Nationwide integrates DIPs with Twenty7Tec’s Apply platform
It is expected that users can receive an instant DIP on remortgage cases from Nationwide, without needing to re-key data into the lender’s portal.
A spokesperson for Nationwide said brokers will not need to re-key the DIP onto the society’s portal, but client information will need to be re-entered for the full mortgage application.
However it is looking at resolving this in the future.
Nationwide conducted tests and found the DIP results always matched the results returned from the society’s portal as Apply runs the decision against its credit scoring system, the spokesperson added.
Initially, the service will be made available to Connells Group brokers using Apply, before being rolled out to Mortgage Advice Bureau, and then the wider market.
The integration is the first service that has gone fully live to brokers after Nationwide announced in November 2019 that it was launching a ‘sandbox’ pilot to enable third party systems to connect with its credit risk and back office systems.
The society said it would continue to work with a range of third parties to develop and support further technological innovations in the broker market.
Ian Andrew (pictured), director of intermediary relationships at Nationwide Building Society, said: “This is a big moment for Nationwide and we’re delighted that the outcome of recent tests in our API sandbox with Twenty7Tec have been so positive and that we’re now in a position to put our DIP API for remortgages live.
“We expect to expand the API with other third-parties in the near future and we continue to look at other ways we can use technology to improve the service we offer brokers both now and in the future.”
James Tucker, CEO at Twenty7Tec, added: “We’re very proud to be the first broker platform to have been chosen to work with Nationwide on this project, and we look forward to seeing the results that it produces.”
MAB opens learning facility to welcome ‘new blood’ to mortgage industry
The new MAB learning and development centre will allow up to 20 learners to undertake their courses. It is a two-floor facility and the top floor will be used for course delivery while on the bottom floor, there will be a recording studio to film e-learning packages and tools.
MAB said the academy played an “integral part” in “bringing new blood” into the wider mortgage sector.
The existing MAB training academy, which has been running since 2013, has qualified over 300 people to become mortgage and protection advisers.
David Bedlow, head of learning and development at Mortgage Advice Bureau, manages the UK-wide team to deliver training programmes across its entire distribution.
He said: “It is very exciting to announce the opening of our new learning and development centre. This is a dedicated facility for our learners and will ensure we continue to develop and improve our offering.
“We are extremely proud of the MAB learning and development academy, and the role it plays in helping new people to start a career in financial services.”
Bedlow added: “Due to the popularity of courses, we’ve always held the academy offsite at purpose-built facilities which has impacted on its results in a positive way. This new facility will allow us to do similar with all of our other in-house programmes.”
MAB appoints national new homes account director
Akram (pictured), who is a double British Mortgage Awards winner, previously worked for First Mortgage Direct, which was acquired by MAB in July last year.
She will be working alongside new homes director Andy Frankish as part of the MAB new homes team.
“I can’t wait to get started, MAB is an extremely well known brand in the new homes sector, and it is an absolute privilege to take up this role,” said Akram. “I aim to bring my experience and relationships with some of the top house builders with me and apply that on a national level for MAB. I’ve had a fantastic time at First Mortgage Direct and I’m now looking forward to what the future holds with this new challenge.”
Frankish added: “Mobeen has spent the last 12 years doing an amazing job of developing the First Mortgage Direct new homes business, making them the biggest new homes broker in Scotland.
“Mobeen makes the jump over to the MAB team with the same mandate to develop our new homes relationships with the top house builders right across the UK.”
MAB posts double digit growth in revenue and adviser numbers
Revenue increased by 16 per cent to £143m for the year ending 31 December 2019.
The figure comprised £135m from the core MAB business and £8m from First Mortgage Direct, which was acquired on 2 July 2019.
Revenue at the core MAB business grew by 10 per cent. This was driven by an increase in the average number of advisers during the year to 1,293, up 14 per cent.
The total number of advisers across the group had risen by 20 per cent to 1,457 as of 31 December. At the core MAB business, this was a rise of 13 per cent, or 162, to 1,375.
