Clare's Lender Focus

Do you need Individual Solutions for Older Borrowers

9th March 2017

As a reminder, Magellan Homeloans have two new product ranges and substantial reductions in fixed rates pricing....

The Complex Prime range offers an edge in terms of competitive pricing that also benefits from our manual underwriting approach and flexible borrowing criteria, whilst the Credit Repair range benefits from fixed rate products and greater pricing differentiation for borrowers.

Magellan’s innovative product ranges can accommodate borrowers:

  • With a credit score decline who would benefit from a flexible underwriting approach, including self-employed borrowers with a 12 months trading record
  • Proving they can manage their financial circumstances but have minor adverse marks on their credit file including arrears, CCJs and defaults
  • Who suffered a life event that led to historic credit problems including arrears, CCJs and defaults, as well as IVAs registered and bankruptcies discharged more than 12 months ago
  • Trying to resolve historic credit problems including those with a current or recently satisfied Debt Management Plan
  • With a complex employment status including zero hours, agency and fixed-term contracts
  • Benefiting from family provided undervalue sales and gifted deposits

The product ranges offer:

  • Up to 85% LTV
  • Rates starting at 3.08%
  • 2 and 3 years fixed rates
  • Variable rates with No ERC's
  • Affordability based on reversionary rates

Remember, Magellan Homeloans manually underwrites each application on its own merits and doesn't use credit scoring.

More & More New Packager Exclusives - Its Good News Week

16th February 2017


Great News – Kensington Product Price Reduction

Semi Exclusive 90% LTV – 2 Year Fixed was 4.79% and now is 4.34% massive rate drop of 0.45%

  • 90% LTV Residential Exclusive – Packaged Only
  • HMO and MUB Exclusive – Packaged Only
  • Second Homes Exclusive – Packaged Only


Launched New Packager Semi Exclusives Products on their residential with a 1% Cashback & the BTL range with a £300 Cashback

SMS are pleased to be able to bring you details of a range of Semi-Exclusive Residential products featuring 1% cashback launched on the 8th February 2017:

Residential Key Information:-

  • 1.00% cashback payable on completion
  • Rates starting from 3.99%
  • 3-year LIBOR trackers
  • Available up to 80% LTV
  • Purchase only
  • £1,495 product fee
  • Max loan £500,000

These products offer the option of a large cashback for home movers and first time buyers which will assist with the costs associated with moving home, such as stamp duty, furniture, decorating or even the purchase of home appliances.

BTL Product details are as follows:

  • Fixed for 1 year - 3.69% in Tier 2; 3.95% in Tier 3
  • Revert rate of 3.50%
  • Fee of 2.00%
  • ERC 4% Year 1
  • £300 Cashback
  • Max LTV of 75%
  • Available in both the Core and Limited Company Range

These 1-year Fixed products come with £300 Cashback and are available in Tiers 2 and 3, so are designed to support Buy to Let customers with a less than perfect credit profile.

1-year Fixed products have proven to be popular in our range. They provide a solution for customers who want to wait and see what is happening within the BTL market this year, or who are looking for a short term fix while credit repairing. The products revert to just 3.50% at the end of the term which minimise the payment shock after the fixed term.


Why choose TML?

The Mortgage Lender aim to provide you with a proper alternative to High Street lenders. Here are five reasons why you should think TML when placing cases for your clients.

  • We lend in Scotland.
  • We have a human approach to our underwriting, where each case is underwritten on its own merit.
  • We leave a soft footprint only at DIP.
  • We don’t change credit reference agencies between DIP and application.
  • Decision at DIP will stand unless there is a material change in the applicant’s circumstances.

TML have also launched our new Fee Assisted Remortgage Range offering free standard remortgage legals (using our nominated solicitors), free application fee, free completion fee, free telegraphic transfer fee and refunded valuation.

The Family Building Society

The Family will soon be paying retention fees.

The Family will be rewarding you for your work with existing clients, I am pleased to say that towards the end of March, they will pay retention fees to you for advised product switches and for advised further advances.

Retained mortgages that were previously completed under the National Counties brand will also be included.


