Nationwide’s interest-only range is now available to purchases

Nationwide Building Society’s interest-only mortgage range, available through brokers, is now available to those making purchase applications.

The move, designed to offer homeowners more flexibility, follows the society’s decision to re-enter the residential interest-only market for remortgages in April this year following an eight-year absence.

Interest-only lending, offered for purchase and remortgage at up to 60% loan-to-value (LTV), will require a minimum equity of £300,000 in London, £250,000 in the South East and £200,000 across the rest of the UK.

Anyone applying for the interest-only products, which start from a borrowing rate of 1.24%, will need a minimum income of £75,000 for sole applications, or £100,000 if joint.

It is also worth pointing out that the product will come with a maximum term of 25 years, or retirement age if that is sooner.

Henry Jordan, director of mortgages at Nationwide, commented: “Interest only lending remains an important part of the market, especially for those with a good level of equity in their home.

“Since we re-entered the market earlier this year, we have seen good demand from borrowers and are pleased we can now expand our interest only range to purchases as well as remortgages.

“As the UK’s second largest lender, it is natural that we continue to look at ways we can support the mortgage market, including the products we make available through brokers and we hope to expand our range further in the near future.”

 

Lendlord launches new finance hub

Portfolio management platform, Lendlord, has launched its new Finance Hub to deliver bespoke, automated finance recommendations to landlords based on their own personal circumstances and portfolio profile.

The Lendlord Finance Hub provides automated recommendations for a range of financial products including buy-to-let mortgages and remortgages, bridging finance, secured loans, revolving credit for portfolios, commercial finance and landlord insurance.

Lendlord users can immediately access tailor-made recommendations based on the data they have already entered onto the platform and new visitors to the website can receive their own recommendations by completing a questionnaire online.

Aviram Shahar, co-founder and CEO at Lendlord, said: “The launch of the Lendlord Finance Hub is a big step for our platform and great news for our users, who can access tailor made recommendations for financial products based on data they have already entered into the system.”

 

Landbay joins CFB UK network

Landbay has joined the network panel of Commercial Finance Brokers UK (CFBUK).

CFBUK is a whole of market commercial finance broker providing its services to professional introducers through its relationship with several large residential mortgage broker networks.  Through its unique FCA approved, ‘Dual Appointed Representative Proposition’, CFBUK has also established its own network of appointed representative commercial finance brokers, spread throughout the UK.

Under this partnership, Landbay will provide mortgages for large houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) at rates usually only seen on residential mortgages. CFBUK members will also be able to access lower fees.

This is the second network partnership Landbay has agreed in under a month, with Landbay providing an increasing number of buy-to-let solutions to commercial finance brokers who are looking for lower interest rates and lower fees for their portfolio landlord customers.

Landbay’s large HMO mortgages will be available for buildings with between six and 12 rooms. Landbay HMOs are also available for student lets.  It will also provide ‘day one buy-to-let remortgages’ for borrowers exiting a bridging loan.

CFBUK members will be able to offer their clients’ access to Landbay’s free title indemnity insurance.

Paul Brett, managing director of intermediaries, at Landbay, said, “With speed of the essence at the moment we are bringing our competitive range of buy-to-let mortgages to CFBUK, a brokerage and network that truly understands the need for tailored underwriting combined with speed to offer.

“CFBUK is an outstanding network for commercial finance and specialist and larger buy-to-let mortgages and we are pleased to provide our highly competitive range of products combined with low fees to its introducers and members.”

 

Just Mortgages to launch new wealth division

Just Mortgages is to launch a new wealth division in January called Just Wealth.

In this brand-new venture, Just Mortgages, part of the Openwork network, will invest in the futures of the mortgage brokers, by providing the training necessary for them to become wealth advisers.

Each adviser will be self-employed and so will have the autonomy to run their own business, but will benefit from guidance, supervision and compliance – in addition to having all of their training fully paid for.

