The Nottingham expands into holiday let

The Nottingham expands into holiday let

 

The building society’s criteria includes lending on up to two holiday lets in England or Wales, with no minimum personal income requirement.

Up to 32 weeks of rental yield will be taken into consideration and the owner is able to use the property for up to 60 days each year.

The deals are available up to 75 per cent loan to value (LTV) and include a two-year fix at 3.55 per cent and five-year fix at 3.82 per cent. Both products come with a £999 fee.

There is also a two-year discount with no early repayment charges and £999 fee at 3.25 per cent.

The Nottingham’s head of mortgage product, Christie Cook (pictured), said: “As we head into summer hopefully our competitively priced range of holiday let products, aligned with our lending criteria, will bring some sunshine to brokers and their customers.

“The challenges and restrictions brought about by the pandemic led many to rethink certain aspects of their lives including how, and where, they take their holidays – with a well-publicised surge in the number of staycations.

“That in turn has created a potential investment and income opportunity for those looking to purchase a holiday rental, so we are excited to be lending in this space.”

 

Know Your BDM: Amanda Miller, The Nottingham

Know Your BDM: Amanda Miller, The Nottingham

 

What locations and how many advisers and broker firms do you cover in your role? 

I’ve recently taken over the London patch, including some surrounding postcodes and cover more than 1,000 firms with 2,500 brokers registered with us currently.   

  

How have you changed the way you establish and maintain a good relationship with brokers in the pandemic? 

The pandemic gave me the opportunity to change the way I worked, and I’ve become much more productive. I now run mortgage masterclasses on teams several times a week on a variety of topics from affordability to limited company buy-to-let. These sessions get great feedback and add value to my brokers. All my brokers are invited, and I then follow up with them individually.   

I also run a weekly session for new brokers who’ve just registered with us, giving them an overview of The Nottingham. This initial contact after registration builds the foundation for a great working relationship. I’m also a stickler for returning broker calls and emails, it still surprises me now when a broker thanks me for calling back. 

  

What personal talent/skill is most valuable in doing your job? 

I think being super organised and thinking outside the box are my most valuable skills. At the end of the day, I’m here to discuss new and complex enquiries with brokers but I also need to be available to brokers who have issues and need somebody who can come up with solutions to problems. 

  

What personal talent/skill would you most like to improve on? 

I think I lack patience sometimes. I want everything doing yesterday and expect everybody else to work at the same pace as me. 

  

Where would you rather be stuck, in bumper-to-bumper traffic or back-to-back Zoom calls? 

Back-to-back Zoom/Teams calls every day of the week. There’s nothing more frustrating than being stuck in traffic and wasting valuable hours, especially when I could be talking to a new broker about the benefits of working with The Nottingham or helping an existing broker with a complex enquiry. 

  

What’s the best bit of career-related advice you’ve ever been given? 

A very wise lady once told me when I first started working in financial services to always treat a customer as you would wish to be treated yourself. That’s stuck with me throughout not just my career but my life. Respect is earned and I’ve always held the philosophy that I’ll respect you if you respect me. 

  

What is the most quirky/unique property deal you’ve been involved in? 

There’s one that stands out for me: the broker was having terrible issues placing a remortgage for some clients who’d built their own house and wanted to remortgage it on to a normal residential.  The issue was the clients had approached their business bank, who agreed to fund the build using a business overdraft. No other lender wanted to touch the remortgage because the funds were to pay back a business overdraft facility. The clients were running out of time as the bank had asked them to repay the overdraft and had given them a deadline to do so. We asked the clients to provide proof that the money was used to fund the build, the offer was issued and the mortgage completed not long after. The clients were so happy they came back to us when they were considering remortgaging their large buy-to-let portfolio. 

  

What was your motivation for choosing business development as a career? 

I fell into the role really. I started out as a mortgage adviser working for a top three lender and saw business development as a glamorous job, which came with a car, no uniform and mobile phone and I got to build lasting relationships with brokers day in, day out. You have to bear in mind that this was in the late 90s when the industry was a very different animal, I’m not sure I’d call it glamorous now. I’ve always loved the fact I’m only responsible for myself and the ability to hit targets is in my own hands. I’m fortunate to work for a lender that values my contribution and allows me to use my creative flair and trusts that I’ll do a great job for them. 

  

If you could do any other job in the property sector, what would it be and why? 