However, the average yearly revenue per adviser at the core business dropped by three per cent. MAB attributed the decline to impacts on the housing market of “continuing political and economic uncertainties associated with Brexit, particularly in the earlier part of 2019.”
The second half of the year saw “improved productivity” compared to H1. MAB added that it expected to generate growth in revenue per adviser during 2020, “irrespective of activity in the broader market.”
This would be driven by a combination of “the UK General Election result and many MAB initiatives including process efficiencies and lead generation supported by technology developments,” it added.
Peter Brodnicki, chief executive at MAB (pictured), said: “We delivered a strong performance despite prolonged political and economic uncertainties throughout 2019. We continue to deliver on our strategy — to grow our market share in all conditions by investing in sustainable growth whilst maintaining a strong financial position.”
“We are capitalising on our protection and lead generation initiatives to further improve performance. And we continue to pilot our new technology platform, with roll-out to a number of appointed representatives (ARs) expected in the first half of 2020. These initiatives are important recruitment drivers for ARs, advisers and lead sources,” he added.
Pre-tax profit for the year was “in line with expectations”. The group reported a balance sheet cash position of £21m, including £7m of unrestricted cash balances.
At year-end, MAB had no drawdown on its revolving credit facility, which was put in place at the time of the First Mortgage Direct acquisition.
Top 10 most read mortgage broker stories this week – 24/01/2020
People moves also held readers’ attention with Martin Schultheiss joining Mortgage Advice Bureau and Damian Thompson’s promotion to director of mortgages at Aldermore.
And of course a potential, or not, base rate cut also drew significant interest along with stress test changes at Nationwide.
More lenders likely to follow Nationwide easing remortgage stress tests – analysis
Santander ups rates as Barclays and TSB make reductions ‒ round-up
‘To raise standards we need to address broker remuneration’ – analysis
Base rate cut could bring ‘difficult decisions’ for lenders – analysis
Martin Schultheiss set to join MAB
FCA pushed to set timetable for solving mortgage loyalty penalty
MP tells Sainsbury’s Bank not to sell mortgage book to unregulated lender
FCA did not analyse 80k mortgage prisoners in arrears – exclusive
Bailey: FCA’s regulation focus has shifted to smaller firms
Aldermore seeks director of mortgages as Thompson promoted
Martin Schultheiss set to join MAB
Schultheiss (pictured) spent 12 months at SBG and was chief operating officer before taking the role as group MD.
He was also the managing director of The Unlimited, a South African financial services firm, for six years and prior to that he was chief executive of the Africa division of global real estate group Harcourts International.
MAB chief executive Peter Brodnicki said he was delighted that Schultheiss had chosen to join the MAB team.
“With so many exciting plans for the business, Martin’s experience and skills are just what we need to help ensure we deliver the MAB vision as and when planned, and by doing so delivering maximum value to our appointed representative partners, advisers, and customers,” he said.
“He has high expectations which I like, is extremely focused on delivery, and totally gets how important developments in technology and business models are for MAB and the whole intermediary sector,” he added.
Schultheiss added: “It is a real privilege to be joining the Mortgage Advice Bureau leadership team. MAB is a highly respected business across our industry and has a proven track record of delivering exceptional value to the customer and its adviser base.
“The culture and mindset of the business keeps it at the forefront of innovation, while maintaining excellent values and relationships at its core. I am looking forward to working with great people and achieving great things for our customers and advisers while also having some fun.”
Schultheiss will join MAB on May 4.
‘I’d like to build an enviable reputation in the advice market’ – Jarvis
Jarvis has held senior sales positions with Santander, Accord and most recently Pepper Money among others throughout her 20 years in the industry.
Having also tested the waters in the advice sector six years ago, Jarvis says she felt the time was right to move on from the lender side of the industry and set up her own brokerage.
“I always wanted to have my own business, I thought it would be later in my career, but I felt like there were lots of opportunities not to be missed by doing it sooner,” she says.
