The Pulse Issue 11

ISSUE 11 October 18

THE PULSE

The latest market news, views and updates.

Lender Q&A

SHIFTING GEARS: NEW DIRECTIONS

FOR MORTGAGE BROKERS &

SPECIALIST LENDERS

BUY TO LET BROKERS & SPECIALIST MORTGAGE & WHAT MAKES THE
LANDLORDS NEED TO BE IN IT BUY TO LET MATRIX PERFECT BRIDGE?

FOR THE LONG HAUL

How to help your portfolio landlord clients

Keep on top of this changing sector to ensure you can 3. Keep up with changes
find the best deal for your clients, says Sarah Green,
Director of Intermediary Sales at Virgin Money. Make sure you are up to date with the different lending
options for portfolio landlords and who does what. Not all
The PRA rules on lending to portfolio landlords introduced lenders offer mortgages to portfolio landlords and those who
last year mean getting a buy-to-let mortgage may be more do have different products and policies.
challenging for some of your clients.
For example, Virgin Money will lend to landlords with up to ten
But it is still possible and you are well positioned to help mortgaged buy-to-let properties, with up to five being held
portfolio landlords navigate the new lending landscape with us. Every lender has their own policy on this and you need
and get a great deal. to work out which best suits your individual client.

Here’s how you can help them: 4. Take care over tax advice

1. Find them By all means tell your portfolio clients about the option of
limited company structures to hold or buy further buy-to-let
First, make a list of your landlord clients with four or more properties, but tread carefully. Ensure you signpost them to
mortgaged buy-to-let properties and contact them for a tax advice and explain that there are benefits and drawbacks
review. to limited company buy-to-let.

This is important because even if they have read about new As their intermediary, it’s important to highlight the fact it can
lending rules for portfolio landlords (and many won’t have offer tax efficiencies but can also carry significant costs and
done), they may not consider themselves a portfolio landlord will not be the best option for all landlord clients.
with just four mortgaged buy-to-let properties. Even those
who know they are impacted may still need support. The same goes if they are considering selling a property.
This could improve their overall LTV position and portfolio
2. Be clear performance, plus it could release funds to pay down their
other mortgage debts. But remind them of the potential
If your clients don’t know about the rule change, explain it to Capital Gains Tax implications of selling.
them, but keep it simple.
5. What about service?
Lenders now need a separate approach to underwriting for
portfolio landlords that looks at their wider finances, but more There can be a big difference in turnaround times between
important is what that practically means for them. lenders, with reports of application to offer times of up to a
month on portfolio landlord cases from some lenders as they
Do they need to fill out a simple form detailing their properties get used to the new processes.
or will they have to produce a lot more evidence and
documentation to get a mortgage? At Virgin Money we took our time to develop a proposition
that enables us to honour our ten-day service promise on
The answer, of course, depends on which lender they apply portfolio landlord applications* as well as the rest of our
to and some require more information than others. At Virgin mortgage lending. And we will pay out £100 if we miss that
Money we recently started lending to portfolio landlords and deadline.
we worked hard to design a process that is as straightforward
and streamlined as possible. Obviously if you have a client that needs a mortgage fast this
is a key consideration and worth checking with lenders before
We’ve created simple templates so that it’s easy for both you submitting a time sensitive case.
and your client to provide us with all of the correct information
from the off. This includes their business plan, cashflow and Help at hand
details of their properties.
If you have any questions on our approach to portfolio lending,
We’ve also partnered with eTech to enable brokers to upload we are here to help. Visit our dedicated portfolio lending webpage
details of their client’s portfolio in seconds, saving precious or speak to your BDM.
time and keeping our turnaround times down.

*Terms apply. Visit virginmoneyforintermediaries.com VM24887V2 (Valid from 01.08.18)

For professional intermediary use only. This is not a financial promotion and should not be displayed as such

Virgin Money plc – Registered in England and Wales (Company No. 6952311). Registered Office – Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Contents 3
4
Welcome to The Pulse: Issue 11 5
6
Mortgage Market Leans Heavily On Product Innovation & Government Housing Schemes To Drive Growth 7
Key Improvements We’ve Made To Support Your Business 8
New Regulations Hitting The Property Sector 9 - 12
Buy To Let Brokers & Landlords Need To Be In It For The Long Haul 13 - 14
Bridging Finance Solutions: Sit Back And Relax ... We’ll Make It Happen 15 - 16
What Makes The Perfect Bridge? 17 - 19
Shifting Gears: New Directions For Mortgage Brokers & Specialist Lenders 20
Specialist Mortgage Matrix 21
Specialist Buy To Let Matrix 22
Ingard Members: Route to Lender
No Sting Attached First & Second Charge Mortgages
Macmillan Cancer Support: Thank You For Your Support
Key Contact Information: Need A Helping Hand?

In This Issue: Contributors:

This issue of The Pulse explores sectors of the mortgage David Ewing
and buy to let market which are now primarily served by Managing Director, Ingard
specialist lenders. And no, we are not merely speaking
about lenders who assist customers with historic Nikki Haworth
adverse, we mean lenders who are offering innovative Sales & Marketing Director, Ingard
products that genuinely meet the needs of the self
employed, contract workers, limited companies, retired Ria Hackwell
customers and every type of underserved borrower in- Marketing Manager, Ingard
between.
John Hardman
To help you quickly get to grips with the vast range of Head of Sales, Bridging Finance Solutions
criteria niches available we have created a Specialist
Mortgage Matrix and Specialist Buy to Let Matrix which Esther Morley
covers 14 lenders. In addition, Ingard’s Directors have Managing Director, Secure Trust Bank
provided valuable contributions to this quarter’s issue, Mortgages
reflecting on where the market is today and where it
is heading, with useful advice on how Brokers need to Andy Valvona
respond to the opportunities and challenges which lie National Account Manager, Fleet Mortgages
ahead.
Simon Read
We also welcome insightful contributions from Magellan Managing Director – Lending, Magellan
Homeloans, Secure Trust Bank and Fleet Mortgages Homeloans
in this quarter’s Lender Q&A, where we explore
government support for new build growth, the rise of Norton Home Loans
limited company buy to lets and what landlords are
doing to adapt their portfolios to keep their investments Virgin Money
profitable.

Mortgage Market Leans Heavily On
Product Innovation & Government Housing
Schemes To Drive Growth

A Message From the Directors

The biggest news this quarter was the base rate rise in of schemes such as Help to Buy.
August to 0.75%, the highest level since March 2009.
Lenders were quick off the mark, increasing their SVR’s There were 5,500 buy to let purchases completed in the July,
and there was a burst of remortgage activity prior to some 14.1% fewer than in the same month a year earlier. By
the announcement. Statistics released by the Bank of value this was £0.8bn of lending in the month, 11.1% down
England show mortgage activity increased in Q2, with new year-on-year.
commitments at their highest level since Q1 2008.
The buy to let market is constantly changing. There is more
It’s predicted that activity will remain high in the autumn months, reform coming for houses in multiple occupation, with changes
when as a result of the rate rise in early August, homeowners to licensing in October. Landlords will need a HMO Licence for
receive their new, higher mortgage bills and look to switch. all properties with five or more occupiers and a minimum floor
space has also been introduced.
The Halifax Price Index for September shows that prices increased
3.7% on an annual basis, leaving the average house price at Due to the barrage of legislation and tax changes, many smaller
£229,958. Halifax research also shows first time buyers made up landlords are considering whether or not to continue. Demand is
51% of mortgaged purchases in 2018 versus 38% a decade ago. still outstripping supply but not at the same level as recent years.
UK Finance suggests that the average first time buyer is age 30 Long term growth in this sector seems likely as the average
and has a gross household income of £42,000. length of a tenancy (currently 22 months) continues to increase.
One thing that is clear is those landlords remaining in the market
Every political and economic decision being made need to be in it for the long haul.
is affected by Brexit.
Nikki Haworth
The good news is that lenders are increasing the number of
95% products with new players coming back into the market all Sales & Marketing Director
the time. Other big improvements include; changing residency
criteria, increasing loan sizes and more lenders now offering joint
borrower sole proprietor products.

Increased innovation coupled with competitive solutions is
continuing to drive the mortgage market forward with the
number of products surpassing 5,000 for the first time in over a
decade. Meanwhile, Government schemes like Shared Ownership
and Help to Buy are giving thousands of first time buyers
that extra bit of support they need to secure their first home.
However, affordability remains a challenge for many prospective
borrowers, underlining the importance of clarity over the future

3

Key Improvements We’ve Made To Support
Your Business

Here’s An Overview Of The New Developments Launched Over
The Last Quarter

HSBC Join Ingard’s Lender Panel Exclusive Website Agency Partner

It brings us great pleasure to at long last be able to Meet WebPro, a dedicated website agency for Mortgage
announce the appointment of HSBC to our residential Brokers offering stunning website designs at an affordable
mortgage panel. price.

