Your trickiest mortgage cases. Completed with a bit of common sense.
Your trickiest mortgage cases.
Completed with a bit of common sense.
It’s absolutely vital we continue to remain an expert voice that supports real people with making robust financial decisions. This means we continually listen to what our intermediary partners are saying and closely follow the changing mortgage landscape. By staying true to our values, we believe we’ll remain best placed to help deliver our objectives which include helping people buy a home.
We make an effort to understand the challenges first time buyers and current home owners have. By frequently reviewing and revising propositions and initiatives we want to ensure that we are in the best possible position to support intergenerational housing aspirations.
Through our support of First Time Buyer initiatives such as Help to Buy, Shared Ownership and relaunching our 95% LTV mortgage range, we aim to ensure we can provide options to First Time Buyers who are unable to rely on the ‘Bank of Mum and Dad’. We have also gone one step further and introduced a 98% LTV mortgage, currently unique in the market, which allows us to fulfil our purpose to make a difference and actively find ways to help people have a home.
Additionally, our Shared Ownership and Help to Buy range includes products for borrowers wishing to remortgage, supporting those who have recently got a foot on the housing ladder but have a limited choice when they come to the end of their current deal.
We recognise the later life borrower segment continues to grow and like all other parts of the mortgage market, it is vital that we continue to consider product innovation and lending criteria to support. There are many reasons for the need to continuing to borrow well into later life such divorce/separation, more appropriate housing, adapting current property and gifting. We made the decision to remove our upper age in 2016.
We offer a diverse and flexible range of mortgage products and pair this with easy-to-understand and consistent criteria, award winning service and additional personalised support for cases with more unusual or specific requirements. For instance Self-employed clients are more likely to have different needs, we pride ourselves on our expertise to fully understand Limited Company, Partnerships and Sole Trader Accounts. We team this with specific products that make home ownership possible for those who are Self Employed with just one year’s accounts.
If you would like to discuss a case, get in touch with your dedicated Business Development Team on 0345 601 2744 or visit Cambridgeforintermediaries.co.uk. We can help find you the right solutions for your clients.
Expat mortgages. Difficulty level eight.
Completed with a bit of common sense.
I have an Expat who wants to remortgage their former residential property – can The Cambridge help?
Christy: Firstly, I would ask if they have any other BTL properties. If yes, then we’re happy to consider the remortgage. If this is your client’s only rented property and it is a Consumer BTL, we will not be able to help, as we’re unable to offer an Expat BTL mortgage for Consumer BTL’s.
Can I choose any BTL product for an Expat?
Duncan: We have three specific products for an Expat BTL - a 2 Year Discounted Rate at 2.99% (with no early repayment charges), a 3 Year Discounted Rate at 3.09% and a 5 Year Fixed Rate at 3.49%. The 2 Year Discounted Rate and 5 Year Fixed Rate products have a non-refundable £499 application fee and a £1,500 completion fee. The 3 Year Discounted Rate has a completion fee only of £2,000.
Is there a minimum income requirement or country restrictions?
Christy: The minimum income requirement is £25,000, we’ll accept this in a foreign currency which will be based on the current exchange rate. We’ll consider various currencies and countries, other than those listed by the HM Treasury on their Financial Sanctions List.
Does my client need a UK correspondence address?
Duncan: Yes, as a minimum we need all Expats to have a UK bank account and a UK correspondence address. They need to appear on the credit search in the UK and have permanent right to remain in the UK.
When I process the application how do I confirm the correspondence address and their current residential address?
Duncan: You will need to put their current (foreign) residential address in the application when requested and then add the UK correspondence address in the notes. You will get the option to leave notes at the end of the DIP process, just before the case refers to our Underwriters.
How much can my client borrow and what are the stress rates?