I’ve had the opportunity to do other roles within the property and financial sector but never felt inclined. I love the job I do as it still gives me a buzz every day. Generally, I think if something doesn’t float your boat it’s time to move on and try something new and that philosophy has never failed me. 

  

What did you want to be growing up? 

I used to make my mum and dad laugh all the time, every week I wanted to be something different. I can remember there was a time I wanted to be a mechanic, I think that had something to do with my grandad having a new car and always having the bonnet up tinkering with it. I then had a spell wanting to be a doctor but realised I couldn’t face six or seven years at university to achieve that goal. 

  

And finally, what’s the strangest question you’ve ever been asked? 

Probably this one, I’ve wracked my brains to think of something but clearly my brain lacks the capacity to retain weird questions. 

Specialist lenders and building societies are shaking up the BTL market – Armstrong

Specialist lenders and building societies are shaking up the BTL market – Armstrong

Let’s start with a host of positive shifts from mutuals who continue to deliver a range of innovative solutions to meet ever-changing landlord needs in what remains a buoyant BTL marketplace. 

The Nottingham introduced a series of criteria changes including lower interest cover ratio (ICR) figures and reduced calculation rates for standard BTL and limited company applications, together with the removal of a required minimum income.  

The lender also raised the maximum loan to value (LTV) for lending on flats to 75 per cent (was 65 per cent), removed all Covid-related criteria and withdrew the requirement to see last month’s personal and business bank statements as standard. 

Mansfield Building Society updated its BTL criteria to include an increase in its maximum LTV from 75 per cent to 80 per cent on selected products. The mutual also reduced the minimum age for applicants to 21 and can now accept first-time landlords. If the applicant is not a first-time landlord, the Mansfield can now also accept gifted deposits.  

Newcastle Intermediaries removed the minimum income criteria on its BTL mortgage products in an effort to broaden its appeal to landlords who have lower or non-traditional incomes.  

Borrowers no longer need to meet the £25,000 per annum (£30,000 joint) minimum income requirement on Newcastle Intermediaries’ BTL mortgage products, with affordability instead being assessed on the ICR. Borrowers must be in receipt of an employed, self-employed or pension income. 

Leeds Building Society lessened its stress rate on BTL fixed rate deals for five years or more. The stress rate has been reduced from 5.5 per cent to 4.5 per cent for BTL purchase or remortgage with additional borrowing on longer term fixed rate mortgages. 

 

Specialist lending moves 

From a specialist lending standpoint, West One Loans announced a reduction on the rates of its BTL lifetime tracker range.  

Its Lifetime Tracker Standard W1 is now available at base rate plus 2.09 per cent, previously base rate plus 2.24 per cent. It has also reduced the rate on its Lifetime Tracker Specialist W1 product range with rates now starting at base rate plus 2.34 per cent, down from the previous rate of base plus 2.49 per cent. 

Aldermore launched BTL products for individual landlords and company landlords with single residential investment properties, multi-property individuals and company landlords, houses in multiple occupation (HMO), and multi-unit freeholds.  

For individual landlords with single residential investment properties, borrowers can access a two-year fixed rate at 75 per cent LTV at 3.48 per cent. This is the same rate for company landlords and is subject to a 1.5 per cent product fee. For HMO and multi-unit freeholds, its two-year fixed rate at 75 per cent LTV stands at 3.98 per cent. It also comes with a 1.5 per cent product fee. 

Last but not least, Shawbrook is now offering new BTL mortgage customers with energy efficient properties a discount, or partial refund, of up to 60 basis points on their arrangement fee. New customers will be able to obtain the Energy Efficiency Discount on their arrangement fee when an EPC is produced confirming the property’s rating of ‘C’ or above. 

For new mortgages on properties where the EPC rating improves to at least a ‘C’ during the mortgage term, customers can apply for a partial refund of their arrangement fee, plus the cost of the new certificate (up to £100). 

This reflects a busy month for building societies and specialist lenders and I’m sure there is more to come over the summer months. 

The Nottingham hires BDM while Miller refocuses on London

The Nottingham hires BDM while Miller refocuses on London

Former Coventry Building Society BDM, Richard Goodman, has joined The Nottingham to support brokers in its East Midlands region.

He takes the reins from BDM Amanda Miller, who has moved to help advisers in the London area.