HSBC have been one of the most sought after lenders our Ingard have partnered with WebPro to ensure our Network
Members have requested access to for some time and we are Members have access to professionally designed websites with
delighted to finally welcome them to our Network lender panel. compliant approved content at exclusive prices from £32 per
month.
Ingard members have direct access to HSBC’s full range of
residential mortgage and buy to let products. We recommend WebPro offer 3 website packages which include some or
that you register your details on HSBC’s intermediary website to all of the following features:
ensure you start receiving the lender’s product updates.
• All essential compliance updates
www.intermediaries.hsbc.co.uk • Over 30 pages of sales copy already compliance approved
• Responsive themes i.e. they work on tablets and mobile
Ingard Partner With BuildLoan
phones
Dedicated to the intermediary market, BuildLoan is the • A choice of 13 brand new website themes – recoloured to
UK’s leading provider of construction based finance.
match your corporate branding and logo
Whether it’s for your client’s main residence as a self-build, • Social media links
renovation, conversion, custom build, home improvement, • Mortgage calculators
knockdown and rebuild, or a project of any scale to let or sell - • On page request call back form and email newsletter
BuildLoan provide you with a wide range of tailor-made solutions
including exclusive mortgages. subscription

Self-build and custom build lenders available via WebPro do all the work after you sign up. Just select a package,
BuildLoan: send them your logo material and WebPro will sort the rest!

• Bath Building Society Ingard Bolsters Internal Broker
• Chorley Building Society Team With 3 New Appointments
• Darlington Building Society
• Dudley Building Society Ingard has appointed three new Mortgage Brokers to
• Furness Building Society its internal Broker Team to support Ingard’s Network
• Hanley Economic Building Society Members, Directly Authorised Brokers and Ingard’s own
• The Loughborough Building Society clients with their mortgage, buy to let, protection, equity
• The Mansfield Building Society release and specialist lending needs.
• Newcastle Building Society
• Stafford Railway Building Society Katy Lehman has carved her career predominantly in the specialist
• The Tipton & Coseley Building Society lending sector; working across second charge mortgages and
• Virgin Money bridging finance. Katy brings a wealth of experience to Ingard’s
Chester Team and will now also be expanding into commercial
How to Access BuildLoan and protection, in addition to assisting with residential mortgage
and buy to let enquiries.
The process of completing a self-build or custom build mortgage
is far more complex than a standard mortgage, so we have set- Matthew Jones and William Walker have both previously held
up two routes for Network Members to access BuildLoan, which positions in other mortgage brokerages, working across the
is dependent on your compliance risk rating. full mortgage and protection spectrum. Matthew is also equity
release qualified and will be happy to take any referrals from
For more information visit the Specialist Lending & Protection Mortgage Brokers.
section of the Case Portal.

4

New Regulations Hitting The Property Sector

Senior Managers & Certification Tenants Fees Bill Will Likely Soon
Regime Become Law

The Senior Managers and Certification Regime (SM&CR) In early September 2018, the Tenants Fees Bill was passed
replaces the current Approved Persons Regime, changing through its third reading at the House of Commons and all
how people working in financial services are regulated. that remains is for it to now be debated in the House of
Lords.
There will be three core changes which will affect firms of all
sizes, from one-man bands to large brokerages. According to the If the law is passed then all existing and legacy contracts will
FCA, the extension of SM&CR will be proportionate to the size become subject to the new law’s provisions within 12 months of
of the firm and Ingard will be providing guidance in the coming the date it is passed.
months on how these new rules will apply to your business.
The proposed Tenants Fees Bill will affect: -
Conduct Rules: A set of minimum standards of individual
behaviour in financial services will apply to a broad range of staff • The amount Letting Agents can charge for arranging new
to improve individual accountability and awareness of conduct tenancy agreements or renewing tenancy agreements.
issues across firms.
• Abolishment of excessive fees charged by the landlord for
Senior Managers Regime: Every Senior Manager within a firm minor damages; landlords will need to provide evidence of
will need to be approved by the FCA before starting their roles costs before charging the tenant.
and will need to have a ‘statement of responsibilities’ that clearly
says what they are responsible and accountable for. • Cap security deposits at the equivalent of six weeks’ rent.
• Abolish most upfront fees for the tenant.
Certification Regime: People who could potentially cause
significant harm to the firm or its customers will need to be The proposed Tenants Fee Bill intends to make renting fairer and
checked by the firm at least once per year to ensure they are fit easier for tenants by allowing them to see upfront what a given
and proper to perform their role. property will cost them in the advertised rent level without any
additional costs.

Buy To Let Brokers & Landlords Need To Be
In It For The Long Haul

Compliance Update

The buy to let market has seen considerable disruption to long-term ability to keep up the remortgage payments. The
over the last 12 months. With the changes to taxation and moment you consider agent fees, possibly ground rent and
rental calculation, we saw first time investors think twice maintenance, utility certificates and voids, which are typically
and experienced landlords considering their options before 3 months in any 12, we can see that clearly many of these
gradually returning to the marketplace. mortgages will need to be subsidised.

In some areas of the country, London being a prime example, In addition, we also have the new taxation rules which prevent
we are seeing fewer buy to let sales because of falling property clients from offsetting their mortgage payments against tax, the
prices affecting rental yields to the extent that some lenders no best-case scenario here would result in a 20% loss in revenue
longer even have an appetite for properties at 70% loan to value. for the client. In reality most landlords are likely to make a 40%
loss in revenue due to their main income deriving from another
Whilst all this has clearly had a negative impact on the Broker’s source, commonly an employed role, meaning their rental income
bottom line, there continue to be Brokers out there who are takes them into the higher tax bracket.
treating buy to let mortgages as purely commercial transactions
to enable them to do the minimal amount of work and due Brokers should therefore be carrying out a full assessment
diligence required. We have already seen some buy to let of a client’s plans regardless of whether they are a first-time
mortgages become regulated and make no mistake the rest will landlord or an experienced landlord. Most importantly a Broker
follow. should be able to demonstrate that the client both understands
the investment they are making and also the costs involved. To
Many Brokers and Lenders, along with the FCA, have indicated overcome this many Brokers now complete a simple business
that they feel it would be difficult to regulate all buy to let plan highlighting the client’s goals over the short, medium and
purchases, largely due to the issue of understanding where long term, and clearly breakdown all costs to gain clarity on the
the line should be drawn between a residential property and real return on investment.
a commercial property. To me the answer is relatively straight
forward; if someone is going to reside in a property then it should Even with all the upheaval in the market over the past 12 months,
be regulated. on the whole buy to let has largely returned after the recent
hiatus and should be considered a valuable business source with
The complaints culture in England appears to be on the increase plenty of opportunities. Landlords who are not looking for quick
largely thanks to the PPI claims over the past few years and cash and view their investments as part of a long-term strategy
with this in mind Brokers should take a much stronger stance on will continue to build and expand their portfolios, leaning on
compliance for all mortgage cases, including buy to let. Brokers for much needed guidance and support.

The FCA has shown on more than one occasion its penchant for Equally, with the increased work now involved it is much easier
introducing retrospective regulation and it seems that this could to justify charging a fee to a client for the valuable expertise you
continue through the buy to let marketplace once they get to can offer to them, particularly as competition amongst Brokers
grips with what can be classed as regulated. for business will continue to reduce as more and more rogue
Brokers are leaving this area due to the tightening of regulations
As well as treating this business with the same regard as and additional level of work and due diligence required.
residential it is important to appreciate another key point:
affordability. Plenty of consideration is given on a residential David Ewing
mortgage to ensure it is affordable yet with a buy to let mortgage
Lenders will even accept an application from someone without Managing Director
an income.

To my mind the area that you, as a Broker, will most likely fall
foul is the correct assessment of a client’s ability to meet and
maintain the repayments on a buy to let mortgage. Traditionally
the industry has simply looked at the rental income to ensure
that it covered the mortgage payments with little regard for other
costs that may have a bearing on a client’s ability to meet the
repayments.

With the average interest only buy to let mortgage payment in
the UK currently sitting at around £475 per month and rental
payment sitting at around £786 per month, a client could be
forgiven for thinking that they can easily meet their mortgage
payment based on these figures.

When considering ANY buy to let mortgage a Broker should be
going into far greater depth when assessing the client’s medium

6



What Makes the
Perfect Bridge?

By John Hardman, Head of Sales

My team at BFS are constantly being asked by brokers and professionals ‘what helps make the perfect bridge for all parties?’
It is a question that gets us scratching our heads as there is not one answer that adequately covers off all elements of a
short-term funding request.

With this in mind we have collated our thoughts and with the aid of input from brokers and clients we have produced what
we feel are the 10 most important factors to ensure a super slick process and satisfactory outcome for all parties.

1. A Well Thought Out Proposal - Whether it is a development or auction purchase, applicants who have studied

in depth, not just the purchase but the following 12 months plan in detail, are typically the ones where we have the best
outcomes for all parties.

2. Credible Exit Strategy - If the exit is sale of the property, then great but this in all probability will not happen within

3 months, making a default on any short term bridging finance arranged a real possibility. At BFS we try and arrange all
facilities over 12-18 months to give the client maximum flexibility.

3. Honesty - Sounds obvious but as a principle lender the ability to provide very quick (and accurate) decisions is based

on the information we are provided with. If there is adverse credit or a ‘story’ behind a deal we are very relaxed about this
and can act commercially to overcome these but we do need to see these factors at the beginning rather than part-way
through

4. Cash Stake - Whilst additional property can be used to enable 100% funding on some cases, it is always wise to have

flexibility in the form of cash should the path not run true to plan in the coming months.

5. Astute Professional Team - Where property development is concerned, a client’s direct experience is not crucial

to us at BFS, but we always like to see a strong team surrounding them which will ensure the project is a success.

6. Good Solicitor - A client needs to ensure that their Solicitor is active in the short-term bridging and development

market, this ensures a timely execution in the most cost effective manner.

