Inform Friday 10th September

On 26 July we launched new cashback products that are available for the purchase of a property which has an Energy Performance Certificate (EPC) rating of A or B. We are pleased to say that the products have been well received by intermediaries and we are seeing positive levels of business across the range.

The cashback is available across our HMV, FTB, New Build and Affordable Housing ranges with the qualifying ‘Green’ versions of the products starting with a ‘GR’ product code, which will include the payment of the £250 cashback.

As part of our commitment to supporting sustainability it is our intention to continue to encourage more energy efficient homes. To help us maintain our support we need your continued help to ensure that customers receive the correct product through our intermediary partners.

We have noticed that some customers are being placed on the non-cashback standard versions of products when they appear to be eligible for the cashback version i.e. the property being purchased has an A/B EPC rating. It is very important that all Intermediaries are aware of these products and are considering them on ALL applications if the customer is eligible for the cashback version of the product.

It is also important that the cashback products are only chosen where the property being purchased meets the A/B EPC requirement and we may request from the intermediary the proof of the EPC rating on any cases where they have chosen these products.

Below is a reminder of the guidelines around the EPC including where a copy can be accessed:-

• Intermediaries selecting these products will need to retain proof of a property’s A/B EPC rating on their file. We will not require proof of the EPC rating as part of the requirements during the application process, however, we may request this at a later point.
• Intermediaries can check the EPC rating of a property online here, or for properties in Scotland here. They simply need to input the postcode of the property and select the property address. They can then print / save the certificate
• If the rating is not A/B, has expired, or an EPC rating is not available for the particular property, then they will not be able to use these dedicated products.
• New Build properties are acceptable. Where an EPC rating is not yet available, we will accept the intermediary retaining proof of an A/B Predicted Energy Assessment (PEA) or A/B Standard Assessment Procedure (SAP) calculation.
• If a property does not show on the online EPC register but an EPC certificate is available this is acceptable

With the Stamp Duty holiday deadline of 30 September 2021 fast approaching, we’re continuing to see an increased volume of telephone enquiries and mortgage applications.

Eligible applications

If your client purchases a property between 1 July 2021 and 30 September 2021, they’ll only start to pay Stamp Duty Land Tax on the amount they pay for the property above £250,000 (for first time buyers it’s £300,000).

The Stamp Duty holiday is for properties in England and Northern Ireland only.

Help us to help you
So we can help your clients aiming to complete their purchase by 30 September 2021 please:

• Provide us with a secondary email address at full mortgage application where possible so your administrators can also receive email updates on your client’s applications.
• Use our Mortgage Applications Tracking System (MATS) to keep up to date with the progress of your client’s application up to the point of completion.
• Check our service page for our admin and underwriting timescales. Our service levels are updated at the start of each working day.
• Visit our contact us page for the telephone number of the team that can help you with your specific enquiry:

Entries are now open for our Business Quality Awards. Be a part of it! We’re inviting you to nominate yourself for an Outstanding Customer Outcome award.

There are nine awards in total across multiple categories, and Outstanding Customer Outcome recognises the firms that have delivered an excellent end-to-end customer experience over the last twelve months. We’ll also consider how firms have adapted to the challenges recent times have brought. Entries close on October 22, 2021. Don’t miss out!

Enter today

Tuesday 28th September
9:30 – 11:30am
Hilton Belfast

As Kensington Mortgages approach their 1 year anniversary since launching into Northern Ireland, you�re invited to learn about who they are and how they can help your clients.

Why attend:

• Jordan Buchanan, PropertyPal, discusses the housing market and what the future holds.
• Opportunity to meet your BDM, Sharon Cochrane
• Ask the guest speakers your questions during the Q&A session
• Find out how Kensington Mortgages criteria is tailored to your clients circumstances

Country of residence is an important factor when assessing the product options available. Most lenders will accept any EEA country, others will include any that are on the FAFT list, and some lenders publish a specific list indicating the countries they will or won’t lend to.

It is quite surprising how many places in the world are acceptable residencies for expat applicants, however the majority of our expat clients live in the EU, USA, Hong Kong or Singapore.

We also receive enquiries about expats living in Australia and although these are often difficult cases to place, we can now provide mortgage options for those living Down Under. Call us now on 029 2069 5400

How can TBMC help?

Our team of buy-to-let mortgage experts are up to speed on all the latest lending criteria and product ranges. We have a whole of market buy-to-let offering and can help you to identify the best options for your clients.

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.

• 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 button below.

Find out more

Majority of self-employed received no Government support

The majority of self-employed people in the UK have received no Government support to help them through the pandemic but they’ve still managed to pay all of their tax bills according to research from The Mortgage Lender.

Its survey, among 1,000 self-employed people who own their own home, or want to, was carried out in March this year and reveals the financial toll on the country’s entrepreneurs.

Overall, nine out of ten self-employed people have worked throughout the pandemic with 39 per cent working full-time and only one in ten (11 per cent) stopping work completely.

