Just an update
Friday
2 May. This week's headlines: nd
Coventry for intermediaries launches Limited Company Buy to Let
Coventry for intermediaries has launched Limited Company Buy to Let mortgages, designed to support brokers working with landlords who choose to hold their properties in a company structure. Available for both remortgage and purchase cases, this new offering provides greater flexibility for landlords looking to expand or manage their portfolios efficiently.
Up to four directors/shareholders can be named on an application and will benefit from an extensive conveyancing panel of over 200 solicitors. Brokers can also take advantage of the Remortgage Transfer Service, ensuring a smooth process for clients looking to refinance their existing properties.
Applications are submitted via MSO, helping brokers save time and allowing them to track and amend cases easily.
To further support brokers and landlords the following criteria changes have also been implemented.
Increased maximum lending exposure to £2.5m, from £2m Landlords can have seven properties with the Society Total portfolio limit expanded to 15 properties
Benefits of multi-property buy-to-let mortgages
for landlords, from Aldermore
Moving multiple mortgaged properties onto a single buy to let deal can offer clear advantages, explains Matt McCullough, Head of Sales & Development at Aldermore.
The last 10 years have seen huge changes for landlords, from George Osborne’s cuts to tax relief on finance to the new Labour government’s Renters’ Rights Bill, and plenty in between. But the scope of the changes over the last decade –including those that meant a higher tax bill for many landlords – has had an impact on the appeal of buy to let as an investment, especially as mortgage rates have risen.
As potential profitability has been dented, we’ve seen more landlords holding their properties in a limited company structure, fewer so-called ‘amateurs’ entering the market, and larger landlords looking for greater yields in specialist sub-sectors.
Many portfolio landlords are also searching for a competitive edge when it comes to their mortgage finance. Savvy property investors, and their mortgage advisers, understand that innovative products, such as a multi-property mortgage, can simultaneously boost their borrowing power while reducing fees and streamlining their administration.
BuildLoan | Your ideal partner for self-build mortgages
When it comes to self-build, renovation, conversion or complex construction projects, traditional mortgage products may fall short, leaving your clients without the support they need to achieve their goals.
This is where BuildLoan excels. With a dedicated broker desk, specialist products, expert support, and an innovative research platform UNICUS, BuildLoan empowers you to deliver tailored, client-focused solutions that align with Consumer Duty obligations.
Accord reduce stress rate to boost your clients mortgage affordability
With immediate effect, Accord have implemented positive changes to our mortgage affordability calculator in response to the FCA’s recent guidance on stress testing.
What’s changing?
Accord have reduced the stress rate in their affordability model and taken the opportunity to review and improve their model, so it can be even more competitive than before. This will ensure it’s the best it can be, leading to a greater borrowing capacity for clients applying for a mortgage.
How will the changes help you?
Accord is committed to supporting your clients facing affordability challenges. This positive change is great news as Accord should be able boost your clients’ mortgage affordability and say ‘Yes’ to more cases – helping you help more clients onto and up the property ladder.
What else do you need to know?
Standard criteria, LTI Limits and LTV limits apply.
What about pipeline cases? Affordability is secured at DIP on MSO therefore applications submitted before 30 April will use the previous affordability model. Applications submitted on or re-run after 30 April will use the new affordability model.
Family-Backed Mortgage
a new way to help your clients
get on the property ladder sooner
Natwest are delighted to announce the launch of their new NatWest Family-Backed Mortgage. This helps first-time buyers to purchase a property with assistance from a friend or family member and get on the property ladder sooner. Boosting your customers mortgage borrowing power: Eligible customers are now able to apply for a joint mortgage with friends or family members, while still purchasing the property in their own name. This is sometimes known as a Joint Borrower Sole Proprietor mortgage. Although there is one owner, the liability for the mortgage is with both parties on the joint mortgage.
Eligibility criteria
Natwest require a minimum income of £20,000 gross per annum for the main applicant owner/occupier. This can be made up of all acceptable income types.
Standard residential mortgage policy rules will apply to all applicants, which includes our eligibility criteria of minimum age of 18 to maximum age of 75.
The non-owning borrower is not limited to family, it can be a friend.
This is not available with mortgage schemes such as Right to Buy and Shared Equity. This is only applicable for Residential Purchase Products. Maximum of 2 applicants: the owner and the non-owner.
A fact sheet must be provided to the non-owning borrower at the point of application.
The non-owning borrower must seek independent legal
Legal and General Proposition Improvements
As part of their on-going commitment to deliver great value and positive outcomes for advisers and their clients, L&G are making some improvements to their proposition.
The following changes, driven by customer, adviser and competitor analysis, improve the quality and breadth of their proposition, helping to ensure future customers are better protected and underline L&G’s commitment to the intermediary market to offer choice and value for customers.
Quote Validity
L&G are extending quote validity period from 90 days to 120 days to provide customers with greater certainty for a longer period, which is particularly beneficial given the increasing time to complete a mortgage. This change will apply to all products, except for Whole of Life Protection and Over 50’s.
Increasing Cover (Indexation)
L&G will allow customers the option to decline increasing cover up to three consecutive times before the benefit is removed. This change helps safeguard against the impacts of inflation and provides more flexibility, ensuring the cover continues to meet the long-term customer needs. This change applies to all increasing cover products for new applications, and L&G are looking to extend this to existing customers soon.
Critical Illness Cover
The changes to Critical Illness Extra and Children’s Critical Illness Extra are below and apply to new applications only
Income Protection
To ensure customers receive the right benefit at claim to match their need, L&G have implemented the following:
Benefit payable at claim
Analysis was shown that some customers receive reduced benefits at claim if their income has decreased by the time a valid claim is made. This reduction occurs because, prior to being unable to work, their income along with any ongoing sick pay arrangements, may no longer support the payment of the full benefit. As a result, customers might receive lower benefits if they are earning less at the time of their claim.
