TML ups max LTV for BTL capital raising
It noted that many were using the current market environment to add properties to their portfolios.
The LTV rise means there are no limits on the amount of capital a landlord is able to raise in England, Scotland and Wales through a remortgage up to 75 per cent loan to value.
The facility is available across its core product range. Rates for a five-year fix start at 3.49 per cent and its two-year fixed rate products start at 3.13 per cent.
TML sales director Steve Griffiths (pictured) said: “Recent process enhancements and increased resource in our new business teams has allowed us to increase capacity to support this key area, as it is clear that, for most landlords, their plans have not changed, indeed many see it as an opportunity to add properties to their portfolios.
“Whether capital raising is for business investment, to buy a new property, improve an existing property or refinancing, it’s important we have the right combination of criteria and rates to support their plans.
“Increasing the capital raising loan to value to 75 per cent demonstrates our ability to react to market conditions and is the right decision for us, brokers and landlords right now.”
3mc director Doug Hall added: “It’s encouraging to see The Mortgage Lender responding to this competitive segment of the market by increasing its capital raising loan to value.”
Landlords have been focussing on managing and increasing portfolios – Griffiths
Mortgage payment deferrals, non-physical valuations, and other changes to our world came thick and fast.
While reduced lender capacity and appetite had an immediate and longer lasting impact on the residential sector, it quickly became clear that landlords’ focus was on the best way to manage and increase their portfolios.
Even though the possibility of house price deflation is a concern, other recent indicators give investors a more positive outlook.
Homelet recorded a yearly rise in rent of 1.1 per cent in June and Goodlord’s Letting Activity tracker jumped 18 per cent on completed lets in June compared to last year as pent up demand for new homes over lockdown translated into confirmed tenancies.
Advisers and lenders have certainly been kept busy by their landlord customers in recent weeks.
According to Twenty7Tec search volumes for buy-to-let products on their sourcing systems jumped by nearly 50 per cent between May and June as England opened up for physical valuations and were eight per cent higher than the number of searches in March this year.
Our own figures show the same trend.
Between February, the last full month before lockdown, and June this year we saw a 116 per cent increase in the number of applications and a 165 per cent increase in the total value of those applications.
As well as a healthy return to form for BTL, the increase in applications also highlights the agility of newer lenders.
In tough market conditions those that are able to step up with product availability and service delivery have an opportunity to develop new and existing intermediary relationships and maybe challenge the status quo – ultimately leading to healthier competition and better choice and outcomes for brokers and their clients.
If the latest figures we are seeing are indicative of the market as a whole they prove landlords can weather the storm and see the next buy-to-let normal as an opportunity.
Landbay expands BTL range as TML cuts fees
Landbay is increasing its maximum loan-to-values (LTVs) to 75 per cent as it reintroduces physical valuations.
The lender’s range will start from 3.39 per cent and it will also lend on large and small houses in multiple occupation (HMOs) of up 12 units, multi-unit freehold blocks (MUFBs) and new build properties.
Physical valuations resumed last week with these now available on all new buy-to-let applications.
Landbay added that it was also working through its pipeline of loans from applications received throughout the lockdown.
Managing director of intermediaries Paul Brett (pictured) said brokers had been looking for higher LTV deals.
“It has been our aim throughout this challenging period to be a supportive force for brokers and to be a steady presence in the market,” he said.
“And, due to our diversity of funding we have fortunately been able to continue lending throughout the whole of the last two months.
“This range will now help to give something more to our brokers and their clients, who are keen to remortgage or keep investing in the buy-to-let market.”
TML cuts fees
The Mortgage Lender has reduced completion fees on buy-to-let loans of more than £500,000 to 0.5 per cent and to 0.75 per cent for loans of more than £750,000.
Reduced fees are available for individual, limited company and HMO/MUB applications up to 75 per cent LTV with rates starting at 3.59 per cent for a five-year fix at 70 per cent LTV.
It resumed physical valuations in England in May and is offering desktop valuations for the majority of buy-to-let properties in Scotland and Wales.
The Mortgage Lender sales director Steve Griffiths said: “Reducing the completion fee on landlord loans over £500,000 provides brokers and their clients with better value in an important area of the market which has seen a reduction in lenders and products during the recent crisis.
“Larger loans can present more complex scenarios so our business development team are on hand – virtually – to help brokers with any cases they want to discuss.”
Legal & General Mortgage Club head of lender relationships Danny Belton said: “As we start to return to a more normal market with physical valuations now available, it’s great to see lenders providing products that meet the needs of landlords who want to invest in this area of the market.
“At a time when income could be challenged, a reduction in fees is very welcome.”
