The Distributor. May 2014 FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY.

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1 The Distributor May 2014 FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY.

2 Contents Dear Members, Welcome to the May edition of our newsletter. It s been a very interesting month for buy to let. Indeed, while the residential mortgage sector has been dealing with the onset of Mortgage Market Review regulation, the buy to let industry has been grabbing the headlines thanks to some very significant criteria changes. Santander s decision to offer buy to let mortgages to selfemployed applicants was a hugely significant move for the lender and the sector in general as it demonstrates the Spanish banking giant s intention to become a leading player in the buy to let market. With almost every other lender offering buy to let mortgages to self-employed borrowers, this was a move Santander had to take in order to compete with the sector s major lenders. If Santander continues to take steps like this the market will get very exciting indeed. And of course, The Mortgage Work s decision to implement an age cap on its buy to let lending at 70, but increase its maximum term to 35 years, has grabbed a lot of headlines with many commentators claiming this along with the changes to pensions announced in this year s Budget will allow more people to use buy to let as a form of retirement income. So an exciting month all round! Large Loan Reductions 3 Short Term Loans Exclusive Rates 4 6 Expat Deals Ying Tan Ying Tan Managing Director Club The Distributor 2 10

3 Large Loan Products Kent Reliance has released a specialist large loan product range for limited companies, HMO s and student lets! Loans available from 1million to 3million. See table below for full product details... Rate LTV Fee ERC Product Code 4.39% 2 year discount 75% 2% None BTLLS % 2 year fixed 75% 2% 4% 3% BTLLS01 All standard large loan products have been reduced by up to 0.20%. Rates start from 4.19% with 1.5% arrangement fee. FOR THE FOR THE USE USE OF OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. ONLY. This technical document is is for intermediaries only. It It should not not be be shown, given given or or distributed to existing to existing or potential or clients. clients. It is It is not not an an advertisement for the purposes of the Consumer Credit Act Act Details Details correct correct at time at time of going of going to press. to press.

4 Did you know that Shawbrook Bank can offer your clients light and heavy refurbishment short term lending? Light Refurbishment (STL4) 0.73% per month 0.83% per month Upto70%LTV Upto65%LTV Mixed Use Light Refurbishment (STL5) Heavy Refurbishment (STL6) All short term lending 0.89% per month Maximum 18 month term Up to 70% LTV 1.95% arrangement fee Examples of light refurbishment Examples of heavy refurbishment Redecoration throughout Replacing facilities Central heating Electrics Extension Loft conversion Internal reconfiguration Change of use FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer Credit Act Details correct at time of going to press.

5 Have you tried Aldermore Commercial? We do not charge a packaging fee. 0.75% procuration fee. Rates available for residential and commercial investment, mixed use or trading businesses. Available to individuals and limited companies. Up to 70% loan to value. 1.75% arrangement fee for variable rates. 2.5% arrangement fee (plus 500 booking fee) for 3 year fixed rates. Arrangement fees include 0.5% commitment fee on acceptance of the formal offer. Maximum 10 year interest only term. FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer Credit Act Details correct at time of going to press.

6 Our Exclusive & Semi Exclusive Products BUY TO LET EXCLUSIVE 2.69% 2 Year Discounted Rate Revert to lender s SVR of 5.64% Maximum 60% Loan to Value Rental cover of 2.69% 999 arrangement fee Free valuation up to 1,000,000 No Early Repayment Charge BUY TO LET EXCLUSIVE 3.75% 5 Year Fixed Rate Revert to lender s SVR of 5.64% Maximum 75% Loan to Value Rental cover of 3.75% 3,750 arrangement fee Free valuation up to 1,000,000 5% ERC in year 1, 4% ERC in year 2, 3% ERC in year 3, 2% ERC in year 4 and 1% ERC in year 5 BUY TO LET SEMI-EXCLUSIVE 2.84% 2 Year Fixed Rate Revert to lender s SVR of 5.99% Maximum 75% Loan to Value Rental cover of 5% 2,495 arrangement fee 130 booking fee Minimum loan of 100,000 Maximum loan of 300,000 2% ERC in year 1 and 1% ERC in year 2 BUY TO LET SEMI-EXCLUSIVE 2.99% 2 Year Fixed Rate Revert to lender s SVR of 5.99% Maximum 75% Loan to Value Rental cover of 5% 2,495 arrangement fee 130 booking fee Free valuation Minimum loan of 100,000 Maximum loan of 300,000 2% ERC in year 1 and 1% ERC in year 2 Club The Distributor 6

