‘Numbers don’t add up’ for EV owners in ‘real blow’

EV owners given alert as ‘numbers don’t add up’

‘Real blow’ to EV owners after major update today

Revealed: Brokers’ favourite (and not-so-favourite) lender portals and the features they love

Brokers call for more lender innovation after Skipton 100% mortgage launch

Majority of brokers say mortgage affordability is more complex - Mortgage Solutions

TSB amends BTL stress rate and ups mortgage pricing - Mortgage Solutions

TSB gives brokers 25 minutes’ notice of rate changes – reaction

TSB Intermediary pulls resi loans, relaunches 24 hours later

Brokers fume after TSB gives 25 minute warning of rate hike

Four-day week ‘would not work for mortgage market’

Advice firms show limited appetite for four-day working week

Brokers bemoan Lewis influence as customers turn to TV pundits

Money Box’s Paul Lewis tells mortgage seekers to avoid ‘local brokers’ - brokers react

First-time buyers will be ‘active’ this year despite headwinds

Santander’s reduction of stress tests welcomed by brokers

Santander to relax all resi and most BTL affordability rates

UK house price growth slows to 4.4 per cent ‒ Nationwide

Annual house price growth slowed to 4.4% in November from 7.2% in October

Mortgage borrowing falls to 12-month low: BoE

I started my career in financial services in 2007. My early days were spent in the branch network, before I passed my mortgage advice qualifications in 2014. I then spent 5 years in specialist mortgage lending with a small regional building society before moving on to lead the intermediary mortgage function at a larger society.

My experience working for specialist lenders has given me valuable understanding of how lenders operate and assess mortgage applications. It’s given me a great insight on the other side of the coin to how I now operate as a broker and this is especially useful when helping arrange complex or specialist mortgages.

In 2018 I graduated from Loughborough University Business School with a Masters Degree in Leadership and Management.

I am fully qualified, holding CeMAP and CeRER qualifications, and am a Certified Mortgage Broker through the London Institute of Banking and Finance.

mortgages

property

insurance

House prices

politics

first-time buyer mortgages

self-employed mortgages

contractor mortgages

landlord mortgages

portfolio landlord mortgages

bad credit mortgages

shared ownership mortgages

new build mortgages

remortgages

product transfers

mortgage protection insurance

buy-to-let mortgages

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Benjamin Blyth

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A Leicester-based estate agent, part of a national agency, continues to conditionally sell. This week one branch has been caught telling buyers that they stand a better chance of having their offer accepted on a popular shared-ownership property if they use all the in-house services, such as mortgage advice and conveyancing.&nbsp; This practice is illegal, as per The Property Ombudsman's own Code of Practice for Residential Estate Agents, which has been effective since 2019. Section 9d starts: "By law you cannot make it a condition of passing on offers to the seller that the buyer must use services offered by your or another party." It goes on to clarify that "You must not discriminate, or threaten to discriminate, against a buyer because that person declines to accept that you will (directly or indirectly) provide related services to them." It's worth pointing out that this particular branch does not have The Property Ombudsman logo in their window - a condition of membership. One particular agency told my client that "if someone else in a similar position chooses to use every in-house service, they'd probably be seen as more favourable with the shared-ownership housing association. Furthermore, their in-house mortgage adviser told my client that "they get great rates with Virgin because they send so many people through to them for mortgages." Which is untrue, as their adviser recommended a non-exclusive product (an application that was later declined due to said adviser not thoroughly assessing affordability - though that's a story of incompetence rather than conditional selling - although Virgin Money do pay market leading procuration fees...) &nbsp;<blockquote>Consumer Duty is in force for manufacturers (lenders) and is soon to be enforced for advice firms. This practice of conditional selling goes against everything the regulation stands for and it seems the closest thing to a regulator in estate agency allows it to happen.</blockquote>

High Street estate agents continue to break the law with conditional sales

As has been widely reported, Skipton Building Society has made a significant breakthrough in the mortgage market by launching its 100% 'Track Record' Mortgage, designed to help renters get on the property ladder without a deposit or support from a wealthier family member. The new mortgage allows renters to simply use their track record of rental payments as proof of their ability to repay the loan. The most significant condition of the mortgage is that the monthly payment cannot be higher than the rent currently being paid. This means that buyers will likely need to downsize, move to a cheaper area of the country, or already be renting beyond their needs to be eligible for the scheme. According to HM Treasury, the average house price for a first-time buyer in January 2023 was £241,000. To buy at this level with the new mortgage from Skipton BS, the current rent being paid would need to be £1,290 per month. However, this amount would only be realistic if renting a 3-4 bedroom house, and £241,000 would not buy a 3 or 4-bedroom house in most of the UK. The median rent paid in the UK, according to ONS, is £800 per month. This amount would only be enough to buy a house for £149,000 on Skipton's new scheme - almost £100,000 short of the average house price.&nbsp; While the initiative is a bold first step in 100% mortgages, there is much to do before it becomes a practical solution for renters. &nbsp;<blockquote>This scheme is a great concept, but needs polishing. Buyers will likely need to downsize, move to a cheaper area of the country, or already be renting beyond their needs to be eligible for the scheme.</blockquote>

A deeper dive in to 100% Mortgages - Ideal for First-Time Buyers looking to downsize!

