Hot Topics Magazine

Hot Topics Magazine

HOT T PICS M O R T G A G E & P R O T E C T I O N

INSIDE THIS ISSUE:

Aviva Win the protection clients you want. Faster

Together Bridging loans market remains resilient

Age Partnership It’s equity release but not as we know it...

Halifax Four reasons your client wants a product transfer

CPD expertise. AIG Life support.

Continuing Professional Development

Our CPD Life Support materials

> What is CPD? Continuing Professional Development refers to the process of tracking skills and knowledge that can be applied professionally. The new CPD quota came into force on the 1 st October 2018. > What is the new IDD quota? The Insurance Distribution Directive (IDD) is EU law which sets regulatory requirements for those designing and selling insurance products. From the 1 st October 2018, all advisers selling protection must complete 15 hours of focused CPD annually. These are included in the 35 hours of CPD the FCA already has in place. > AIG Life support As a seller of Protection you cannot avoid the new quota, but we can make it easier for you. We have developed a one-stop online hub for all your CPD Protection needs. It’s part of our on-going commitment to support advisers however we can.

Our bespoke interactive hub has materials that qualify for CPD and are available to download and watch instantly. These will cover a wide range of topics, including Foundation Level, Business Protection and Wealth Protection. New content will be added regularly.

Critical Illness Income Protection Enhanced Gift Trusts Key Person Cover Planning for Later Life - Care Cover

Get CPD ready today. Visit www.aiglifesupport.co.uk

For adviser use only. AIG Life Limited. Telephone 0345 600 6820. If calling from outside the UK, please call +44 1737 441 820. Registered in England and Wales. Number 6367921. Registered address: The AIG Building, 58 Fenchurch Street, London EC3M 4AB. AIG Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The registration number is 473752.

INTRODUCTION – 3

Introduction

Welcome to the first edition of our new mortgage & protection magazine, Hot Topics. New for 2019 is Tenet’s Hot Topics magazine - a dedicated channel utilising the expertise of mortgage & protection providers. The content will provide you with a range of solutions, market insight, opportunities and business support tools, which can be adapted to

The current environment in the UK is causing evolutionary change in the way brokers and lenders must meet customer needs. The market is evolving, customers’ personal circumstances are also changing, and some lenders are struggling to keep up. Bank of Ireland ask, ‘what impact does this have on the growth in contractor employment, increasing demand and lack of supply of housing and does it impact remortgages?’ The Exeter appreciate that it can be challenging to persuade your clients of the importance of protection insurance, which is why they are committed to making it more accessible, continuing to bring quality, affordable life cover to those who need it the most.

AIG’s critical illness package covers even more thanks to their optional total disability add-on. It works by giving customers extra financial help if they fall ill, regardless of whether they’re in work or not. Inside there is further content from More2Life, Halifax, Keystone Property Finance, Norton Broker Services, NatWest, HSBC, AGE Partnership and Together. We hope you find this magazine an informative read, keeping you up to date with the mortgage & protection markets.

suit your business models. Featured in this issue:

With more than eight in 10 advisers saying they want more protection clients, Aviva has unveiled a new one stop shop to help them get there.

4 - TENET EVENTS

Tenet Events - See what’s coming up...

Our events programme includes everything you need to keep abreast of the latest developments in our industry and latest sales tips, as well as providing a ‘one stop shop’ for all your CPD. Tenet events are open to advisers and support staff from all three Tenet brands. Coming soon… Mortgage Expo events – starting June 2019 These events have been organised to assist you in maximising the potential in your business by writing a compliant and fully protected mortgage to safeguard your clients throughout the lifetime of their mortgage. Each expo will focus around our trade fair, giving you the opportunity to meet our lender partners and explore their latest products and offerings. We will also host breakout sessions throughout the day, led by our lender partners. Target audience: Mortgage advisers Timings: Approx. 9.30am – 2.00pm CPD: Approx. 1 hour & 30 minutes unstructured CPD

Session synopsis As part of the Virgin Money webinar we will be looking at some of the key changes that we made in 2018. We made a number

of propositional changes and want to ensure that you’re aware of how Virgin Money worked hard, listening to your feedback and doing our best to support both you and your customers. We’ll then take a look at some of the key areas of our proposition we believe can really support during a tough market. We’ll take a look at how we are supporting the challenging first time buyer market, the new build market, the ever complex BTL market and some key areas to support your self employed customers. We will also spend some time looking at how we always work hard to make our relationship with you a true partnership.

