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HODGE
Vulnerability and your customers

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A day in the life of Andy Cooke

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First-time dads are getting older

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Mortgage Introducer

5-star lenders 2022

How well are your lender partners performing?

The inaugural 5-Star Lenders report by Mortgage Introducer is seeking the mortgage industry’s feedback on how the country’s lenders are performing.

Rate your lenders and tell them how they can improve and better position themselves in the market by answering this online form.

This is a unique opportunity to have your insights shape the industry, so we hope you’ll take a few minutes to complete the short survey.

The 5-Star Lenders report will be published in Mortgage Introducer’s November issue and online.

The survey closes on Friday, 19 August. 

Entre Now!

Nottingham for Intermediaries

Introducing product transfers

We’ve now introduced payments for brokers who submit successful applications for existing customers reaching the end of their fixed rate or discount periods with us.

Maturity letters sent to eligibile customers will now include details on how you can process a product transfer on their behalf. We first write to customers three months before their product matures, so the letters landing in August will be for maturities in November.

Procuration fees
0.25% – On residential and buy-to-let mortgages
0.35% – On limited company BTL and retirement interest-only products

Chief Lending Officer, John Eastgate, said:
“We know brokers work hard to have strong and lasting relationships with their clients, so paying them a fee if the customer remains with The Nottingham as a result of their help and advice is a really positive step forward.”

Find out more on our website

Accord Mortgages

Up to 95% LTV lending for new build houses with Deposit Unlock

Common-sense lending is what we are all about, so we’re very pleased to let you know we’re launching a new product range offering LTVs of up to 95% exclusively for new build house purchases through the Deposit Unlock scheme. The new range will be available from today.

As a New Build Lender, we’re always looking for ways to help you to help more clients onto and up the property ladder, including those with smaller deposits. We’re excited to support the Deposit Unlock scheme which means we can now offer up to 95% LTV for new build house purchases. Click here for information on the scheme and the latest list of participating builders. Deposit Unlock (hbf.co.uk)

How does it work?

The good news is it’s simple – you don’t need to do anything differently

  • It’s the same as any other new build application, just remember to select ‘New Build’ at DIP to generate the right outcome
  • You will be advised to upload the Deposit Unlock builder letter from your client during the application journey
  • Select from the Deposit Unlock range of products
  • We are only able to consider applications for properties which are eligible for the Deposit Unlock scheme

What else do you need to know?

  • Above 90% LTV up to maximum 95% LTV exclusive Deposit Unlock product range
  • New Build house purchases that are part of the Deposit Unlock scheme only (no flats, no remortgages)
  • Standard lending policy and affordability criteria must be met
  • Max borrowing £600K
  • Available in England, Wales and Scotland
  • As with all New Build lending above 85% LTV a max LTI cap of 4.49 x applies
  • Product fees can still be added to the loan at 95% LTV

When will the range be available?

Our new Deposit Unlock product range is available from today.

And keep an eye on your inbox for more Common Sense lending changes to come!

Santander for intermediaries

Response to the Bank of England base rate change

On Thursday 4th August, the Bank of England base rate increased by 0.50% from 1.25% to 1.75%.

Following this decision, we can confirm the following changes for existing mortgage customers from the beginning of September:

All Santander tracker and Standard Variable Rate mortgage products will increase by 0.50%.

If a customer’s existing mortgage is affected, they’ll receive a letter notifying them of their new interest rate and new monthly payment a minimum of 5 days before their monthly payment changes.

All tracker rates and reversion rates on our new business and internal transfer products will increase in line with the base rate on Tuesday 9th August.

Further information
Any pipeline applications already submitted and/or offered are not affected so you don’t need to do anything.

Take a look at our base rate FAQs for more information

Skipton Building Society for Intermediaries

Bank of England Base Rate increase

Today the Bank of England’s Monetary Policy Committee announced a 0.50% increase to the base rate. The Bank of England Base Rate now stands at 1.75%. As a result of this announcement we can now confirm the following:

All customers who have existing mortgages which track the Bank of England Base Rate will see their account interest rate change (subject to any product rate cap) in line with their terms and conditions. For most Base Rate Tracker products, rates will be increased no later than 14 days from today, Thursday 4 August 2022.

Our existing Base Rate Tracker products will be withdrawn at 10pm Sunday 7 August 2022 and replaced from 9am Monday 8 August 2022 reflecting the Bank of England base rate increase.

Contact us: Webchat Email Twitter

Aldermore

Regional Landlords Data

Aldermore are pleased to announce their Landlords Panel Regional Snapshot has just been released. Their results cover Landlords’ outlook, profitability and finances, Dynamics and more.