7. Knowledgeable Broker - Where a client intends to use a finance broker for their proposal it is always worth

checking that the broker is well drilled in short-term funding, this means being proactive from the initial enquiry through to
assisting both lender and client when it comes to the legal process.

8. Additional Documents - At BFS we continue to streamline our process and ensure our due diligence is not

too onerous. That said a client will always need to have documents to hand such as proof of cash stake, ID and bank
statements, so it always makes sense to organise this early in the process.

9. Personal Service - At BFS we ensure that the client or broker has a dedicated point of contact and we will meet,

where possible, each applicant. The ability to transact with a person directly ensures that there is a level of trust very early
on in matters and avoids frustration from a client’s perspective.

10. Consistency and Clarity - It is essential that any bridging loan or development loan has absolute clarity from

the get go, we have the ability to make credit decisions instantly for a bridge and in respect of development we ensure that
100% of development costs can be covered after fees and charges before we push forward. We would never enter into a
contract that looked likely to fail or fall short.

8

CONTRIBUTORS

Andy Valvona
National Account Manager

Simon Read
Managing Director – Lending

Esther Morley
Managing Director

Lender Q&A

Shifting Gears: New Directions for Mortgage
Brokers & Specialist Lenders

9

Following a myriad of changes over the past 24 underwriters and we have a six-month offer period, with the
months, first time buyers are in an extremely potential for a further three-month extension.
strong position following support through
government schemes, the removal of stamp duty For brokers, it’s important to understand which lenders they can
and a rising number of new products from lenders trust to provide specialist service for their clients purchasing a
to provide assistance to those struggling to meet new build property, so that they can recommend a solution in
affordability requirements. The Government confidence that the lender will be able to take the right approach
sees the new build sector as the saviour of the to secure their client a new home.
housing crisis, pledging to build 1 million new
homes, including affordable housing for sale, New Landlords Entering the
rental and private purchase. Market

Buy to let on the other hand has turned completely the other A recent report from Octopus Choice revealed
way; stricter affordability assessments, higher taxation and an that 56 per cent of buy to let investors want to
increase in stamp duty on second homes, has reduced the size of keep or buy more properties, while 44 per cent
the market considerably. So, what can investors do to maximise intend to exit the market. Of those who want to
their rental yield and most importantly how can Mortgage Brokers sell their rental properties, 24 per cent blame
provide them with invaluable support to enable them to do this? failing yields, 23 per cent tax changes, and 19
per cent point to “cooling house prices”. However,
We’ve asked some of the best minds in the specialist lending long term growth in this sector seems likely as
business from Fleet Mortgages, Magellan Homeloans and Secure the average length of a tenancy continues to
Trust Bank for their expert opinions. increase (current average is 22 months).

New Build Growth Do you think there will be a change in the type
of new landlords entering the market over the
Housing Secretary, James Brokenshire, confirmed next few years?
the government is funding residential housing
developments across all tenures to the total of Andy Valvona, Fleet Mortgages: Many new landlords will be
£44bn over the next five years. This equates to a seeking to consider higher yielding properties in the next few
huge 20% increase in additional funding coming years, than they may have considered in the past, as the tax
to the new build market. changes start to bite, or may consider limited company structures
in which to place their properties in. HMOs are the most likely to
Needless to say, new build clearly therefore see growth in new landlords, as it is possible that some existing
presents a huge growth opportunity for brokers landlords captured by the new HMO licencing regulations resort
and lenders in the coming years but do you feel to selling their properties.
there is a reluctance from both to get involved in
this evolving niche market? There are also other types of property available which can
achieve higher rental returns. These include HMOs which do not
Esther Morley, Secure Trust Bank Mortgages: It has require a licence, (where a property is let to a maximum of 4
been clear for some time that government policy will, for the sharers in an area where the local council does not implement
foreseeable future, promote the growth of new build as one its discretionary or selective licencing powers). Fleet Mortgages
solution to tackle the demand for housing. The sector therefore allows landlords to let properties on this basis on our Standard
presents a growth opportunity for brokers and lenders, but and Limited Company range of products, whilst allowing multiple
new build does have its own considerations and it is important ASTs, locks on doors, and a valuation which assesses the rental
that businesses understand the dynamics of the market before income on a room by room basis. New landlords may also look
getting involved. at ex-local authority flats with deck/balcony access, which, in
certain areas give a good opportunity for capital growth and high
A new build transaction will often proceed at a dual pace. rental yields. Again, Fleet will consider these types of properties.
Developers are naturally keen to secure a commitment to
purchase as quickly as possible and, with multiple interested Simon Read, Magellan Homeloans: For some the changes
parties for some properties, speed of decision and processing at have meant exiting the market altogether choosing to use other
the front end is an important factor. However, with buyers often investment methods. Whilst experienced investors still see the
purchasing a home off-plan months before the building work is inherent value that property offers over the long-term. One
completed, there can be a significant wait between exchange of reason is the shortage of supply. Paradoxically, because some
contracts and completion. landlords were discouraged by the 2016 tax changes and slimmed
down their portfolios, the ones who have held their nerve have
It is therefore important for lenders to tailor their processes to realised that their properties can still command decent rents with
suit the unique dynamics of the new build market. At Secure demand remaining strong.
Trust Bank, for example, we understand the need for a lender
to balance efficiency and patience when it comes to new build, Whilst, over the past 20 years residential property in England
which is why our lending decisions are made by dedicated and Wales has returned 9.5 per cent on average each year. This
compares to the FTSE All Share Index at 6.5 per cent and the
average five-year bond at 4.7 per cent. Of course, you can’t bank

10

on property prices rising all the time, as there are periods when there is a tax advantage available or landlords to consider this
they fluctuate. Values also vary depending on where you are methodology. This is likely to see more lenders entering the
investing in the UK. But having said that, over the long-term, sector, which is good news for brokers and landlords alike, as
property investors have been onto a winner. Values are around increased competition drives more competitive products, and
22% higher than 10 years ago, according to Zoopla data, and a product choice. The client should always seek independent
whopping 254% higher than 20 years ago. taxation advice from a qualified practitioner before deciding on
the structure of their buy to let business.
However, whilst holding true to property investments many are
looking at new ways to adjust their portfolios and their approach Simon Read, Magellan Homeloans: Since launching less than
so that they can still make money in today’s environment, a month ago more than 65% of the business we have received
including: is in limited company names. There is however the potential of
the tax changes creating a two-tier market when interest rates
• Historically, London and South East has been a hotspot for rise, as limited company landlords will potentially only have to
property investment due to its high demand for rental property pass on the cost of the rate rises to tenants whilst higher rate tax
and the high capital growth opportunities. Additionally, many owners in personal names will have to cope with the additional
property investors have chosen to invest close to home because tax payable on any increases in rent.
they understand the local market. However, it seems many
property investors are stepping out of their comfort zone as there Borrowers are obviously drawn to the most immediate benefits
has been a growing trend towards investing in other regions of such as the income tax treatment. However, borrowers and their
Britain where the costs to buy are less and the rental yields are Mortgage Advisers need to be mindful that there are also tax
higher; disadvantages and additional costs to using a limited company
and should always get specialist advice from an Accountant.
• The type of lets is also shifting more towards investing in more
complex property types such as houses in multiple occupation, The Consequence of 5 Year Deals
where landlords let rooms out to individual tenants on separate
rental agreements and thereby earn higher rents than on a single Many landlords are struggling to take out 2
let. Some landlords have also begun to look at semi-commercial year or 3 year fixed products due to the tighter
lets - a flat above a shop for example - which typically offer affordability calculations that were introduced by
higher returns than pure residential lets. Other landlords are lenders in 2016. As a result, there has been an
looking to diversify the types of tenants they will allow by moving increase in 5 year fixed deals because landlords
into the higher risk, higher maintenance tenants such as AirBnB, have been left with very few other options.
student accommodation, state supported tenants, and corporate
tenants; Do you think the buy to let market will therefore
contract over the next 3 years following a surge
• Increasing numbers of landlords are looking at ways to in 5 year deals over the last 2 years?
reduce their tax liabilities. This includes choosing to run their
portfolios through a limited company, as well as bringing other Andy Valvona, Fleet Mortgages: Undoubtedly, a client on a
family members into their property investment business to take 5 year buy to let product is less likely to remortgage within their
advantage of shared tax rates. ERC period, so a rise in this area of mortgage lending is almost
certain to result in less remortgage business. However, not all
The good news is that buy to let mortgage interest rates have lenders restrict affordability on sub 5 year mortgage products.
almost halved in the last 5 years.
For example, some lenders allow top-slicing of income, although
You will have to be very lucky to make a killing in the UK buy to there is some debate as to how this might work on the client’s
let sector in the near future. The great thing about the property second and subsequent buy to let purchase when top-slicing of
investors is their adaptability. Whilst some landlords fall by the income is applied. Alternatively, Fleet Mortgages offers an ICR
wayside, others are learning how to weather the storm, to cash of 125% at 5% on many of its products, including sub 5 year
in during the good times. However, property investment has deals. 125% at 5% allows a client to borrow up to 192 times the
always been a long game for savvy landlords. monthly rental income from the property. These products are
available to all taxpayers and are not restricted to, for example,
Rise of Limited Companies lower rate taxpayers.