But the majority (57 per cent) of our panel said they had no Government support in the last 12 months. Only nine per cent had used the furlough scheme for employees, 28 per cent received a grant, six per cent took out a bounce back loan, five per cent secured a Coronavirus Business Interruption Loan, four per cent deferred their VAT payment and three per cent agreed a payment plan with the Inland Revenue.

When compared with the financial support offered to employees 58 per cent of our panel felt their experience of the pandemic was worse, 35 per cent said it was similar and 8 per cent claimed their experience was better.

The impact of the pandemic will show on year-end accounts for the period between April and September 2020 for 41 per cent of our panel, between October and December 2020 for 9 per cent and between January and April 2021 for a further 18 per cent.

Despite the financial struggles of the self-employed, nine out of ten are up to date with, or have the funds available to pay, their tax liabilities to the Inland Revenue.

The Mortgage Lender sales and product director, Steve Griffiths, said: “Our research lays bare the struggles of the self-employed over the last year as they have navigated reduced demand for their products and services and taxes due to the Inland Revenue, many with no support at all.

“Unlike larger employers micro-SMEs and entrepreneurs don’t have access to the financial skills that have helped larger companies take advantage of Government schemes to balance the books. Instead, they have taken on that burden while still managing to pay their contribution to the public purse.

“The full financial impact for the self-employed still has to work its way through the system with accounts and tax not due until nine months after the year-end, so it will be another year before we see the real fallout of the pandemic.

“As a specialist mortgage lender our residential products have been designed to help people whose financial situation have been challenged by the last year. And it is incumbent on the sector as a whole to provide competitively priced products that ensure large segments of the UK homeowning population are not locked out of the mortgage market while their finances recover.”

For more information visit: www.themortgagelender.com

We’re excited to introduce Jenny Goodall, the new Intermediary Lead for our team of Telephone BDMs.

Jenny’s been with Skipton Building Society for eight years and was instrumental in shaping our TBDM team when it was formed in 2018. She’s also led our Broker Support, Direct Lending and Mortgage Advice teams and has held a variety of other leadership roles over the past 15 years.

Jenny’s appointment supports our ambition to become a top ten lender and her knowledge of the intermediary community and leadership experience will help us on our journey towards achieving that goal.

Jenny Goodall:

“I’m delighted to be back on board and look forward to steering us in the direction of growth, efficiency and flexibility to support brokers and our key lending partners. My experience of people leadership and passion for driving change and progress is what I bring to this role, along with a strong belief that we continue to do the right thing for brokers and their clients.”

Making Things Easier for You

In line with our continuing product enhancements, we are proud to re-introduce shorter deferred periods for our Protect and Breathing Space products, subject to a COVID-19 exclusion.

 What is changing?

This change applies to new business submitted from the 7th September 2021 and includes:

• Day 1 and 1 week deferred periods option on Long Term Protect
• 1 week deferred period option on Short Term Protect and Breathing Space
• Day 1 and 1 week deferred periods will be subject to a COVID-19 exclusion
• All policies with 4 week and higher deferred periods will not be subject to a COVID-19 exclusion

 Getting a quote

• The changes will be applied to the Ipipeline portal from Wednesday 8th September 2021

This change helps give you access a wider range of Income Protection cover for your customers, particularly those with no sick pay to fall back on.

If you’re interested in exploring these new options for your customers, get a quote here.

Get in touch

Get in touch with our Partnership Support Team at sales@britishfriendly.com or give us a call on 01234 358344 (option 1) for more details on how Long Term Protect can be a great fit for your customers.

Buying at auction can often be a cost effective way to purchase a premises but it does require funds to be in place within a short timescale. Our client had outgrown their current rented trading premises and wished to purchase their new premises through auction in readiness for future expansion.

Having sourced an ideal premises in the right location for their business, our client approached us prior to the auction to see if we were able to source the level of funding that they required.

With a deal approved by a high street lender prior to our client bidding, they had the confidence on the day to bid for their dream property and were successful with their £280,000 bid.

We were then able in instruct valuation quickly so our client could complete the purchase within the auctions timescales.

Darren Byrne, Commercial Manager at Watts Commercial Finance said: “Most auction contracts require a 10% deposit payable on exchange of contracts with completion anticipated within 20 working days thereafter. While this is a very short timescale to arrange a mortgage – it’s very doable.

In this case, our clients’ foresight in sourcing their maximum loan amount prior to the auction day meant that they could comfortably bid knowing the maximum funds they had available to spend.”

Call us today on 03303 110777 or email advice@watts-commercial.co.uk to see how we can support your next auction purchase.

21 million people are considering a UK staycation this year*. Could your clients could benefit from the rise in UK staycations?

InterBay Commercial is providing the latest findings and key insights into the current UK holiday let market, including the current estimated rental income per property, the top visited destinations, and the predicted spend on UK tourism this year.

For those looking to take advantage of the rise in UK staycations, purchasing a holiday let property could be the way forward. So if you need the latest insights from the holiday let market… InterBay it.

