REFLECTION QUIZ LANDLORDS & HOW TO HELP THEM THE PULSE NEWS, VIEWS & UPDATES APRIL 2023 INGARDINTERMEDIARYSERVICES.CO.UK MARKET NEWS & VIEWS CONSUMER DUTY FOCUS
WISHING YOU A MERRY CHRISTMAS & A HAPPY NEW YEAR! This publication is for intermediary use only and has not been approved for public use. 1 2 INSIDE THE EASTER EDITION CONTRIBUTORS WELCOME FROM THE DIRECTORS Welcome all to the Easter edition of The Pulse. We will be reviewing the market, after what has been another unusual, yet busy period, and looking at how March’s Budget may impact your clients and provide potential business opportunities. We’ll look at ways to help your landlord clients and some case studies of busi- ness recently completed by Ingard. Hopefully, this will give you an idea of the sort of scenarios where we may be able to help, where you may have been struggling to find a solution. We will also focus on Consumer Duty, the importance of identifying vulnerable customers, and taking the appropriate steps to help them. Happy Easter from the Ingard Team! Let’s hope for some warm weather and lots of chocolate over the break! David Ewing & Nikki Haworth NIKKI HAWORTH Sales & Marketing Director, Ingard NEIL MULHEARN Training & Compliance Manager, Ingard NATALIE HAWORTH Finance Manager, Ingard 02 DIRECTOR’S WELCOME A welcome from Ingard’s Directors 18 WHO TO CALL Got a case to place, refer, or need help with a process? Contacts for who at Ingard can help! 112023 TRAINING CALENDAR A look at the schedule for training in 2023 including our face to face event. 21 LANDLORDS & HOW TO HELP THEM Neil Mulhearn reviews what’s been happening in the BTL space, and looks at how you can help landlords and place more business 15 PROCESSES Bridging, commercial and packaging processes - we’ve got them wrapped up 03 MARKET OVERVIEW Nikki Haworth reviews 2023 so far & the spring Budget. APRIL 2023 LOUISE MOORES Broker Support Manager, Ingard DAVID EWING Managing Director, Ingard WISHING YOU A HAPPY EASTER BREAK 07 CONSUMER DUTY FOCUS David Ewing looks at what Consumer Duty means for you, and focuses on your justification of fees and assisting vulnerable customers 09INSIDE INGARD News, views and who’s who, indcluding The Chester Duck Race, Steve Evans’ retirement & more 13 REFLECTION QUIZ Steve Evans leaves us with a fun quiz, with some helpful insight to being a Top Tier Adviser! 23 YOUR ROUTE TO LENDER Your handy guide to every Lender on panel 19 INGARD CASE STUDIES What have the team been up to?
3 4 MARKET OVERVIEW BY NIKKI HAWORTH It finally feels like Spring has arrived and the Easter break is on the horizon. It’s been a tough first quarter for all of us. Over the last few years, we’ve learned that circumstances and scenarios can turn in an instant. We’ve learned to adapt quickly to economic and market trends as they happen. We’re continuing to struggle with the cost of living crisis, the continuing war in Ukraine impacting the cost of energy, strikes on the railways, in the NHS, with teachers and Royal Mail and of course, the hikes in the Bank of England base rate. The consequences for those with a mortgage on a variable rate, or coming to the end of a fixed period and looking for a new deal, have been scarily high rates. Many of those looking to move or get on the housing ladder have been seriously re-thinking their plans. The announcement on 23rd March that the base rate was being increased by 0.25% to 4.25% was widely expected following the news the previous day that inflation had increased. Many lenders had already factored this into their pricing and some have reduced rates on the back of declining swap rates. The recent turmoil in the banking sector with the collapse of Silicon Valley Bank and the acquisition of Credit Suisse by UBS has reminded the Bank of England to tread carefully in any moves to tighten monetary policy further. The consensus is we may have now reached the peak for base rate. Interest rates are now starting to stabilise and the Spring Budget ‘For Growth’ was the reverse of the September mini budget that caused all the market jitters. The Office for Budget Responsibility (OBR) has predicted that the UK will not enter into a recession this year, with a contraction of 0.2%, which is a revision of up to 1.2% compared to the organisation’s November forecast. The UK economy is then expected to grow by 2.8% and 2.5% 2024 and 2025 respectively, as interest rates fall, and energy price drops take inflation below its 2% target. So how will the latest Budget affect your clients? There were some positives! The Energy Price Guarantee (EPG) will be frozen at its current level of £2,500 until June, saving households from paying average bills of £3,000. The 30-free hours of childcare is to be extended to children aged nine months from September 2025. It will be introduced from April 2024, as 15 free hours to children aged two and over. This could be a massive help to affordability in the next couple of years for those previously struggling to get a mortgage. The money providers receive from the government for free childcare hours will also increase, although some campaigners have said this will not meet the current financial shortfalls. Ratios will change, from four two-year old children to one staff member to five children to one staff member from September 2023. Families who receive Universal Credit will be paid upfront for childcare support, and the maximum amount available has increased. Grants of £600 will be paid to those entering the childcare sector. A rise to fuel duty was cancelled and it was frozen for the 13th year in a row. The 5p per litre discount for fuel, which is currently in place, will remain until March 2024 collectively saving drivers around £5bn. Fuel duty is levied at a flat rate of 52.95p per litre for both petrol and diesel and it was expected to rise to 57.95p per litre. Alcohol duty will be frozen until August, when it will rise by an average of 10.1%. Draught relief will rise from 5% to 9.2% for beer and cider and from 20% to 23% cent for wine and spirits. The duty applied to draught beers sold in pubs will be 11p cheaper than the duty placed on these drinks when sold in supermarkets. The pensions lifetime allowance, which is the maximum amount you can save into a pension without paying an additional tax charge, will be scrapped from 6 April 2023. It currently stands at £1,073,100 but was hacked from £1.8m in 2012, before being frozen by the then Chancellor Rishi Sunak with this lower figure due to remain until 2026. The annual pension allowance was also increased from £40,000 to £60,000. This is the amount of money everyone can put away each year without being taxed. The Chancellor hopes this will “remove barriers to remaining in work and simplify the tax system by taking thousands out of the complexity of pension tax”. This forms part of the measures to encourage & retain older workers in the labour force. To level up growth across the UK and spread opportunity everywhere, local communities will be empowered to command their economic destiny. The Budget also announced over £200 million for 16 regeneration projects in England, which may provide investment opportunities for innovative and entrepreneurial landlords. The amount of corporation tax for companies with over £250,000 in profits pay will rise to 25%, from 19%, from April. The ‘Super-deduction’ tax-relief scheme, due to end on 31 March, will be replaced with the introduction of ‘full expensing’ from 1st April for three years. This allows companies to write off the full cost of ‘IT equipment, plants or machinery’ against