Click here to read the results.

Hinckley & Rugby For Intermediaries

The Six Pillars of Lending

Ever wondered how we reach a decision when using manual underwriting to assess an application? When it comes to lending, we believe there are six key aspects that our mortgage experts must consider when assessing any mortgage enquiry – we call them ‘the Six Pillars of Lending’.

The principle is that six strong pillars hold up a sturdy roof. If one or more of the pillars is weaker, the strength of the remaining pillars will keep the roof from falling in. Focussing on these areas when discussing, packaging, and underwriting a case helps us make consistent and logical decisions meaning a quicker decision for your client!

Read an explanation of each of the Six Pillars of Lending, alongside examples of how we use them in real life. 

  1. Loan to Value (LTV)
  2. Loan to Income (LTI) – aka ‘Income Multiple’
  3. Affordability
  4. Standard of the subject property
  5. Individual circumstances
  6. Credit history
  7. Manual underwriting at Hinckley & Rugby

Join our live drop-in clinics for Intermediaries
See the Six Pillars of Lending in action – join one of our monthly drop-in sessions where Chief Executive, Colin Fyfe, and our mortgage experts discuss your complex cases LIVE.

Find out about our Mortgage Referrals Committee (MRC) Drop-in Clinic and book your place on the next session.

Watts Commercial

How partnering with Watts can grow your business.

It’s always hard when you are starting a new business but throw in a post-pandemic economic shift and the rising cost of living, the reality is… its hard work!

Rik Tailor of Mortgage Tek fast felt the pressures when trying to establish himself as a self-employed mortgage broker in Watford. While the opportunities were there and his business began to grow, Rik found that a number of clients had complex cases or commercial finance enquiries that required expert guidance.

Having worked with Ben Clarke, Commercial Manager at Watts Commercial Finance in a previous role, Rik knew exactly where to turn to support his ever-growing client base.

Rik says; “As a specialist in residential mortgages, I reached out to Ben when I started to see a number of enquiries that required a more bespoke approach. I wanted to work with someone I trusted to look after my clients and I always found him to be very professional and someone I knew that I could rely on. I knew that by introducing some of my more niche cases to Ben for his expert focus, both my customers and my business would reap the benefits.”

He added; “Having Ben at the end of the phone or nearby to meet a client helps to maintain a positive view of my business – it feels like we are working as one and my customers have complete trust in the expert advice they receive. You would be surprised at how Watts’ service differs from others with a similar offering – it’s very much a personal service with lots of face to face interaction which is rare in the industry these days.”

To date, Ben has secured over £1.35m funding for Riks clients with another £750k of funding in the pipeline. Mortgage Tek will retain their clients throughout the lifetime of their relationship with Watts yet again continuing the seamless process

Ben Clarke commented; “Working with Rik is a breath of fresh air. Our businesses share the same ethos – to keep the client at the heart of everything we do – and that really reflects in the feedback we have received on our seamless customer experience.”

Ben added; “Having joined Watts myself only a year ago, Rik and I have both made a conscious effort to help establish and grow each other’s business in the Watford area and amongst other business networks – using each other’s professional networks and introducing each other to new people and prospective clients. Our work very much compliments each other and it’s lovely to see his business now flourishing.”

As Watts Commercial Finance continues to establish their brand across Hertfordshire, Ben Clarke is looking for more independent and self-employed mortgage brokers like Mortgage Tek to support with their commercial, property development and acquisition enquiries.

Impact Specialist Finance

Your Award-Winning Buy-to-Let Specialist

Impact Specialist Finance has won Best Buy-to-Let Broker at the prestigious Financial Reporter Awards 2022. We are recognised in the market for helping Brokers and their clients achieve their complex Buy-to-Let property objectives.

Why consider Impact for your next BTL case?

  • We are specialists in the adverse and complex mortgage market
  • We have exclusive lender products and rates
  • We have dedicated case managers
  • We have strong lender relationships with all our lenders
  • Our packaging team is always ready to take your call
  • We understand the criteria of each lender

We can help your clients get the best deal for their complex Buy-to-Let cases, whether they are Limited Companies, HMOs & MUBs, Mixed Portfolios, First Time Landlords, Flats Above Shops, Let to Buy, Expats & Non-UK Nationals, Non-Portfolio Stressing, and Consumer & Regulated.

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

Pure Retirement

Heritage Criteria Enhancements

We are introducing the following criteria enhancements to our Heritage range with effect from today.

