Broker Toolkit Guide

Transcription

1 Ulster Bank Retail Mortgages Broker Toolkit Guide Sharing the knowledge helps learning, allows for development and enables us help our customers

2 Mortgage toolkit functionality and quick checklist: What can the toolkit do? o calculate customers income and pension contributions o derive an affordable and sustainable mortgage for the customer o establish if the customer is eligible for a CBI exception

3 Buyer Type (PDH) Self Build (PDH) Buy to Let (BTL) Description Applicant(s) who is/will be living in the property Applicant(s) who is building their own property and will be living in the property Applicant(s) who is/will be renting out the property or the property is/will not their primary dwelling home (i.e. holiday home) Buyer Type Mortgage Type Loan Amount Property Purchase - First Time Buyer Property Purchase - Non FTB Further Advance Equity Release (No Existing Mortgage) Remortgage [External Switchers] Remortgage with Further Advance [External Switchers] An applicant to whom no mortgage has ever before been granted to previously. If the applicant seeking the mortgage is more than one person and one or more of these persons has previously been granted a mortgage, this is not a first-time buyer application. An applicant who is purchasing a property and is not a first time buyer An existing UB mortgage customer who is increasing their existing UB mortgage and has sufficient equity in their property. The additional Borrowing is typically used to fund significant expenditure such as home improvements and may also be used to refinance debt although specific conditions may apply in these cases A borrower with sufficient equity in their property and no existing mortgage, releasing equity - typically to fund significant expenditure such as home improvements although it may also be used to refinance debt. Specific conditions may apply in these cases A borrower of another financial institution moving their mortgage to Ulster Bank on a like for like basis A borrower of another financial institution moving their mortgage from that institution to Ulster Bank and also seeking additional borrowing Self Build Self Build First Time Buyer Non FTB An applicant who wishes to build their own home and the funds from the new mortgage will be used for the construction of the property. The applicant is a first time buyer An applicant who wishes to build their own home and the funds from the new mortgage will be used for the construction of the property. The applicant is not a first time buyer

4 Buy to Let Buy to Let Buy to Let Buy to Let Buy to Let Property Purchase Further Advance Equity Release (No Existing Mortgage) Remortgage [External Switchers] Remortgage with Further Advance [External Switchers] An applicant who is purchasing a property with the purpose of renting it out (including holiday homes) An existing UB mortgage customer who is increasing their existing UB BTL mortgage where the funds are typically used for improvements on the BTL property. Short-term debt may also be incorporated within the mortgage, subject to compliance with detailed conditions A borrower with sufficient equity in their BTL property and no existing mortgage, releasing equity - typically to fund significant expenditure such as property improvements although it may also be used to refinance debt. Specific conditions may apply in these cases A borrower of another financial institution moving their BTL mortgage to Ulster Bank on a like for like basis A borrower of another financial institution moving their BTL mortgage from that institution to Ulster Bank and also seeking additional borrowing 1 Customer Details Enter their personal details 2 Date of Birth Date of Birth this is referenced in the toolkit; ensure it is right 3 KYC Select Yes to confirm you have completed the KYC checks 4 Marital Status Select applicants current marital status

5 1 Employment Status Select applicants current employment status 2 Expected Retirement age Enter age at which applicant expects to retire (max 66) 3 Time in business If prompted - Enter duration in business (self employed only) 4 Reduction in Income declaration Select Yes if applicant expects income to reduce in the next 5 years 6 Income and Pension Calculator 7 Income Details For applicants with multiple sources of income click on link to open table to assist in calculating gross incomes and total pension amounts 1. Select if single or joint applicant 2. Enter incomes 3. Press calculate 4. Select Copy Applicant 1 Data to Clipboard 5. Return to Toolkit & paste data into text box (by right clicking in text box and selecting paste) 6. Repeat steps 4 and 5 for Applicant 2, if applicable Enter the full gross amounts of relevant income details, for each applicant.. The toolkit will apply relevant discounts as per policy when determining affordable max lends

6 1 Dependents Enter the number of Child dependents & adult dependents 2 Child care Enter if child dependents(s) are in full time of part time care or select from drop down menu alternative child care arrangements and input further comments in proposal 3 Pension Contribution Enter the Total amount being paid 4 Local Property Tax Automatically calculated based on the Property Value entered 5 Additional Commitments Select from dropdown menu all relevant commitments Credit Cards Child Care Costs Other Mortgages 6 Customer Declaration 1 7 Customer Declaration 2 Enter the Total outstanding Balance for all credit cards Enter child care contribution for alternative child care arrangements, where relevant If applicant has other mortgages add the associated local property tax, property service charges, buildings insurance where relevant Ask the applicant(s) if they are up to date with all payments in respect of cards, loans, mortgages and then select the appropriate answer Ask the applicant(s) whether they have ever been declared bankrupt or have entered into an individual arrangement or similar proceedings and then select the appropriate answer

7 1 Total Savings Enter Applicant(s) TOTAL savings 2 Average monthly savings Enter the average amount being saved monthly - this is used to estimate repayment capacity 3 Average Monthly Rent Enter the average rent being paid monthly - this is used to (FTB only) estimate repayment capacity Enter the maximum amount the applicant(s) are entitled too 4 based on ROS record HELP to BUY The rebate amount is automatically calculated based on the (FTB only) loan amount, this will be nil if the application is not eligible due to being outside the HTB rules 5 Deposit Source Enter all amounts contributing to the deposit Savings Enter savings amount that will be used as part of the deposit this may be lower than the Total Savings amount. 6 Total Deposit The sum of all deposit sources 7 % of purchase price from Savings Automatic calculation savings contribution to deposit divided by the property price