taxable profits in the year of investment, instead of over the life of the asset. This could lead to more commercial enquiries, so don’t forget to keep looking out for opportunities and refer in! Landlords are battling with mortgage increases of their own and whether they can/should increase rents, as well as having to think about the standard of their property and upcoming EPC regulations. Rental evictions in the UK have increased by a staggering 98% in just one year, according to recent Gov.uk statistics. This comes as no surprise, as over 50% of landlords surveyed by Finbri stated that they have already evicted tenants from their rental properties. The most common reasons cited for eviction were anti-social behaviour, the use of a “break clause” before the end of the fixed term, and failing to pay the rent. The Spring Budget seemed to be fairly light touch for the property market. The announcements around encouraging more people to work longer bear some consideration for the mortgage sector such as how the market caters for people potentially working past retirement age. This may allow opportunity for the lenders to develop new and innovative products to meet the needs to these potential customers. Over half (56%) of UK adults have never reviewed their finances with a professional, but one in five (20%) say they are likely to do so this year, according to a new YouGov survey commissioned by General Insurance (GI) platform provider Paymentshield. The study involved 2139 UK adults and found that those aged 25-34, typically first-time buyers, are the most likely to seek financial advice this year. This age group is also the most concerned about finances, with 45% stating finances are their biggest worry. The survey indicates that consumer confidence in the value of financial advice has grown significantly. Among respondents likely to seek professional financial advice this year, 46% said they believe they would be better off than if they opted for a DIY approach, such as using self-serve platforms or price comparison sites. This figure marks a substantial increase from the 24% who gave the same response in April 2022. This research clearly shows that in the current market, consumers value the expertise and reassurance they can get from financial advice, instead of opting for DIY approaches that many providers push. This shows there is a fantastic opportunity for Advisers to get out there and promote themselves. 2023 could be your year to grow!
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7 8 BY DAVID EWING CONSUMER DUTY FOCUS The FCA’s latest reincarnation of the same basic mandate, look after your client, be professional and treat them fairly, is fast approaching in the guise of Consumer Duty. Seen by many (and probably rightly so) as a pimped-up version of TCF, it was pleasing to learn recently that the FCA accepts that the processes followed by most mortgage brokers, falls within basics of the regime and as such they have indicated that they do not have as much of a concern for our area of the industry compared to other areas such as investments and banking. It was pleasing but not surprising to see that as a company, Ingard’s processes and procedures do hold true to the outcomes the regulator is looking to achieve. However, a review of processes and procedures with a view to ensuring we continue to treat our clients fairly, is never a bad thing. We were also required to collect additional documents in this years’ annual review, partly for the AR Regime, but also to give us a full overview of your finances and activities, to ensure there is no likelihood of unsuitable advice being given or any conflict of interest. In conducting a Consumer Duty assessment of our business, there are two key areas that do require continued focus to ensure we provide the level of service our customers have come to expect. The first of these is fees and value for money. You should be asking yourself whether your fees are fair and in line with your peers and your marketplace. This does not mean that you should be charging less or (in some instances) not charging at all. You provide a service, for which you should be remunerated. Fees should be fair to both you and your client. Can, and how do you justify your fee? Looking at the Terms of Business most brokers provide, there is, in most instances, more than one fee option. In the case of Ingard for instance, we have a standard fee of £500, rising to 1% for the more complicated, less straight forward cases. Whilst this in itself is not an issue and indeed charging clients differing amounts for differing situation makes for a sound business proposition, you need to ask yourself: • How do I differentiate between my different fee structures? • Am I being fair to the client? • Can I provide the clients with clear guidance on when I charge differing fees? The last question is probably the most important and will require a simple document explaining how your fees are calculated. Ingard will be producing a simple template to complete, in order to address this point. The second area, Vulnerable Clients, has seen a vast amount of attention over recent months, and with the FCA Financial Lives Survey 2022 indicating that 47% of clients showed at least one characteristic of vulnerability, it is clearly an area that requires additional attention. How focused are you when considering client vulnerability? Examples of what could deem a client as vulnerable could be the following, but this isn’t an exhaustive list: • First Time buyers • English not being the client’s first language • Older Age • Ill Health • Disability such as deafness, blindness or learning difficulties • Indebtedness • Recently bereaved or other major life event e.g., divorce These are just some areas that should be considered when assessing whether your client should be classed as vulnerable. In some instances, vulnerabilities may be permanent, and for others they may be temporary, such as following a bereavement, so it is important you take these considerations every time, even when dealing with existing clients. Of course, a client may have more than one of these vulnerabilities at the same time. If the client is deemed as vulnerable, this should be THOROUGHLY addressed and documented, as well as all additional steps you have taken to ensure your client understands your advice. With rates having increased considerably over the past 12 months and the cost-of-living crisis, payment shock is also seen as an area that could make a client vulnerable to rash or poor decisions and potentially open them up to abuse by rogue advisers. Clients will not always identify themselves as being vulnerable, or may not admit to it. The way you start the conversation is important as this can be sensitive. As well as speaking to them and building up a rapport, there are also clues you should look out for. One of the most obvious is saying they do not understand what you have said or asking you to repeat things. Be patient, and make sure you explain things clearly without jargon, and check that they have understood what you have told them by asking questions (this should be practice for all clients). There may be body language which indicates confusion or ill health, or the client may not remember your previous conversation. They may struggle with handwriting or reading documents, or may ask you to speak with someone else on their behalf. In essence the latest regime is no different to those that have gone before, but it’s important to keep reminding yourself. Do the best by your client, and evidence it!
