Welcome to Thinking Outside the Blog

Matt

New improvements to proof of residency

Richard – Head of Financial Crime

Published 19.07.2018

We’re always thinking of ways to make life as simple and hassle-free as possible for our customers. In recent blogs we’ve revealed the launch of our new Buy to Let and Residential Mortgage Submission Guides and an Additional Information Form, as well as improvements to our Standard Declaration Form.

Our latest criteria enhancement means we now only need 1 year’s documentary evidence if we can’t electronically verify your customer’s residential address history.

As we move towards an increasingly paperless society, more people are choosing to receive documents like their bank statements and bills electronically. As a consequence, many customers don’t tend to retain documents for a long period of time. While it’s undoubtedly good for the environment, it can cause problems if they need to produce 3 years’ worth of printed documentation when applying for a mortgage or loan from a lender.

The increase in online activity, however, combined with a system enhancement which has improved the way we carry out identity checks, means there are even more opportunities for us to confirm your customer’s ID and residential history. Providing that the 3 years’ address history keyed into the system can be verified online, there is no need for your customer to send in printed documentation for evidence. In instances where we’re unable to fully verify their details, we’ll ask your customers to provide us with 1 year’s printed evidence. This can be any of the following documents:

  • Most recent mortgage statement.
  • Current local authority rent card or tenancy agreement
  • Credit/debit card statement (no more than 3 months old)
  • Bank/building society/credit union statement or passbook (no more than 3 months old - online statements are not accepted)
  • HMRC correspondence sent to current address (P45 and P60 are not acceptable)
  • TV Licence (pre-printed) or renewal/reminder letter
  • Utility bill (excluding mobile phone and no more than 3 months old)
  • Vehicle Licence reminder

You can find out more in our Anti Money Laundering Guidelines document. If you’ve got any questions about this improvement, please speak with a member of the team by calling 0800 116 4385.


Previous blogs

Ros


Lisa – Head of Long Term Lending

Published 13.07.2018

I’m often asked by brokers, especially those who are new to specialist lending, what happens during our long-term lending application to offer process. Following your feedback, we’ve created this handy guide to help.

The stages

The following stages are shown in real time on our Client Management System. Remember, you can log in and review the status of a case 24/7 to keep up-to-date with its progress.

  1. Application submitted: Your customer has paid their fees and the application is being assessed by our Underwriting Team. Our daily SLAs for assessment can be found on our website.
  2. Application assessed: The case has been assessed but has not yet progressed to valuation as more information is needed. In these instances our team will contact you to confirm what information is needed to make a decision, which is why it is vital your contact details are up-to-date on our system. Using our submission guides can help ensure that the correct information is provided in the first instance. Click to see our Buy to Let and Residential Submission Guides.
  3. Valuation instructed: We’ve received the information/documents needed to progress to instructing a valuation. In the background we’ll work on any additional documentation that has been received to help the case progress as quickly as possible.
  4. Valuation received: Once the valuation has been completed, you can download a copy of this from our Client Management System (unless the application is for a House in Multiple Occupation (HMO)). Providing the valuation is okay and we’re not outstanding any additional information from you regarding the case, it will progress to the Ready to Offer stage.
  5. Ready for offer: During this stage our team is conducting final checks to ensure that everything is in order so that cases can be offered as quickly as possible. Every case is different and as a responsible lender we ensure that all is in order before we progress to an offer being issued.

If you found this useful, keep a look out for future blog posts that discuss different elements of our application to completion process, ensuring you’re fully up-to-speed with our processes.

If you have any questions regarding this information, remember you can contact a member of the Sales Team or our dedicated Intermediary Support Team on 0800 116 4385.

Ros


Matt – Underwriting Team

Published 27.06.2018

Since my first blog post at the beginning of April, thanks to your feedback, we’ve made a series of changes that have gone a long way in helping us help you when it comes to enhancing our service.

In a recent meeting my team were talking about feedback they’d received around the way we request additional information and how best to support you in providing this. This conversation led us to discussing how we could make this process simpler for you and your customers, especially where this information is pivotal to us reaching a lending decision.

