As I glanced at our January lender leader board, it is refreshing to see an abundance of mutuals filling our top ten.
2016 has started with a flourish, the pending stamp duty changes and tax implications have flooded the buy to let sector, and January always brings with it those who start the New Year with resolutions of sorting out their finances so diaries get full with mortgage MOTs, and many lenders start a fresh book and go for it with rates to capture early market share.
Yet it’s not just rates that are helping here. Obviously you would expect to see Nationwide as the UK’s largest building society placed in the top ten at any time of year, but little quirks such as mortgages to age 75 (providing you can show a pension contribution) help in a world where borrowers need to take their repayment mortgage as long as possible for affordability purposes.
Then again, if 75 is not enough, then other mutuals such as National Counties will assist. National Counties are fast becoming the White Knight for the elderly, offering solutions that could only previously be considered by equity release providers but without the higher rates, or the need to consult 17 solicitors, absorb higher fees, family arguments and awkward Christmas dinners where “inheritance” is a word all guests are hoping doesn’t pop up in conversation.
Skipton Building Society also continue to impress, ignoring buy to lets in the background, mortgage offers valid for up to 12 months, and mortgage terms up to age 85 on buy to lets. Their slick online system, technical support open until 8pm (which I just love by the way…please take note other lenders), and a business development manager (BDM) that is Gunning by name, and gunning for business by nature, its another that continues to impress.
These are serious unique selling points. They are key criteria that sets us as brokers apart from the ‘BeBuRs’ as we like to call them. No, not Justin Beiber fans although they are also gaining market share at present. BeBuRs are Best Buy Readers who think they know it all. The consumers who pick up a paper, find a cheaper rate than you have recommended and think you have not done your job because it is lower than theirs, forgetting criteria has been the key driver as they simply cannot fit the table toppers. It is this knowledge bestowed upon us by our BDMs that makes us all excel at our jobs and make our borrowers realise successful mortgage arrangements are often not just about rate.
For cases outside of the box, the mutuals (they are starting to sound like a collection of Marvel Comic superheroes…and to be honest, they are not far off it), are offering a flexibility that should be applauded.
Other non-mutuals worth a mention include Kensington, which fills a great niche for businesses that have changed status from sole trader to limited company, or has one years’ accounts, or retains large profit – all areas that many other lenders will shy away from.
Kent Reliance, although technically not listed as mutual anymore, also needs a mention. For sheer innovation and very credible manual underwriting, they can really take a view on things and this ambition to lend, coupled with the recent appointment of one of London’s finest (take a bow Mr Adrian Moloney) as their head of sales and a BDM team second to none, I’d expect to see Kent stay in the top ten of lenders for most London brokers throughout the year.
I can’t finish without mentioning the might of Leeds and also Coventry. Two building societies who have featured in our top ten purely by rate. Well done to you both and fantastic aggression for share.
As impartial mortgage brokers, we have access to so many lenders, yet many brokers will still work off their own individual panel of preferred lenders. But let us not become BeBuRs ourselves. Mutuals are doing a fine job, so don’t be afraid of the extra packaging, don’t gloss over them when sourcing and dismiss them because of unfamiliarity. The mutuals deserve our respect and top ten lending charts are proving it at present. Get to know their systems, their packaging, and their criteria and you will be amazed at what gems you will unearth.
Our thanks go to the following mutuals in aiding January’s business:
Nationwide & TMW
Skipton
Coventry & Godiva
Kensington
Leeds
National Counties
Kent Reliance- I know, I know
Respect. Word out.
