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Recent News

 

16.08.2017
What’s in store for the mortgage lending market for the rest of 2017? – Part 3

At just over the halfway point of 2017, it’s worth taking stock to see where the mortgage market is and what contemporaries think is in store for the remainder of the year. The third question in this four part series addresses whether the thought leaders we quizzed felt house prices will continue to fall.

According to the Halifax House Price Index, house prices fell 1 per cent in June. Do you see this trend continuing?

There was a strong groundswell of opinion from our experts that the Halifax House Price Index no longer carried the same scale of reliability it once had, with Ray Boulger of John Charcol saying: “I take little notice of the Halifax Index because since Markit took it over only the manipulated (or seasonally adjusted to use the technical term) figures are published and these are misleading and Halifax’s numbers are notoriously volatile.” And as James Drury of Capital Fortune pointed out, as the Halifax Index is “national rather than regional or local, I wouldn’t read too much into them.”

Brian Murphy of MAB added: “The Royal Institution of Chartered Surveyors (RICS) has forecasted annual house price growth at between 2% and 4% for this year, and current figures would suggest that annualised growth is still just above 2%. So while one index may have suggested that house prices may have cooled month on month, there are other reliable independent industry bodies which suggest that actually, house prices are continuing on their current momentum.”

Andrew Montlake of Coreco commented on the lack of supply: “The property market is a basket case and we will continue to see prices rising only very slightly or stagnating. The top end has already come off and may have further to go, but overall lack of supply and low rates will keep prices level.

And as David Hollingworth of London & Country pointed out: “Uncertainty following the general election and the ongoing negotiations around Brexit are bound to affect consumer confidence, particularly as higher inflation and weak wage growth bites.”

Do you see this trend continuing? Let us know what you think.

Don’t forget to take a look at our award-winning 95% LTV Family Mortgage for your First Time Buyer clients that are looking to step onto the property ladder but are potentially struggling due to high house prices.

Join us next time as we find out what these industry heavyweights would do if they took on an important role in Government. We’d be addressing the issue of Stamp Duty first and foremost, that’s for sure!

 

15.08.2017
Real life case studies - lending into retirement

Whoever said this was “silly season” hasn’t seen how busy we’ve been.

Take a look below at how we’ve helped people by lending into retirement:

Jane and Mike: Both retired, aged 66 and 70 (respectively) and needed a mortgage for their new home until they were able to sell their current flat. They needed a mortgage that would permit early repayments, once they had the funds. Result: We provided a new flexible mortgage that allows early repayments.

Terence: Aged 75 and his current lender was unable to increase the term of his mortgage past the age of 75. Result: We offered a new mortgage that takes him into his 80s.

Roger: Aged 73 and his previous mortgage lender wouldn’t extend his term due to his age. However, he wanted to stay in his own home. Result: Because of us he can remain in his existing home with a 14 year term mortgage.

Anything similar on your books? Then get in touch as we may be able to help.

 

14.08.2017
What’s in store for the mortgage lending market for the rest of 2017? – Part 2

Read this, the second question in our latest mini series to find out what a number of leading lights in the lending market think is in store for the remainder of the year and whether rates are as low as they’re going to go.

Competition among lenders is as high as it has ever been. Do you think rates are as low as they are going to get and would you advise new borrowers and those looking to remortgage that this is the time to take 3 or 5 year fixes?

There was overall consensus that rates have gone as low as they can but, as David Hollingworth of London & Country pointed out: “Just as it looks like rates can’t get any lower another product launch disproves the theory.”

While the decision to remortgage rests entirely with a borrower’s circumstances, as James Drury of Capital Fortune said: “It’s unlikely that rates will go down any further and last month the MPC voted only 5-3 to keep interest rates at 0.25%. This typically shows that a rise in interest rates is on the horizon. However, whether this will be in 2 months or 2 years who knows?”

As inflation remains above the Bank of England target, earnings growth remains stagnant and talk of the potential for a rate rise continues, there is a risk that those who fail to take action will have missed out on the keenest rates. David Hollingworth confirms: “With households feeling the squeeze on monthly budgeting, electing to fix now could help save money and protect against rising rates in future.”

