Justanupdate
Friday23rdAugust
Thisweek'sheadlines:
A word from your Head of Mortgages & Protection
Good morning everyone and I do hope you are looking forward to the long bank holiday ahead. Taking time out to refresh our minds is important in this busy world we live in, so I do hope you get this opportunity.
The Mortgage world is certainly a busy one right now, with what seems a very clear “price war” with many of the hight street lenders. With swap rates also continuing to fall; 5 year swaps as at Wednesday were at a 12 month low of 3.66%, you can expect to see further lender moves. This will continue to benefit both market sentiment, but also supports your clients home moving and remortgage objectives.
We are putting the final touches to our Smartr365 training which commences in September and will add another dimension to your offering. I was most pleased to see that LBG group has been added to the lenders supporting full Mortgage application capabilities on Smartr365, avoiding that dreaded double keying and saving you valuable time.
Sending my very best wishes to you and your families.
Ben Allkins Head of Mortgages & Protection
CI Expert – Take advantage of a 40% Discount on premiums!
We just wanted to let you know that Just Mortgages will be renewing our annual subscription with CI Expert.
CI Expert is a third party website providing a means of accurately comparing one Critical illness plan with another. For further details on the service provided please click on the following link please visit their website Here.
Last year we had over 65 Advisers subscribers, whose feedback noted that CI Expert helped to make compliance of Critical Illness replacement policies much easier and that it helped their businesses generate more sales!
The importance of disclosure when completing health questions
Zurich has completed a sampling exercise on disclosure, based on policies sold and in force in the last 12 months. Some alarming trends have been found from these sample of cases with 31% resulting in a decline or rating following this sampling exercise. These issues were not disclosed on the health questions.
The time a client needs the cover is of course at claim, by not exploring the customers health history thoroughly you put both your position at risk as an advisor but also the likelihood of a successful claim from a client.
Some top tips to help
Avoid using manual data capture forms and trying to fit answers to application
Do not lead customers. For example, you don’t take any medication for anything do you?
Disclose everything even if they don’t think relevant
Joint life cases - individuals to answer own questions separately
Read at an appropriate pace, with pauses between questions sets and check client understanding
Check height / weight, don’t guess – best to go away and check
Find out about recent issues / ongoing tests
More information including further guidance can be seen on a PDF document – click HERE to view/download
Further support will also follow shortly in the form of an informative Webinar which we will be providing details on shortly.
NationwideincreasemaximumLTVforNewBuild Houses
Nationwidearepleasedtoconfirmthattheyhaveincreasedthe maximumLTVforNewBuildHousesfrom85%to90%,allowing clientstopurchasewithjusta10%deposit.
Toreadmore,whynotvisitNationwide’s“NewBuildHub”which providesyouallyouneedtoknowabouttheirNewBuildProposition. VisitHERE ListentothelatestGrowthSeriespodcastfrom AccordMortgages
TheAccordGrowthSeriescontainscountlessarticlesandguidesto helpyougrowyourbusiness.InthislatestPodcast,GurpreetChahal atAccordMortgagesandPaulShearmanfromOpenworksharetheir insightsonsupportingclientswithvulnerabilities.
Check out the Summer Edition of Paragon’s Mortgage Intermediary Insight Report
Following a period of fiscal and political uncertainty at home and abroad, the summer edition of the Mortgage Intermediary Insight Report reveals a sense of optimism is returning to mortgage brokers. The Summer edition of the Mortgage Intermediary Insight Report, based on a survey of over 200 mortgage brokers, reveals that: The average number of mortgages placed by intermediaries during the previous 12-month period has increased from 86 to 111 Split evenly between new business and renewals, residential mortgages are the main source of business, followed by buy-tolet
Affordability is the main barrier brokers face in placing more buyto-let business
Read the full report here: Mortgage Intermediary Insight ReportSummer 2024 (paragonbank.co.uk)
Coventry for Intermediaries blog: Overcoming barriers to green home improvements
As the rising cost of living continues to be felt by homeowners, it’s understandable that many may not currently be prioritising green improvements to their homes. However, while upgrades are important in helping to reduce carbon emissions, they can also ease the pressures of higher energy costs by reducing usage, bringing down the price of energy bills. According to our report ‘Beyond the Bricks: What Does a Green Housing Market Really Look Like?’, 40% of all homeowners are motivated to make ecofriendly changes if it means helping to reduce their energy bills (Source 1).
However, the journey to making green improvements isn’t always a straightforward process and homeowners often need guidance when met with barriers to making these changes. Brokers have a great opportunity to help their clients understand the financing options available to them to reduce costs and the green home improvements which have the most impact.
Green home improvement options
Even though 90% of homeowners in our survey reported energy efficiency was important to them, uncertainty around the options available can act as a barrier to making changes (Source 2). Brokers can help clients discover a range of green improvements, from small, gradual changes to larger installation projects.
Using our Home Energy Efficiency Tool, brokers can help clients create a sustainable action plan, showing them the current and potential EPC ratings of their properties and which home improvements will have the biggest impact according to clients’ budgets. For example, for homeowners with smaller budgets, simple changes like fitting their hot water cylinder with an insulating jacket only costs around £20 (Source 3) and will lower annual carbon emissions by 155kg and save £40 each year (Source 4).
The long-term benefits of going green
Often, the rewards for making green changes are unclear to clients so the cost can seem unjustified. However, green measures can provide sizeable savings in the long run. The Energy Saving Trust estimates that installing A-rated double glazing in a semidetached property could save £135 in energy bills each year (Source 5), while those installing solar panels could save anywhere between £150 and £630 depending on their electricity usage and the arrangement they have set up (Source 6).
Homeowners will also be interested in the value-add of energy efficiency improvements when they look to sell their property. According to Rightmove, an EPC rating change from F to C could see an average increase of 15% in a home’s value (Source 7).
Communicating the long-term financial advantages of retrofitting projects will help clients better understand why making green changes are worth the initial upfront costs.
Bringing down the costs
The installation of energy efficiency improvements such as double glazing, solar panels and heat pumps can be expensive. However, the market for green financing options is growing, providing brokers with solutions for their clients to make retrofitting projects more affordable.
Our Green Further Advance, for example, rewards clients who retrofit their property with eco-friendly features, offering a lower interest rate if they put at least 50% of their borrowing towards energy-efficiency improvements.
Brokers are the crucial link in helping clients overcome these barriers and are best placed to provide homeowners with the right information and helpful lending products. With the help of brokers, clients can make their homes better for the environment and save money in the long-term.
1. https://www.coventryforintermediaries.co.uk/content/dam/ cbs/intermediaries/pdfs/knowledge-centre/green-housingreport.pdf
https://www.coventryforintermediaries.co.uk/content/dam/ cbs/intermediaries/pdfs/knowledge-centre/green-housingreport.pdf
2. https://energysavingtrust.org.uk/energy-efficient-diyprojects/
3. https://energysavingtrust.org.uk/energy-at-home/reducinghome-heat-loss/
4. https://energysavingtrust.org.uk/top-energy-saving-ideasfor-your-home-improvement-project/ 5.
