FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only.

Transcription

1 The Distributor September 2013 Strategic Partners Case Study Enhanced Proc Fees Brand New Lenders FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not ot be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer er Credit Act Details correct at time of going to press.

2 Contents Dear Members, I hope you all had a fantastic summer and are raring to go for the new season. For me, September always represents a new start as the new school year begins. It's very easy to rest on your laurels once you've achieved success, and this sector has certainly had a successful few months with figures showing buy to let lending reached 5.1bn in Q2 this year, but I don't believe we're in any danger of becoming complacent. Indeed, the general consensus across the industry is that the sector is going to continue growing (and our figures certainly back this up). Of course, following the economic meltdown of the last few years, it s understandable that some industry commentators are concerned by what they view as a 'boom' in the buy to let sector. Former chancellor Lord Lamont recently voiced his concerns about this, stating if the boom gets out of control we could be heading for another disaster. I don't see this being the case. The buy to let industry has had it tough over the last three or four years and nobody wants to see a return to that. Nor do we want to see a return to the type of irresponsible lending that occurred before the credit crunch. Lenders and brokers have shown great resilience this year as well as creativity, innovation and a desire to see the sector move forward in a responsible and sustainable manner. I predict great things for buy to let over the next 12 months and I'm excited to be part of it! We'll continue to bring you exclusive deals and offers, not to mention all the advice and assistance you need, as well as keeping you up to date with industry news and developments. In the meantime, I hope you find this newsletter useful and informative. Proc Fee Increases! Forever Growing Lender Panel Commercial Options 9 Case Study See you next month! Ying Tan Ying Tan Managing Director The Business MC The Business Mortgage Club The Distributor 2

3 Strategic Partners We are now Strategic Partners with Shawbrook Bank! Key benefits to our club members Enhanced Procuration Fees Enhanced service levels Advanced preview and marketing of products Call us today on or us at 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.

4 Shawbrook have further enhanced their lending proposition by launching a semiexclusive Vanilla range for experienced landlords. Their Vanilla range is only available to a select few mortgage clubs, and we are one of them! Packaged cases only - we do not charge a packaging fee! Call us today on or us at mortgageclub@thebuytoletbusiness.com to discuss any potential cases. Key Criteria Must have owned and let at least one mortgaged property for a minimum of 1 year. Minimum age of 21 years (start of term). Maximum age of 75 years (end of term). No minimum income requirement. Maximum term of 3 years. Maximum loan of 500,000 per property. Maximum borrowing of 2,500,000. Clients must show on voters roll and have a home landline number. Up to 65% LTV 66% to 75% LTV Loan Size Term Options 75k to 250k 3.59% + LIBOR* 3.99% + LIBOR* 251k to 500k 2 or 3 years interest only * Shawbrook adopt a minimum LIBOR rate of 0.75% Arrangement fee Rental Cover 1,999 5% 1% for term 3,500 5% 1% for term ERCs Proc Fee 0.30% FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not ot be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer er Credit C Act Details correct at time of going to press.

5 Lender Panel & Procuration Fees Lender Product Type Gross Fee Net Fee 0.50% 0.45% 0.50% 0.48% All products 0.45% 0.40% & Commercial 0.75% 0.40% Min 10,000 Max Min 9,000 Max & Commercial Additional Borrowing & Product Transfers 1.25% 1.00% 0.43% 0.41% Bridging Finance 2.00% 1.00% 0.35% 0.30% & Commercial 1.00% 0.75% Residential 0.50% 0.35% 0.45% 0.30% 0.50% 0.40% The Business Mortgage Club The Distributor 5

6 Lender Panel Continued... Lender Product Type Gross Fee Net Fee Residential 0.42% 0.32% 0.37% 0.25% 0.40% 0.40% 0.32% 0.30% Residential 0.35% 0.32% 0.33% 0.30% All Products 0.40% 0.38% Up to 1 mil loan 1 mil to 5 mil loan *All fees are subject to change Residential Residential 5 yr fix 50% of arr. fee* 0.50%* 0.50% 0.33% 0.50% 40% of arr. fee* 0.40%* 0.46% 0.32% 0.46% 0.60% 0.30% BTL & Commercial 1.50% Bridging Finance 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% The Business Mortgage Club The Distributor 6

7 Exclusive Rates BUY TO LET EXCLUSIVE 2.69% 2 Year Discounted Rate Reverts to lender s SVR of 5.64% Maximum 60% Loan to Value Rental cover of 2.69% 1,250 completion fee booking fee (Arrangement fee can be added to the loan but must not exceed max LTV) Free valuation for properties valued up to 1,000,000 No Early Repayment Charges BUY TO LET SEMI EXCLUSIVE 4.34% 2 Year Tracker Rate up to 65% LTV 4.74% 2 Year Tracker Rate up to 75% LTV 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% Early Repayment Charge for two years 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 BRIDGING EXCLUSIVE From 1% per month Maximum 70% Loan to Value 295 admin fee audit fee Loan sizes of 30,000 to 1,000,000 Available for 1st and 2nd charges 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 The Business Mortgage Club The Distributor 7

8 Key Partner We are now Key Partners with InterBay Commercial, the lender with a client specific approach to lending! Packaged cases only and we do not charge a packaging fee! Key Criteria Loans considered up to 5 million. Minimumtermof2years. Maximum term of 30 years. Loan are available to individuals, limited companies, trusts, LLPS and partnerships. Excluded property types Heavy industrial, equestrian centres, hostels, bedsits, religious properties, petrol stations, agricultural properties, public houses, catteries/kennels, golf clubs, mobile home parks, garden centres, telecommunication masts and hospitals etc. Standard Commercial Loan size 55% LTV 65% LTV 70% LTV 75% LTV Fee Rental ERC 75,000 to 1,000, ,000, % 5.00% 5.50% 5.25% 5.75% 5.50% Semi-commercial Loan size 55% LTV 65% LTV 70% LTV 75% LTV Fee Rental ERC 75,000 to 1,000, ,000, % 4.95% 5.00% 5.00% InterBay adopt a minimum LIBOR floor of 0.75%. 5.20% 5.00% 6.25% 1.7.% 6.00% (0.25% on offer) 5.50% 1.7.% 5.25% (0.25% on offer) pay rate pay rate 5% for 5 years then 1% for life of loan 5% for 5 years then 1% for life of loan Product range also available for residential investment properties, including HMOs. 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.

9 Recent Case Study Bridging Loan for High Value Development A semi-experienced borrower, with one buy to let property in the background and some experience of developing properties, bought a plot of land in London with the vision of building a high value residential property made of glass with a steel frame. They began the build using their own funds, to produce a water tight shell of the property. The property is not habitable or lettable in its current state and extensive work is needed to complete the property. Based on the architects drawings, planning permissions and surveyors comments, West One have offered them bridging finance at a cost of 1.4% per month, on a staged drawdown to complete the build. The funds will be released in three instalments, which ensures the client isn t paying interest on the funds that he does not yet require. This will give the borrower comfort in knowing further funds are available when required, subject to the property value at each stage. The broker originally approached a different provider who is not currently a member of our lender panel. They agreed the case initially and then declined at a later date. If you wish to discuss any complex cases, ple ease call us on , or us on mortgageclub@thebuytoletbusiness.com The Business Mortgage Club The Distributor 9

10 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 other 120 different types of 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 olliesstory.html 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 month s issue have been supplied by The Business Mortgage Club The Distributor 10