So do you agree? What would you do – would you generally recommend fixing now or do you think your clients could see a further drop in interest rates and it’s worth them holding off? Let us know by talking to your BDM to find out how we can help you.

Next time, we discuss the future direction of house prices.

 

10.08.2017
What’s in store for the mortgage lending market for the rest of 2017? – Part 1

At just over the halfway point of 2017, it’s worth taking stock to see where the mortgage market is and what contemporaries think is in store for the remainder of the year.

Read our latest mini series to find out what questions we put to several leading lights in the broker community for their take on how the rest of 2017 is shaping up.

The Bank of England (BoE) recently announced above average lending figures for May 2017. Do you see this trend continuing for the rest of 2017 and what do you think would be the major factors that may have an effect on lending?

There was general agreement among the panel that these figures were as a result of a high level of existing borrowers remortgaging, given there are murmurings from the BoE that interest rates have gone as low as they will and there could be a rise in the short to medium term.

Specifically, Ray Boulger of John Charcol pointed out: “Lending in the first quarter of 2017 was 7.4% lower than Q1 of last year and although the Q2 numbers have recovered some of this shortfall, it is difficult to see lending in 2017 being significantly different to last year’s £246bn, albeit with Buy to Let lending down about 13% and a small increase in residential lending, including lifetime. Therefore, it would be completely wrong to interpret the buoyant May figures as setting a trend for the rest of the year.”

Andrew Montlake of Coreco: “I think the market will continue to be defined by remortgage lending of which there is a big spike in September / October this year and this business will keep lending at current levels after a dip in the Summer.”

On the market as a whole, David Hollingworth of London & Country commented: “Confidence in the broader market looks a little fragile given the recent house price data and the sentiment from the RICS survey around property availability.”

Do you agree? Is remortgaging your big focus for the remainder of 2017? If not, what’s your area of focus? Let us know by talking to your BDM to find out how we can help you.

Next time, we discuss whether rates are as low as they’re going to be and whether our panel would advise those clients remortgaging to take out fixed rates or not.

 

02.08.2017
Second homes: Slammed in the press but we're still here to help

Slammed by many in the press as an example of decadent excess, second homes / holiday homes are often seen as the preserve of the wealthy. However, we're here to help with those clients who can afford such luxuries (but still need a mortgage!).

Second homes / holiday homes are available to your clients on our normal residential products and we don't charge an increased premium.

We're flexible in letting borrowers rent it out for part of the year so long as the primary purpose remains as a holiday home for themselves / family.

Such mortgage applications will be calculated against your client's earned income without the inclusion of any rental they may receive from the property.

Applicants with portfolio holiday homes will not be considered.

 

26.07.2017
Supporting your Buy to Let clients

As you know, the market generally uses an interest coverage ratio of 145% in relation to Buy to Let clients.

We're always looking for ways to support you writing more BTL business which is why, for like for like remortgages with no additional borrowing, we use a lower interest coverage ratio of 130% or 135% (depending on the applicant’s LTV) using our Residential Investment Managed Mortgage Rate, currently at 5.29%.

Please note that arrangement fees, professional fees and administration costs can be added to the total remortgage amount.

 

20.07.2017
Manual underwriting - helping you place more cases

Just because your clients don't tick other lenders’ boxes, doesn't mean we won't consider them.

Our manual underwriting philosophy means we take the time and trouble to look at every case individually and don't rely on a computer to make lending decisions - we use real human beings to do that!

It makes a big difference to the borrower and helps you write more business.

And don’t forget: • We’ve no set maximum loan amount.
• We consider each individual case on merit.
• We don’t credit score.
• We’re able to consider those with bankruptcy orders and County Court Judgements, provided they haven’t occurred within the last three years.

And what's more, to speed up underwriting for your self-employed clients, we've created a new Accountant's Certificate form for you to complete to clearly show their income position. Download it now from the Additional Forms section of the Forms page.

 

10.07.2017
Expats - out of sight but not out of mind

With the appeal of greener pastures abroad for many clients, we’re able to cater for their mortgage requirements back home.

Did you know?