Research from Precise Mortgages shows Gap in the Market for
nearly two out of five landlords will use limited Refurbishment Loans
companies to buy properties over the next year
compared to just over a quarter as individuals. Landlords continue to attempt to maximise their
Landlords operating in London or those with rental yield by being savvier about the types
four or more properties are the most likely to be of properties they purchase with an increasing
utilising a limited company structure. number taking on properties in need of
renovation. This has created a gap in the market
How do you think this will shape the market over
the next five years?

Andy Valvona, Fleet Mortgages: Limited company buy to let
mortgages are highly likely to increase in popularity as long as

11

for more renovation loans which are currently
only really being served by bridging lenders.

However, could buy to let lenders do more to
help landlords refurbish then let a property?

Andy Valvona, Fleet Mortgages: This is certainly a growth
area, as landlords are seeking to find higher yielding properties
to let. Fleet Mortgages can offer day one remortgages, which
allows a client to take advantage of any increase in value of their
newly purchased buy to let property, by being able to remortgage
the the property at the market valuation, after significant works
have been carried out.

For example, a landlord could purchase a property in need
of renovation, using a bridging loan, or by paying cash, then
arrange for the works to be completed in a short time frame. The
client can then remortgage the property when it is ready to be
let, repaying the bridge or replenishing their cash reserves whilst
gearing up the property, leaving them with additional funds in
order to move onto their next project.

Summary

New build presents a fantastic opportunity for Mortgage Brokers
following Government investment and Theresa May’s recent
announcement that the cap on how much Councils can borrow
against their housing revenue account assets in order to build
houses has been scrapped.

It is vital that Mortgage Brokers understand the differences in the
processing of new build mortgages as buyers usually purchase a
home off-plan months before the building work is completed. If
there are delays during the building process then this can cause
havoc as the buyer’s Mortgage Offer could fall through, therefore
making it essential that Mortgage Brokers assess lender’s policies
and carefully select lenders who offer extensions or some
flexibility to provide a level of protection to the client.

Most industry experts have noticed landlords shifting towards
high yielding investments, such as HMOs, multi-units, semi
commercial properties and areas outside of London and the
South East which are performing well. HMOs are likely to
experience the most significant investment over the next 12
months due to some landlords choosing to sell-up following
the introduction of the new HMO licencing regulations, creating
space for experienced landlords to add to their portfolio or new
investors to join the market.

A growing number of landlords are also switching to a limited
company structure and thankfully an increasing number of lenders
have followed suit, expanding into this area or repricing their
products so there is less division between landlords purchasing
through an individual name or through a company.

12

Specialist Mortgage Matrix

LTV Loan Size Term Acceptable Income Max Age
(End of Term)
95% £25k - £1m 10 - 35
Aldermore < 75% LTV years Employed: salary plus various allowances - 100% of car/ shift housing. 50% of profit related Age 70
£25k - £400k pay/ bonus/ overtime/ commission. (standard range)
> 75% LTV 5 - 35 Self employed: 2 year’s accounts as standard/ 1 year’s accounts considered. Age 99
£50k - £1m years Contract workers: individuals employed on contract including daily rate basis. Min 6 months (later life mortgage
left on contract, if < 6 months applicant must have 2 year’s experience in same field. range)
£45k - £1.5m 5 - 40 Other income: trust funds/ pension/ investment income/ rental income/ maintenance
years payments/ foster care income - no age limit. Up to 50% of most benefit income considered.
£25k - £1m
Bluestone 85% 5 - 35 Employed: salary plus up to 75% of bonus/ overtime/ commission/ shift pay. 100% of car Age 65
Mortgages £40k - £1m years allowance/ location allowance if guaranteed.
Self-employed: 1 year’s accounts. Sole traders net profit accepted/ Partnerships share of
5 - 35 net profit/ Director’s pension/ car allowance/ home office.
years Contractors: min of 3 months left on contract.
Other income: 100% of maintenance payments/ casual income/ Director’s or Partner’s fees/
investment income/ pension/ working family tax credits. 50% of gross rental income.

Family Building 95% Employed: salary plus up to 100% guaranteed overtime/ bonus and non-guaranteed Age 95
Society elements up to 50%.
Self-employed: where applicants are self employed and have a 33% financial stake in the
business, their net profit for the most recent year is accepted.
Other income: pension, rental income, investment income.

Magellan 85% Employed: salary plus 100% of guaranteed commission/ bonus/ overtime and non- Age 70
Homeloans guaranteed elements up to 50%.
Self employed: 1 year’s accounts. Age 75 with proof
Contract workers: 3 months remaining on contract. Zero hour contracts accepted if they of non-earned
can show consistent income for 12 months. retirement income
Other income: 100% shift allowance/ pension/ maintenance/ rental income/ dividend
income/ investment income/ most benefits.

Masthaven 80% Employed: salary plus 100% of guaranteed bonus/ commission/ overtime if received > 3 Age 85
years or 50% if regular but < 3 years. 100% of shift/ car/ location allowance.
Self employed: 2 year’s accounts as standard/ min of 18 months trading history.
Contract worker: min of 1 month remaining and evidence of renewal.
Other income: court ordered/private arrangement child maintenance/ investment income
(on referral)/ pension/ second job/ rental income/ working family tax credits.

Norton 75% £3k - £145k 1 - 25 Employed: salary plus 100% of guaranteed/ regular overtime/ bonus. 100% of earned Age 80
Homeloans years income from multiple jobs.
£25k - £1m Self employed: 1 year’s accounts.
5 - 35 Contract workers: min 6 months in current contract, agency workers, zero hour contract
£25k - £1m years workers and temps all acceptable with min 6 month’s history.
Other income: pension/ most benefit income/ child maintenance (not court ordered)/ lodger
£25k - £1m 5 - 35 income.
(more on years
Pepper Money 85% referral) Employed: salary plus 100% of car allowance/ weekly and monthly bonuses. 50% of Age 75
5 - 35 quarterly and annual bonuses with 2 year’s evidence.
£3k - £1m years Self employed: min 1 year’s accounts.
(more on Contract workers: income assessed based on daily rate whether self-employed, limited
referral) 3 - 40 company or umbrella company. Min 12 month’s history in similar role. Average or current day
years rate to be minimum of £200 per day.
Other income: pension/ second job/ some benefits/ maintenance.

Precise 85% Employed: salary plus 100% of shift allowance/ location allowance/ childcare payments/ car Age 75
Mortgages allowance. 50% of overtime/ bonus/ commission. on referral
Self employed: 1 year’s accounts.
Contract workers: if < 6 months remaining on contract, written confirmation required from Age 85
the employer stating their intention to renew the contract. non-contributory
Other income: 100% of tax credits/ pension. 50% of income from second job/ child applicants
maintenance (must be via a court or CSA order).

The Mortgage 85% Employed: salary plus 6 months in current role (can consider 3 months by referral). Age 80
Lender Self employed: 1 year’s accounts / use latest year’s figures.
Contract workers: 85% LTV for exisiting contractors, contracting 12 months + Can consider
new contractors contracting for a min of 3 months if they have previous experience in a
similar role for a min period of 12 months - max 75% LTV.
Other income: pension/ rental income up to age 70/ second job. 50% of bonus/commission/
overtime/ shift allowance.

Together 75% Employed: salary plus up to 100% of overtime/ bonus. Age 80
Money Self employed: 1 year’s accounts.
Other income: pension/ up to 100% rental income/ child maintenance/ disability allowance/
DWP benefits.

Secure Trust 90% £25k - £2m 5 - 35 Employed: salary plus 100% of shift/ car/ location allowance. Age 85
Bank years Self employed: < 2 year’s accounts. Age 85
Contract workers: < 12 months contracting experience considered.
Vida 90% £25k - £1.5m 5 - 35 Other income: pension/ rental income/ disability allowance/ foster care allowance/ child
Homeloans years maintenance where evidenced by Court Order, Child Support Agency, Child Maintenance
(I/O) Service or a legally binding family arbitration agreement. 50% of investment income.
5 - 40
years Employed: salary plus 75% of annual bonus/ regular monthly bonus. 50% of overtime/
commission/ non regular bonus/ profit related pay/ universal credit/ disability or carers
allowance/ incapacity benefit.
Self employed: min of 1 year’s accounts.
Contract workers: min of 6 months contract or rolling 3 months renewed at least once.
Other income: pension/ rental income/ second job/ car allowance/ location allowance/ court
ordered maintenance/ foster care income/ trust fund/ mortgage subsidy.

13

Key Niches Historic Adverse Location

High LTV mortgages - No DTIR - Help to buy - Mortgage/ Secured/ Unsecured loan arrears: 0 in last 3 months (max 3 in 24 months). CCJs: 0 in England/
100% LTV family guaranteed mortgages - Work off last 6 months, max 3 recorded (no limit on value) in last 36 months. Defaults: 0 in last 6 months, max Wales/
latest figure for self employed - Debt management 4 recorded (total combined value £5k) in last 24 months. Bankruptcy/ IVA: discharged for 2 years. No Mainland
plans up to 95% - Later life lending - Light historic missed payments or other adverse information on any credit account in last 2 years. Forced or voluntary Scotland
adverse - No credit scoring - Level 2 & 3 heavy possessions: None in last 3 years.
adverse range

Medium historic adverse - No credit scoring - First Mortgage/ Rent arrears: 0 in 12 months (max 4 in 13 - 24 months). Unsecured arrears: < £300 England/
time buyers - Contract workers - Wide range of ignored. Max of 2 missed payments allowed on each unsecured credit agreement (most recent 2 payments must Wales
income accepted - Help to buy have been paid). CCJs: 0 in last 6 months (max 3 in 36 months). < £300 or telecom ignored. > 36 months
ignored. Defaults: 0 in last 6 months (max 4 in 36 months). < £300 or telecom ignored. > 36 months
ignored. Bankruptcy/ IVA: > 3 years considered. DMP: evidence of satisfactory conduct, can remain in
place. Pay day loans: 0 in 12 months. Evidence of satisfactory conduct.