Goodman, who also previously worked for HSBC, Lloyds Group and RBS, said: “I’m thrilled to be here and looking forward to building and growing great working relationships with brokers across the East Midlands. It’s a challenge that really appeals to me.

“I’ve always stuck by a principle of doing the right thing by people and it is clear to me that The Nottingham shares that ethos.”

Miller has worked for over 20 years at the lender, allowing her to hit the ground running in London.

She said: “It’s an exciting challenge. Hopefully my knowledge and expertise will play a key role in supporting London brokers and informing them about our products.”

The society has recently made several additions to its products and services including introducing soft searches at DIP, product transfers via brokers and criteria enhancements to support buy-to-let and limited company BTL lending.

The Nottingham’s national sales manager, Deborah Reeves, added: “We look forward to seeing Richard play a key role in supporting brokers across the East Midlands, as we are sure Amanda will in London too.”

 

 

The Nottingham hires John Eastgate as chief lending officer

The Nottingham hires John Eastgate as chief lending officer

 

In his role, he will build on the mutual’s mortgage proposition. This year the firm has introduced cost-based lending for self-builds, soft credit searches at the Decision in Principle stage and product transfers through brokers.

Eastgate was most recently at Shawbrook Bank, where he worked for around three years. He joined as a managing director for its property finance division and oversaw its commercial and residential mortgage offerings.

Prior to that he worked at OSB, where he was sales and marketing director for nearly seven years.

Before that he worked at Saffron Building Society for around four years as sales and marketing director following Experian Decision Analytics for around five years in a number of roles, including head of banking with senior roles at Broad Vision and Barclays.

Sue Hayes, The Nottingham’s chief executive, said that she was delighted to welcome Eastgate to the society and the creation of the new role “reflects the strategic importance of our plans in the mortgage space as we seek to deliver the best experience to our brokers, customers and colleagues alike”.

She added: “John will build on the excellent work already underway by teams across The Nottingham to keep evolving our lending strategy to support our broker network and ensure we can help as many people as possible fulfil their property-buying goals. With his stellar experience and focus on purpose, I know he will be a fantastic addition to the team.”

Eastgate said that he was proud to have joined The Nottingham at an important time in its history and to be part of a team that is “passionate about driving the building society forward”.

He continued: “I am hugely attracted by the opportunity to help the society grow. Mutuals have a clear purpose – to benefit their members and community. Delivering on this purpose is my primary responsibility and I believe we have a great opportunity to do so through the growth of our mortgage offering.

“I look forward to working with my new colleagues to build upon the strong foundations laid by those before me.”

The Nottingham changes BTL and limited company criteria

The Nottingham changes BTL and limited company criteria

 

The changes, off the back of broker feedback, include lower interest cover ratio (ICR) figures for BTL, and reduced calculation rates for standard BTL and limited company applications.

The Nottingham has dropped its limited company ICR five-year calculation rate to 3.35 per cent, down from 5.5 per cent.

The mutual’s standard BTL ICR is now 145 per cent, down from 165 per cent previously.

The standard BTL ICR five-year calculation rate has also been reduced to 3.45 per cent from 3.95 per cent.

The maximum loan to value (LTV) for lending on flats has been raised to 75 per cent, up from 65 per cent prior.

There is now no minimum income requirement. This was previously £25,000 per year for a single applicant and £40,000 for joint applicants.

There is no longer a standard requirement to see a borrower’s last month’s personal and business bank statements. The Nottingham has also removed all Covid-related criteria, which included things such as a requirement to see three months’ personal and business bank statements, and a cap on lending of 80 per cent annual income for people who had accessed Covid support grants.

Christie Cook (pictured), head of mortgage product at The Nottingham, said: “We’re delighted to bring such positive criteria changes to life, and believe they will make placing buy-to-let, and limited company buy-to-let cases with us more accessible and cohesive for brokers than ever before.

“In turn, it’s a major positive for their customers and is the latest step in us providing competitive and practical products, services and processes in the BTL space.”

 

Nearly half of deposit-ready FTBs lack mortgage knowledge – Nottingham BS

Nearly half of deposit-ready FTBs lack mortgage knowledge – Nottingham BS

The Nottingham Building Society’s survey of 1,023 adults in the UK, including 160 who expect to buy their homes in the next five years, found 15 per cent knew nothing about mortgages and 31 per cent said they knew very little. 

