Just an update
Monday 3rd March. This week's headlines:
Join Smartr365 for their March webinars!
Each month Smartr365 will be hosting a series of informative and instructional webinars to help you make the very most of the valuable features of Smartr365.
This month, Smartr365 have the following sessions available to you. Simply click on the icon to register, select the date you wish to attend and an invite with link will then be sent to you.
Each session runs from 1:30pm-2:00pm
Smartr Connect (Faster Lender Submission): Tuesday 4th March or 11th March or 18th March or 25th March
This session will also cover the Selective Factfind functionality
How to instruct eConveyancer using Smartr365: Wednesday 12th March or 19th March
Source protection effectively using Solution Builder: Thursday 13th March
Further offline support is available by way of our Learning Management System which has been significantly improved with easy search functionality. To access the library of material click HERE
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The Financial Conduct Authority’s (FCA) Consumer Duty places a strong emphasis on delivering good outcomes for clients, ensuring that financial products and advice meet their needs. For mortgage advisers, this means not only recommending suitable Mortgages, but also addressing the critical topic of protection. A mortgage is often the largest financial commitment a client will take on, and failing to safeguard it against unforeseen circumstances could lead to serious financial hardship.
Consumer Duty requires advisers to act in their clients’ best interests, which includes discussing protection options such as life insurance, income protection, and critical illness cover. If a client were to lose their income due to illness, redundancy, or death, an unprotected mortgage could put their home at risk. Therefore, it is essential that protection is not treated as an afterthought but rather as an integral part of the mortgage advice process.
Advisers should take a proactive approach, ensuring clients fully understand the risks of being underinsured. This means clearly explaining the benefits of protection policies, tailoring recommendations to individual circumstances, and documenting these discussions. Simply mentioning protection is not enough—advisers must ensure that clients make informed decisions and are aware of the potential consequences of declining cover.
By prioritising protection within their recommendations, mortgage advisors not only comply with regulatory expectations but also strengthen their client relationships. Providing comprehensive advice that includes financial safeguards demonstrates professionalism and care, reinforcing the adviser’s role as a trusted expert.
Consumer Duty is not just about selling products—it’s about i l fi i l i f li B b ddi
We are looking for great candidates to join Just Mortgages! Whether they are currently employed or self-employed. So, if you have friends, family or simply someone you know who may be interested in a no obligation discussion, please refer them to us.
As thanks, you will be paid £1000 (£500 paid upon authorisation, further £500 after 6 months). There is no limit to how many candidates you can refer!
Simply point your phones camera at the QR code below and complete a one minute form to refer to us, or click on the following link HERE
Pepper Money | Debt Consolidation is on an upward trajectory
In this latest article, Pepper Money look at the trend of rising consumer usage of credit card lending and the role of mortgage advisers in helping their clients restructure their finances.
According to UK Finance, Consumer usage on credit card lending continues on an upward trajectory. This could be due to the fact customers continue to leverage cards to mitigate the impact of the cost-of-living crisis.
The latest figures from the Insolvency Service for England and Wales shine a light on the worsening state of household finances, with personal insolvencies reaching 117,947 in 2024 —an increase of 14% compared to 2023. Debt Relief Orders (DROs) also reached their highest annual number on record. However, this is likely to have been influenced by the removal of the £90 administration fee in April and the expansion of eligibility criteria in June 2024.
These are concerning statistics, but they represent an opportunity for brokers to provide potentially life-changing advice for customers, with support on managing and restructuring their debts effectively. Proactively addressing debt issues before they reach a critical point, like insolvency.
Debt consolidation may not be the right option for everyone (and of course, the Openwork Partnership has detailed guidance in its Suitable Advice Framework). A comprehensive assessment of every customer’s financial circumstance is essential, and you can play a pivotal role in this process. By thoroughly understanding your customers’ circumstances and future aspirations, you can help to build a path that helps them manage their current debt and build for the future.
Here are a few tips from Pepper Money on how its lending criteria may be useful for your debt consolidation clients:
No credit scoring
No debt-to-income ratio
Up to 100% of variable income such as commission, car allowance and bonuses accepted for affordability No cascading & unsecured credit never affects the product tier
Limited Edition remortgage only products, is now available with no upfront fees across both our Pepper 48 and Pepper 36 ranges on 2-year and 5-year fixed rates at 75% and 85% LTV.
Find out more about Pepper Money»
Nottingham Building Society widen affordability criteria
Nottingham Building Society are delighted to announce that they have widened their affordability criteria to prospective home buyers in the UK.
The enhancements include:
Accepting 100% of secondary income (up from previous 50% threshold)
Accepting 100% of child maintenance income
Updated contractual car allowance acceptance to cover contractual travel allowance at 100%
Refreshed National Insurance acceptance thresholds to the updated bandings
And we've simplified affordability calculations for employed customers by using a standard 5% pension contribution so no need to manually enter it into the portal
Nottingham have also launched a range of new 80% LTV products as part of a series of changes to deliver broader and more accessible buy-to-let investment options for UK landlords. Alongside that, they have increased the maximum number of properties a landlord can buy-to-let to five and reduced the minimum age of applicants to 21 – down from 25.
Read more HERE
Check out Metro Bank’s
Joint Borrower,
Sole Proprietor solution
With the UK housing market experiencing a 4.8% annual growth in property prices in 2024, reaching a record high of £298,083*, innovative solutions such as Metro Bank’s Joint Borrower, Sole Proprietor mortgage (JBSP) are essential for those looking to enter the property market. Here are Metro Bank’s residential core range JBSP highlights:
Spouses and non-relatives accepted as joint borrowers
Joint borrowers can reside in the subject property
Up to 95% LTV on houses and flats, purchase only (90% LTV for new build)
Up to four applicants on the mortgage, with a minimum of one applicant on the property deeds
Income can be accepted from up to 4 applicants, at full income multiples, subject to affordability
Maximum age 80 considered (mortgage term based on the oldest applicant at the end of the term)
Repayment, interest only and part and part options available (maximum LTVs apply)
Gifted deposits accepted – Gifted Deposit Form to be used
* Source: Halifax House Price Index
Precise | Residential borrowing capacity boosted
Precise have updated their affordability calculation process, meaning average borrowing capacity is enhanced, on average, by 9%. Sound good?
Affordability calculation example:
74% LTV resi purchase
2-year fixed Tier 2 product
30-year term
Applicant 1 income £45k Applicant 2 income £40k
Two children
£3,675 credit card debt with monthly payments of £175
New improved max loan: £403,365
Previous max loan:£298,365
Precise have reduced assumed living expenses and costs for dependants, as well as updating income tax and national insurance contributions. And remember, Precise don’t include child commitments in their calculations.
This could help your first time buyers get onto the property ladder sooner or enable your remortgage customers to secure additional funds.
View their improved residential range