9 10 Ingard were delighted to be able to support The Countess Charity, who are based at our local hospital in Chester, by sponsoring a duck in the Chester Duck Race. This was decorated by children in local school, Woodlands Primary School, where Natalie’s Husband works, and we ran a competition for them to name our duck. We all had a great time cheering Quackimus the Roman on. As well as supporting a good cause, this was a great opportunity for us to get our name out in the local community, and network with other businesses and potential clients. Look out for similar things going on in your own area you could get involved in to promote yourself! Don’t forget, if you are looking for free marketing options, we have monthly, client friendly bulletins on our Portal which you are welcome to send out. Just ask us for a list of your clients who have agreed to email marketing, add your own company name and contact details to the bulletin, and off you go! INSIDE INGARD Our latest news, views and who’s who at Ingard HQ @IngardFinancial @IngardBroker @Ingard NEWS NEW LENDERS COVENTRY Our only Face to Face training event of 2023 is on Tuesday 20th June at the Holiday Inn Coventry. M6, Jct 2 Hotel. Please mark this date in your diary if you haven’t already as this is compulsory for all members. All training dates can be found on pages 9 & 10, on our Portal and in your Annual Review Letters. Keep your eyes peeled for your invite! Most of you will be aware by now that our Compliance Officer, Steve Evans, recently retired, and has swapped your file reviews for Grandad or “Gramps” duties for his two Granddaughters, Harlow and Riley! He will be filling any other spare time he has training his German Shephard, Cody. I’m sure you will all miss his detailed file reviews! We hope you have learnt a lot from him over the years, which will help you with your future cases. Check out Steve’s Compliance Quiz on page 13. Mpowered and Lendinvest have also come to the market with Residential Products, all accessible for Ingard members. Ingard have brought on two new lenders so far this year, Gen H and Tandem. They have both run webinars for you all.
11 12 Events Schedule Jan - Jun 2023 Events Schedule Jul - Dec 2023 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 11/01/2023 Virtual Mortgage Clinic 18/01/2023 Gen H Webinar 08/02/2023 Virtual Mortgage Clinic 15/02/2023 Tandem Webinar 27/02/2023 Insurance Training 02/03/2023 Mortgage Training 08/03/2023 Virtual Mortgage Clinic 15/03/2023 Compliance & TML Webinar Apr 2023 The Pulse 05/04/2023 Virtual Mortgage Clinic & Insurance Training 19/04/2023 Scottish Widows Webinar 10/05/2023 Virtual Mortgage Clinic & Mortgage Training 17/05/2023 Live Webinar 07/06/2023 Virtual Mortgage Clinic & Insurance Training 14/06/2023 Live Webinar 20/06/2023 Face to Face Training Academy 05/07/2023 Virtual Mortgage Clinic & Mortgage Training 12/07/2023 Live Webinar Aug 2023 The Pulse 02/08/2023 Virtual Mortgage Clinic & Insurance Training 16/08/2023 Live Webinar 06/09/2023 Virtual Mortgage Clinic & Mortgage Training 13/09/2023 Live Webinar 11/10/2023 Virtual Mortgage Clinic & Insurance Training 18/10/2023 Compliance Webinar 08/11/2023 Virtual Mortgage Clinic & Mortgage Training 15/11/2023 Live Webinar Dec 2023 The Pulse 06/12/2023 Virtual Mortgage Clinic & Insurance Training 13/12/2023 Live Webinar - Preparing your 2024 Marketing Plan
13 14 REFLECTION QUIZ BY STEVE EVANS As a parting gift, Steve has put together a little quiz for you. This is just a bit of fun, but designed to make you think about your attitude to compliance, and how you can improve, with the ultimate goal to save you time and earn you more commission, whilst remaining compliant at all times. 1. Do you see Compliance as? A friend to help you get things “right first time” and Pass File Reviews with little or no remedial work. An enemy that you are constantly A. B. arguing with. 2. Do you see your Terms of Business? As a critical, time sensitive document to clarify precisely what service you provide and how much you charge. A form that the FCA makes you issue. A. B. 3. Do you see the Sales Processing Sheet? As a quick reminder of the many areas you need to cover, prior to submitting a case. An annoying form that needs loads of boxes to be ticked as quickly as you can. A. B. 4. Do you see the Fact Find? As a tool to help you really get to know your client and their needs. As a list of mainly irrelevant questions, with the aim of “ what is the least amount of information I can get away with”. A. B. 5. Do you see Bank Statements? As a valuable insight into the client’s spending habits and a simple means of verifying much of what they tell you. Yet another document that you have to upload, but don’t need to bother looking A at in detail. . B. 6. Do you see Payslips/SA302’s? As not only excellent evidence of income, but often a source of additional information which requires questioning, or which supports your case. One more irritating set of documents that you have to upload that appear on A the tick list. . B. 7. Do you see Research? As the vital evidence that supports your recommendation and one of the key factors that enables you to provide advice to your client. A pain in the neck, because there are so many options and it takes too long – would rather the client just tell me what they want, preferably with a lender with the easiest system to use. A. B. 8. Do you see the Lender’s KFI? As the core document to provide your client with the most accurate information relating to the product you are recommending. An extra hoop to jump through- doesn’t really matter if it’s the Lender’s or the A 360 version, as long as one is issued. . B. 9. Do you see the BTL Addendum? As when completed properly, a detailed tool for the benefit of your client and yourself, providing an overview of the portfolio, showing when products are due to expire and a reminder of the various costs to be taken into account. As an overly detailed form that I never A look at again. . B. 10. Do you see the Suitability Letter Template? As an incredible, time saving way of structuring your letter in a compliant and logical manner. As a rough guide of what is required but I A tend to do my own thing. . B. If you answered “A” to all of those questions, then you are probably one of the top tier Advisers, who: Sails through compliance with very few issues found due to your efficiency and attention to detail Learns from previous errors, so doesn’t have to spend additional time on corrections Earns more commission from cross-sales and rarely has any commission withheld If you answered “B” to ANY of the questions, you may want to ask yourself: Do I want to be a top tier broker? A. Yes B. No The correct answer should always be YES! I would like to wish you all the best for the future, and hope you continue to reach your business goals. Remember to take Ingard’s advice and use the training and tools given to you, and you will remain on the correct side of the FCA!
