SimplyBiz Mortgages has today; following an in-depth tender, launched its new ancillary panel of specialist distributors, including TFC Homeloans.
Members will have access to up to firms that can offer a combination of solutions for secured and unsecured loans, bridging, commercial and development finance, complex BTL, including Limited Companies and specialist residential mortgages.
TFC Homeloans is delighted to be part of this panel. A host of launch opportunities, including Masterclasses, webinars, bespoke specialist magazines and literature will take place over the coming months with the aim of providing greater knowledge and understanding of the specialist market for its members.
Commenting on the launch Martin Reynolds, CEO of SimplyBiz Mortgages “We have run successful separate ancillary panels for many years but felt that post MCD it was opportune to review how this was structured. Following a three month due diligence process, we believe that we have created a new panel that will offer members both choice and access to a wealth of knowledge that will enable members to help more of their clients. We also felt that by offering dedicated regional support with local knowledge on the panel would increase the interaction. Mortgages are becoming more complex and using all the resources available to you as an adviser is key as we move forward.”
Nigel Payne, managing director of TFC Homeloans, said, “Partnering with one of the UK’s leading Mortgage Clubs is a fantastic way to kick off 2017. SimplyBiz Mortgages is innovative, robust and totally committed to brokers, just like TFC, and we can’t wait to start working together.”
Make these simple checks to smooth the way for your client’s second charge mortgage, says Ian Scarrott, head of sales at TFC Homeloans.
The quicker a deal goes through the better for your client, and it goes without saying that it’s better for your business.
Getting your cases to completion quickly and avoiding delays means you get paid and can move on to the next case.
But what can you do to help smooth the second charge mortgage process and get the deal through without unnecessary hold-ups?
At TFC Homeloans we see the same issues come up time and again on second charge mortgages, where delays are caused by something that could have been prevented. A few simple checks at the outset can eliminate many of the common delays in the processing of second charge loans and get the deal through quickly.
1. Income doesn't match up
Check the client’s income matches up with what’s been stated on the initial DIP form. In about a third of our seconds deals that don’t go through, the reason is because the income is lower than was initially declared. The borrower has often stated their income incorrectly, rounding up figures or simply guessing at bonus levels and commissions. If the broker confirms the stated income against bank statements or payslips, it could save a delay or the case falling through altogether. The same goes for time in employment or residency. Get the documentation upfront and check it matches what the client has said.
2. Who is the first charge lender?
For most second charges, the first charge lender needs to offer ‘consent’. Check the existing first charge lender, because some are harder to get it from than others. This isn’t the norm, but it’s worth a quick call to a specialist distributor to check if you’re unsure. At TFC we know which lenders will give permission for a second charge mortgage and which will be a bit more difficult, although we will be able to suggest alternative approaches.
3. Is there a flexible facility?
Check to see if the borrower has a flexible facility with their first charge lender account. This may have been previously arranged, never used or sometimes can’t be used, but it still affects a second charge as they may have an obligation to lend registered on the title deeds. The lender will usually need to take the extra charge (flexible facility) off the mortgage before the second can be arranged, or it will need to be taken into account in the LTV calculation. You might ask, why not just use the flexible facility instead of a second? Actually, in some cases the lender won’t now allow it, but the charge technically remains.
4. Choose a distributor that will do the admin
Not all distributors are FCA regulated with full home finance permissions, and some choose to have no contact with your client at all. They will channel the post-app administration and paperwork back through the broker. Others, including TFC, will happily work directly with the client to chase direct debits and other documents. This speeds up the process massively because if we need something we can be in touch with the client in minutes without bothering you. It also saves you, and your admin support, time and allows you to get on with other cases.
5. Harness technology to speed up source
Choose a packager with a sourcing system that compares first and second charge mortgages side by side and gives you an audit trail. You can find out which deals will suit your client’s circumstances quickly and easily, automatically recording the options you have considered. You can then proceed knowing you have the most appropriate deal for the client.
The move means that brokers can now access all of the society’s residential and buy-to-let products through the packager.
Buckinghamshire Building Society’s range of intermediary products includes a selection of non-standard purchase and remortgage deals, including fixed, tracker and discounted rates. The lender also has mortgages tailored to contract workers, self-builders and those buying a home under shared ownership, as well as catering for buy-to-let landlords.
TFC Homeloans managing director, Nigel Payne (pictured), said: “The mutual sector is fantastic at developing innovative mortgage products that meet the needs of niche sectors of the market, and Buckinghamshire Building Society does exactly that. Its wide product range is impressive and targeted at non-standard borrowers who might struggle with the large lenders.”
He added: “The Bucks is a forward-thinking mortgage lender and we look forward to working with its highly experienced team.”
Andrew Craddock, chief executive of Buckinghamshire Building Society, said: “We are delighted to have joined forces with TFC to support niche lending to customers with diverse circumstances. As a small specialist lender we are always keen to work with partners like TFC to help spread our message that we have products to suit borrowers in all situations.”
Over the last year TFC Homeloans has secured Home Finance permissions from the Financial Conduct Authority, allowing it to deal with mortgage products, regulated buy-to-lets and regulated bridging services.