Mortgages

Afford.Mortgage has launched an open banking tool for mortgage brokers. The new platform has been designed to streamline client assessments, reduce application rejections and enhance adviser efficiency. Brokers will have access to instant affordability snapshots, a mortgage readiness assessment, tailored advice and AI document verification. It will also be able to use the mortgage readiness assessment. Afford.Mortgage product manager Andy Thomson says: “In developing our in-house software, we assessed over 5,000 applicants to determine affordability, verify income, and evaluate mortgage eligibility.” “Recognising its potential, we’re now offering this capability to mortgage brokers. Afford.Mortgage shows a clear picture of your client’s finances, making it easier to have honest, fact-based chats without getting drowned down in admin.” “While mortgage advice is indeed an art, integrating the right science can enhance the advisory process, allowing brokers to focus more on client relationships and less on paperwork.” The post Exclusive: Afford.Mortgage launches open banking tool for brokers appeared first on Mortgage Strategy.

Vernon Building Society has joined the lending panel of Connect Mortgages’ broker network. Its intermediary members will now have access to the mutual’s range of mortgage products, including residential lending, self-build and later life, as well as buy to let and holiday let options. The building society has a focus on underserved markets and underwriting complex cases, to help widen homeownership. Vernon Building Society head of mortgage and savings distribution Brendan Crowshaw says: “We have real people individually assessing and underwriting each mortgage so we can say ‘yes’ to borrowers who would otherwise find themselves excluded from mainstream lending. “It means we receive a number of ‘off-panel’ applications, which happened recently with Connect, so we contacted the firm about working together. Crowshaw adds that the network’s “mortgage specialisms complement what we’re able to provide, and it makes sense”. The post Vernon BS joins Connect Mortgages lending panel appeared first on Mortgage Strategy.

The Financial Conduct Authority has appointed Sarah Pritchard to the new post of deputy chief executive to manage the watchdog’s growing workload as it manages new areas while bidding to cut red tape. The regulator says the post been created to reflect its “expanding remit, with the integration of the Payment Systems Regulator, regulation of stablecoin and crypto firms as well as buy now pay later activities”. The watchdog has this month begun its second review of the home loan market this summer. The wide-ranging review will look at “the future of the mortgage market” and assess the industry’s “collective appetite for risk”. It adds that Pritchard (pictured), who joined the body in 2021, will also work on the agency’s international focus, given its role in supporting UK growth and competitiveness. Previously, Pritchard led the body’s markets unit. Before joining the FCA she was the director of the National Economic Crime Centre, part of the National Crime Agency. FCA chief executive Nikhil Rathi says: “Since joining us, Sarah helped bring together our supervision, policy and competition functions and has led some of our most high-profile work, for example, the once-in-a-generation overhaul of the listing rules and landmark work on financial advice and guidance. “Delivering our ambitious new strategy — to deepen trust, rebalance risk, support growth and improve lives — is a collective endeavour and relies on continued reform. “Sarah’s breadth of experience, in both public and private sectors, makes her ideally placed to help me drive this.” Pritchard adds: “The last four years has been marked by significant reform. I am looking forward to working even more closely with Nikhil so there is no let up in the pace of change, and to ensure we have the right relationships, domestically and internationally, to deliver our ambitious strategy.” The watchdog’s workload grew after an exchange of letters between Prime Minister Keir Starmer, Chancellor Rachel Reeves and Rathi in December over cutting red tape to free up grow among City firms, which saw the FCA head outline some 50 proposals. The post FCA appoints Pritchard to new deputy CEO post as reform workload mounts appeared first on Mortgage Strategy.

Building Society heads attended a Downing Street reception this morning as mutuals continue to campaign for higher loan-to-income flow limits to allow them to boost borrowing.  Skipton chief executive Stuart Haire (pictured) and Building Societies Association chief executive Robin Fieth were among the senior figures at a general No 10 meeting for mutuals and co-ops. However, the reception comes as building Societies step up their push to raise lending caps for borrowers.  Under the current LTI rules, set by the Bank of England Financial Policy Committee, new residential mortgage loans are capped at, or greater than, 4.5 times salary to no more than 15% of total home loans a year.    But last week, Nationwide, Skipton and Yorkshire building societies jointly wrote to Treasury Committee chair Meg Hillier “to collectively reinforce” the need for the limit to be raised to 20% from 15% to allow them to lend to more potential homeowners. The letter, dated 5 June, followed evidence given to the committee from the leaders of all three mutuals on 21 May.  Banking body UK Finance has also called for LTI caps to be raised.   In February, Nationwide called for a review of LTI limits, citing its Helping Hand mortgage, which accounted for 23% of Nationwide’s first-time buyer mortgages last year, which had to be curbed in January to stay within regulatory lending rules.   Nationwide director of home Henry Jordan said at the time: “We are at the limits of where we can take this product. We have not named a particular threshold but, if the limit was lifted to, say, 20%, we could fund another 10,000 FTBs over the next year.”  The Financial Conduct Authority launches its second consultation into relaxing the mortgage market this year this month, which its says will be more “wide-ranging” than the paper earlier this summer. However, both Bank of England governor Andrew Bailey and Financial Conduct Authority chief executive Nikhil Rathi told MPs earlier his year that raising LTI limits carries the risk of lifting home repossessions and raising house prices.   The post Mutuals attend No 10 reception amid push for higher LTI limits  appeared first on Mortgage Strategy.