It is looking for 15 potential wealth advisers to join before January. Mortgage brokers interested will initially join Just Mortgages self-employed division.

The training will be provided through an academy, in partnership with Openwork. Just Wealth and Openwork will cover the entire fees for the course worth an estimated £10,000. In addition, Just Wealth will provide compliance, support, supervision and coaching.

The course is the equivalent to a one-year degree and advisers will complete the CII Diploma in Regulated Financial Planning to become Level Four qualified in investments and pensions.

It will require three days a month of study over a 12-month period and Just Wealth will provide all of the training manuals and materials needed to pass the course successfully.

The course will be entirely online to enable brokers to complete it while being Covid secure, but will revert to being face-to-face once it is safe to do so.

Carl Parker, national director of the Just Mortgages self-employed division, said, “We already have thousands of clients getting expert mortgage advice from Just Mortgages advisers and by establishing a wealth division, we can also offer them exceptional wealth management.

“The advisers who join Just Mortgages Wealth Division will have all the benefits of being self-employed, being free to work when and where they want to. However, they will also be supported by the Just Wealth team, with compliance, all the backing they need and the benefits of being part of a team while running their own operation. They will also be provided with leads from our Just Mortgages client database, as well as being able to find their own leads.

“We have ambitious plans for this division, as there is a growing need and demand for good quality investment and pensions advice that sits alongside mortgage and protection recommendations.   We also have a huge database that has been previously untapped and the wealth managers who join in January will be first in line to benefit from this.”

 

Leek United joins Paradigm’s lender panel

Leek United has joined Paradigm Mortgage Services’s panel of lenders. It means the building society’s member firms will be able to access Leek United’s range of residential and buy-to-let mortgages, which are available to clients including first-time buyers, older borrowers looking for lending into retirement and landlords.

Leek United offers residential products up to 85% LTV and its buy-to-let products are available to landlords including non-homeowner buy-to-lets and first-time investors.

John Coffield, head of mortgages at Paradigm Mortgage Services, commented: “A number of building societies have been at the forefront of developing products for niche sectors over the past few years, and Leek United is certainly one of the leading lenders in terms of providing a wide range of product options across both the residential and buy-to-let sectors.

“The focus here is on the individual needs of the borrower and looking at every case on its merits, whether these are residential purchasers, those looking to remortgage, or buy-to-let landlords of all different hues.

“We are very pleased to be bringing Leek United on board and believe our member firms will find plenty of product options, particularly for those client types who are slightly outside the norm.”

 

Key workers to benefit from new partnership

Mortgage Advice Bureau has teamed up with Blue Light Card, a nationwide discount card for NHS workers, emergency services, the social care sector and armed forces, in order to offer its members fee free mortgage advice.

A Blue Light Card allows emergency service staff to gain exclusive access to a range of deals.

Peter Brodnicki, chief executive of Mortgage Advice Bureau, commented: “It is fantastic to be able to offer this service to key workers and be associated with Blue Light Card.

“Finding the right mortgage or moving home can be stressful so through this partnership, our advisers will support emergency services staff through the whole application process as well as find the most suitable options for them.”

Alex Dalby, head of partnership development at Blue Light Card, added: “It is really important that we provide our members with access to nationally recognised brands and give them plenty of choice. I am sure all Blue Light Card holders will very much benefit from the range of mortgage deals MAB has access to.”

 

NatWest introduces buy-to-let changes

NatWest Intermediary Solutions has made key changes to its buy-to-let range including increasing the applicant’s maximum age from 70 to 80 and reducing the interest coverage ratio from 135 to 125 for basic rate taxpayers.

For applications where the term goes beyond the customer’s retirement age only the rental income from the property being purchased or remortgaged will be used. This affordability assessment applies to either one or both customers.

In terms of interest coverage ratio, letting agents fee costs will be factored into the background calculation for these customers.

Rental income will no longer be used to achieve the minimum eligibility criteria of £25,000 per annum. All other sources of acceptable income will remain the same.