First time buyers - Later life lending - Offset - Self Mortgage/ Secured/ Unsecured arrears: up to 2 in last 2 years. CCJs: < £500 in last 3 years England/
employed - Joint owner sole proprietor - Guarantor considered. Bankruptcy/ IVA: 0 in last 3 years. Wales
mortgages - Interest only - Holiday homes -
Second homes - Expats - Armed forces - UK England/
nationals/ foreign nationals Wales

Medium to heavy historic adverse - No credit scoring Secured arrears: max 2 in last 24 months (0 in 6 months). Unsecured arrears: max 2 in last 24 months
- Self employed - Contract workers - Zero hour (0 in 3 months). Defaults: max 2 totalling £3k registered in last 24 months (0 in 3 months). CCJs: max 2
contract workers - Close family gifted deposits totalling £3k registered in last 24 months (0 in 3 months). DMP: must have been in place > 12 months and
- Builder gifted deposits - Up to 4 applicants on 1 discharged or show satisfactory conduct. IVA: must have been satisfied or registered > 12 months and show
application - Variable rates with no ERCs satisfactory conduct. Bankruptcy: discharged > 12 months.

Self employed - No credit scoring - Short Mortgage arrears: max 3 down in 24 months. CCJs/ Defaults: max 3 in 36 months. < £300 England/
work history - Contract workers - New build ignored. > 36 months ignored. DMP: satisfied > 24 months. IVA: annulled or satisfied > 36 months. Wales/
- Remortgage for business/ tax bill (on referral)/ Bankruptcy: annulled or satisfied > 36 months. Mainland
deposit for buy to let/ help family - First time buyers Scotland
with gifted deposit/ gifted equity - Later life lending
- Light historic adverse - Strong income stretch up England/
to 6 x income Wales/
Scotland
Heavy adverse - Later life lending - Self employed Mortgage/ secured arrears: max 2 in last 12 months. CCJs/ defaults: max 4 in last 12 months for £300
- High rise flats - Right to buy - Gifted deposit or more. Ignore satisfied defaults/ CCJs < £3k. Unsecured arrears: max 4 in last 12 months for £300 or
and equity - No credit score - Current DMP & IVA more with 3 or more current missed payments. IVA: must be settled within loan proceeds. DMP: current
- Non-standard construction - Up to 4 applicants or historic (can be left running if best advice). Ignore mail order and communication defaults. Bankruptcy:
- Pay day loans acceptable must be > 5 years.

Light to medium historic adverse - No credit scoring Mortgage arrears: 3 in 24 months (arrears status 0 in last 6 months), none missed in last 12 months, no more England/
- First time buyers - Let to buy - Contract workers Wales/Isle
- DMP product range than 2 missed in month 13-18. Unsecured arrears: 0 in last 6 months. Ignore 2 individual defaults up to of Wight

£150 each relating to utilities/ comms/ mail order. CCJs/ Defaults: max 4 in 24 months (0 in last 6 months),

no more than 2 in months 7-12 or 3 in months 13-18. IVA/ bankruptcy: must have been discharged > 6

years. DMP: must have been active for min of 1 year with proof of satisfactory conduct. Pay day loans:

account must have been closed > 1 year ago. Repossessions: must have occurred > 6 years ago.

Light to medium historic adverse - DMP product Mortgage arrears: max 1 in 12 months, 3 in 36 months. CCJs: max 3 in 24 months (0 in last 3 months) England/
range - New build - Contract workers - Help to unlimited thereafter. Defaults: max 5 in 24 months (0 in last 3 months) unlimited thereafter. IVA/ Wales/
buy - First time buyers - Right to buy bankruptcy: must have been discharged > 6 years. DMP: must have been active for > 12 months with Scotland
satisfactory conduct. Repossessions: not accepted.

Self employed - Contract workers - Light to Secured arrears: max 2 in 12 months, 3 in 24 months. Secured defaults: 0 in 24 months. CCJs: England/
medium historic adverse - Gifted deposit/ gifted max 2 in 24 months (0 in last 3 months), max £1500 in 12 months/ max £3000 in 36 months. Unsecured Wales/
equity - Builders gifted deposit - Later life lending arrears: max 6 in 24 months. Unsecured defaults: max 3 in 24 months (0 in last 6 months) max £1500 in Scotland
- Do not credit score for cascading 12 months. IVA/ bankruptcy: must have been satisfied/ discharged > 36 months with satisfactory conduct. (mainland)
Work off worst case status not missed payments. Pay day loans: must be satisfied > 12 months.

Medium to heavy historic adverse - No credit scoring Secured arrears: max 3 in 12 months (1 in last 3 months). CCJs/ defaults: max 6 in 12 months. England/
- Micro mortgages - Right to buy - First time Unsecured arrears: max 2 in 24 months (0 in last 6 months). Bankruptcy/ IVA/ DMP/ DAS: not Wales/
buyers - Shared ownership - Later life lending - accepted. Payday loans: considered. Scotland
Non standard construction inc timber frame/ concrete
- High rise flats > 6 floors - Zero hour workers England/
Wales/
Light to medium historic adverse - First time buyers CCJs: max 4 in 36 months, 2 in last 24 months (0 in 6 months). Defaults: 0 in 6 months. Secured Scotland
- Contract workers - Zero hour workers - Gifted arrears: max 2 in 24 months (0 in last 12 months). Unsecured arrears: max 3 in 24 months (1 in last 12
deposit - Builders gifted deposit - New build - months). Ignore most defaults and arrears on telecoms/ utilities/ mail order. DMP: satisfied >12 months.
Large loans - Older borrowers Bankruptcy/IVA: discharged > 36 months.

Right to buy - First time buyers - Low credit Mortgage/ secured arrears: max 3 in 24 months (0 in last 6 months). CCJs/ defaults: max 4 in last England/
scores - High rise flats - Contract workers - Later 24 months (0 in last 6 months of £500 or more). Unsatisfied CCJs max £5k in total. Unsecured arrears: Wales
life lending - Self employed - Up to 4 applicants max 3 missed payments up to a combined total of £250 in last 6 months. DMP: Considered with satisfactory
on one application - Guarantor mortgage - Joint conduct. Bankruptcy/IVA/DRO: discharged > 6 years. Repossession: must be > 10 years ago.
borrower sole proprietor

14

Specialist Buy to Let Matrix

Lender LTV Loan Acceptable Income Max Age Acceptable Property Types
Size (End of
Term) Standard construction residential
£25k - HMOs up to no max bedrooms
Aldermore 75% £600k No minimum income for existing landlords (applicants are required to demonstrate Age 86 Multi-unit freehold no max units
they have sufficient income to cover their existing expenditure). £25k min for first New build houses
Min - time landlords. Student lets
£1m Employed income: salary plus various allowances - 100% of car/ shift housing. Professional lets
(max 50% of profit related pay/ bonus/ overtime/ commission. Corporate lets
£750k Self employed: 2 year’s accounts as standard/ 1 year’s accounts considered. DSS tenants
if I/O) Contract workers: contract < 2 years to run, 2 year track record of employment Let to buy
required.
£45k - Other income: trust funds/ pension/ investment income/ rental income/ Standard construction residential
£500k maintenance payments/ foster care income. Most benefit income, up to 50% New build
considered.
Standard construction residential
Bluestone 80% Employed income: salary plus up to 75% of bonus/ overtime/ commission/ shift Age 65 New build houses
Mortgages pay. 100% car allowance/ location allowance if guaranteed.
Self-employed: min 1 year’s accounts. Sole traders net profit/ Partnerships share
of net profit/ Director’s pension/ car allowance/ home office.
Contractor workers: min of 3 month’s left on contract.
Other income: 100% of maintenance payments/ casual income/ Director’s or
Partner’s fees/ investment income/ pension/ working family tax credits. 50% of gross
rental income received.

Family Building 65% No min income requirement - just a declaration from the customer they can afford 3 Age 94
Society month’s mortgage payments if a rental void.

Fleet 75% £25k - Minimum income £25k. Age 85 Standard construction residential
Mortgages £1m Employed: salary. Multi-unit freehold up to 10 units
Self employed/ Contract workers: trading for at least 2 years in their current HMOs
£25k - business. Student lets
£1m Other income: pension. New build houses and flats
Corporate lets
Magellan 80% £25k - Employed: 100% guaranteed commission/ bonus/ overtime. Up to 50% of non- Age 85 - Studio flats
Homeloans £1m guaranteed regular commission/ bonus/ overtime (evidenced by payslips/bank no max if
statements/and where applicable employers reference). rental inc Standard construction residential
Self employed: min 1 year’s accounts. proven as New build houses and flats
Contract workers: Contractors considered with 12 months history and 3 months in not required HMOs up to 6 bedrooms and 2
current contract. Zero hour contracts considered if consistent level of income for 12 to support kitchen
months. income in Multi-units up to 6 units
retirement Shared houses
Studio flats
Pepper 80% Employed: 100% car allowance/ weekly and monthly bonuses. 50% of quarterly Age 85 Ex local authority flats - max 75%
Homeloans and annual bonuses with 2 years evidence.
Self employed: min 1 year’s accounts. Standard construction residential
Contract workers: day rate contractors with 12 month’s history. Zero hour workers New build
with > 2 years at same employer with steady income.
Other income: pension/ second job/ some benefits/ maintenance.

