Kent Reliance for Intermediaries. Our underwriters insights on complex cases

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1 Kent Reliance for Intermediaries Our underwriters insights on complex cases 1

2 Helping simplify the most complex cases Complex mortgage cases are on the rise - both in terms of volumes and their importance to brokers businesses. In fact, recent research shows that, for 40% of UK brokers, as many as 1 in 4 of their cases are now complex *, involving either limited companies, property portfolios, ExPats, HMOs, large loans or complex income. Life s always easier when the person at the heart of the process points the way. So we ve worked closely with our underwriting team to give you practical insights and tips that will help you: Understand the most valuable pre-application activities Get complex mortgage applications right first time Avoid common application pitfalls *Broker Census, November

3 Manual underwriting: the key to cracking complex cases Real people rather than machines At Kent Reliance, each mortgage is individually underwritten. That way, if your case doesn t fit our criteria perfectly, we re well placed to explore other options. A single point of contact, from start to finish One of our experienced (and very human) underwriters will take personal responsibility throughout your case - from the agreement in principle to the offer. Depth of knowledge Each member of our underwriting team has an extensive knowledge of balance sheets, business plans, assets & liabilities and property valuations, allowing them to make fully informed decisions on cases. More flexible than an algorithm When it comes to criteria, we look at the case in the round - rather than depending on algorithms and rigid formulae that can hinder approval of complex applications. 3

4 Which lending criteria do you have additional flexibility on? As we underwrite manually, each loan is considered on a case-by-case basis. The underwriting team holds regular meetings with our Credit Committee and Group Chief Credit Officer, to explore how we can make even the most challenging complex case work for brokers. As specialist lenders, we may also be able to offer additional flexibility in certain situations on the following: Income - and sources of income. Applicant s age. Minimum loan size. We ll lower our standard size for good-quality borrowers and properties. Size of loan. Although we handle loans of up to 3m as a starting point, we ll look at applications for more on their merits. Second charge lending. For full details of our criteria and lending policy - simply visit us at krfi.co.uk/lending-criteria or speak to your BDM. 4

5 Useful things to check before you apply Find out how much we re likely to lend using our Buy to Let krfi.co.uk/calculators/buyto-let-calculator or Residential calculators krfi.co.uk/calculators/residential-calculator. View our criteria and lending policy to get a full understanding of the flexibility of our criteria krfi.co.uk/lending-criteria. Check your applicant s chosen solicitor meets the bank s requirements. For Residential, we will require the most recent three months bank statements. If the applicant has more than one account, we will require statements from each account. If your applicant is a portfolio landlord, remember you also now need to submit their Business Plan, Assets and Liabilities, Portfolio Assessment (sent through our online portfolio submission hub) and Cashflow documents. Make sure to have the DDM, Insurance Declaration and Application forms signed and dated by your applicants, as they will be needed to complete your submission. 5

6 Our underwriters top tips for successful applications 1 Supply a background note for the underwriter with your application which spells out any details you think might need additional clarity. Upload all relevant documents at the time of application to save time toing and froing. If your client s residential or income situation is complicated, provide any additional documents (and ideally a note) when you submit the application Check the application Explain any recent rises in client income and how this can be sustained over time. before you submit it, double checking bank statements and commitments match up. Contact your BDM with any questions or concerns you might have about the application. Given we specialise in specialist, your BDM is likely to have practical experience of your clients challenges and will know how to deal with them. 6

7 The FIVE most commonly made errors that delay a complex application 1 Documents not being supplied at the time of the initial application. A checklist of the required documents is available in DPR. Kent Reliance for Intermediaries specialist in complex cases Manual underwriting as standard Key information (e.g. N.I. numbers) being supplied with wrong or missing details. A lack of background accompanying the application giving a context to what you and your client are looking to achieve. Differences between the details in the application later conflicting with what the broker says about the case - causing confusion with underwriters. Numbers not quite adding up (e.g. product fees not being included when rental cover figures are being supplied). More flexible criteria, with the option to go further A proven track record in complex cases Award-winning - Mortgage Strategy Specialist Provider of the year and Best BDM Team