• We provide mortgages for expats in a wide variety of countries such as Australia and the US.
• Expat mortgages are available on an Owner Occupier and Buy to Let basis.
• We can offer interest only mortgages to UK nationals working abroad with families remaining in the UK.
• We also lend to UK nationals working in the UK but who are paid in a foreign currency. Mortgages are available on an interest only basis and the repayment vehicle must be from a Sterling denominated UK asset.

For more detailed information on our range of mortgages for expats, take a look at our expat webpage where you’re sure to find all the information that you need.

 

05.07.2017
The challenges of the Buy to Let market. We're here to help

Did you know?

- Our maximum LTV for Buy to Let is 70% on our 5 year fixed product.
- We'll consider cases even when your clients have a number of other Buy to Let mortgages with other lenders.
- Buy to Let Offset Mortgage – a new product that caters specifically for those who want to make better use of their savings.
- We also offer Limited Company Buy to Lets.

To explore more, please visit our Buy to Let webpages.

 

05.07.2017
We're partnering with Brightstar's Private Label

We’re delighted to be part of Brightstar’s launch of their white label brand, Private Label. Family Building Society’s involvement is within the Mortgage Tailor area of Private Label, which aims to provide mortgages to brokers struggling to place non-traditional types of cases. Along with the other lenders involved, we’ll be reviewing the brokers’ enquiries and responding within 48 hours.

Cammy Amaira, Head of Intermediary Sales at the Family Building Society, said: “We’re delighted to be associated with Private Label and their innovation from the beginning. This offering is another welcome opportunity to help brokers write more non-traditional mortgage business, which is an area we specialise in. We look forward to working with them.”

 

03.07.2017
Read the details of our latest mortgage refresh

OWNER OCCUPIER PRODUCTS

WITHDRAWN FIXED RATES

FBS
XF0074 1.99% fixed to 31/08/2019 (RP) Mon
XF0075 2.29% fixed to 31/07/2020 (RP) Mon
XF0077 2.39% fixed to 31/07/2022 (RP) Mon
XF0078 2.59% fixed to 31/07/2022 (RP) Mon
XF0079 2.69% fixed to 30/06/2020 (RP) Mon (Family Mortgage)
XF0080 2.89% fixed to 30/06/2022 (RP) Mon (Family Mortgage)
XFG001 3.79% fixed to 30/06/2020 (RP) Mon (Guernsey) (Family Mortgage)
XFG002 3.99% fixed to 30/06/2022 (RP) Mon (Guernsey) (Family Mortgage)

NCBS (existing borrowers only)
F349 1.99% fixed to 31/08/2019 (RP) Mon
F350 2.29% fixed to 31/07/2020 (RP) Mon
F351 2.79% fixed to 31/07/2020 (IO) Mon
F352 2.29% fixed to 31/07/2020 (RP) Ann
F353 2.79% fixed to 31/07/2020 (IO) Ann
F354 2.49% fixed to 30/06/2020 (RP & IO) Mon (Family First Guarantor Mortgage)
F355 2.59% fixed to 31/07/2022 (RP) Mon

LAUNCHED FIXED RATES

FBS
XF0086 1.99% fixed to 31/10/2019 (RP) Mon
XF0088 2.44% fixed to 31/10/2020 (RP) Mon
XF0090 2.54% fixed to 31/10/2022 (RP) Mon
XF0092 2.74% fixed to 31/10/2022 (RP) Mon
XF0093 2.69% fixed to 30/09/2020 (RP) Mon (Family Mortgage)
XF0094 2.89% fixed to 30/09/2022 (RP) Mon (Family Mortgage)
XFG003 3.79% fixed to 30/09/2020 (RP) Mon (Guernsey) (Family Mortgage)
XFG004 3.99% fixed to 30/09/2022 (RP) Mon (Guernsey) (Family Mortgage)

NCBS (existing borrowers only)
F359 1.99% fixed to 31/10/2019 (RP) Mon
F360 2.44% fixed to 31/10/2020 (RP) Mon
F361 2.94% fixed to 31/10/2020 (IO) Mon
F362 2.44% fixed to 31/10/2020 (RP) Ann
F363 2.94% fixed to 31/10/2020 (IO) Ann
F364 2.59% fixed to 30/09/2020 (RP & IO) Mon (Family First Guarantor Mortgage)
F365 2.54% fixed to 31/10/2022 (RP) Mon