Precise 80% £25k - Employed: 100% of salary/ shift allowance/ location allowance/ car allowance. 50% Age 115 Standard construction residential
Mortgages £3m of overtime/ bonus/ commission. Multi-units up to 6 units
Shawbrook Self employed: min 1 year’s accounts. HMOs up to 8 bedrooms
Other income: 100% of pension/ childcare payments/ mortgage subsidy/ tax Studio flats
The Mortgage credits. 50% of child maintenance (must be via CSA or court order)/ second job. New build
Lender
75% £50k - No minimum income for experienced landlords - this is owning 1 property or more Age 80 Standard construction residential
Together 100% £15m that is a similar asset class. First time HMO (max of 6 bedrooms) landlord has to HMOs - 20+ bedrooms (more can
Money (with have one residential buy to let and a minimum income of £30k to cover voids. be considered)
Vida additional Multi-unit freehold up to 10 units
Homeloans security) (more can be considered)
New build houses
15 Student lets
Professional lets
Semi commercial

80% £25k - No minimum income, just proof of income. Age 95 Standard construction residential
£2m Employed: salary. HMOs up to 6 bedrooms
Self employed: SA302. Multi-units
Other income: pension / rental income (SA302). New build
Flats above commercial - max 75%
(by referral)

75% £5 - Employed: salary. No max age Standard construction residential
£2m Self employed: 1 year’s accounts. - rental inc HMOs - no max bedrooms
Other income: pension. must meet Flats above commercial
or exceed New build
required ICR Semi commercial

80% £25k - Employed: 75% of annual bonus/ regular monthly bonus. 50% of overtime/ Age 85 Standard construction residential
£1.5m commission/ non regular bonus/ profit related pay. Multi-units up to 5 units
Self employed: min of 1 year’s accounts. HMOs up to 8 bedrooms
Contract workers: min of 6 months contract/ rolling 3 months renewed min once. High rise flats
Other income: pension/ rental income/ second job/ car allowance/ location
allowance/ court ordered maintenance/ foster care income/ trust fund/ mortgage
subsidy. 50% of universal credit/ disability or carers allowance/ incapacity benefit.

Key Niches Portfolio Historic Adverse Location

Customers: individuals/ sole traders/ first time landlords/ No portfolio limit Mortgage/ Secured loan arrears: 1 in last 12 months (0 in last 3 England/
experienced landlords/ General Partnerships Private Limited with Aldermore (11+ months). No > 2 in last 24 months. > 24 months considered. Unsecured Wales/
Company (LTD)/ Limited Liability Partnerships (LLP)*/ properties enhanced loan arrears: No > 2 in last 24 months (0 in last 3 months). > 24 months Mainland
Public Limited Company (PLC)*. assessment applies). considered. CCJs: 0 registered in last 36 months. > 36 months considered. Scotland
Other: generous rental calculator - includes 10.4 assumed No portfolio limit with Defaults: 0 registered in last 36 months. 1 settled default in months 13 - 36
rental increase. Don’t need to be owner occupier. No other lenders. No AVM up to a total value of £300. Defaults registered > 36 months ago considered.
minimum income. 100% exposure limit. checking tool used to Bankruptcy/ DRO: > 6 years. IVA: 0 in last 3 years.
*Corporate entities registered and/or based in the United verify. No LTV limit on
Kingdom, Northern Ireland, the Isle of Man and the portfolio.
Channel Islands

Customer: individuals/ sole traders/ first time buyers/ first Max aggregate loan £1m Mortgage/ Rent arrears: 0 in 12 months (max 4 in 13 - 24 months). England/
time landlords. Unsecured arrears: < £300 ignored. Max of 2 missed payments allowed on Wales
Other: interest only with top slicing. Medium historic each unsecured credit agreement (most recent 2 payments must have been
adverse. No credit scoring. paid). CCJs: 0 in last 6 months (max 3 in 36 months). Defaults: 0 in England/
last 6 months (max 4 in 36 months). < £300 or telecom ignored. > 36 months Wales
Customer: individuals/ sole traders/ joint mortgage sole ignored. Bankruptcy/ IVA: > 3 years. DMP: Evidence of satisfactory England/
owner/ expats/ limited company SPV. conduct, can remain in place. Pay day loans: 0 in 12 months. Evidence of Wales
Other: buy to let offset mortgage. satisfactory conduct.
Customer: individuals/ sole traders/ limited company SPV
Other: experienced landlords. No minimum size of Any number of Mortgage/ Secured/ Unsecured arrears: up to 2 in the last 2 years.
individual units (MUBs). Shared accommodation. properties in the CCJs /Defaults: under £500 satisfied at app stage. CCJ/Default over £500
background. satisfied 3 years. Bankruptcy/IVA: satisfied 3 years.

Max aggregate loan Mortgage/ Secured loan arrears: No credit file to be, at any point in the
£2m up to 75% LTV. last three years, more than two payments (≥3 months) in arrears. CCJs/
Defaults: > £100 in the last 3 years (either satisfied or unsatisfied).

Customer: First time landlords/ first time buyers/ Limited Max of 20 buy to lets Mortgage arrears: 1 missed in last 36 months (0 in 12 months). England/
Company/ Limited Company SPV or £2m which ever is Unsecured arrears: 2 max missed in 36 months (0 in 3 months). CCJs/ Wales
Other: No credit scoring. Variable rate with no ERC. Up to reached first. Unlimited Defaults: max 5 registered, installment debt 0 in 36 months, non installment
4 applicants on 1 application with other lenders. debt max 1 in last 36 months total £500 (0 in 3 months). IVA/ bankruptcy:
Discharged +72m. DMP: Discharged +72m.

Customer: individuals/ sole traders/ first time landlords/ Maximum of 3 Mortgage arrears: max 3 in 24 months (arrears status 0 in last 6 months), England/
experienced landlords/ day rate contractors. mortgages with Pepper none missed in last 12 months, no more than 2 missed in month 13 - 18. Wales/
Other: Light adverse to medium adverse. No credit per applicant including Unsecured arrears: 0 in last 6 months. Ignore 2 individual defaults up Isle of
scoring. Let to buy. Portfolio landlords. any joint loans the to £150 each relating to utilities, communications or mail order. CCJs/ Wight
applicants are party to. Defaults: max 4 in 24 months (0 in last 6 months), no more than 2 in months
Customer: individuals/ sole traders/ first time buyers/ first Can be a mixture of buy 7-12 or 3 in months 13-18. IVA/ bankruptcy: must have been discharged England/
time landlords/ limited company. to let and residential > 6 years. Pay day loans: account must have been closed > 1 year ago. Wales/
Other: Top slicing to cover rental shortfall. Holiday lets. loans. Repossessions: must have occurred > 6 years ago. DMP: must have been Scotland
Let to buy. satisfied > 1 year.
Max of 20 buy to lets England/
Customer: individuals/ sole traders/ Limited Liability loans per individual, up Mortgage/ Secured loan arrears: 1 in 36 months (0 in 12 months). Wales/
Partnerships (LLP)/ UK limited companies/ offshore to a combined value of CCJs: 1 in 24 months (max £2,500). Defaults: 2 in 24 months (0 in 12 Scotland
companies (within UK jurisdiction) (with UK directors & UK £10m. Unlimited with months). Unsecured loan arrears: Not counted but may affect customer’s
properties/ SIPP’s/ trusts (min loan £1m)/ expats. other lenders. credit score.
Other: multi-units on one title - can do 10+ subject
to strong valuer commentry. Large portfolios. Bespoke No limit on the number Mortgage/ Secured loan arrears: 0 in last 24 months. CCJs: 0 in the
repayment terms. No credit scoring. or value of properties in last 24 months (unsatisfied). Defaults: 0 in last 24 months (unsatisfied >
the customer’s portfolio. £100). Unsecured arrears: multiple missed payments (refer to lender). No
Maximum exposure of business adverse in the last 36 months. Bankrupty / IVA: need to have
£25m. been discharged for 12 months and conducted successfully.

Customer: individuals/ sole traders/ first time landlords/ Up to 10 properties Mortgage/ Secured loans arrears: 1 in 24 months (0 in 12 months). England/
experienced landlords/ Limited Liability Partnerships (LLP)/ with TML. Unlimited Defaults: 0 in 24 months. Ignore defaults and missed payments on utilities & Wales/
Limited Company SPV. properties with other telecoms. CCJs: max 1 (up to £250) in 36 months (0 in 12 months). Must be Scotland
Other: no min income. lenders. satisfied at time of application. Unsecured arrears: 1 in 24 months (0 in 6
months). Bankruptcy/IVA: discharged/ satisfied > 6 years.

Customer: individuals/ sole traders/ Limited Liability No limit on the number Mortgage/ Secured loan arrears: max 4 in 12 months. CCJs: max 6 in England/
Partnerships (LLP)/ Partnerships/ Limited Companies/ or value of properties in 12 months. Ignore all > 12 months old or ≤ £300. Defaults: ignore all > 12 Wales/
Expats. the customer’s portfolio. months old or ≤ £300. Bankruptcy/ IVA: refer to lender. Scotland
Other: holiday lets. Consumer buy to let.