If the difference between the settled amount and the policy sum assured is less than 10%, L&G will not reduce the customer’s monthly benefit, therefore still paying the amount the customer is insured for. If the difference is more than 10%, the monthly benefit will be limited to the amount calculated at claim
This process does not change their Income Guarantee, and they will continue to guarantee monthly benefits if customers are earning less than when they applied as follows:
Employed / Self employed: £1,500
NHS workers: £3,000
This change applies to all new and existing applications.
Income Protection annual reminder
L&G will issue annual reminders for Income Protection policies to remind customers to check their policies and assess whether their benefit continues to meet their needs, specifically checking whether the amount of benefit remains appropriate and does not unintentionally leave them under or over insured.
Fracture Cover
L&G’s Fracture Cover benefit will no longer be available for new customers or renewals. This decision follows Axis Speciality London’s decision to cease all new business and renewals in 2025.
Currently, at this moment in time, L&G are not replacing the Fracture Cover benefit before the exit date. However, they are dedicated to continually enhancing their proposition to ensure the best possible outcomes for customers, partners and advisers.
Transitional Arrangements
Where the changes impact New Business only, these changes will apply from 27 April 2025 onwards.
From 27 April, any pipeline cases with a quote date prior to 27 April 2025 will remain on the old T&Cs as long as:
The policy completes within 90 days of the original quote date
The start date is within 90 days of the original quote date
A final underwriting decision is applied within 90 days of the original quote date
A requote is not performed.
There are four scenarios where a pipeline case may not proceed on original terms and conditions and application must be resold:
The policy does not complete within 90 days of the original quote date
The start date is after 90 days of the original quote date
A manual underwriting decision is applied 90 days after the original quote date
A requote is performed, for example, because the new terms and conditions are required
Legal and General also wanted to remind advisors: Please do not attempt to access OLPC if you are out of the UK – they don’t allow this for security reasons and you will be flagged on a report if you do this.
For any questions, contact your Legal and General BDM.
UsayCompare – Private Medical Insurance made easy
Have you ever wondered what happens when you refer a client to Usay Compare for a Private Medical Insurance quote? Here is a step-by-step guide of the journey!
1. Submit your client's details here.
2. A PMI Specialist from Usay’s Team will aim to call your client the same day (or the next working day if submitted outside of business hours; 9am - 5.30pm Mon - Fri).
3. Their Specialist will take your client through a 15-20 minute quote journey, obtaining all the information needed to make a recommendation.
4. Usay will make an informed recommendation at the end of the call, based on the client’s specific requirements.
5. The client will be emailed a link to a portal to access the full illustration, hospital list and insurer brochure.
6. A call back will usually be arranged within 24-48 hours
7. If the client wants to proceed, Usay do all the hard work for them. No paperwork to fill out; it’s all done electronically over the phone and Usay can secure immediate cover.
8. No payment is taken. Usay set up a direct debit for the first payment to come out 10-14 days later. Documents will be sent directly to the client in the post from the insurer.
It's as easy as that! Usay make the process as easy as possible, both for you to refer and for your clients to obtain a quote and hopefully take out a policy!
The Exeter | Multi ta-da!
The Exeter’s insurance just got even better. Their new multi-benefit plans let you mix and match our income protection and life insurance products – giving more of your clients access to our award-winning cover.
And, their income protection now has an improved fixed benefit option, allowing your client to fix 100% of their benefit up to a maximum of £7,500. Plus, their life insurance is now available as joint or dual life, and offers a beneficiary nomination option, giving your clients more flexibility.
A new experience with The Exeter
From the 28 April you will now have a dedicated contact from The Exeter who will oversee all your new business applications – giving them the same care and attention you do. With one single point of contact, you can expect more personalised support and a better understanding of your business and processes. From the moment you hit apply, to the policy going live, your named contact is there to help.
And for anything else, your Account Manager will still be on hand. From product education to identifying new opportunities – they’ll be there every step of the way.
Look out for an email coming your way with details of your dedicated team!
New to The Exeter? Speak to one of The Exeter’s Account Managers to get started. They’ll tell you what information you’ll need and walk you through the process.
Call - 0300 123 3207 or Email - salessupport@the-exeter.com
After over a decade of maintaining their current policy admin fee (PAF) of £36 for Home and Landlord’s Insurance, Paymentshield have taken the difficult decision to increase the fee to £42 for both Home and Landlord’s Insurance customers. The change to the PAF will come into effect from 1 May 2025. st
The new PAF will be implemented on both new business and renewals. For pipeline quotes, where these are updated/changed before submission, the price will be updated with the new PAF.
Paymentshield understand that just as we are facing the pressure of cost increases, so are your clients, and we’ve therefore tried to keep any increase as low as possible. The increase has been assessed against our fair value framework to ensure it is still delivering good outcomes.
Paymentshield are continuing to develop their insurer panels to optimise their quotability and overall competitiveness, which will also reduce the impact of this increase on both existing and future customers.
FAQs
1.I have an existing quote waiting to be submitted, will the Policy Admin Fee change?
As long as no changes are made to the quote you can submit it and the PAF will stay at £36 for the year, if the quote is changed the new PAF will apply.
2.I have policies that are submitted but need a start date, what happens to these?
You can start these as normal and the fee will remain the same for the customer.
3.Is the updated Policy Admin Fee just for new business?
No, the updated PAF applies to both new business and renewals customers.
4.Does this updated Policy Admin Fee apply to all products?
The updated PAF applies to both panel Home and L dl d d t