15 16 FULL REFERRAL INGARD GIVE THE ADVICE, YOU EARN 50% OF THE PROC AND BROKER FEE. YOU WILL ALSO RECEIVE WEEKLY UPDATES ON THE PROGRESS. 1Once you have identified an opportunity, email [email protected] with an overview of the deal, and any additional information or documents you have already obtained E.g., a Fact Find, ID, Bank Statements, Credit File, Proof of Income. Feel free to follow up with a call to discuss. 3 We will source the deal with the Lenders on our vast panel. We can copy you in if you would prefer to stay involved and help the client with signing documents etc. or we can take over this completely. 2 One of the Ingard Team will let you know they have picked up your enquiry, and will then make contact with the client. Please make sure contact details provided are accurate, and let us know if there is a particular time they should be contacted, or anything else we need to know E.g., a language barrier. 4 A DIP or Heads of Terms will be issued, breaking down the product details and fees for the client. If the client wishes to proceed and accepts the terms provided, Ingard will request the £500 commitment fee. 5 Once the commitment fee has been received, a full Application will then be submitted to the Lender. 6 Once assessed by the Lender, the Valuation will be instructed. Some Lenders may want to visit the client at the property/site, particularly for commercial or complex deals. 7 Providing the valuation is satisfactory, the Offer will be issued. 8 Solicitors will be instructed and legal work to progress the case to completion will begin. 9 Ingard will liaise with you, the client and Lender’s solicitors and the client themselves, to complete the case as quickly as possible. 10On completion, Ingard will chase the commission. You will receive 50% of the Broker Fee and Procuration Fee in your next payment following receipt of the commission. BRIDGING & COMMERCIAL PROCESS 10 SIMPLE STEPS TO SUCCESS! 1 Your mortgage process will begin as normal. Issue your Terms of Business, complete a Fact Find with the client, assess all proof of income, bank statements etc. carry out your due diligence, and complete your Anti-Money Laundering checks as normal. 3 Email [email protected] asking us to package the case for you, and include details of the product you are recommending. Attach all case documents you have so far. Remember to provide a PDF of your Fact Find. Do not press submit business on 360 as no Application has been submitted at this stage. 2 Source the best deal for the client based on their requirements. If the most suitable option is a lender Ingard packages for, that’s the time to get in touch. If you are struggling to find a suitable Lender from your sourcing, feel free to contact us to discuss the case, as we may be able to point you in the right direction. 4 One of the Ingard Team will check the documents provided against the Lender’s packaging requirements. They will provide you with a shopping list with any additional requirements the Lender may have or forms the client will need to complete. Remember, they are checking documents have met the Lender’s packaging requirements, not checking your advice. 5 Once all documents have been received and checked, a DIP will be submitted to the Lender. Provided this passes with no further requirements, we will check with you and the submit the full Application. 6 You will then be provided with a copy of the DIP, Lender’s KFI and Application Form so that you are able to write your Suitability Letter and put your case together. 7 Fully submit your sale on 360 as normal within 7 days of the Application being submitted. Your compliance will be checked, and you will be chased by the Admin team for any outstanding documents from Ingard’s point of view. 8 Lender updates will be sent to us as the Packager, but we will keep you in the loop. If any further documents are required or there are any queries in order for the case to progress, we will liaise with you as the adviser. You remain the one in contact with the client at all times. 9 A Valuation will be instructed, and Offer issued providing this is satisfactory. 10Our Admin team will chase solicitors to progress the case through to completion as quickly as possible, and then chase the proc fee and broker fee where applicable. PACKAGING PROCESS RESIDENTIAL & BTL Remember, we package for these Lenders YOU ADVISE – INGARD PACKAGE TO THE LENDER ON YOUR BEHALF. DO SLIGHTLY LESS, EARN MORE! THERE WILL BE NO COMPLIANCE CUT ON THE COMMISSION. YOU CAN CHARGE YOUR NORMAL BROKER FEE AS PER YOUR TERMS OF BUSINESS AND RECEIVE 100% OF THIS. PLEASE REFER TO THE ROUTE TO LENDER GUIDE FOR THE PERCENTAGE OF THE PROC FEE WE CAN PAY OUT TO YOU (NET COLUMN). NO PACKAGING FEES ARE PAYABLE BY THE CLIENT.