WITHDRAWN VARIABLE RATES

FBS (existing borrowers only)
XT0001 BRT + 2.29% for 3 years, currently 2.54% (RP) Mon
XT0002 BRT + 2.79% for 3 years, currently 3.04% (RP) Mon

NCBS (existing borrowers only)
B36 BRT + 2.29% for 3 years, currently 2.54% (RP) Mon
B37 BRT + 2.79% for 3 years, currently 3.04% (RP) Mon

LAUNCHED VARIABLE RATES

FBS (existing borrowers only)
XT0003 BRT + 2.19% for 3 years, currently 2.44% (RP)
XT0004 BRT + 2.69% for 3 years, currently 2.94% (RP)

NCBS (existing borrowers only)
B38 BRT + 2.19% for 3 years, currently 2.44% (RP) Mon
B39 BRT + 2.69% for 3 years, currently 2.94% (RP) Mon

BUY TO LET PRODUCTS

WITHDRAWN FIXED RATES

FBS
XF0081 2.99% fixed to 30/06/2020 (RP &IO) Mon
XF0082 3.39% fixed to 30/06/2022 (RP & IO) Mon
XF0083 3.59% fixed to 30/06/2022 (RP & IO) Mon

NCBS (existing borrowers only)
F356 2.99% fixed to 30/06/2020 (RP & IO) Mon
F357 2.99% fixed to 30/06/2020 (RP & IO) Ann
F358 3.59% fixed to 30/06/2022 (RP & IO) Mon

LAUNCHED FIXED RATES

FBS
XF0096 3.39% fixed to 30/09/2022 (RP & IO) Mon
XF0097 3.59% fixed to 30/09/2022 (RP & IO) Mon

NCBS (existing borrowers only)
F366 2.99% fixed to 30/09/2020 (RP & IO) Mon
F367 2.99% fixed to 30/09/2020 (RP & IO) Ann
F368 3.39% fixed to 30/09/2022 (RP & IO) Mon

Please note there are no variable rates being withdrawn or launched for our Buy to Let range.

 

26.06.2017
Interest Only Mortgages. Why we stand out from the crowd

Did you know?

• We offer interest only lending across our variable rate range and have no barriers to entry (such as age restrictions, minimum income and minimum equity).

• We will consider interest only if the repayment vehicle is downsizing and in such cases, the maximum Loan To Value is 70%.

• As well as considering interest only loans with downsizing as the only repayment vehicle, we will also take into account pension cash lump sum and/or sale of a second UK home as well as selected other UK assets.

 

19.06.2017
One size fits all? We don't think so!

We know that some lenders think borrowers are identical. We know they're not, which is why we've designed niche products that break the mould, like our award-winning Family Mortgage, Offset Mortgage, Retirement Lifestyle Booster mortgage and our Buy to Let Offset Mortgage.

In the past year alone, we’ve launched two new innovative mortgages:

• Our Retirement Lifestyle Booster mortgage is aimed at your clients who want to make the most of the money tied up in their home and who are seeking an alternative to equity release. It pays a regular amount each month for 10 years and also offers an up-front lump sum option. It's available for clients remortgaging who are aged 60 to 79 at age of application. For more information, click through to our dedicated Retirement Lifestyle Booster mortgage page.

• Our Buy to Let Offset Mortgage is aimed at your private landlords who want to make better use of their savings while keeping their money available for other purposes. For more information, click through to our dedicated Buy to Let Offset Mortgage page.

We regularly review our interest rates across our mortgage range to ensure that we remain competitive in the market. To see all our mortgage product rates, click through to our dedicated rates page.

 

05.06.2017
Got a client who doesn't tick all the boxes? We can help

We pride ourselves on helping those who don't tick all the typical high street lenders' boxes and who may have been turned down elsewhere. They may be too much trouble for other lenders but for us with our manual underwriting approach, these cases are simply ‘business as usual’.

Did you know?

• We have no set maximum loan amount.

• Each individual case is considered on merit.

• No rate increase for the ‘risk’ a particular case presents.

•We don’t credit score.

•We will consider those with bankruptcy orders and County Court Judgements provided they haven’t occurred within the last three years.

