TML reintroduces HMOs and MUBs; LendInvest ups max LTV – round-up
TML has confirmed to Mortgage Solutions that it is now able to conduct valuations on houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).
This has allowed the lender to begin accepting new applications for these property types again.
Last month TML introduced desktop valuations which enabled the lender to consider LTVs up to 75 per cent on new and pipeline cases but certain property types were excluded, including HMOs and MUBs.
TML sales director Steve Griffiths (pictured) said: “We’re delighted that we’re now able to offer physical valuations for HMO and MUB buy-to-let applications in England as the market begins its slow return to a new normal.
“Our team have worked hard to support brokers by offering higher LTV and desktop valuations throughout the crisis, and it is great to see how the industry is working together to provide workable borrowing solutions for buy-to-let landlords while ensuring the safety of our teams.”
LendInvest has updated its buy-to-let product range and increased the maximum LTV to 75 per cent as valuations resume.
Two-year fixed rates start at 2.99 per cent available up to 65 per cent LTV and 3.29 per cent up to 70 per cent LTV, with a maximum loan size of £750,000.
The lender has also reintroduced its five-year fixed rate at 75 per cent LTV product, which will be available at a rate of 3.99 per cent.
Affordability is calculated at an interest cover ratio (ICR) of five per cent against the total gross loan amount, and the lender has adjusted its definition of small HMO to six bedrooms.
LendInvest director for buy-to-let Andy Virgo said: “It is encouraging to see the housing industry start shifting safely back into gear this week, and the team are primed and ready to hit the ground running with this new refresh to our product range.”
TML appoints Peter Beaumont as CEO
Beaumont (pictured) joined the lender in 2017 as its deputy CEO. Trevor Pothecary, founder of TML, has also been appointed executive chairman.
Pothecary said: “Peter has done a fantastic job since he joined The Mortgage Lender in 2017 and continues to provide strong and decisive leadership as we navigate through the current market challenges.”
Beaumont added: “When we announced the anticipated changes to the leadership team in February the world was a very different place. Since then the team at The Mortgage Lender has made me very proud as they have adapted and found new ways of working, like the introduction of remote valuations for buy-to-let applications.
“We are working hard behind the scenes to understand the impact of coronavirus on people’s finances and how that shapes the products and criteria the market will be looking for over the remainder of this year and into next.”
TML adds desktop valuations on BTL deals
Desktop valuations are available up to 75 per cent loan to value (LTV) on new and pipeline cases but certain property types are excluded, including houses in multiple occupation (HMO), new build and multi-unit blocks (MUB).
Property values up to £1m outside or M25 or £1.5m inside M25 will be considered, while brokers should contact the lender on prime central London properties above £1.5m.
These changes, which go live on 27 April, only apply to its buy-to-let offering – its residential proposition remains on hold after it was suspended in March due to the coronavirus hitting capital markets.
Earlier this month TML capped its buy-to-let lending at 75 per cent LTV and increased rates.
In a communication sent to brokers, TML said: “We will be utilising desktops where possible, whilst the government’s current measures around Covid-19 are in place that mean physical valuations are not possible.
“Where a property is not suitable for a desktop assessment or automated valuation model (AVM), we will put the case on hold until government advice allows valuers to begin physical inspections again.”
TML sales director Steve Griffiths said: “Landlords’ business hasn’t stopped because of the current crisis.
“It is now more important than ever to ensure they have products that can deliver access to funding so they can manage their portfolios.
“With the new purchase market effectively on hold, facilitating pipeline purchases and remortgages are key to ensuring brokers can continue to support their clients and in turn provide them with much needed cash flow during this challenging period.”
The excluded property types are:
- HMO and MUB
- New build properties built in the last 24 months
- Properties with more than four bedrooms
- Studio flats
- Flats in blocks with over six storeys
- Flats with suspected cladding
- Properties with more than two acres of land
- Listed buildings
- Modern methods of construction
- Leases with less than 85 years remaining
- Properties above or adjacent to commercial premises
TML increases BTL rates and caps lending to 75 per cent LTV
Rates now start at 3.39 per cent for 70 per cent LTV individual and limited company applications on a two-year fix.
Homes of multiple occupancy (HMO) and multi-unit blocks (MUB) rates start at 3.64 per cent for a two-year fix at 70 per cent LTV.
The five-year fixed rates for the same LTV are 3.65 per cent for individual and limited company applications and 3.75 per cent for HMO and MUB applications.
Peter Beaumont, deputy chief executive of The Mortgage Lender, said the changes made to its buy to let range were in response to “current market conditions”.