The understanding around the need for a sufficient deposit was acknowledged by respondents. Some seven per cent said they wanted to raise a deposit of 30 per cent of more, 21 per cent said they wanted their deposit to cover a fifth of their potential property’s value and 36 per cent aimed to raise a deposit of at least 10 per cent. 

Only 13 per cent of respondents said they were aiming for a five per cent deposit. 

According to the poll, eight per cent of respondents have at least £50,000 saved while 13 per cent have between £20,000 and £50,000. 

Almost a third have saved up to £999 so far and 48 per cent have accumulated between £1,000 and £20,000. 

When arranging a mortgage, 18 per cent said they would only consider going to their main bank or building society. Around 38 per cent of respondents said they will use a whole of market mortgage broker and 31 per cent said they planned to use an adviser who was recommended to them. 

Iain Kirkpatrick, chief customer officer at The Nottingham, said: “It’s encouraging to see that so many of those planning to buy their first home understand the importance of having a healthy deposit.    

“However, it is concerning to see so many admit they don’t know enough about mortgages generally, and how to find the best deal. Seeking independent advice from an expert adviser can be the key to understanding more and could also save thousands of pounds in repayments.”   

The Nottingham introduces product transfers through intermediaries

The Nottingham introduces product transfers through intermediaries

 

The process will be digitised and once a broker is verified they will gain access to a client’s mortgage information before they proceed with an application. 

The mutual said brokers would be paid for successful applications from July and said further details would be shared in time. 

Iain Kirkpatrick (pictured), chief customer officer at, The Nottingham, said: “The broker community have been asking us for this, so we are delighted to respond to their feedback. 

“We’re keen to ensure that with the introduction of broker product transfers we also bring to life a digitised process to make things as efficient as possible. Brokers can be safe in the knowledge that after the fixed rate period they will be able to place product transfer business with us.” 

“We know brokers work hard to have strong and lasting relationships with their clients, so paying them a fee if the customer remains with The Nottingham as a result of their help and advice is a really positive step forward,” he added. 

The Nottingham launches fee-free five-year fixes

The Nottingham launches fee-free five-year fixes

 

This follows the addition of two-year fixes above 80 per cent LTV earlier this month. 

The five-year fixes are available at 90 and 95 per cent LTV. Cashback options are purchase only and all four deals are fee-free.

The 90 per cent LTV product comes with a 2.79 per cent rate, and there’s a £500 cashback option with a rate of 2.89 per cent. 

At 95 per cent LTV, there are two products, one with with a rate of 2.98 per cent, and one with £300 cashback at a rate of 3.05 per cent.

Christie Cook, head of mortgage products at The Nottingham, said: “A week ago we introduced new two-year residential mortgages and are quickly following that up with a refreshed five-year fixed offering. 

“It’s important that as well as having competitive rates we offer good choice for people, whatever their property aims. To that end we are delighted to launch a product range that provides options for those looking to fix rates for five years.” 

The Nottingham launches high LTV two-year fixes

The Nottingham launches high LTV two-year fixes

 

These include a fee-free 80 per cent LTV option with a rate of 2.65 per cent.  

There are also three products at 85 per cent LTV. The first has no fees and a rate of 2.68 per cent, the second also has no fees, offers £350 cashback and has a rate of 2.8 per cent. The third has a £999 fee and a rate of 2.43 per cent. 

There are two fee-free deals at 90 per cent LTV, one with a rate of 2.76 per cent and another with a rate of 2.96 per cent including a £500 cashback incentive. 

At 95 per cent LTV, the £999 fee-paying mortgage has a rate of 2.82 per cent, while the fee-free option with £500 cashback has a rate of 3.16 per cent. 

None of the fee-paying products require upfront payment. 

A free basic valuation is available on all products, which are also all portable. Paid legal fees are available for remortgage customers, with cashback products available on purchase only. 

The mutual said the mortgages will be suitable for first-time buyers due to the competitive rates. 

Christie Cook (pictured), The Nottingham’s head of mortgage products, said: “We’ve unveiled a range of higher LTV options we hope will appeal to people with smaller deposits. 

“It’s well documented how tough it is right now for first-time buyers, as well as many others, to achieve their property ambitions. As a lender we are keen to ensure we continue to bring competitive products like these to market. 

“We also know that following the pandemic many people are re-evaluating their situations and looking to remortgage onto cheaper deals whilst they consider their future, which is another reason for us to remain agile with our offering.”