Christy: The maximum loan available on our Expat BTL products is £750,000. The 2 Year Discounted mortgage is stressed at 125% at 5.50% for a like for like re-mortgage* and 140% at 5.50% for a purchase or capital raising. The 3 Year Discounted mortgage is stressed at 125% at 5.50% for a like for like re-mortgage and 140% at 5.50% for a purchase or capital raising. The 5 year fixed rate is stressed at 125% at 4.99% for a like for like remortgage and 140% at 4.99% for a purchase or capital raising. Our BTL Rental Income Calculator will do all the working out for you – all you’ll need is the loan amount or the rental amount that is achievable.
*refer to our criteria to ensure your clients loan is eligible for a like-for-like calculation.
Single player mode. New level reached.
Self-employed customers have access to exactly the same range of mortgage products as everyone else and we’ll only request at least two years’ worth of company accounts.
Self-employed customers are more likely to have different needs and have individual circumstances, such as:
- not everyone draws an income from their Company
- there may be times when additional drawing is taken from retained profit, or
- accountant’s advice may be to change trading styles from a Sole Trader to a Limited Company
None of these present issues at The Cambridge.
When you submit an application the income source has already been approved and agreed without paying any fees, this is because we underwrite the case based on a full review of the information presented - including the company accounts, at DIP Stage - all saving time and possible disappointment for your clients.
We pride ourselves on our expertise to fully understand Limited Company Accounts, Partnerships and Sole Traders.
Shining the spotlight on Shared Ownership lending
An affordable route to home ownership
Would it surprise you if we told you that the average house price in the UK is £278,000? Probably not. But what if we told you that, according to the Rightmove House Price Index for February 2020, house prices have risen throughout the UK by over 3% on average over the past year. Even though it’s still the case that some regions are more expensive than others, there is one very strong trend. That it doesn’t matter where you live, house prices are increasing.
This is where Shared Ownership really comes into its own. The scheme offers an affordable route to home ownership in a market where affordability is becoming more of a challenge. The idea that you can buy a share in a property gives buyers short term purchasing power allowing them to get onto the housing ladder with a small deposit.
A good alternative to Help to Buy
Since the introduction of Help to Buy in 2013, the Government anticipates that it will have enabled home-ownership for over 300,000 households. However, Help to Buy is slowly withdrawing, beginning with the introduction of a new Help to Buy scheme to run from April 2021 to March 2023. This scheme is restricted to first time buyers and includes regional price caps to ensure that it is suitable for the people who need it the most.
With these changes on the horizon, now is the perfect time to be looking to Shared Ownership to ‘save the day’. Shared Ownership has been an ideal option for first time buyers, but it is also perfect for second or even third time buyers who are struggling to make the next step.
The options are increasing
Shared Ownership has come a long way since it was launched in the late 1970s. A few decades later, more than 200,000 people have become home owners under the scheme – and it doesn’t look like its stopping. In 2018 alone, Rightmove listed 2,500 homes as Shared Ownership properties and there are ongoing commitments by the Government to look into new waves of Shared Ownership developments – so don’t worry, it’s here to stay.
There’s still some rent to pay
Dependant on how much of a share your customer is in a position to buy, it is still only that – a share. This means that until the buyer is in a position to staircase to owning 100% of the property value they will still be paying a proportion of rent to the housing association/landlord. The good news is that, when the buyer has come to the end of their deal, there are lots of competitive deals and rates to make staircasing an affordable option.
The bad news is that there is always potential for future costs, and not small ones. Additional shares can be bought as and when it is affordable for the buyer, but depending on the size of the share, they aren’t cheap and some customers may want to staircase as quickly as possible.
The Cambridge offering human-made mortgage decisions
Whether your client is remortgaging, a first time buyer or they are looking to upgrade and buy a new home, The Cambridge can help.
With the aim to make home ownership an affordable option for all types of buyers, we are always looking for new ways to improve our lending proposition. For Shared Ownership, not only have we reduced the minimum loan size for purchase and remortgage from £50,000 to £20,000 to help support a larger variety of house prices, we’ve removed the upfront £199 application fee on the entire Shared Ownership range reducing upfront costs. And for those looking to remortgage, we have introduced a 95% LTV remortgage option to our range, allowing borrowers to staircase faster and own a larger percentage of their property.
Our current service levels
Target 2 days
App received to reviewed
Target 3 days