Customer: individuals/ sole traders/ first time landlords/ Up to 15 properties/ Mortgage/ Secured loan arrears: 2 in last 24 months (0 in last 6 months). England/
expats. £4m with Vida CCJs: 2 in last 24 months (0 in last 6 months of £250 or more). Max £5k Wales/
Other: top slicing/ let to buy/ up to 4 applicants on one Homeloans. Up to 50 unsatisfied CCJs. Defaults: 2 in last 24 months (0 in last 6 months of £250 Scotland
application - all incomes considered. buy to let properties in or more). Including unsecured defaults. Unsecured arrears: 3 missed
total with average LTV payments up to a combined total of £250 in last 6 months. Bankruptcy/
up to 80%. IVA/ DRO: discharged > 6 years.

16

Members: Route to Lender

Mortgages & Buy to Lets

Lender Submission Route Product Type Gross Fee Net Fee Contact Details

Accord Mortgages Mortgage Club - Brilliant Refer to Brilliant Website 0.45% 0.45% 08451 200 883
Aldermore Bank Direct (Mortgage & Buy to Let) 0.45% 0.45% 0333 321 1000
Residential 0.35% 0.35%
Bank of China (UK) No Club Buy to Let 0.75% 0.75% 08456 027 083
Bank of Cyprus Full Referral Retention 0.40% 0.38% 01702 538 800
Bank of Ireland Mortgage Club - Legal & General Specialist Buy to Let 02072 362 000
Barclays Mortgage Club - Brilliant 0.90% (plus 0.50%* 03450 733 330
Beverley No Club Refer to Lender £180)* 01482 881 510
Bluestone Mortgages Packaged or Direct 1.00% 01702 538 800
All 1.25% 0.40% (Packaged)
BM Solutions 0.40% 08458 505 000
The Cambridge Building Society Refer to L&G Website 0.30% 03456 013 180
Castle Trust 01702 538 800
Refer to Brilliant Website 0.40%* (Packaged)
0.50%* 01257 235 000
Refer to Lender 0.55%* 08447 360 034
0.50%*
All 0.20%* 08001 217 788
0.25%* 01325 366 366
Mortgage Club - Brilliant Refer to Brilliant Website 0.45% 01384 216 265
Mortgage Club - Legal & General Refer to L&G Website 01455 844 422
Packaged All 0.30% 01535 650 770
0.30% 01702 538 800
Chorley Building Society Mortgage Club - Brilliant Refer to Brilliant Website 0.40% 0.30% (Packaged)
Clydesdale Bank PLC Direct Residential 0.40% 0.30%
Buy to Let 0.30% 0344 770 8032
Coventry Mortgage Club - Brilliant Retention 0.40% 01252 916 800
Darlington No Club Refer to Brilliant Website 0.80%* 0.50% 08000 220 568
Dudley Building Society Mortgage Club - Legal & General Refer to Lender 0.90%* 0.40% 08001 217 788
Earl Shilton Building Society No Club Refer to L&G Website 0.95%* 0.50% 03456 025 317
Ecology Building Society No Club Refer to Lender 0.90%* 0.60%
Family Building Society Packaged or Direct Refer to Lender 0.22%* 01782 255 159
All owner occupier 0.27%* 0.50%* 08004 346 343
NEW Foundation Home Loans Mortgage Club - Legal & General products (excluding Family 0.50% 01737 232 310
Fleet Mortgages Direct Mortgage & Offset 0.30% 0.35% 0345 600 5847
Furness Building Society Mortgage Club - Brilliant Mortgage) 0.30% 0.50%*
Godiva Mortgage Club - Brilliant Offset Mortgage 0.30% 0330 123 1073
Halifax Direct Family Mortgage 0.30% 0800 011 1020
Buy to Let Mortgage 0345 122 0033
Hanley Economic Mortgage Club - Brilliant Product Switches 0.40% 020 7096 2700
Hinckley & Rugby Building Society Mortgage Club - Brilliant Further Advances 0.50%
Holmesdale Building Society Mortgage Club - Brilliant Refer to L&G Website 0.40% 0345 050 5075
HSBC Direct All 0.85% 01538 384 151
Refer to Brilliant Website 0.85% 01509 610 707
Ipswich Mortgage Club - Brilliant Refer to Brilliant Website 01702 538 800
Kensington Direct Standard 1.00%* (Packaged)
Kent Reliance Mortgage Club - Legal & General Product Transfer or Further 01619 238 030
Landbay Direct Advance < 75% LTV 0.35% 01623 676 345
Product Transfer or Further 0.85%* 01858 412 610
Leeds Building Society Mortgage Club - Brilliant Advance 75%- 85% LTV 01282 440 583
Leek United Building Society Mortgage Club - Legal & General Product Transfer or Further 01702 538 800
Loughborough Building Society No Club Advance > 85% LTV (Packaged)
Magellan Homeloans Packaged or Direct (ARs only) Refer to Brilliant Website
Buy to Let - Packaged only Refer to Brilliant Website
Manchester Building Society Mortgage Club - Brilliant Refer to Brilliant Website
Mansfield Building Society No Club Residential
Market Harborough Direct Buy to Let
Marsden Building Society No Club Refer to Brilliant Website
Masthaven Packaged & Direct All
Refer to L&G Website
Buy to Let - Individual
Buy to Let - Ltd Co
Refer to Brilliant Website
Refer to L&G Website
Refer to Lender
All

Refer to Brilliant Website
Refer to Lender

Refer to Lender
All

17

Lender Submission Route Product Type Gross Fee Net Fee Contact Details

Melton Mowbray Mortgage Club - Brilliant Refer to Brilliant Website 0.40% 0.38% 01664 414 141
Metro Bank Direct Residential 0.43% 0.41% 03450 808 500
Buy to Let 0.30% 0.285%
Monmouthshire No Club Rate Switch - Residential 0.30% 0.285% 01633 844 370
Mortgage Trust Direct Rate Switch - Buy to Let 0.55% 0.55% 03458 494 055
Refer to Lender 0.55% 0.55%
Nationwide Mortgage Club - Brilliant Residential 0.25% 0.25% 08005 453 131
Natwest Direct Buy to Let 0.40% 0.40% 03459 001 110
Retention 0.45% 0.45%
Newbury Direct Refer to Brilliant Website 0.20% 0.20% 01635 555 777
Mortgage Club - Brilliant Residential 0.37% 0.35%
Newcastle Packaged Buy to Let 0.20% 0.18% 03456 064 488
Norton Finance Retention 3.50% 1.75% 01702 538 800
Residential & Buy to Let (Packaged)
Nottingham Retention 0.55% 0.55% 03444 814 444
Norwich & Peterborough Refer to Brilliant Website 0.55% 0.55% 03453 002 511
Paragon Mortgages All 0.25% 0.25% 08000 522 222
0.50% 0.40%
Penrith Mortgage Club - Legal & General Refer to L&G Website 0.40% 0.37% 01768 863 675
Pepper Homeloans No Club Refer to Lender 0.48% 0.43% 03333 701 105
Platform Direct Residential 0.30% 0.30% 03450 701 999
Buy to Let 0.60% 0.50%
Post Office for Intermediaries No Club Retention 0.60% 0.50% 0345 266 8928
Precise Mortgages Direct Refer to Lender 0.25% 0.22% 08001 164 385
Direct All
Principality Residential 0.36% 0.36% 01179 331 644
Progressive Building Society Mortgage Club - Legal & General Buy to Let 0.50% 0.50% 02890 244 926
Saffron Building Society Direct Retention 0.20% 0.20% 08000 721 100
Santander Refer to L&G Website Min fee £250 08000 851 390
No Club across all 0.35%
Mortgage Club - Legal & General Residential products 0.50%* 01313 137 700
Mortgage Club - Legal & General Buy to Let 0.35% 03458 450 829
Direct Retention 0.80%* 0.50% 01702 538 800
Refer to Lender 0.50% (Packaged)
Refer to L&G Website 0.80% 0.80% 03458 501 755
Refer to L&G Website 0.85% 0.50% 01202 843 550
Residential 1.50% 01215 572 551
Buy to Let 1.00% 01702 538 800
Retention (Packaged)
08005 453 131
Scottish Building Society No Club Refer to Lender 01702 538 800
Scottish Widows Bank Direct All 02890 275 965
Secure Trust Bank Packaged or Direct All 01702 538 800
(Packaged)
Skipton Building Society Mortgage Club - Legal & General Refer to L&G Website 01614 296 262
Teachers Building Society Mortgage Club - Legal & General Refer to L&G Website 03300 246 246
Tipton & Coseley Building Society Mortgage Club - Legal & General Refer to L&G Website 03456 001 516
The Mortgage Lender Packaged Residential
Buy to Let
The Mortgage Works Mortgage Club - Brilliant Refer to Brilliant Website
Together Money Packaged All
Ulster Bank Ltd Mortgage Club - Legal & General Refer to L&G Website
United Trust Bank Packaged All

Vernon Building Society No Club Refer to Lender
Vida Homeloans Mortgage Club - Legal & General Refer to L&G Website
Virgin Money PLC Mortgage Club - Brilliant Refer to Brilliant Website

Submission Routes Explained

It is very important that you use the correct submission route when submitting business to a lender, to ensure you receive the highest procuration fee and
get paid quickly on completion.
Direct - This means Ingard has an agency agreement with the lender and will receive payment directly from the lender on completion.
Mortgage Club - This means the lender can be accessed through a mortgage club and Ingard will receive payment from the mortgage club on completion.
No Club - Contact the lender to find out how they will accept business from you and notify Ingard that you are submitting business to the lender so that we
can expect payment on completion.
Packaged - Packaged business needs to be submitted to Ingard’s Specialist Team and we will liaise directly with the lender on these cases. A Packaging
Process Guide is located in the Document Library section of the Case Portal.

