppa and listen in…

Our first episode looks at how social media could help you prepare for the new consumer duty rules.

Listen Now.

After launching their BTL tracker products, LendInvest explains what a tracker mortgage offers your clients and why you could see more in the current climate.

Find out more here.

Two-thirds of those aged between 18 and 34 years old say they have taken on new debt due to the cost-of-living crisis according to new research from The Mortgage Lender.

Of this age group 10% have taken out a personal loan since the beginning of 2022. Even more concerning is 11% have taken out a pay-day loan, risking the high interest that comes with these products.

This could have an impact on their future ability to access a loan or mortgage.

Read the full article here.

Mixed use commercial property cases can be tricky and time-consuming, particularly as there is a lot of criteria and lender preferences to consider.

These type of cases therefore need unique attention and expertise to navigate successfully, which is where our commercial experts come in.

Our experienced team can source, package and fund your clients case, whilst managing the relationship with the lender and dealing with any problems that may arise.

In the meantime, you will gain some of your valuable time back to dedicate to other cases or business needs, all whilst your clients get the funding they need.

In other words, it’s a win for all involved. Call our commercial experts today and get your clients the funding they need!

Call them on 0800 096 0650 or visit the TLE website.

Buckinghamshire Building Society have re-entered the shared ownership market place with a new product and expended criteria.

The 3 year discount rate product is available without a product fee for both purchase and remortgage cases from today for properties across England and Wales.

Key features include:

• Available for share purchase of 25%-75%
• Maximum loan to Share (LTS) of 95%
• Loans from £50,000-£500,000
• Maximum 6 storeys for flats
• Lease must allow for staircasing to 100%
• Our standard credit criteria applies
• Other fees & T&Cs apply

Claire Askham, head of mortgage sales, said: “We’re always looking for ways to improve and expand our mortgage proposition.

“With the end of the Help to Buy scheme fast approaching, we feel it’s important to find alternative ways to support the affordable housing market and shared ownership is a great solution for many first time buyers to take that leap and get a foothold on the property ladder.

“We all know that one of the major barriers to home ownership for many people is saving for that initial deposit. Here at Buckinghamshire Building Society, we allow borrowers to purchase a minimum property share of just 25% and we lend up to 95% of that share cost, making home ownership a realistic option for a significant amount of potential buyers compared to more tradition methods of property purchase.”

In addition to the relaunch of shared ownership, Buckinghamshire Building Society have also refreshed rates on a variety of their other mortgage products.

Amid rising base rates and rocketing energy costs, landlords are now facing an extra potential headache – stricter EPC targets that will hit the rental sector hard. It could impact your BTL business, so you should be prepared.

Under proposed new rules, there’ll be a higher minimum rating required for all newly rented houses and flats from 2025. For many landlords, that could mean spending thousands on double glazing, insulation, and new boilers. As a result, many will consider selling older properties, while brand new homes will become more attractive for BTL business.

Our new article covers details including;

• What the new targets mean
• Exemptions, and who is likely to be eligible
• Potential portfolio unloading
• How landlords are snapping up new-builds

Understanding the legislation will give you a great reason to contact and talk to your BTL clients. And it will help you get ready for the inevitable changes in the market.

Read the article now.

At Platform, we know more clients are contacting your advisors earlier to discuss options for their mortgages, and now more than ever clients value their advisors advice.

We’ve listened to feedback and I’m delighted to let you know that from the 1 November advisors will be able to switch their clients Platform mortgage 6 months before the product ends.   This means they can secure a great rates earlier whilst knowing that it will switch automatically on the required date in 6 months’ time.

The process for switching remains unchanged, so they will need to check our website for client eligibility and to begin the switch, either online or via the post as appropriate.

It’s a better proposition for advisors and their clients and we’re really pleased we’ve been able to make the change.

Product transfer guide

It is not often that mortgages make the top read stories on the likes of the BBC website. Nor does it often occur that mortgages are the topic of so many conversations. But that is what has happened of late, since we saw rapid repricing in recent weeks.

However, with such widespread news coverage of mortgage rates, the technical aspects of pricing products have led to a degree of confusion. Some people have become confused as to why mortgage rates rose so sharply – more than the increase in the Bank Base Rate. Some people even believe mortgage lenders are just “profiteering” as the gap between the Bank Base Rate and general mortgage rates widens.

This does, however, give mortgage brokers a real opportunity to really demonstrate their credibility, a key element of the trust equation, by providing content to clients about the pricing of mortgage products.

Read the full article here.