INGARD’S SPECIALIST TEAM IS AVAILABLE TO ASSIST YOU WITH: STANDARD MORTGAGES, BUY-TO-LET, EQUITY RELEASE, SECOND CHARGE, PROTECTION, BRIDGING AND COMMERCIAL Neil Mulhearn [email protected] Simon Greaves [email protected] Our Network members and specialist team are ably supported by our highly experienced Administration team: Emily Grindley [email protected] Rose Miller [email protected] All new case referrals and packaging requests should follow the Initial Enquiry Sheet process and be submitted to: [email protected] For all other queries: [email protected] 01702 538 800 We’re committed to helping you identify the best solution for your clients’ needs and will support you to prepare complete and compliant cases for submission to the lender, through to offer and then completion and will help you to overcome any hurdles you may encounter along the way. OUR DIRECTORS AND MANAGEMENT TEAM: Case Updates & Outstanding Compliance [email protected] File Review Responses & Pre-Approvals [email protected] Email Contacts Neil Mulhearn Compliance Manager [email protected] 01702 538 818 Compliance, Training & Equity Release Nikki Haworth Sales & Marketing Director [email protected] 01702 538 800 Business Generation & Major Concerns Business Generation & Major Concerns David Ewing Managing Director [email protected] 01702 533 400 Natalie Haworth Finance Manager [email protected] 01702 538 800 Commission Queries & Compliance Louise Moores Broker Support Manager [email protected] 01702 533 401 Broker Support 17 18 MEMBERS | YOUR DEDICATED SUPPORT TEAM @IngardFinancial @Ingard @IngardBroker
19 20 *The examples used are all real examples of completions for Ingard’s team within the last 6 months, with client information removed* Life Insurance with great premiums We arranged a mortgage for First Time Buyers, aged 23 and 27 for around £220000. We were able to arrange individual Level Term Life policies each for the full mortgage balance, for less than £16 in total. The clients were thrilled with this and the introducer earned an additional £138! Bridging Finance Our client had 3 BTL mortgages, all of which were in arrears. There were arrangements on 2, but the third BTL lender was threatening repossession. The property was also let as an HMO, but didn’t have the licence required. We were able to arrange bridging finance with So Mo so the client could clear the arrears and avoid repossession, and apply for the HMO licence from the council. The introducer earned £5827. Equity Release Our clients who were 66 and 68 owned their home outright, and were looking to raise funds to purchase a holiday home in Cyprus to enjoy their retirement. They were unable to get the required loan amount through a standard mortgage, but we were able to place a Lifetime mortgage with More2Life and get them the full amount they needed for their deposit. The introducer earned £3500. Ex-Pat Purchase Our clients were living and working in Switzerland, and were paid in Swiss Francs, but had the ability to relocate to the UK. They wanted to purchase a property in Scotland to move into in the future, but not immediately. We needed a lender who would allow a mortgage for ex-pats, and allow the clients to use the property as a holiday home until they were ready to move in permanently. We were able to place this with HSBC. The introducer earned £801.60. MUFB Our client owned a multi-unit freehold block (MUFB), which included 2 commercial units. He had taken a bridging loan to pay for the development, which needed to be repaid, and additional funds were needed to complete the development on one of the flats. The title needed splitting, leases needed to be created, and to make things more straight forward, the flats were also above a hairdressers. We were able to place BTL remortgages on the 2 flats with CHL, and arranged Life and Critical Illness Cover for the client. The introducer earned over £2518. Debt Consolidation with a DMP Our client was in a Debt Management Plan (DMP). She had an existing mortgage on her home and was looking to repay her secured loan, a number of unsecured debts and carry out some home improvements. We were able to place the remortgage with Bluestone, to consolidate all debts into one monthly payment and raise the additional funds for the home improvements, whilst reducing the client’s monthly payment by around £370pm. The introducer earned £440. Debt Consolidation & Home Improvements with missed mortgage payments Our client’s current deal was coming to an end and she wanted to avoid going onto the SVR, as well as raise some funds for debt consolidation and home improvements. However, she had missed mortgage payments within the last 2 years, due to confusion around payment holidays. We were able to place the remortgage with Precise. The introducer earned £862.50. INGARD CASE STUDIES: WHAT HAVE THE TEAM BEEN UP TO?