Our BDMs recently took some time out of their busy schedules to answer some FAQs from brokers. Check out what they had to say by clicking through to the video page now.

 

05.06.2017
Do you have a client in their 60s, 70s or even 80s? We may be able to help!

Lending to those approaching or in retirement is just one of the many reasons we are the first choice for intermediaries with a client who has been turned down by other lenders simply because of their age.

What makes us different?

• We offer generous terms where other lenders don’t – we accept cases up to the age of 89 (lending up to a 5 year term for an 89 year old).

• We take into account earned income up to the age of 70 and pension income beyond that.

• We can also accept rental and investment income that can be evidenced on an SA302.

For more information, please visit our dedicated later life lending page with all the information you could need or our Mortgage Desk who are on hand to help you - 01372 744155.

Have you seen our new FAQ videos from the BDMs? Take a look at what they had to say by visiting the new FAQ video page.

 

30.05.2017
Check out our new and improved affordability calculators

We’re always looking for ways to help your clients and our innovative Retirement Lifestyle Booster mortgage is just one of our latest offerings. To help you decide what your clients could get each month with this type of mortgage, we’ve created a nifty calculator to help you.

Don’t forget to look at our dedicated Retirement Lifestyle Booster mortgage page for all the product-related information you need.

Separately, we've further improved our online Affordability Calculator to take into consideration whether your clients are already of State Pension Age, in which case they no longer pay National Insurance. This enhancement will make a real difference in determining their affordability.

 

24.05.2017
Is your client's solicitor registered with LMS?

To help us process your client’s mortgage as quickly as possible, your client’s solicitor must be registered with the Society's solicitor panel, LMS.

Solicitors should apply online: www.lms.com/lenderpanels.

Registration requires key details of the solicitor’s firm, answers to a series of questions and a copy of their Practising and PII certificates (which can be uploaded online) and should only take two working days to complete.

Our minimum requirements for panel membership are:

1. Minimum of two Partners/Directors 2. PII minimum cover of £2m, with cover provided by a “rated” insurer

We don’t charge a panel membership fee but we do require all firms to allow us to track the key stages of the transaction on LMS’ online system. Full details will be provided after successful registration.

You don’t need to wait until an application has been submitted. There's no harm in your client's solicitor applying ahead of time!

 

22.05.2017
Family Building Society added to Positive Lending specialist lending panel

The Family Building Society has been added to the packager panel of Positive Lending, the multi award-winning specialist packager. At the Family Building Society we specialise in a number of areas and are especially focused on first time buyer assistance, lending into retirement and self-employed applicants.

Stephanie Charman, Director of Mortgages at Positive Lending commented: “I am delighted to continue the expansion of our mortgage proposition by adding the Family Building Society to our panel. Their wide ranging criteria and innovative products will provide solutions for borrowers at either end of the property ladder, whether this is first time buyers with small deposits or older borrower looking to extend their borrowing into retirement. Combine this with their individual underwriting approach and it makes them an ideal lending partner for us as a packager.”

Cammy Amaira, Head of Intermediary Sales at Family Building Society commented: “It is very clear to us that there is an ever growing need to support those borrowers who are just not lent to by the major players in the mortgage market. Partnering with a fellow specialist such as Positive Lending ensures that even more borrowers will have access to our expanding range of mortgage products.”

 

12.05.2017
No one likes to pay more than they should. Why should your clients be any different?

A recent report in Financial Reporter has shown that First Time Buyers with a 5% deposit are being penalised by potentially paying significantly more for their mortgages.

No one likes to pay more than they should. Least of all First Time Buyers who've perhaps had to scrimp and save for their deposit. This is where our 95% LTV Family Mortgage comes in. We've a 3 Year Fixed Rate at 2.69% and a 5 Year Fixed Rate at 2.89%.

Take a look at our Family Mortgage page to see how it could work for your First Time Buyers.

 

27.03.2017
Family Building Society now pays retention fees

Recognising the pivotal work that brokers do with their existing clients, we're pleased to announce that we now pay retention fees for advised product switches and advised further advances with immediate effect. Please note that retained mortgages that were previously completed under our National Counties brand are included.

For product switches (Gross fee paid) = 0.20%

For further advances (Gross fee paid) = 0.25%

 

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