“I loved the national sales role and met so many people and made friends in industry, but it was long hours with lots of travel and nights away from my family and I was tired then when I was at home.
“So now is definitely the right time.”
Aiming to recruit
Jarvis will be basing herself in a local estate agency in Buckinghamshire which will serve as her initial source of leads, along with the contacts she has built up throughout her career.
She already has her mortgage advice qualifications and believes experience from a wide range of lenders will help her to develop and grow the business quickly and successfully.
“My plan is to recruit a mortgage and protection adviser within a year to be based in the estate agency full time while I concentrate on growing other lead sources and assisting my own clients,” Jarvis continues.
“Having worked for a top five high street lender, a building society and also specialist lenders, my knowledge is second to none so I would like to be known as a mortgage specialist in my local area.
“I know what lenders look for, exactly how to package a case and what it requires to get it through quickly.”
She adds: “If I can’t get a mortgage through then I don’t think there will be a lender for it.”
Jarvis’ ambitions do not end there – she is hoping to get a second adviser and administration support within the next couple of years.
Aware of the growth within the later-life lending market, once fully settled in and writing a good volume of business Jarvis also plans to take the equity release qualification to further explore that sector.
Jarvis has joined Mortgage Advice Bureau (MAB) to get started and, along with having a good working relationship with the senior team already, cites the training available as a key part of her decision.
“I’m excited to eventually be part of the MAB family at long last after working closely with them over the years, albeit from a lender partnership perspective,” she says.
“They don’t treat you like a network does – it’s about the quality of the advice and protection advice too, making sure customers are adequately protected.
“My daughter will be assisting with administration and customer support, so she may even take a liking to our wonderful industry and look to train through the MAB academy to become an adviser.”
The focus on protection advice is close to her heart as she has already lost two friends this year in their forties.
“You never know what’s going to happen so I fully understand and believe in the need for protection advice,” she adds.
‘You can’t be complacent’
As with the changing role of the advice industry nationally, Jarvis is not going to be restricted to her clients in the local area.
Following the MAB approach of wanting to be able to offer every single customer in the UK the option of online, face-to-face or over the phone, Jarvis wants to do the same.
“Naturally from my career I know a lot of people around the UK so I want to be able to offer my service to anyone around the country – whatever method the customer wants,” she adds.
And she plans to practice what she previously preached, pledging to keep up with the industry changes and learning as the market develops.
“You can’t be complacent,” she continues.
“As a salesperson I used to tell brokers not to be complacent, if you’re going to see a business development manager (BDM) make it a specialist, and make sure you keep your specialist market knowledge up.”
So despite the daunting task of building a business and the hard work ahead, Jarvis is positive and enthusiastic about making the step to the broker side.
“I’m quite excited, really raring to go and just can’t wait to see my first customer. I’ll be working long hours but doing it for myself.
“When I left, Pepper said I have an enviable reputation in the lender market – I’d like to have that as a broker too,” she concludes.
MAB integrates GI offer into Midas Pro system
The new service, B&C Instant Quote, will provide buildings and contents insurance quotes and “buy now” options to brokers within the MAB Midas Pro system.
The two insurers’ own technologies for intermediaries — L&G with SmartQuote and Uinsure with Buy Now — will be integrated into the MAB platform.
The service aims to stop advisers needing to ask a series of questions to which customers may not know the answers, such as what type of locks are fitted in a house.
“We’re extremely pleased to partner with L&G and Uinsure. General insurance is an important market for us and using technology to enhance customers’ and brokers’ experience is a priority. B&C Instant Quote really improves adviser productivity in this area,” said Andy Walton, protection proposition director at MAB.
“Mortgage advisers have a vital role to play in raising awareness of the importance of home insurance and ensuring homeowners are properly protected. However, after a lengthy mortgage application process, we know that arranging insurance is not always a top priority for many homeowners,” Simon Hird, director of broker and intermediary, L&G, said.
“That’s why we’re making it easier to include home insurance as part of the mortgage advice journey. We’re committed to supporting advisers and integration with MAB is a further step to achieving this,” Hird said.