From this discussion, our brand new Additional Information Form was created. Because we know that not every application is straightforward, this form allows you to tell us additional information at the start of an application. We’d recommend you complete this at the beginning of an application and upload to our system, along with any supporting documentation (remember we also have our Buy to Let and Residential Submission Guides which we designed to help you understand what documentation needs to be submitted at the start of an application).

The benefit of this is that it can help us fully assess cases and reduce the number of times we need to contact you for follow up information, which can help speed up processing.

Here’re some examples of additional information that you could provide to help us process your cases more quickly.

  • Purchase details – what type of purchase is it? Downsizing? Is the customer related to the vendor, for example?
  • Income differences – has their income gone up/down if they’re self-employed and why?
  • Ongoing commitments – does your customer have a student loan? Will they be repaying a Help to Buy shared equity loan?

Providing these additional details really can help us understand a case and stop us having to come back to you to ask questions which inevitably leads to delays.

We’re here to help so if you aren’t sure if information is useful contact our Sales Team or Intermediary Support Team to discuss a case and any additional information we may need.

To download and use the new Additional Information Form click here.

Ros


Ros Brown - Underwriting Manager

Published 20.06.2018

The saying goes that it’s the little things that make the biggest difference. A tiny tweak here and a slight change there add up to a larger overall improvement when they’re all put together.

We’re always thinking of ways of making applying for any of our products as easy as possible. We recently made a small, but significant, change to our Standard Declaration Form to make the process quicker when you submit information to us in the future.

Customers have previously had to indicate what fees were added to their loan, such as product fees and telegraphic transfer fees, by ticking a series of boxes. If you’ve ever had to go back to your customer because of an incorrectly completed Standard Declaration Form, you’ll know how frustrating that can be.

To make things easier, we’ve removed the boxes from the Standard Declaration Form. It doesn’t sound like much, but taking them out will reduce document requests, avoid unnecessary duplication and speed up application-to-offer times.

Thank you for your feedback which has helped our Underwriting team introduce this change. We hope it will make things a lot more straightforward for you and your customer.

Click here to start using the new Standard Declaration Form.

If you’ve got any questions about the change, please speak with a member of the team by calling 0800 116 4385.

Hopefully you’ll find this change, along with others we’ve made in recent months, will make it easier for you to do business with us. If you agree, we’d really appreciate it if you would vote for us at this year’s Financial Adviser Service Awards. Voting only takes a few minutes and you can make your nomination by clicking here.

Alan


Alan Cleary - Managing Director

Published 13.06.2018

We know we can always make things better which is why we instigated our Broker Journey project 12 months ago. The aim of the project is to collect all of the broker feedback we receive and look at how we can make doing business with us as streamlined and as broker-friendly as possible.

It’s only by you talking to us and letting us know what we’re doing right or what we could improve that we can make things simple and pain-free. We’re always listening to what you have to say and your invaluable feedback has led to us introducing a whole raft of service improvements over the last few months.

Before you apply

Before you even send us your application, you can now check our online Buy to Let and Residential Mortgage Submission Guides to make sure you’ve got all of the documentation you need before sending your case in. Created following broker feedback, the guides detail the documents we need for each application and are designed to be printed and used for easy reference.

When you told us you wanted a quick and easy way to access our lending criteria, we created a searchable Online Criteria Guide. Since its launch earlier this year, the mobile and tablet friendly guide has been viewed by brokers more than 45,000 times.

You can now check how much your customer could borrow before submitting their application by using our online Affordability Calculator. The calculator helps you to understand the benefits of our buy to let proposition and shows the options available to your customer to help them get the loan size they want.

While you apply

If you’ve still got any questions or need a little more help in completing your application, our dedicated Customer Support Team is on-hand 9am-6pm Monday to Friday. Our expanded Sales Team is also available with any support you might need.

Once you’re ready to submit your application, you now only need to provide one signature on our Document Certification Form to verify all supplementary documentation instead of having to sign each piece of paperwork individually. We’ve also made it easier for you to send us the documentation by improving our system so you can upload it directly to the system.