He also said TML had made progress in implementing remote valuations and was in the process of developing an end-to-end remote app which would take applications from the offer to completion stage while keeping to social distancing rules.
“Alongside working hard to look after our people and adapt our buy to let products to meet the needs of brokers and their clients, we have been humbled by the resilience and support of our partners during this challenging period,” he added.
The lender paused residential mortgage applications in March due to capital market funding concerns.
TML pauses residential applications amid capital markets uncertainty
It is the latest in a line of non-bank lenders to scale back mortgage offerings as a direct result of the coronavirus impact on financial markets.
The lender will continue to accept buy- to- let applications however, as the funding for these mortgages are not dependent on capital markets.
TLM is also exploring further use of desktop valuations (AVMs) in view of the government’s social distancing instructions.
Peter Beaumont (pictured), deputy chief executive of TML, said: “It is right for us to pause residential applications at this time. Our staff are focused on supporting our customers and business partners in the coming weeks.
“All staff are now working remotely and we are collaborating to maintain health and wellbeing as we get used to new ways of working. Our teams are also actively supporting customers who are impacted by Covid-19 at this challenging time.”
He added: We are continuously reviewing our forbearance policies to make sure we are doing everything we can, this includes the option of payment holidays for up to three months, in line with the recent government announcement.
“We will provide regular updates for our customers and partners over the coming weeks.”
Know Your BDM: Charlie Stack, The Mortgage Lender
What locations and how many advisers and broker firms do you cover in your role?
I cover the Midlands area which stretches as far north as Stoke-on-Trent, down to Oxford. I work with around 1,100 registered broker firms.
How do you establish and maintain a good relationship with brokers?
My job is to make the broker’s role easier and that means going that extra mile. Especially when you’re dealing with complex cases you need to be able to be able to work in close partnership with brokers and think outside the box to find a solution for their borrowers.
What personal skill is most valuable in doing your job?
Being reliable is so important in this industry. Brokers need to be able to rely on you and feel confident that you’re going to make their job easier – not more difficult. I really enjoy working with people and that helps too.
I guess I must be doing something right, because I’ve just found out that I’ve been nominated for the British Specialist Lending Awards as a Rising Star.
What personal skill would you most like to improve on?
I never want to stop learning and gaining knowledge of the industry. That’s important for my job satisfaction but also vital to the brokers I work with too.
What’s the best bit of career-related advice you’ve ever been given?
It was from our head of sales, David Eaves. He said you should treat everyday as a day to learn, and that’s so important because the industry does not stand still, it’s always changing – as are the needs of borrowers and the challenges brokers face.
What is the most memorable property deal you’ve been involved in?
I handled a case last year – it was for over a million pounds and because of the complexities involved I worked with the broker to find a solution for the borrower which took several months. It was a challenging case, and pretty much all of our team got involved. The broker was impressed by the patience and perseverance we showed and over the moon when we found a solution for them.
If you were head of the FCA for the day, what would you change about regulation in the mortgage industry?
To help more first-time buyers onto the property ladder. Last year I bought my first home, but a lot of my friends are struggling. They come to me for advice and a bit of a moan about how difficult it is.
What was your motivation for choosing business development as a career?
My first business development role was with a utility company. Although I enjoyed the sales side of the job, it was phone-based and I needed more interaction with customers. I hadn’t really considered financial services until it was suggested to me by a family friend who took me under his wing and acted as a mentor. The rest, as they say, is history and I’ve never looked back – it’s the perfect job for me.
If you could do any other job in the property sector, what would it be and why?
To be a national account manager at The Mortgage Lender. That’s my next step up.
What did you want to be growing up?
A professional footballer. I was lucky enough to play for my team, West Bromwich Albion as well as Derby County and Burton Albion.
If you could have one superpower, what would it be?
To have superhuman strength – it seems like it would be a useful (and impressive) superpower to have.
And finally, what’s the strangest question you’ve ever been asked?
I don’t think I’ve had any really strange questions as a BDM – yet. But personally, the strangest is being asked to take part in not one, but three, Crime Watch re-enactments.
TML reduces rates and makes changes to BTL range
The revised range has a variety of fee options including percentage fee, fixed fee and fee-free options.
Rates start from 2.83 per cent for a two-year fixed at 70 per cent loan to value (LTV) with a 2.25 per cent completion fee. There is also a five-year fixed with a 3.19 per cent rate, down from 3.33 per cent, also at 70 per cent LTV, with a 2.25 per cent completion fee on standard properties.
Houses of multiple occupation (HMO) or multi-unit block (MUB) properties have rates starting from 3.34 per cent for a five-year fix, down from 3.54 per cent, or 3.08 per cent for two-year fixed. Both are at 70 per cent LTV and both have a 2.5 per cent completion fee.