Product Guide attached click here

Do you need Individual Solutions for Older Borrowers

8th February 2017

Our Lenders Offer More Individual Solutions Than Normal Lenders

They have been lending to retirees for years, and for some reason that's still not considered "the norm" by some lenders. Here's why they think we're not normal:

  • They don't let computers make our lending decisions. We individually underwrite all our mortgage applications
  • Terms are generous and they will lend when other lenders still refuse – they have lent up to a 5 year term to an 89 year old and also have a maximum 16 year term for a 70 year old.
  • They offer huge flexibility by lending into retirement - with no upper age restrictions on products (although the max mortgage term may be limited).
  • They also take into account income earned up to the age of 70 and pension income beyond that. Additionally, they accept rental and investment income that can be evidenced on an SA302.

They are all set to help with older clients that you might have difficulty placing. So why not get in touch with us to discuss their requirements now?

The Family Building Society dedicated underwriter at SMS

2nd February 2017

We have a dedicated underwriter Sharon Clarke from the Family Building Society on site here at SMS to help you with those difficult to place cases, so give us a call to find out how they can help you 01329 245800.

Sharon said "We specialise in helping you with older borrowers, offering huge flexibility by lending into retirement and with no upper age restrictions on our products. We often offer generous terms where other lenders don't. We can take into account earned income up to the age of 70 and pension income beyond that"

Contact the SMS Helpdesk to find out more on how it's possible to also help the self-employed and those expats clients of yours where loans are available on an Owner Occupier and Buy to Let basis.

With Sharon's underwriting experienced in this field, you're sure of consistency in answers to any questions you have and a speedier result with your application. Get in touch with us today as we're waiting to help you with your difficult to place cases.

Understanding the NEW BTL PRA RULES

12th January 2017

I’m sure you would agree there has been a lot of News and discussion about the NEW BTL PRA RULES.

Many of our Panel Lenders have now released their approach to these rules and not surprisingly they all have a slightly different way to meet these rules whilst remaining competitive with their products.

It would be difficult to cover all these changes in one piece of news so below we have highlighted the areas we think will be of interest to you and your clients.

  • 125% Rental Calculation available on selected products
  • Limited Company SPV Schemes
  • Consumer BTL based on rental calculation
  • Personal Taxation Levels ignored
  • Maximum Borrowing Calculators
  • Portfolio Lending
  • First Time Landlords
  • No Maximum Age

We understand there will be lots of questions over the coming weeks about these new rules.

But don’t worry, that’s what we are here for , to answer your questions and help you place your cases.

So, rather than fret over all these changes you just need to remember one number 01329 245800.

CALL the HELPDESK TODAY and let us take the strain out of placing your Buy To Let cases

Struggling with Affordability

8th December 2016

SMS can help increase your clients’ chances of achieving their dream.

  • Ignore dependents when calculating affordability
  • Retained profit considered
  • Self-employed only trading for 1 year
  • Asset rich, money poor clients considered
  • Self-employed for 2 years trading and projections considered
  • State benefits considered
  • We have lenders that manually underwrite with a common sense approach

Changes are coming in to affect from January 1st 2017 for BTL rental calculations

Beat the deadline and DIP your BTL cases with SMS before the 14th December

Get access to SMS Semi Exclusive products with market leading rental calculations


New PRA changes January 1st 2017 - are your Landlord clients aware?

24th November 2016

...that £900 PCM rent on one of our current market leading BTL rates would give a Landlord borrowing power of over £262,000.
Under the new rules, from January 1st 2017 , this would reduce to £135,000. That’s almost a 50% reduction in the amount of borrowing!

  • New rental calculations will be changing from 125% at pay rate to 145% at a 5.5% charge rate
  • Many lenders have already changed their calculations to reflect these changes
  • Most lenders will need applications submitted to them before the 23rd December
  • Have you considered LTD Company options for your Landlord Clients?
  • We still have lenders offering 125% rental calculation pay rate
  • Is Consumer BTL an option for your client?



Working with Lenders.

Providing Intermediaries with Lending Solutions.