Chorley Building Society has introduced a range of professional mortgages, offering borrowers up to six times loan to income (LTI) ratios. The range includes fixed and variable options, up to 90% LTV on five-year terms. Chorley BS is also offering a ‘low start’ option where the mortgage is available on an ‘interest only’ basis for the first five years. The range includes; Professional Mortgage five-year discount rate – 80% LTV – 5.20% (initial interest rate) Professional Mortgage five-year discount rate – 90% LTV – 5.65% (Initial Interest Rate) Professional Mortgages five-year fixed rate – 90% LTV (fixed until 28.02.2030) 5.29% (initial interest rate) All of the products include a £250 cashback and do not have a scheme fee or application fee. Commenting on the product options head of operations Liz Pearson said: “Our new range of products includes a ‘low start’ option where the borrower pays the ‘interest-only’ for five years. “We know that the first few years forging a new career can be demanding and this ‘low-start’ can help reduce some of the financial pressure a young professional may face, setting up on their own for the first time as their income is increasing over the early years of their career.” She added: “To help brokers understand if this type of mortgage is suitable for their clients, we have developed a new affordability calculator, which will provide a result (for illustrative purposes) to indicate whether their client meets the affordability requirements for our professional mortgage.” The post Chorley BS unveils professional mortgage range at up to 6 times LTI appeared first on Mortgage Strategy.

High house prices, the stress of moving, a shortage of suitable homes and stamp duty were all cited as reasons why homeowners had put moving plans on hold, HomeOwners Alliance reveals. Research from HomeOwners Alliance found that one in five UK homeowners considered moving in the last two years but decided not to go ahead with plans. Of those surveyed, 35% cited high house prices as an obstacle. HomeOwners Alliance explains that house prices have consistently outpaced wage growth, making it increasingly difficult for homeowners to afford the next step on the property ladder. The moving process, which 35% cite as a barrier, is in need of reform, according to HomeOwners Alliance, and suggests it must be part of any serious housing policy. It found that 27% stated a shortage of suitable homes as the reason for not going ahead with moving, while stamp duty was cited by 24% of UK homeowners. For a family wanting to upsize to a home worth £400,000, stamp duty adds £10,000 to the upfront costs. It reveals stamp duty is stopping around 800,000 homeowners from right-sizing. HomeOwners Alliance chief executive officer Paula Higgins says: “Our research reveals a housing market in crisis – not because people don’t want to move, but because they simply can’t afford to.” “With over 800,000 homeowners shelving their moving plans, we’re seeing families trapped in unsuitable homes, unable to upsize for growing children or downsize as they age. While house prices are difficult to control, the government does have levers it can pull and we hope to see this reflected in the Spending Review and the long-awaited housing strategy.” “Stamp duty is acting as a handbrake on the housing market. When a family faces a £10,000 stamp duty bill just to move to a £400,000 home – before they’ve even paid for surveys, legal fees, and removal costs – it’s no wonder a quarter of potential movers are staying put.” “We also need the right mix of homes. Older homeowners need step-free properties, growing families need larger homes, and everyone needs options they can actually afford. Government needs to look at the existing housing stock and how to help people move into homes that better suit their needs.” “Finally, although it may not grab headlines, making the home buying and selling process less of a Russian roulette game and more certain and streamlined would give people the confidence to move.” Last month, Compare the Market found that almost half a million (469,192) homeowners who took out mortgages in 2020 are facing a substantial increase in monthly payments as they come off five-year fixed rate deals that had an average interest rate of 2.11%. The post Homeowners staying put due to house prices, stress and stamp duty: HomeOwners Alliance appeared first on Mortgage Strategy.

Royal London has appointed Setul Mehta to its protection proposition team. Mehta brings experience and strategic insight to the business, having previously worked across a number of senior roles at AIG Life and The Openwork Partnership. He joins Royal London having most recently founded SM Advice, a social media management company. Mehta will be the ‘take to market lead’ for protection and will report to Royal London head of proposition Fi Wynn. Wynn says: “Setul is a great enhancement to our protection team and further strengthens the breadth and depth of talent we have. He will bring new perspective and energy to complement our existing team to help deliver our ambitious plans.” Mehta adds: “Royal London has a powerful story to tell in protection and I’m thrilled to step into this role to bring that story to life, connecting with advisers, their clients, the industry, and the mutual as a whole.” “This role will support closer alignment with our pensions and investments teams, helping to unlock holistic protection advice whilst complementing core client needs, in turn reducing the protection gap.” In May, Royal London Equity Release launched a new broker portal to streamline the case management process for advisers. The post Royal London appoints Mehta to protection proposition team appeared first on Mortgage Strategy.