There is a concerning trend among lenders when it comes to adverse credit. Despite some lenders, such as Nationwide Building Society and Leeds Building Society, updating their criteria system partners to say they accept adverse credit, they seem to always decline at the Decision in Principle stage. This not only wastes the time of mortgage brokers but also dents the hopes of clients who are trying to secure a mortgage. A recent example involves a first-time buyer with a £468 default with a water company for an old bill. This was only discovered as part of the process of getting mortgage-ready, and the client immediately settled the debt. According to Criteria Brain, this scenario was deemed 'acceptable' by both Nationwide and Leeds. However, despite no other adverse data being available on the credit file, both lenders declined an Agreement in Principle. This is just one instance of lenders saying one thing yet doing another when it comes to adverse credit. It creates unnecessary uncertainty and delays in the mortgage application process, frustrating mortgage brokers and clients alike.<blockquote>As a broker, I must emphasise the importance of lenders being more transparent and consistent in their criteria so that we can have a better understanding of our clients' chances of securing a mortgage. We pay for these tools to remove the guesswork of years gone by, so it would be great if the data lenders feed into them is accurate.</blockquote>

Adverse credit - lenders saying one thing and doing another

At 12:35 pm on Tuesday 7th March, TSB decided to email brokers with notice of rates increasing by as much as 0.20% at... 1:00 pm. 25 minutes' notice!&nbsp; This is an impossible timeframe to administer an application even if you saw the email the second it came in, could instantly contact a client in the middle of a working day and obtain their agreement to proceed with your recommendation, whilst being satisfied you're not applying pressure to make a sudden decision. There are lenders out there (shout out to Coventry Building Society) who have a commitment to brokers of 48-hour notice for any product changes. This is the gold standard which should be a regulatory requirement to ensure pressure on clients does not occur. Consumer Duty anyone? The withdrawal from TSB impacts 5-year fixed rate purchase and remortgage deals up to 85% LTV as well as product transfer rates for existing clients, also up to 85% LTV. &nbsp;<blockquote>TSB has been unfair in giving such a short amount of notice to withdraw mortgage products and increase rates. Almost nothing can be done compliantly in 25 minutes - it shows how some decision-making by lenders is disconnected from the real world of delivering mortgage advice.</blockquote>

TSB give just 25 minutes notice of rate increases

I started my career in financial services in 2007. My early days were spent in the branch network, before I passed my mortgage advice qualifications in 2014. I then spent 5 years in specialist mortgage lending with a small regional building society before moving on to lead the intermediary mortgage function at a larger society. My experience working for specialist lenders has given me valuable understanding of how lenders operate and assess mortgage applications. It’s given me a great insight…

Director

Houz Mortgages

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‘Numbers don’t add up’ for EV owners in ‘real blow’

EV owners given alert as ‘numbers don’t add up’

‘Real blow’ to EV owners after major update today

Revealed: Brokers’ favourite (and not-so-favourite) lender portals and the features they love

Brokers call for more lender innovation after Skipton 100% mortgage launch

Brokers call for more lender innovation after Skipton 100% mortgage launch

Majority of brokers say mortgage affordability is more complex - Mortgage Solutions

TSB amends BTL stress rate and ups mortgage pricing - Mortgage Solutions

TSB gives brokers 25 minutes’ notice of rate changes – reaction

TSB Intermediary pulls resi loans, relaunches 24 hours later

Brokers fume after TSB gives 25 minute warning of rate hike

Four-day week ‘would not work for mortgage market’

Advice firms show limited appetite for four-day working week

Brokers bemoan Lewis influence as customers turn to TV pundits

Money Box’s Paul Lewis tells mortgage seekers to avoid ‘local brokers’ - brokers react

First-time buyers will be ‘active’ this year despite headwinds

Santander’s reduction of stress tests welcomed by brokers

Santander to relax all resi and most BTL affordability rates

UK house price growth slows to 4.4 per cent ‒ Nationwide

Annual house price growth slowed to 4.4% in November from 7.2% in October

Mortgage borrowing falls to 12-month low: BoE