8 1 Display of Mortgage and Buyer Type 2 Legacy Mortgage 3 Loan Amount / Additional Loan amount 4 Property Value 5 Product Rates 6 Term 7 Additional Info Verify correct Enter System and mortgage number of existing mortgage if it is related to this application and will be redeemed i.e. customer intends to sell current property and redeem existing mortgage to buy a new home / redeem existing mortgage and open a new mortgage account Enter the Loan Amount and additional loan amounts being requested - see table 1 over for additional information on mortgage amounts Enter estimated/anticipated Property Value see table 2 over for additional information on self build valuations Select Product Rate from dropdown menu. - If customer wishes to split the loan amount across two products enter value required for 1 rate into split amount 2 field (split amount 1 will auto calculate) - Additional borrowing not eligible for tracker rate Enter the term the max term is determined by the customers date of birth and Enter data as appropriate and adhere to prompts - BTL : Enter expected Rental Income & property location 8 Calculate Select to proceed to view Max Lends

9 TABLE 1 Mortgage Types Existing Mortgage Amount Requested Mortgage Amount Property Purchase - First Time Buyer Loan Amount Property Purchase - Non FTB Loan Amount Further Advance Current Balance on Original Loan Additional Loan Amount Equity Release (No Existing Mortgage) Loan Amount Remortgage [External Switchers] Refinance Amount Remortgage with Further Advance [External Switchers] Refinance Mortgage Amount Additional Borrowing Amount TABLE 2 Self Build Property Valuation Market Value of Site ( ) : A Estimated Construction Costs ( ) : B Estimated Final Market Value of Property ( ): C Base Property Value ( ): PV = Minimum of (A+B) or C

10 1 LTV Total Loan Amount / Property Value 2 New Loan Amount Requested Mortgage Amount 3 Total Loan Amount Existing Mortgage Amount + Requested Mortgage amount - see table 1 on previous page 4 Stressed Repayment All product rates are stressed at appropriate stress rate, at or above the minimum stress rate 5 Property Value This can be used to determine the CBI LTV max lend CBI LTV Max Lend = Property Value times Max CBI LTV% [Max CBI LTV lend for SSB is 128,000 = 160,000 * 80%] 6 Total Gross Income Sum of all gross income, not discounted This can be used to determine the CBI LTV max lend CBI LTI Max Lend = Total Gross Income times Max CBI IM [ 122,500 = 35,000 * 3.5] 7 Policy Affordability PASS is displayed if customer meets policy affordability i.e. all 4 boxes are green; otherwise Fail is displayed 8 Policy Rules Box is Green if policy rule is met; otherwise box is Red 9 Max Lend This is the max lend the customer can borrow against this property value. If a CBI exception is being offered this will be advised in the commentary box. 1. Validate this amount is affordable by re entering this total loan amount in step 4 10 Message Alerts Any additional considerations and warnings will be listed here

11 Double check the following before progressing: 1. The Total Loan amount is not more than the max lend amount being offered 2. All Boxes are green 3. Affordability = Pass 4. No message alerts to adhere too Complete Executive Summary as per guidelines and standardised wording 1 Purpose for Borrowing Clearly outline purpose of request. What type of buyer are they - FTB, (trading up or down), refinance, self-build etc. Single or married? How many dependants? If both applicants are working what are the childcare arrangements? Employment status how long with existing employer, nature of employment local knowledge regarding employer if available. Why are they coming to Ulster Bank if there is no existing connection

12 2 3 Repayment Capacity Account Performance How has income been calculated? If using additional income outside basic show your calculations. (if not clear in step 2 of toolkit) Fully review bank statements for additional commitments e.g. financial commitments, childcare, school fees etc and ensure these are included on the Toolkit. How has repayment capacity been demonstrated e.g. savings build up, payment of rent, existing mortgage repayment etc. Quote amount demonstrated against stressed repayment evident on Toolkit. Review all bank statements comment on profile and don t ignore adverse trends e.g. unpaids, referral charges etc Review for transfers to other accounts and ensure statements are provided. 4 Security 5 Assets/Liabilities 6 Recommendation Advise property details e.g. 3 bedroom semi detached costing 220,000. Advise if property is a new build/not fully completed yet or if works are required to property. If self build advise cost/value of site. If site is gifted ensure name of person gifting site is provided. Outline asset/liability position. Clearly outline source of deposit i.e. Savings advise total amount and source and be mindful of lump sum lodgements where did these come from? Gift advise amount, name of person providing gift and relationship to applicants. Be mindful of tax implications for large gifts particularly where coming from person other than parent. Sale of existing property advise selling price and mortgage outstanding. Is the property on the market? This is your opportunity to sell your customer. Outline both the positives and negatives. Always recommend the application. Review GMS decision for accept/refer/decline decision and warning messages Tip Failed Credit Score Decline: must be referred to Area Manager for their approval to submit request Tip Possible Adverse Bureau ask the question and get customers to provide copy of their ICB if necessary.