21 22 LANDLORDS & HOW TO HELP THEM BY NEIL MULHEARN There is no doubt that landlords have been impacted from all sides in the last 15 years, with various changes to legislation and tax regimes hitting them hard, followed by the rate rises in the last six months impacting both the profitability of letting, and the affordability assessments of lenders. It is no wonder that the press has been full of stories relating to landlords leaving the market and a shortage of suitable properties for tenants. Research from Zoopla shows that 11% of homes currently being advertised for sale have previously been let; landlords are definitely leaving the market. However further analysis shows that a lot of those leaving the market are the accidental landlord, or those deemed non-professional (i.e. owning less than four tenanted properties). The truth is that the actual number of properties being let in the UK has remained stable, with barely any change since 2016. More professional landlords are seeing the potential to make large profits and have been growing their individual portfolios in the last few years. Essentially, there are less landlords, but the same number of properties are being let. Where we have seen huge growth though is the number of potential tenants seeking out those rental properties. Letting agents currently have on average ten properties on their books, compared to sixteen in September 2021 (Zoopla). This increase in demand is driving prices ever higher, with record increases to the rental values of properties. The buy to let market isn’t dying, but it is rapidly evolving, and you need to keep abreast of the changes. Landlords need help from advisers more than ever before! With rates being around three times higher than six months ago, affordability is definitely a key issue when sourcing a mortgage. You need to fully understand how individual lenders are assessing a case, and which lender will be most suitable for your client. Lenders do need to still be mindful of responsible lending, but at the same time they have money to lend and they want to grow their market share. For that reason, they are innovating to help get cases over the line. A number of lenders are now stressing at payrate if the client takes a five-year fixed rate – that makes a huge difference compared to the stress rate of two-year fixed and tracker rates. Lenders can be more generous if the property is owned in an SPV as opposed to the client’s personal name. For purchases, it is worth comparing the two and then referring the client to their accountant for tax advice, as this can be a way of maximising the available loan. For remortgages, you are stuck to some extent- don’t get caught up in attempts to transfer the property to an SPV without paying capital gains tax and stamp duty. There has been a rise in the number of lenders offering product transfers without further underwriting, and this may be a viable option for your client. If they are also looking to borrow extra money, a further advance may be possible, or a second charge. We did go through a period of no lenders offering second charges on BTL properties, but some lenders are now back in the market, so this could be a viable solution. It is worth mentioning that some specialist lenders securitise their loan book and are therefore unable to offer a product transfer. This may be something you want to take into consideration when recommending a deal to a client today – do you want to tie your client into a lender who would be unable to offer a product transfer in the future due to how they are funded? There has been growth in the number of lenders offering top slicing, and we have seen some big successes using this method with the likes of Precise and Bank of Ireland. You need to fully understand the client’s income and what the lender will use (particularly around other UK land & property income) but it has been a way of getting seemingly impossible deals over the line comfortably. Lenders are also innovating their products to meet requirements. LandBay have taken the lead in this department, although others are following. We have seen arrangement fees of up to 7% on their products, and whilst this can seem eyewatering, it is merely front loading the fee to get deals over the line. A case I have just quoted on had the option of 5.29% with a 2% fee, fixed for 5 years or 4.29% with a 7% fee over the same period. The mortgage was for £400,000, so a £28,000 lenders arrangement fee seems very expensive. However, the true cost over 5 years was virtually the same, and the lower rate/higher fee comfortably fit, whereas the higher rate/lower fee failed. It is up to you as a broker to explain this to a client, so that they can see the benefits of structuring a deal this way. The other area of the market that we have seen huge growth in, is the movement away from single ASTs to a host of other options, including HMOs, MUBs, holiday & short term lets. Lenders have responded by increasing their offerings in these areas and what was once a specialist field is moving more mainstream. The increased rental yields are vast, and it is worth having the conversation with your clients about the benefits of looking at different property types. Again, lenders have different underwriting criteria for these products, and you need to keep your knowledge up to date, but this can be a lucrative market. Be particularly aware of short term lets (Air BnB’s) – whilst the nightly rate can be very high, a lot of lenders will still work on an assumed monthly AST figure, and we may well see legislation coming in to limit these types of property. The one final piece of advice is to use the BTL addendum to your advantage, not just complete it for a tick box exercise. Discuss carefully with your clients their needs today, and going forward. Look down the line at mortgages that are due to expire, and put a holistic plan in place. For example, if you know the client has an unusual property that will need remortgaging later this year, check you aren’t reaching capacity