For further information, please contact your  specialist finance account manager or get in touch using Live Chat!

^{* https://www.mirror.co.uk/travel/uk-ireland/21-million-brits-considering-staycations-23926821}

We continue to support the new build market and have made some enhancements to support your customers buy their new build home. We have also revisited our approach to capital raising…

New Build enhancements

• NEW – Our residential products are available at up to 90% LTV
• Available on both New Build houses and flats (no maximum story height)
• Offers are valid for nine months
• IMPORTANT – valuations on all new build cases will be instructed at the start of the underwriting process
• Builder Incentives accepted up to 5% of the purchase price. Builder incentive can include builders deposit contribution, white goods, carpets and curtains, cashback, legal fees and a contribution towards stamp duty
• New Build support team and underwriting specialists who understand the pressures of achieving a quick offer in time for exchange

Capital Raising up to 90% LTV

• NEW – we have returned to the pre‑Covid position of allowing capital raising for both Further Advances and Remortgages up to 90% LTV. Please note debt consolidation is limited to 80% LTV

For full details on the points above, please refer to our Mortgage Lending Criteria Guide and Product Guides.

Want to find out more?

Call our Helpdesk on 020 3427 1019 (Open Monday to Wednesday, 9am to 5.30pm, Thursdays, 9.30am to 5.30pm and Fridays 9am to 5.30pm)

Or speak to your Local Business Development Manager

The buy-to-let sector has experienced many ups and downs over the years but it has always come out the other end stronger. This is also evident as, hopefully, we have, endured the worst of the pandemic. Landlords have faced their fair share of challenges over this period and whilst there was the inevitable early dip, confidence levels have remained strong throughout this time and continue to steadily rise.

This was highlighted in the latest BVA BDRC Landlord Panel research for Q2 2021 across all 5 key business indicators. The majority of optimism indicators reached their highest level for a number of years, and this is particularly the case for confidence in the prospects for capital gains (+22%pts Y-o-Y) and confidence in the UK’s financial markets (+18%pts Y-o-Y). The key metric of ‘Net optimism’ for landlord confidence in their own letting business remains strong but has edged down slightly from the three-year high recorded in Q1 ’21, to +26 (-4pts).

The majority of optimism indicators are now at their highest level for a number of years, with the highest proportion of landlords feeling upbeat about the UK’s financial market since Q1 ’17, and capital gains since the end of 2015. The only measure to see a fall in confidence this quarter is landlords’ own lettings business, which saw a 3%pt decline in those who feel either ‘good’ or ‘very good’ about prospects in the next 3 months. Larger landlords are suggested to be typically more upbeat about the prospects for their own lettings business, with 50% of 20+ property landlords feeling ‘good’ or ‘very good’ vs. just 35% of single property landlords. There are also variations by BTL leveraging; Landlords with 4+ mortgages are significantly more upbeat than landlords with 1-3 mortgages (46% vs. 35%).

These are all hugely positive signs which reflect just how important a role the private rented sector has played within the wider housing market and economy as a whole. Looking beyond Q2, opportunities will continue to emerge for proactive advisers from a BTL purchase and remortgage standpoint and competition is likely to heat up, especially from the specialist lending community, to reflect this ongoing confidence. And long may this continue.

Our new online criteria guide offers a complete overview of our latest product solutions, and how we can support your residential and buy to let customers – all available at the click of a button.

Limited company loans, shared ownership, HMOs and complex income – whatever the case, our guide could be essential in solving your cases.

For us, criteria is only the starting point of a conversation. Our flexible underwriting and individual case assessments, our business development managers are happy to discuss your cases – even if they don’t fit our normal criteria, so get in touch today.

Aldermore Group is a nimble and ambitious financial services specialist. Backing people to fulfil life’s hopes and dreams; delivering the most compelling customer experience across Banking and Motor Finance.

We were formed by bringing together two very successful businesses, Aldermore Bank and MotoNovo Finance, under the First Rand umbrella. Underpinned by our strategic blueprint, “backing people to fulfil life’s hopes and dreams”, we thrive upon saying “yes” to our customers. We respect the ingenuity of entrepreneurs and their startups; we give first-timers a leg-up onto the property ladder; and we open up the lending market to many.

This is where you come in. We are on a journey. A journey defined by a destination; to deliver on our purpose over the course of the next 3 to 5 years. In turn it’s a very exciting time for our Retail Mortgages team – we’re growing! And we’d like to tell you why!

We’ve got lots of information to share with you; introducing you to Aldermore Group, our approach to the last 18 months of the pandemic for both our customers and our colleagues and most importantly where we’re going from here. You’ll get to meet the various teams within Retail Mortgages and learn about the wealth of opportunities we have for you to join us.

You’ll meet with colleagues from the following teams:

• Direct Sales
• Retention
• Intermediary Sales
• In Life
• Marketing

Sign up to our event now! We look forward to meeting you!