After you apply

Once we have your customer’s application, you’ll have direct access to a dedicated underwriter and our outbound call team will proactively call you to discuss any case queries. We’ll also send you regular case updates via SMS or you can track your case’s progress online 24/7.

Hopefully you’ll have noticed the improvements and find doing business with us is now even easier than it was before. If you’ve been impressed, I’d really appreciate it if you would vote for us at this year’s Financial Adviser Service Awards. Being recognised at these awards would really mean a lot to us.

Voting only takes a few minutes and you can make your nomination by clicking here.

Many thanks for your support and we look forward to working with you in the future.

Kind regards,

Alan Cleary

Steve


Steve - Underwriter

Published 06.06.2018

Firstly I wanted to say thank you for taking the time to send us details about your customers, but did you know that sending us information we haven’t asked for can slow a case down? We’re obliged to underwrite everything we receive, whether we need it or not. This means we might have to ask more questions about your customer, which could result in frustrating delays in issuing an offer.

As a rule of thumb, for buy to let mortgage applications we only need a standard declaration form (and for limited companies a direct debit mandate), while for residential mortgage applications we need 3 months’ bank statements and income documents (P60 and 3 months’ payslips for employed customers or HMRC tax calculations and tax year overviews for self-employed customers).

With this in mind, we’ve created a Buy to Let Mortgages Submission Guide and a Residential Mortgages Submission Guide to give you an idea of the information we need at application. Click on the links to find out what we need you to include with your case. If we require any more information from you, we’ll get in touch and let you know what we need.

If you’d like to speak with a member of the team, give us a call on 0800 116 4385.

DannyBelton


Danny Belton, Head of Lender Relationships, Legal & General Mortgage Club

Published 22.05.2018

The specialist lending market is quickly becoming one of the fastest growing areas in the mortgage industry, as more borrowers struggle to meet the strict and vanilla-like lending criteria of the high street. Although volumes are lower compared to the wider market, specialist mortgage lenders’ gross annual lending has increased by 19% year-on-year since 2009, according to the Intermediary Mortgage Lenders Association (IMLA).1

One reason for this increase is specialist lenders’ ability to deal with more complex mortgage applications, many of which would be rejected by high street banks. This includes applications from customers with complex sources of income or the self-employed, contractors and entrepreneurs, all of whom make up a significant majority of specialist lending cases. Brokers, therefore, need to be aware that as the UK workforce continues to evolve, these types of customer are only going to grow in number. Already, the UK has nearly 5 million self-employed workers who account for nearly 15% of the workforce.2 This trend has been picked up on by lenders, including Precise Mortgages whose flexible approach to the self-employed has started to result in more self-employed and contract workers considering specialist lenders.

Similarly, a small blip in a person’s credit history is often due to easily explainable credit issues, such as a missed phone bill, expired credit card, a change in bank account, or a small one off pay-day loan. Many of these customers are not repeat offenders and often have a good credit history before and after such a blip, yet they will often be turned away by the high street.

As a result of the growth in the specialist lending sector, there is a clear need for brokers to understand specialist lending criteria and how the process differs from traditional lenders. Some brokers have remained cautious of specialist lending, not wanting to deal with complex customers or unfamiliar lenders. However, there are significant opportunities for brokers in specialist lending, as the number of borrowers with adverse credit continues to grow.

Specialist lenders, such as Precise Mortgages, are able to cater for those who fall outside the mainstream lending criteria. With its approach to underwriting and its credit risk management process, Precise Mortgages assesses applications on a case-by-case basis to help customers underserved by high street lenders get the mortgage or loan they want. This approach means Precise Mortgages can use the human touch to take each borrower’s personal situation into account and identify the best products for them.

Even if your customer already has a mortgage with a high street lender, the specialist lending market can still help. For example, bridging and second charge loans can meet the needs of certain customers, yet are only offered through specialist lenders. It’s one of the reasons Legal & General has seized on the opportunity and launched a direct bridging and seconds club route with Precise Mortgages and other lenders with a view to growing this area of the market.