with a specialist lender now on a vanilla property. Discuss in detail what the client’s plans are. What opportunities are there for the client, and how much funding will they need. Can you rebalance the portfolio, taking money from one property to pay down mortgages on others that are struggling to meet affordability? Also, consider improvements to properties and how these can be funded. You can quickly check the EPC register, and see which properties will need improving in the coming years, particularly with new legislation looming. Presenting these to your client is doing the best by your client and will likely generate business for you. Clients and landlords need your advice more than ever. Speak to your existing client bank regularly, and if you don’t have any existing landlords, seek them out. Letting agents, business networking and professional referrals can all provide introductions – if you don’t have these, then go out and find them.
23 24 MORTGAGES & BUY TO LETS Lender Submission Route Product Type Gross Fee Net Fee Contact Details Accord Mortgages Mortgage Club - Brilliant Refer to Brilliant 08451 200 883 Aldermore Bank Direct (Mortgage & Buy to Let) Residential Buy to Let Retention Specialist Buy to Let 0.55% 0.65% 0.35% 0.65% 0.55% 0.65% 0.35% 0.65% 0333 321 1000 Bank of China (UK) No Club Refer to Lender 08456 027 083 Bank of Cyprus Full Referral All 0.40% 0.38% 01702 538 800 Bank of Ireland Mortgage Club - Brilliant Refer to Brilliant Website 02072 362 000 Barclays Mortgage Club - Brilliant Refer to Brilliant Website 03450 733 330 Bath Building Society Direct Refer to Bath Website 0.35% 0.35% 01225 475702 Beverley No Club Refer to Lender 01482 881 510 Bluestone Mortgages Direct All 0.60% 0.50% 0800 368 1833 BM Solutions Mortgage Club - Brilliant Refer to Brilliant Website 08458 505 000 The Cambridge Building Society Mortgage Club - Legal & General Refer to L&G Website 03456 013 180 Castle Trust Packaged All 1.10% 0.70% 01702 538 800 (Packaged) Central Trust Packaged Residential - Unencumbered Only 2.00% 1.00% 08000 608 855 (Packaged) Chorley Building Society Mortgage Club - Brilliant Refer to Brilliant Website 01257 235 000 CHL Mortgages Direct Buy to Let 0.55% 0.55% 01252 365 888 Clydesdale Bank PLC Mortgage Club - Brilliant Refer to Brilliant Website 08447 360 034 Coventry Mortgage Club - Brilliant Refer to Brilliant Website 08001 217 788 Cumberland Building Society Direct All 01228 403 141 Darlington Mortgage Club - Brilliant Refer to Brilliant Website 01325 366 366 Dudley Building Society Mortgage Club - Legal & General Refer to L&G Website 01384 231 414 Earl Shilton Building Society No Club Refer to Lender 01455 844 422 Ecology Building Society No Club Refer to Lender 01535 650 770 Family Building Society Direct All owner occupier products (excluding Family Mortgage & Offset Mortgage) Offset Mortgage Family Mortgage Buy to Let Mortgage Product Switches Further Advances 0.40%* 0.50%* 0.55%* 0.50%* 0.20%* 0.25%* 0.40%* 0.50%* 0.55%* 0.50%* 0.20%* 0.25%* 01372 744 155 Foundation Home Loans Mortgage Club - Brilliant Refer to Brilliant Website 0344 770 8032 Fleet Mortgages Direct All 0.50% 0.45% 01252 916 800 Furness Building Society Mortgage Club - Brilliant Refer to Brilliant Website 08000 220 568 Generation Home Direct All 0.40% 0.40% 07723 954 895 Godiva Mortgage Club - Brilliant Refer to Brilliant Website 08001 217 788 Halifax Mortgage Club - Brilliant Refer to Brilliant Website 03456 025 317 Hampshire Trust Bank Direct BTL & MHO 1.20% 1% 0207 862 6262 Hanley Economic Mortgage Club - Legal & General Refer to L&G Website 01782 255 159 Hinckley & Rugby Building Society Mortgage Club - Legal & General Refer to L&G Website 08004 346 343 Hodge Bank Direct 50+ 50+ Additional Borrowing RIO RIO Additional Borrowing Holiday Let Holiday Let Additional Borrowing 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0800 138 9109 Holmesdale Building Society Mortgage Club - Brilliant Refer to Brilliant Website 01737 232 310 HSBC Direct Residential Buy to let Retention 0.40% 0.50% 0.20% 0.40% 0.50% 0.20% 0345 600 5847 Kensington Direct All 0.50% 0.40% 0800 011 1020 Kent Reliance Mortgage Club - Brilliant Refer to Brilliant Website 0345 122 0033 MEMBERS | ROUTE TO LENDER MORTGAGES & BUY TO LETS CONTINUED Lender Submission Route Product Type Gross Fee Net Fee Contact Details Keystone Property Finance Direct Specialist Buy to Let 0.80% 0.80% 0345 148 9086 Landbay Packaged or Direct Buy to Let - Individual Buy to Let - Ltd Co 0.85%* 0.85%* 0.50%* 0.50%* 020 7096 2700 (Packaged) Leeds Building Society Mortgage Club - Brilliant Refer to Brilliant Website 0345 050 5075 Leek United Building Society Mortgage Club - Legal & General Refer to L&G Website 01538 384 151 Lendinvest Direct Residential Buy to Let 0.60% 0.70% 0.50% 0.60% 0800 130 3388 Livemore Captial Direct Standard*an additional 0.13%gross every year thereafter for up to 15years Enhanced available on our 20year and Fixed for Life products 0.55% 1.10% 0.55% 1.10% 0203 011 4990 Loughborough Building Society No Club Refer to Lender 01509 610 707 Manchester Building Society Mortgage Club - Brilliant Refer to Brilliant Website 01619 238 030 Mansfield Building Society No Club Refer to Lender 01623 676 345 Market Harborough Direct 0.35% 0.35% 01858 412 610 Marsden Building Society No Club Refer to Lender 01282 440 583 Melton Mowbray Mortgage Club - Brilliant Refer to Brilliant Website 01664 414 141 Metro Bank Direct Residential Buy to Let Rate Switch - Residential Rate Switch - Buy to Let 0.40% 0.43% 0.30% 0.30% 0.38% 0.41% 0.285% 0.285% 0203 427 1019 Molo Finance Direct All 0.50% 0.45% 0333 006 8288 Monmouthshire No Club Refer to Lender 01633 844 370 MPowered Mortgages Direct Residential Buy to Let 0.40% 0.60% 0.40% 0.60% 0800 260 5949 Nationwide Mortgage Club - Brilliant Refer to Brilliant Website 08005 453 131 Natwest Direct Residential Buy to Let Retention 0.40% 0.45% 0.20% 0.40% 0.45% 0.20% 03459 001 110 Newbury Direct Residential & Buy to Let Retention 0.37% 0.20% 0.35% 0.18% 01635 555 777 Newcastle