Standard Life Home Finance will pull out of the lifetime mortgage market, leaving rival more2life to integrate its Horizon equity release range into its own business.   More2life says Horizon loans from 7 July will sit as a separate product offering within its proposition.  The Horizon lifetime mortgage range covers Horizon plans — fee-free and fee-paid — and Horizon Interest Reward, with a 15-year repayment period, for borrowers who commit to set monthly interest payments.  More2life says the decision allows the group to move to “a one-brand structure while retaining the breadth of product offering”.  Standard Life Home Finance says it will no longer offer new lifetime mortgages from 6 July, however, all of its existing customer loans will continue to be managed and serviced by the business. Total annual lifetime lending fell 11.6% to £2.3bn in 2024, from £2.6bn the previous year, according to Equity Release Council data.  More2life chief executive Dave Harris says: “This is a significant milestone for more2life with an integration that not only strengthens our market-leading position, but also reaffirms our long-term commitment to the later life lending sector.  “At a time when operational efficiency and clarity are paramount, we think bringing the Horizon range under more2life will enhance both the adviser experience and market visibility.   “This move means we have a simplified, stronger proposition, whereby advisers can continue to access the fantastic Horizon products with no disruption, and clients will see no change to the excellent service they are accustomed to.  “We will continue to invest heavily in further product innovation, adviser tools, and service excellence, and to support the market in terms of delivering the solutions required for the growing range of homeowners who want and need access to the equity in their homes.”  The post Standard Life Home Finance exits lifetime market in more2life transfer    appeared first on Mortgage Strategy.

Darlington Building Society has launched a suite of five-year fixed-rate products under the Own New rate reducer scheme, offering up to 95% loan-to-value new build mortgages.   Rates start from 4.19% and are aligned with developer incentive schemes, offering either a 3% or 5% contribution.  The mutual says the home loans are available to a wide range of borrowers, including first-time buyers, skilled workers and those on visas.  The Own New home ownership platform, supported by over 150 developers, gives borrowers access to new-build properties across the country — excluding London — with lower monthly repayments.    The mutual says the new product range includes:  Five-year fix – Rate Reducer (3% incentive) at 4.49%  Five-year fix – Rate Reducer (5% incentive) at 4.19%  Visa-specific options cover:  Five-year fix – Rate Reducer VISAs (3% incentive): 4.99%  Five-year fix – Rate Reducer VISAs (5% incentive): 4.69%  The society does not apply a minimum income threshold for 95% LTV applications and places no requirement for a minimum period of UK residency, instead of relying on traditional credit scores.   It adds that it will consider skilled worker visa holders with at least two years remaining on their visa, and spousal visa income is accepted where the joint applicant is a British national, or has indefinite leave to remain.  Darlington Building Society head of intermediary distribution Chris Blewitt says: “Demand for new build homes remains strong, particularly among buyers facing barriers with mainstream lenders, and visa status is one of the most common reasons clients fall outside standard criteria.   Own New founder Eliot Darcy adds: “Affordability remains one of the biggest barriers for buyers, especially as monthly costs stay high and interest rates remain well above historic norms.   “Channelling housebuilder incentives into the mortgage itself, rather than upfront costs, means buyers can access lower monthly repayments from day one.”  The post Darlington BS launches 95% LTV rate reducer products from 4.19% appeared first on Mortgage Strategy.

The Treasury Committee has written to the parent company of Facebook demanding to know why it takes so long for the social media platform to remove illegal content by finfluencers.   Chair Meg Hillier (pictured) asked Meta, “why it has taken you on occasion up to six weeks to respond to a takedown request from the Financial Conduct Authority?” Hillier also asked the company to, “set out the total number of days in aggregate that Meta have allowed to elapse in which posts that the FCA requested to be taken down have remained online?” The letter, dated 3 June, was sent to Meta’s director of public policy Rebecca Stimson. Hillier has asked Meta to reply by 20 June.  The move comes as the Financial Conduct Authority took the lead in an international crackdown on illegal finfluencers, or financial influencers this week. The UK regulator is working with watchdogs from Australia, Canada, Hong Kong, Italy and the United Arab Emirates who this week took action against finfluencers who engage in illegal financial promotions.  The Financial Conduct Authority made three arrests together with the City of London Police and authorised criminal proceedings against three individuals.  In addition, the regulator has invited four finfluencers for interview, sent seven cease and desist letters and issued 50 warning alerts.  The watchdog says its warning alerts will result in over 650 take down requests on social media platforms and more than 50 websites operated by unauthorised finfluencers.  FCA joint executive director of enforcement and market oversight Steve Smart said: “Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.”  The post Treasury Committee writes to Facebook over finfluencer posts   appeared first on Mortgage Strategy.