Over the coming years, we hope to see more and more brokers seize the opportunities that specialist lending brings, so that each and every customer can find the right solution for their needs, regardless of their circumstances.

1http://www.imla.org.uk/news/post.php?s=2017-10-04-the-rebirth-of-specialist-mortgage-lenders-gross-lending-grows-threefold-since-2009

2https://www.mortgageintroducer.com/house-prices-booming-self-employed-hotspots/

Kayleigh


Kayleigh – Telephony Team

Published 09.05.2018

Imagine if we really needed to get in touch with you only to find that the number we’d got was no longer in use, or even missing, and the email address was out of date.

It sounds like such a small thing, but you wouldn’t believe how much it can hold up a case if we haven’t got your most recent contact details.

To help us keep our records up-to-date, we recently sent out an email to all the brokers on our system asking them to check their details. By making sure we’ve got your correct phone number and email address, you can avoid frustrating hold-ups and speed up the application process.

I’m sure you’ll agree it’s a simple thing, but it can mean the difference between us being able to get in touch with you, or not be being able to contact you and delaying the case.

You might find we need to contact you while we’re processing a case to let you know how it’s progressing or if we need anything further from you. I’ll sometimes get a call from a broker or one of their admin team asking how a case is going, without them being aware we emailed them a couple of days before asking a question or because we needed some more documentation from them. It’s worth keeping an eye on your inbox to make sure you haven’t missed any emails from us.

You can check the details we’ve got for you by clicking here. If you need more information about how to update your contact details in the system, click here.

Matt


Matt – Underwriting Team

Published 25.04.2018

Hi, I’m Matt, and I’m proud to be one of the managers in our Mortgage Underwriting department.

In the early stages of planning these blogs we had numerous discussions about what we wanted to talk about. We all agreed on the same thing – we wanted to create content to provide support and place real focus on how to submit your cases with ease. I spoke with some of the team for their thoughts and we all agreed that we want to work together to ensure your customer’s case is processed quickly and painlessly.

The nature of specialist lending means that cases tend to be on the more complex side. We understand the delays in processing can be frustrating for all, especially customers who are waiting to complete on their mortgage. This is why we are committed to working with you to make it as smooth and simple as possible.

As a broker, you’ll already know your customer’s case inside out. By sharing this information with us from the very start of an application, especially for the more complex cases, you’ll be giving us the best chance of completing a case quickly and efficiently. If we know what you know from the outset, the less likely it is we’ll need to get in touch with you for more information.

To help you find out exactly what we need, we’ve created Buy to Let and Residential Mortgages submission guides. Click here to read the Buy to Let Mortgages submission guide and click here to view the Residential Mortgages submission guide.

By providing us with this information means your customer will get the mortgage or loan they need, and you’ll have more time to help other customers. I’m sure we all agree this is a shared goal!

Alan


Managing Director

Published 18.04.2018

When you’re helping secure your customer a mortgage or loan, I doubt you give much thought to the people who work behind the scenes to deliver our lending solutions.

Behind the familiar faces from Precise Mortgages you deal with on a daily basis, there’s a huge team of people developing new products, processing customers’ cases and answering your questions.

It’s one of the reasons we’ve launched Thinking Outside the Blog: to give you an insight into the work of our underwriting and customer contact teams, as well as an understanding of how a specialist lender works and why we sometimes ask for the things we do.

Every fortnight we’ll be posting insightful and interesting content on our website, revealing ways you can get your customers’ cases completed quickly and with as little fuss as possible.

We’ve assembled a team of bloggers from our Underwriting and Telephony teams who will be sharing their specialist knowledge. A different member of the team will write a blog every fortnight, giving you a unique insight into Precise Mortgages – improvements we’re making and what you can do to make sure your cases are processed quickly and smoothly.

We’re committed to working with your feedback which will help us achieve this.

If you’ve got any suggestions for things you’d like to see covered in future blogs, please let us know by emailing [email protected].

Thanks for reading,

Alan

For intermediary use only
BBR 0.50% / 3 month LIBOR 0.63%