TML also has a new five-year fixed large loans product for applications over £500,000 at 3.29 per cent for 70 per cent LTV and 3.39 per cent for the 75 per cent LTV.
The lender has extended its limited company £500 cashback product to individual, HMO and MUB applicants.
Its free standard legals product has also been extended to limited company applicants as well as individuals, HMO and MUBs.
The lender has also increased the multiple application window for portfolio landlords to six months during which they will not have to pay an additional application fee. Furthermore, they can benefit from a reduced completion fee through the Portfolio Multi Loan product.
Steve Griffiths (pictured), sales director of The Mortgage Lender, said: “The buy to let market is competitive across pricing, criteria and product.
“These changes address all those elements by reducing our rates, simplifying our product range and aligning our pricing for individuals and limited company applicants.”
Buy-to-let shake-up: Mansfield BS adds limited company as TML extends lending threshold
Mansfield Building Society has launched limited company buy to let loans, which includes options with and without personal guarantees.
At the same time, The Mortgage Lender (TML) has increased its overall lending threshold from £2.5m to £5m and removed the cap on the number of portfolio properties it will lend on.
Mansfield offers limited company
In its new limited company proposition, Mansfield BS is focused on non-trading limited companies that exist solely for buying, selling and letting residential property.
The society will accept companies with up to four UK based directors or shareholders.
Expats are excluded but purchasing or remortgaging a UK holiday let on the limited company products is accepted up to 70 per cent loan to value (LTV).
Applications with a personal guarantee are available up to 75 per cent LTV and those without are capped at 65 per cent LTV.
The new deals are available on a two-year discounted rate of between 3.49 per cent and 3.99 per cent, and come with a free basic valuation.
National development manager Paul Lewis, said: “Over recent years landlords have been impacted by changes in tax law, with many seeing a considerable reduction in their net income.
“As a result, a growing number are now choosing to set-up limited companies to take advantage of the preferential tax treatment.”
TML enhances criteria
As well as increasing its overall lending threshold, TML has raised the maximum loan for individual properties from £2m to £3m.
And the lender will accept refinance applications within six months of the initial purchase.
Feedback from distribution partners and directly authorised brokers have driven the changes, TML said.
The Mortgage Lender will also now accept applications for properties on Anglesey and the Isle of Wight and lend on houses in multiple occupation (HMOs) that are leasehold flats.
TML sales director Steve Griffiths said: “The criteria enhancements reflect what our broker partners have told us is important for them and their clients.
“It is only by having close relationships and being involved in the conversations about borrowers and properties that fall outside normal lending criteria that we are able to respond in this way and change how we operate to better meet the needs of brokers and their clients.”
TML appoints two former Metro Bank BDMs
Kaylee Foley joins as business development manager (BDM) for the North West and Anum Mahmood joins as BDM for the geographical area of Home Counties North.
Foley joins from Metro Bank where she was a BDM and brings 14 years of financial services experience to the role. She has also worked at RSC New Homes and Co-op Bank.
Mahmood also joins from Metro Bank where she was a BDM. She has worked in financial services for the last seven years including roles at The New Homes Group and Alexander Hall.
They will manage broker relationships in their territories and focus on supporting lending in the areas TML serves. These include buy to let, the self-employed, impaired credit and complex incomes.
David Eaves (pictured), head of sales at The Mortgage Lender, said: “Kaylee and Anum both join our sales team at an exciting time. They both add valuable experience to the team, and we’re delighted they have joined us.”
TML launches specialist new-build proposition
Products are available up to 85 per cent loan to value with a five per cent builder incentive or deposit also accepted, across all seven of its lending categories.
Rates start at 2.45 per cent for a two-year fixed rate at 70 per cent loan to value.
The existing Help to Buy range has also been enhanced with 80 per cent loan to value Help to Buy Scotland products added. In this range, rates start at 3.20 per cent for a two-year fixed rate.
Steve Griffiths, sales director at The Mortgage Lender, said: “We recognise that new build is different to the rest of the market and we know specialist new-build brokers need a bespoke proposition that is suitable for their clients.”
TML also instructs the free valuation after the initial underwriting process in order to speed up the offer, it said.
Stacey Wood, PMS national new-build and surveying relationship manager, added: “It’s fantastic to see The Mortgage Lender enhancing their new-build proposition alongside launching a dedicated new-build support service, which is something that many of our members will find extremely useful.”
This year it launched Help to Buy residential mortgages and its first buy to let remortgage product. It also completed its first UK mortgage-backed securitisation of residential assets for £238.5m.