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 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
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.
Beaumont promoted to chief executive at The Mortgage Lender
In his new role, Pothecary will retain executive responsibility and accountability, as well as providing “strategic oversight of the business and supporting and challenging the chief executive”.
Beaumont (pictured) joined the lender in 2017 as deputy chief executive and last year witnessed a record performance of the company.
Last month TML reported a 10 per cent boost to its monthly record for decisions in principle.
Founder and outgoing chief executive Pothecary said: “Peter has done a fantastic job since he joined us just over two years ago.
“He has identified new opportunities, differentiated the brand with ‘real life lending’, launched buy to let and overseen exponential growth in lending and the team.
“When we set up The Mortgage Lender in late 2014 the intention was to build a strong sustainable business, we have and continue to do just that.”
Beaumont added: “I’m delighted to be taking on this challenge at a time when the hard work of the last couple of years is paying dividends and The Mortgage Lender is going from strength to strength.
“By adding skills and expertise to the team and investing in relationships with our broker partners we’ve successfully created a niche for our real-life lending ethos by focusing on products that will meet the needs of today’s borrowers.
“We have ambitious lending targets for this year, have started the year strongly and are on track for another record year.”
The Mortgage Lender last year completed its first UK mortgage-backed securitisation of residential assets for £238.5m.
TML adds onsite underwriter at TFC Homeloans
Haley is the third onsite underwriter for the lender and joins Jemma Pugh based at 3mc and Diane McLoughlin at Dynamo.
For the last six years Haley worked as a mortgage adviser at the Co-operative Bank having previously been an underwriter with the business for five years.
The Mortgage Lender head of national accounts David Eaves said: “Having Katie on board, with her experience of advising on and underwriting mortgages is a great asset for The Mortgage Lender and TFC Homeloans.”
Haley added: “I wanted to get back into underwriting and work with a company that is less corporate. The team at The Mortgage Lender and TFC Homeloans have made me feel very welcome.
TFC Homeloans director Andrew Brown added: “We are delighted to have Katie here at TFC – she is part of our growing team of onsite underwriters and has fit in perfectly.
“At a time when TFC and the specialist market in general are in high growth, having onsite underwriters is key in ensuring consistency of decisions and quick turnarounds for our advisers and ultimately their clients.”
TML removes DSS lending restriction from buy-to-let criteria – exclusive
Peter Beaumont, deputy CEO at the Mortgage Lender said: “I was very pro the changes from day one but we had to go through the process. No one individual makes a solitary decision in our business, so we went through the risk analysis and reached a decision as quickly as we could.”
Research in May this year suggested most lenders had reviewed and changed their lending policies on accepting DSS tenants, including NatWest, after a high-profile campaign, covered in Mortgage Solutions, spearheaded by landlord Helena McAleer and supported by Mortgages for Business last year.
Family BS states it does not lend to landlords with DSS tenants on lending policy but director of business development Keith Barber, said its underwriters make exceptions to policy when appropriate on a case by case basis.
Barber said: “We make the point to them that we will listen to their clients’ ‘story’ and will be happy to lend when this makes sense. This approach seems to be welcome and our lending volumes have been growing, though our buy-to-let (BTL) lending represents just about 0.3% of the market.
State Bank of India was unavailable to confirm or deny its lending policy on DSS tenants.
The Mortgage Lender appoints Steve Griffiths sales director
He starts at the lender next week on 8 July after 18 years with Kensington, lately as sales and distribution director.
Griffiths started his career with HSBC 30 years ago ’ and he has been tasked with increasing lending and forging closer relationships with The Mortgage Lenders’ distribution partners.
Griffiths won Business Leader of the Year in the complex credit category of the British Specialist Lending Awards.
The Mortgage Lender’s chief commercial officer Keith Street said: “Attracting someone with Steve’s ability, track record and enthusiasm underlines TML’s position as a lender that is going from strength to strength.
“Our plans include making it easier for brokers to deal with us through greater digital integration and an increase in dedicated business development support. Steve is the right person to lead our expansion and we’re delighted he is joining the team.”
The Mortgage Lender sales director Steve Griffiths said: “TML is a lender that is doing things differently and making a difference to the specialist lending sector. It has a strong management team with a proven track record and is gathering momentum with its first securitisation this year and new build and specialist buy-to-let product developments.
“In today’s market, advisers need wide ranging, clear criteria catering for the everyday issues they encounter when cases don’t fit mainstream lenders and TML offers just that. It’s an exciting time to join the team and I’m looking forward to a period of hard work that will deliver exceptional growth for the business and our intermediary customers.”
This year, the Mortgage Lender 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.