Full Referral - Some lenders will only accept business where a member of Ingard’s Specialist Team has provided advice and processed the case.

* Where there is the option to submit business packaged or direct, please be aware that if you submit the business direct then you will
receive less commission. On packaged business, Ingard does not take a compliance cut and the lender may pay a higher procuration fee.

Specialist Mortgages & Buy to Lets - Full Referral/ Packaged

Submission Route: Ingard’s Specialist Team. Call 01702 538 800 or submit via Application Form on Case Portal.

Lender Submission Route Product Type Gross Fee Net Fee

Bank of Cyprus Full Referral Specialist Buy to Let 0.40% 0.38%
Bluestone Mortgages Packaged or Direct Specialist Mortgage & 0.90% (plus £180) 0.50%
Cambridge & Counties Bank Full Referral Buy to Let
Family Building Society Packaged or Direct Specialist Buy to Let 1.00% 0.50%
All owner occupier products 0.80% 0.40%
Interbay Full Referral (excluding Family Mortgage &
Keystone Property Finance Full Referral Offset Mortgage) 0.90% 0.50%
Magellan Home Loans Packaged or Direct (ARs only) Offset Mortgage 0.95% 0.55%
Specialist Buy to Let - only Family Mortgage 0.90% 0.50%
Masthaven available Packaged Buy to Let Mortgage 0.22% 0.20%
Norton Home Loans Packaged or Direct Product Switches 0.27% 0.25%
Secure Trust Bank Packaged Further Advances 1.50% 0.75%
Shawbrook Bank Packaged or Direct Specialist Buy to Let 0.80%
The Mortgage Lender Full Referral Specialist Buy to Let 1.00% 0.50%
Together Packaged Specialist Mortgage &
Packaged Buy to Let 0.85% 0.50%
United Trust Bank 3.50% 1.75%
Packaged Specialist Mortgages
Specialist Mortgage & 0.80% 0.50%
Buy to Let Dependent on product
Specialist Mortgage - refer to Ingard 0.50%
Specialist Buy to Let 0.80% 0.50%
0.85% 0.80%
Specialist Mortgage 1.50% 0.40%
Specialist Buy to Let 0.60% 1.25%
Specialist Mortgage 2.25% 1.00%
Prime Plus 2.00% 0.90%
CBTL <£100k 1.75% 1.25%
CBTL 100-200% 2.25% 0.50%
CBTL >200% 1.00%
Unregulated BTL
Specialist Mortgage

Second Charge Mortgages Submission Route: Ingard’s Specialist Team.
Call 01702 538 800 or submit via Application Form on Case Portal.

Castle Trust Central Trust Equifinance Evolution Money Masthaven
Norton Home Loans Precise Mortgages Prestige Finance Shawbrook Bank Step One Finance
Together United Trust Bank

Bridging Loans Submission Route: Ingard’s Specialist Team.
Call 01702 538 800 or submit via Application Form on Case Portal.

Affirmative Alternative Bridging Big Property Finance Bridging Finance Solutions Castle Trust
Funding 365 Interbay LendInvest Masthaven Mercantile Trust
Mint Bridging MTF Oakbridge Octopus Property Peninsula Finance
Precise Mortgages Roma Shawbrook Bank Together True Bridging
United Trust Bank

Commercial Loans Submission Route: Ingard’s Specialist Team.
Call 01702 538 800 or submit via Application Form on Case Portal.

Aldermore Bank Bank of Cyprus Barclays Commercial Cambridge & Counties Bank Interbay
Julian Hodge Bank Keystone Property Finance
Natwest Santander Commercial Lloyds Bank Octopus Property Metro Bank

Shawbrook Bank State Bank of India Together

* Where there is the option to submit business packaged or direct, please be aware that if you submit the business direct then you will
receive less commission. On packaged business, Ingard does not take a compliance cut and the lender may pay a smaller procuration fee.

The procuration fees listed are for reference only. Where Ingard members have the option to submit business to the lender either direct or packaged, the
packaged remuneration has been included in this guide. Please be aware that the direct remuneration may be less.
Prior to submission of any mortgage application, Ingard members should confirm what remuneration will be paid by contacting the lender directly. Ingard will
not reimburse members for any differences between figures listed and the amount received by the member from the lender.

Date Issued: 16/10/2018

19

First and second charge mortgages designed
for customers who need flexibility without the
restriction of costly ERCs.

With Brexit only 6 months away the UK economy faces uncertain times ahead and your customers may
be looking for an added level of flexibility should their circumstances improve or change in the future.

Some specialist lenders offer fixed and variable rates with no ERCs meaning your customers are not
restricted to the amount they can overpay each month, they can move the mortgage to another lender

at any time or repay the loan in full – whatever suits them best.

First Charge Second Charge First Charge Buy
Mortgages Mortgages to Let Mortgages

with No ERCs with No ERCs with No ERCs

2, 3 & 5 year fixed rates Variable rates from 3.89% Variable rates from 3.17%
with up to 70% LTV
Up to 85% LTV Up to 90% LTV
CCJ/ secured/ unsecured
No credit scoring Loans up to £2.5m arrears considered in
last 36 months
Married sole applicants Employed, self-employed,
contract workers, zero hour Up to 80% LTV
Wide range of income contracts, retired, benefits
sources accepted Individuals/ Limited
and DWP accepted company SPV/ Trading
All credit profiles
considered All credit profiles considered limited companies

Criteria correct at the time of printing.

For More Information

Call our Specialist Team on 01702 538 800 or visit
distributor.ingardintermediaryservices.co.uk

Thank you to everyone who supported Ingard’s sponsored walk up Snowdon on
Saturday 8th September 2018 in aid of Macmillan Cancer Support.

We raised a grand total of £1608!

All the team put in a great effort despite all the torrential rain, strong wind and
extremely poor visibility.

Ingard will continue to fundraise for Macmillan Cancer Support over the next 12 months and we’d
love for brokers to take part too! If you have a fundraising idea that you would like us to run at a

future training event, then let us know, we’re fully geared up for the next challenge!

21

Need a helping hand?

We’re here to support you!

For help with compliance, For help placing business:
finance, marketing and admin:
Standard mortgage and buy to let cases contact
Compliance and training contact ... ...

Compliance Manager, Neil Mulhearn: Mortgage Consultant, Daniel Boosey:
01702 538 818 [email protected] 01702 538 801 [email protected]
Mortgage Consultant, William Walker:
Compliance Officer, Steve Evans: 01702 533 402 [email protected]
01702 538 800 [email protected]
Complex mortgage and buy to let, bridging,
Lender registrations and systems contact ... commercial, second charge, protection and equity
release cases contact ...
Broker Support Manager, Louise Moores:
01702 533 401 [email protected] Mortgage & Protection Adviser, Claire Doyle:
01702 533 432 [email protected]
Administrative support, lender and solicitor Mortgage & Protection Adviser, Katy Lehman:
chases contact ... 01702 538 804 [email protected]
Mortgage & Protection Adviser, Matthew Jones:
Broker Support Administrator, Estelle Bissett: 01702 533 437 [email protected]
01702 533 408 [email protected]
For help with business generation:
Broker Support Administrator, Henry Whittingham:
01702 533 400 [email protected] Managing Director, David Ewing:
01702 533 400 [email protected]
Broker Support Administrator, Poppy Hill Sales and Marketing Director, Nikki Haworth:
01702 538 800 [email protected] 01702 538 800 [email protected]

Accounts and case checking contact ... 22

Finance Manager, Natalie Haworth:
01702 533 400 [email protected]

Marketing, events and Case Portal support
contact ...

Marketing Manager, Ria Hackwell:
01702 538 800 [email protected]

Interested in
joining Ingard’s

Network?

If you would like to find out more information about our application process and
exclusive 12 month’s free compliance offer then call us on 01702 533 400 or visit

network.ingardintermediaryservices.co.uk/register/

DA and looking
for compliance

support?

We offer a wide range of bespoke packages to support your business, including a
compliant suite of documents, marketing material approval and file checks. Call us

on 01702 533 400 or visit network.ingardintermediaryservices.co.uk/register/

Need help
placing mortgage

or protection
business?

Our whole of market advisers can help you to find a home for all of your
mortgage, buy to let, second charge, bridging, commercial, protection and equity

release business. We can provide a fully advised service or a packaged only
service, depending on your business needs.

To discuss a case, call our team on 01702 538 800 or visit
distributor.ingardintermediaryservices.co.uk/quick-enquiry/

This is for intermediary use only and has not been approved for public use.
The FCA do not regulate some forms of Buy To Let mortgages. Ingard and Ingard Financial are both trading styles of Ingard Financial Limited which is authorised

and regulated by the Financial Conduct Authority (FCA) under reference 450731. Ingard Financial Ltd is registered in England and Wales.
Registered Office: 1 Nelson Street, Southend, Essex SS1 1EG. Company Number: 05728066. DPA number Z1092956