Mortgage Club - Brilliant Refer to Brilliant Website 03456 064 488 Norton Finance Packaged All 3.50% 1.75% 01702 538 800 (Packaged) Nottingham Direct All 0.40% 0.40% 03444 814 444 Norwich & Peterborough No Club Refer to Lender 03453 002 511 Paragon Mortgages Direct Residential Buy to Let Retention 0.55% 0.55% 0.40% 0.55% 0.55% 0.40% 08000 522 222 Penrith No Club Refer to Lender 01768 863 675 Pepper Money Direct All 0.50% 0.40% 03333 701 105 Platform Direct Residential Buy to Let Retention 0.40% 0.48% 0.30% 0.37% 0.43% 0.30% 03450 701 999 Post Office for Intermediaries Mortgage Club - Brilliant Refer to Brilliant Website 0345 266 8928 Precise Mortgages Direct Residential Buy to Let Retention 0.60% 0.60% 0.30% 0.50% 0.50% 0.28% 08001 164 385 Principality Mortgage Club - Legal & General Refer to L&G website 01179 331 644 Progressive Building Society Mortgage Club - Legal & General Refer to L&G Website 02890 244 926 Saffron Building Society Mortgage Club - Legal & General Refer to L&G Website 08000 721 100 Santander Direct Residential Buy to Let Retention 0.36% 0.45% 0.20% 0.36% 0.45% 0.20% 08000 851 390 Scottish Building Society No Club Refer to Lender 01313 137 700 Scottish Widows Bank Mortgage Club - Brilliant Refer to Brilliant website 03458 450 829 Skipton Building Society Mortgage Club - Brilliant Refer to Brilliant Website 03458 501 755
Issued: March 2023 SPECIALIST MORTGAGES & BUY TO LETS - FULL REFERRAL / PACKAGED Submission Route: Ingard’s Specialist Team. Call 01702 538 800 or email [email protected] Lender Submission Route Product Type Gross Fee Net Fee Al Rayan Full Referral Home Purchase Plan Buy to Let Purchase Plan 0.35% 0.50% 0.35% 0.50% Bank of Cyprus Full Referral Specialist Buy to Let 0.40% 0.38% Cambridge & Counties Bank Full Referral Specialist Buy to Let 1.00% 0.50% Central Trust Packaged Specialist Mortgage - Unencumbered Only 2.00% 1.00% Interbay Full Referral Specialist Buy to Let 1.50% 0.75% Landbay Packaged Individual Buy to Let Ltd Company Buy to Let 0.85% 0.50% Norton Home Loans Packaged Specialist Mortgage & Buy to Let 3.50% 1.75% Shawbrook Bank Full Referral Specialist Buy to Let Dependent on product - refer to Ingard Tandem Specialist Mortgages Packaged Direct All All 1.0% 0.60% 0.50% 0.50% The Mortgage Lender Packaged Direct Specialist Mortgage Specialist Buy to Let All 0.80% 0.85% 0.60% 0.50% 0.50% 0.50% Together Full Referral Residential Consumer BTL BTL & Home Own Bus Loan 1.5% 1.5% 1.25% 0.75% 0.75% 0.65% United Trust Bank Packaged Direct Unencumbered FTB/Purchase & Remortgage BTL - Standard BTL - Non Standard Unencumbered FTB/Purchase & Remortgage BTL - Standard BTL - Non Standard 1.00% 0.80% 0.90% 1.50% 1.00% 0.45% 0.50% 0.80% 0.90% 0.40% 0.45% 0.75% 0.90% 0.40% 0.45% 0.75% * 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. MEMBERS | ROUTE TO LENDER SECOND CHARGE MORTGAGES Castle Trust Central Trust Equifinance Evolution Money Norton Home Loans Paragon Precise Mortgages Shawbrook Bank Step One Finance Together United Trust Bank BRIDGING LOANS Affirmative Alternative Bridging Big Property Finance Bridging Finance Solutions Castle Trust Funding 365 Hampshire Trust Bank Interbay LendInvest Mercantile Trust MFS Mint Bridging MTF Oakbridge Octane Octopus Real Estate Peninsula Finance Precise Mortgages Roma Shawbrook Bank SoMo Bridging Together True Bridging United Trust Bank West One COMMERCIAL LOANS Bank of Cyprus Barclays Commercial Cambridge & Counties Bank Interbay Julian Hodge Bank Lloyds Bank Mercantile Trust Metro Bank Natwest Octane Octopus Real Estate Redwood Bank Santander Commercial Shawbrook Bank State Bank of India Together Submission Route: Ingard’s Specialist Team. Call 01702 538 800 or email [email protected] Submission Route: Ingard’s Specialist Team. Call 01702 538 800 or email [email protected]. Submission Route: Ingard’s Specialist Team. Call 01702 538 800 or email [email protected] 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 the lender by Ingard’s Specialist Team, but the advice is given by you, and all compliance documents should be provided as normal. A Packaging Process Guide is located in the Document Library section of the Case Portal. Full Referral- This means you are referring the case in full for someone in Ingard’s Specialist Team to give the advice, and deal with all compliance. Some lenders will also 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. MORTGAGES & BUY TO LETS CONTINUED Lender Submission Route Product Type Gross Fee Net Fee Contact Details State Bank of India Direct Professional BTL Non Professional BTL 0.75% 0.50% 0.75% 0.50% 0344 967 1860 Suffolk Building Society Mortgage Club - Brilliant Refer to Brilliant Website 0330 123 1073 Tandem Specialist Mortgages Packaged Direct All All 1.0% 0.60% 0.50% 0.50% 01702 538 800 (Packaged) 01253 603 951 Teachers Building Society Mortgage Club - Legal & General Refer to L&G Website 01202 843 550 Tipton & Coseley Building Society Mortgage Club - Legal & General Refer to L&G Website 01215 572 551 The Mortgage Lender Packaged Direct Specialist Mortgage Specialist Buy to Let All 0.80% 0.85% 0.60% 0.50% 0.50% 0.50% 01702 538 800 (Packaged) 0344 257 0418 The Mortgage Works Mortgage Club - Brilliant Refer to Brilliant Website 08005 453 131 Ulster Bank Ltd Mortgage Club - Legal & General Refer to L&G Website 02890 275 965 United Trust Bank Packaged Direct Unencumbered FTB/Purchase & Remortgage BTL - Standard BTL - Non Standard Unencumbered FTB/Purchase & Remortgage BTL - Standard BTL - Non Standard 1.00% 0.80% 0.90% 1.50% 1.00% 0.45% 0.50% 0.80% 0.90% 0.40% 0.45% 0.75% 0.90% 0.40% 0.45% 0.75% 01702 538 800 (Packaged) 0207 190 5555 Vernon Building Society No Club Refer to Lender 01614 296 262 Vida Homeloans Mortgage Club - Brilliant Refer to Brilliant Website 03300 246 246 Virgin Money PLC Mortgage Club - Brilliant Refer to Brilliant Website 03456 001 516 West One Direct All 0.60% 0.50% 0333 123 4556 Zephyr Homeloans Mortgage Club - Brilliant Refer to Brilliant Website 0370 707 1894
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