The Uinsure platform aims to produce binding general insurance quotes with no questions at all.
“We’ve set out to transform adviser general insurance sales with our zero questions user journey and focus on advice. The ease of generating a quote is vital to giving brokers time to advise,” said David Smith, chief innovation officer at Uinsure.
Mortgage market ‘consistent’ in October – MAB
According to Mortgage Advice Bureau’s (MAB) National Mortgage Index, the average purchase loan in October stood at £174,544, a nominal decrease from September’s £175,454 but a 2.2 per cent increase on the £170,799 seen in October last year.
The average purchase price for a residential property was £246,758 in Oct 19, a reduction of 0.7 per cent from £248,560 in September. However, this was a two per cent year-on-year increase from £242,035.
The average salary for those buying a property in October was £36,888, while the average applicant age was 36.
For buy-to-let purchases, the average age was 42 years, with 43 years for a residential remortgage and the average first-time buyer applicant was 31-years-old.
The average remortgage loan in October was £176,674, broadly similar to September’s £176,008 but a 2.4 per cent increase on last year’s £172,616.
Some 98.3 per cent of remortgage customers opted for fixed rate products while the typical loan to value (LTV) was 57.2 per cent.
The average property value for a remortgaging customer was £309,062, a 1.3 per cent increase on September’s £305,226 and a 1.1 per cent increase on last year’s £305,551.
Buy to let
A typical buy-to-let purchase loan dropped slightly as in October, the average was £123,899. This was a 0.8 per cent decline on last month’s £124,901 and a sharper 3.78 per cent decrease on last October’s £128,770.
The average purchase price for a buy-to-let property also dropped by 0.5 per cent to £177,148 from last month’s £178,049.
Nearly all buy-to-let borrowers went for a fixed rate product in October with 98.6 per cent choosing this option. This was unchanged from September.
The average loan for a first-time buyer in October was £161,379 – not too different from September’s £161,859 but a 4.95 per cent year-on-year increase on last year’s £153,390.
Some 99.4 per cent went for a fixed rate product, up from the 97.4 per cent of first-time buyers who chose fixed products in September.
The typical LTV was 73.3 per cent, a moderate increase on the previous month’s 72.5 per cent and only slightly lower than last October’s 74.2 per cent.
The average purchase price for a first-time buyer fell 1.3 per cent from £233,674 to £220,674 in Oct 19. However, this was a 6.3 per cent year-on-year increase from £206,625.
No huge changes
Brian Murphy (pictured), head of lending at MAB said the “marginal changes” seen at the start of the year continued into October and described this as a positive as the consumer appetite for property was consistent despite ongoing uncertainty.
He added: “The forward momentum we’ve seen for most of this year in many parts of the country was still very much in evidence.”
TMPE2019: Ignore protection gap and focus on your clients – Simply Biz
The protection gap is the estimated amount that British residents are under-insured by to maintain their lifestyles should the worst happen.
Brokers attending Mortgage Solutions’ The Mortgage and Protection Event were told to concentrate on their own penetration rates and the income they could be missing out on for just doing the right thing.
Speaking at the Manchester event, Simply Biz Mortgages chief executive Martin Reynolds (pictured), said: “I think we should ignore that [figure] and you should just look at your own business and what’s my protection penetration rate.”
He urged advisers to consider the option to increase penetration rates and think about what support they might need.
“What can you do about the bit you have control over which is your client bank and get that penetration rate better?” he continued.
Gareth Herbert, sales director of Mortgage Advice Bureau, agreed that the protection gap figure was almost meaningless to advisers.
But he suggested another method of driving greater coverage within the population.
“Also look at income gaps,” he said.
“How much is it costing you for your business to lose out on that income? Look at that gap then that will tell you how much revenue you are missing out on for doing the right job.
“That gap analysis, I always find it quite surprising when I sit with businesses and consult with them and they don’t realise what they don’t know,” he added.