We can now consider:

  • Ex-public sector maisonettes* – minimum property value £100,000, maximum 2 storeys. Restricted to 85% of max LTV
  • Properties with shared septic tanks between no more than 4 properties – subject to satisfactory agreement being in place
  • Properties with more than 5 acres – the value will be based on 5 acres
  • Properties with minimal commercial use* – such as childminder, music teacher etc. Subject to appropriate building and public liability insurance being in place

*Not acceptable on Super Max Plus product

For full details please refer to the Heritage Lending Criteria document here.

West One

Is it time to reconsider tracker variable rate mortgages?

Currently in the UK 83.1% of existing mortgage holders are on a fixed rate contact, according to data from the Bank of England. Fixed mortgages have been the go-to product over the last few years, as borrowers prefer the security of knowing exactly what they are going to be charged each month. In fact, since 2019, 96% of new borrowers have opted to take a fix rate mortgage.

Borrowers that are coming to the end of a 2- or 5-year fixed rate product are facing a hike in their monthly repayments when they remortgage, a recent report by UK Finance found that up to 1.3 million borrowers who reach the end of their fixed rate mortgage this year could see disposable income shrink by 7%.

So with fixed rate products priced high to anticipate future base rate increases, should your buy-to-clients be considering a variable rate product?

With a tracker variable rate mortgage, your client will be paying interest rates that change in line with the Bank of England base rate, each time the bank’s base rate increases or decreases so will the interest paid by the client. This could mean that the client is actually paying a lower rate of interest than if they were to lock themselves in to a fixed rate product.

While interest rates are unpredictable at the moment, there will be a time when the markets stabilise, and this could be the perfect time to switch from a variable rate to a fixed rate product.

However, this is where the advice provided by you, the broker, to your clients will be invaluable. You will need to understand your client’s attitude to risk, their ability to meet higher payments if increased and if the selected variable rate product allows the client to exit early without facing hefty early repayment charges.

At West One, we have recently launched 2-year stepped tracker products via our Specialist and Standard ranges. Both are directly linked to the Bank of England base rate with no ERCs. This provides the client with the flexibility to move away if the rates go up or down.

• Variable on standard range
• Portfolios up to £3m (or 20 properties), up to £7.5m available by referral
• No min income
• First time landlords
• Ltd Co. SPV’s
• NO ERC’s

For more information please do not hesitate to get in touch with West One’s broker support team at 0333 1234 556 or email: btlbrokersupport@westoneloans.co.uk.

* The average interest rate is reflective of 5-year fixed at 75%. Based on lenders operating in the specialist space as at 05.07.22, sample of 57 products available across 20 lenders

Foundation Home Loans

63% of landlords buying this year want EPC A-C properties

The data also revealed that 9 in 10 landlords are aware of the new EPC ‘C’ legislation. So what expert advice can you offer to landlords about the green mortgages available to them? Focusing on landlords, we’re always looking to play an active role in the education process around this important product type and in providing our intermediary partners with the information and resources required to help them and their landlord clients on the green journey Information and resources which will allow landlords to make an informed decision on any new purchase, remortgage activity or energy efficient upgrades within existing and new properties. Key to this approach is understanding individual landlord approaches and their awareness around new legislations.

Click here to read the full story.

Buckinghamshire Building Society

Mortgages especially for Holiday Lets

Do your clients want to turn going on holiday into their business? 

We offer a range of Mortgages designed especially for Holiday Lets and what’s more, we now also offer these mortgages for Limited Companies with an SPV. Our holiday let mortgage products are available for properties across England and Wales, located either in coastal areas or National Parks and must be ready to let for at least 140 days of the year*.

Our Holiday Let Mortgages all have an LTV of 75%.

Click here to find out more.

*Property must qualify as a Furnished Holiday Let under the HMRC definition. Applicants must have their own main residence and a minimum income of £30,000. Maximum of 3 Buy To Let mortgaged properties. Standard Credit Criteria. ERC & T&Cs apply. Product fees & other fees apply.

Gatehouse Bank

’Limited Edition’ Buy-to-Let products to be withdrawn

Having utilised our tranche of funds on the Limited Edition BTL £500k+ product range we are withdrawing these products from sale.

This change will take effect from 5.00pm Friday, 5 August. Any valid Limited Edition £500k+ BTL DIPs that you wish to progress must proceed to a fully packaged application, including the customer’s signature, and be received via our online application system by 4.59pm on Friday, 5 August. Cases received that are not fully packaged or unsigned, will not be progressed.

We are reviewing our product portfolio and will advise you of a new range of £500k+ products shortly.

If you have any queries or require further information our team remains available via phone and email, details of which can be found here.