7 More Exclusive & Semi Exclusive Products SECOND CHARGE SEMI-EXCLUSIVE 0% interest Equity share of the uplift Up to 85% LTV in total Maximum 20% LTV with lender 1% arrangement fee 5% ERC in year one Call us for more details PORTFOLIO FINANCE SEMI-EXCLUSIVE Initial rate of 2.25% to 4% above industry 3 month LIBOR, currently 0.508% (Rate is subject to negotiation and dependent on serviceability and security) Maximum term of 5 years Maximum LTV of 65% for repayment Maximum LTV of 60% for interest only Rental cover is 125% of capital and interest payment based on a notional base of 2.5% plus margin 0.5% commitment fee (payable on acceptance of the offer and refunded on completion) 1.5% arrangement fee (can be added to the loan) No fees are charged for partial capital repayments if the security is undisturbed BUY TO LET SEMI-EXCLUSIVE 3.59% + 3 month LIBOR up to 65% LTV (Min. LIBOR of 0.75%) 3.99% + 3 month LIBOR up to 75% LTV (Min. LIBOR of 0.75%) Rental cover of 5% Maximum 3 year term Loan size of 75,000 to 250,000 1,999 arrangement fee Loan size of 250,001 to 500,000 3,500 arrangement fee 1% ERC for the term BUY TO LET SEMI-EXCLUSIVE 4.89% 2 Year Discounted Rate Revert to lender s SVR of 6.58% Maximum 85% Loan to Value Rental cover of 5% 2.5% arrangement fee 130 booking fee No Early Repayment Charge BUY TO LET SEMI-EXCLUSIVE 4.99% 2 Year Fixed Rate Revert to lender s SVR of 6.58% Maximum 85% Loan to Value Rental cover of 5% 2.5% arrangement fee 130 booking fee 4% ERC in year 1 and 3% ERC in year 2 Club The Distributor 7

8 Lender Panel & Procuration Fees Lender Product Type Gross Fee Net Fee 0.50% 0.45% 0.50% 0.48% & 0.45% 0.40% Commercial 0.75% Min 10,000 Max Min 9,000 Max & Commercial Additional Borrowing & Product Transfers 1.25% 1.00% 0.43% 0.41% BTL 2nd Charge 2.00% 1.50% Bridging Finance 1.75% 1.50% 0.37% 0.32% & Commercial 1.50% 0.75% 0.50% 0.35% 0.45% 0.30% 0.50% 0.40% Club The Distributor 8

9 Lender Panel & Procuration Fees Lender Product Type Gross Fee Net Fee 0.42% 0.32% 0.37% 0.25% 0.42% 0.40% 0.32% 0.30% Bridging 0.45% 0.32% 0.60% 0.60% 1.75% 0.40% 0.30% 0.50% 0.50% 1.30% All Products 0.40% 0.38% Up to 1 mil loan 1 mil to 5 mil loan *All fees are subject to change 5 yr fix + 50% of arr. fee* 0.50%* 0.50% 0.33% 0.40% 40% of arr. fee* 0.40%* 0.46% 0.32% 0.36% 0.60% 0.30% BTL & Commercial Bridging Finance 1.50% 1.95% 0.75% 1.00% 0.44% 0.39% Bridging Finance 1.20% 1.00% & Flexible Mortgages Rate Switches 0.34% 0.20% 0.32% 0.18% Club The Distributor 9

10 How to place your expat cases Don t let go of your expat cases...they re not as hard as you may think! Things to find out about your client... Where do they live? Is it a sanctioned country? Who do they work for? Is it a multinational company or Government body? How are they paid? What currency? Do they own a property in the UK? Do they have a UK bank account? Call us today on to discuss any potential applications! FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer Credit Act Details correct at time of going to press.

11 Contact Us Suite 1.1 Coliseum Building, Riverside Way, Camberley, Surrey, GU15 3YL Business Development Manager Contact your dedicated Business Development Manager, Cat Armstrong, by calling , or Our Partner Charity The Ollie Young Foundation is a charity dedicated to finding a cure/prevention for brain tumours. With 120 different types of other brain tumours, it is the biggest cancer killer of children. The Ollie Young Foundation also supports local hospices and organisations that helped to support the Young family during their tragic ordeal. Please take a few moments to look at their website and find out a bit more about young Ollie and his family We have set up a JustGiving page and we would appreciate if you could help us raise as much money as possible for this incredible charity! Images in this months issue have been supplied by Club The Distributor 11