Interest only resolution: bringing the experts together For what comes next tltsolicitors.com
Resolution through face-to-face customer engagement Our unique approach delivers a strategy for the lender within 90 days for cases across the UK where the term has expired and you have not achieved effective customer engagement.
Resolution waterfall Redemption Fact find interview at customer’s home
Customer can evidence repayment vehicle available within 6 months
Report to lender
Conversion Income and Expenditure completed
Sufficient surplus funds to convert to repayment with a medium term extension (within lender policy)
Proposal submitted to lender
Re-finance Customer wants to re-finance
Refer customer to specialist IFA
Feasibility of re-finance reported to lender
Sale – Voluntary sale
Oversight or management by asset manager
Targeted completion deadline set by lender
Litigation No other resolutions available for customer
Personal fact find & affordability assessment for every customer
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Best outcome for customer and lender
Clear and concise set of options presented to the customer
Report containing the proposed strategic outcome to the lender
Re-engagement still possible
Supported through to resolution
Tackling the issue of term expired mortgages In May 2018, UK Finance reported that there remained 1.7 million interest only mortgages outstanding with a value of £250bn. The FCA classified customers who were not engaging with their lender into one of three categories. • Category 1 are those customers who do not see any benefit in establishing contact because they had various options to repay the mortgage at the end of the term. • Category 2 are those customers who consider that it might be disadvantageous to engage with their lender as they did not want to face poor options. • Category 3 are those customers who do not want to engage with their lender because they do not have any options.
those most in need of individual strategies are those least likely to make contact” To encourage greater engagement with impacted customers, the FCA concluded that communications need to be tailored to individuals to create a sense of urgency, using simple language and an approachable tone. It was considered that those customers most likely to benefit from discussing options had the lowest understanding of how the lender might be able to assist them. This is an issue that lenders need to address.
Since this issue came to prominence, lenders have implemented strategies and deployed resources to contact their customers to ensure plans are in place for maturity. As the FCA has highlighted, those most in need of individual strategies are those least likely to make contact. There also remains a material volume of customers across the industry who are past expiry with no formal agreement in place for resolution. Our solution addresses this difficulty and aims to provide absolute resolution both for the customer and the lender based on their individual circumstances.
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Bringing the experts together Three leading service providers have come together to use the power of face to face contact with their expertise in property supported by a legal services approach which will deliver resolution for you.
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Interest only resolution: bringing the experts together
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We combine:
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Field Force
Legal
Property
DMSFieldcall have an FCA authorised field force who are experts in fact finding with customers, understanding their individual circumstances and identifying resolutions.
TLT are market leading legal advisers to the lending industry. We combine this together with the governance and oversight required and expected by lenders and regulators.
Spicerhaart are property professionals who can provide advice and guidance on valuations, and implement exit strategies.
About us DMSFieldcall
TLT
Spicerhaart
Established in 1959, DMSFieldcall are partner of choice for organisations who want a high quality, reliable, compliant, and cost-effective home visit to their customers, whether it is a vulnerable customer visit, property or occupancy check, reconnection visit or any other information gathering visit.
Created in 2000, we set out to be a different kind of law firm, one that pushed the boundaries with new ways of working and thinking. Since then, we’ve grown rapidly and are privileged to support some of the UK’s major financial institutions and well known brands. Our award winning UK lender services teams offer a comprehensive range of services to mortgage lenders.
Spicerhaart Corporate Sales is the specialist Asset Management division of the Spicerhaart Group, the UK’s largest independent estate agency. Since 2003 we have built an enviable reputation for consistently meeting and exceeding our clients’ expectations. This has been achieved by combining high levels of investment in our staff and infrastructure with a commitment to embrace new technology and innovative processes where rigorous assessment has shown that they improve efficiency and effectiveness in a sustainable way. Control and compliance is embedded within our business processes and this ensures that we provide an effective and transparent customer journey. Our drive to develop innovative products and services keeps us at the forefront of the asset management arena.
Using our vast network of 130+ approved agents, we gather information from customers on behalf of our clients. We work to the demanding regulatory standards stipulated by the Financial Conduct Authority (FCA) and provide an unrivalled combination of service, results and expertise to our clients and partners. We have documented quality control and oversight procedures and understand we must be able to evidence our controls, monitoring and testing to both our clients and the regulator this is embedded as “business as usual” for some time.
Our approach ensures that each customer is treated as an individual, all customers are treated fairly, and vulnerability is identified and handled appropriately. Whatever the size of mortgage portfolio, we adapt our processes to deliver the best outcome for the lender and their customer. TLT are Mortgage Finance Gazette Best Law Firm 2018 and 2019.
TCF has been embedded in our business for many years, and we believe we have always had the right culture (open, honest, transparent and customer focussed). We have a formalised Conduct Risk Framework with three lines of defence to identify and mitigate risks as they occur. 3
How the service works Successful contact
Field visit
Redemption
Report to TLT
Letter to customer
Conversion
Report to TLT
Letter to customer
Re-finance
Report to TLT
Letter to customer
Sale
Report to TLT
Letter to customer
Litigation
Report to TLT
Letter to customer
No contact
Instruct DMSFieldcall
TLT send letter to customer
Explore options with the customer
TLT open file
No contact confirmation
Re-instruction to explore new resolution
New instruction to TLT 4
Proposal to lender
Proposal to lender
Customer Resolution complete
Instruct IFA
Proposal to lender
Proposal to lender
Instruct Spicerhaart
Proposal to lender
Work with the customer Commence assisted sales process
Customer Resolution fails
Litigation commences
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What are the benefits of utilising our unique approach Our approach ensures that both the lender and the customer have the appropriate assistance and support Control and Governance TLT undertake a significant volume of work for the financial services industry and understand lenders’ requirements when it comes to governance and oversight. We have a full governance and oversight structure in place to ensure the right customer outcome is at the forefront of everything we do. We operate a robust third party management process that includes call listening, auditing, senior management oversight, monthly governance calls, annual on-site auditing and strict requirements relating to information security. As TLT manage the process from a relationship and governance perspective, you will deal with TLT as a single supplier.
Re-finance
Whether a customer wants to engage in a full assisted sale programme or alternatively purely allow Spicerhaart to oversee and report on the progress they are making themselves from a marketing perspective, the lender can have the confidence that the customer is taking all appropriate steps to resolution.
Litigation Unfortunately not all customers will co-operate with DMSFieldcall or take advantage of the other opportunities that are available to them during this process. In such instances, where instructed, TLT can commence Litigation proceedings. Experience tells us that commencing formal proceedings prompts a large proportion of customer’s to actively engage and take up the support which is available to help them to achieve a resolution.
Where a customer wishes to refinance, we can provide them with the details of companies who can support them to consider their options. These companies provide free market leading independent advice and whole of market coverage. They are in the best position to consider every option and product available to the customer. We would always insist that the customer obtains their own independent financial advice, but our referral ensures that the customer is actively working towards a resolution.Property Providing customers with a route to sell their property for the best price in as timely a manner as possible is a crucial component of our proposition. Ensuring that the customer receives the best possible support and guidance means that lenders can have confidence that redemption of the outstanding loan can be forecasted and managed to completion.
Contact us
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DMSFieldcall
TLT
Spicerhaart
Andrew Fowler Managing Director
Graham Walters Partner
David Miller Client Account Manager
T 01604 686000 M 07872 129382
T 0333 0060157 M 07919 891680
T 01253 597486 M 07951 924088
andrewfowler@clavengroup.co.uk
Graham.Walters@tltsolicitors.com
David.Miller@spicerhaart.co.uk