The second webinar will be hosted by NatWest Intermediary Solutions entitled Technology & Innovation in the new build market - presented by Andy Ingham, Corporate Account Manager

Technology continues to shape the intermediary marketplace and in this presentation we’ll focus on what innovations are being made in the new build sector, including the improvements we’ve made at NatWest Intermediary Solutions in regards to our service and proposition, but also

Date

Location Venue

what the houses of the future may look like! To book your place on this webinar visit: http://webinars.tenetgroup.co.uk/webinar-2-2019

06/06/2019 Leeds 13/06/2019 London

Royal Armouries

Amba Hotel 20/06/2019 Birmingham Marriott Forrest of Arden

Date

Location

Venue

01/03/2019 Virgin Money

Welcome to True Partnerships! Technology and Innovation in the New Build Market

To book your place on a Mortgage expo visit: www.web.cvent.com/event

29/03/2019 NatWest Intermediary Solutions

Webinars Tenet will host a live webinar with a single provider or lender which you can view from the comfort of your home or office. You will have the opportunity to view the webinar and interact with the speakers, asking any questions you may have. These webinar events now offer CPD for 30 minutes (mortgage & GI related webinars will offer unstructured CPD). We would recommend advisers book onto the annual programme of webinars and then opt out as and when they are not available or when the content is not relevant. Book onto all webinars: www.web.cvent.com/event Target audience: All advisers Timings: Friday mornings - 9.30am - 10.00am CPD: 30 minutes structured per webinar / 30 minutes unstructured for lender webinars The first webinar was hosted by Virgin Money entitled True Partnerships - presented by Kim Dickinson, Senior

31/05/2019 Post Office for Intermediaries 28/06/2019 Shawbrook Bank 27/09/2019 Together 25/10/2019 The Exeter 29/11/2019 Precise Money

TBC

TBC TBC TBC TBC

If you have any queries, please call the events team on 0113 239 5334 or email [email protected] .

Date for your diary… We're delighted to invite all advisers and support staff to our Adviser Forum, which will be held at the Queens Hotel, Leeds, on Thursday 5th December 2019. More information for this event will be provided throughout the year, so watch this space!

Business Development Manager Now available to view on demand… http://webinars.tenetgroup.co.uk/webinar-1-2019/

MARKETING TOOLKIT – 5

GROW your business with help from Tenet…

Pick from our range of support leaflets, brochures, posters and adverts covering a wide range of themes, which are ready to use straight away…

Boost your business this spring by visiting our marketing toolkit area of the extranet… A key benefit is that we streamline compliance processes by pre-approving most of the marketing support that’s available to make it quick and easy for you to use. We’ll also add your logo and contact details. Most of the support is available without charge you just cover the cost of printing the materials or the cost of placing an advert as relevant. The social media content has been designed for Facebook, Twitter and LinkedIn, and is designed to work alongside

advert images which have been produced as JPEG images. In many cases it is necessary to include the relevant advert image to make the post compliant (as it carries any necessary risk warnings) but there are also some posts which can be posted with or without an advert. These posts are all designed to be added on your own social media page as a free way of promoting your business, alongside other posts of a non-promotional nature. How to utilise the marketing support You can see all the existing support by visiting the extranet, clicking on ‘grow your business’ on the top menu bar and then clicking the marketing toolkit tab. Alternatively, simply put ‘marketing toolkit’ into the extranet search box.

Don’t forget to take advantage of our range of social media posts and adverts…

If you need any help, call 0113 2390011 and ask to speak to the Marketing Team or email [email protected]

Win the protection clients you want. Faster. Take your advice business to the next level with Adviser Business Accelerator. Discover tips, tools and guides to help you win more protection clients and boost your profits. All at the click of a mouse button.

Help your firm fly higher.

Visit adviserbusinessaccelerator.aviva.com

Aviva Life Services UK Limited. Registered in England No 2403746. Aviva, Wellington Row, York YO90 1WR. Authorised and regulated by the Financial Conduct Authority. Firm Reference Number 145452. TR01445 11/2018

AVIVA – 7

Win the protection clients you want. FASTER

With more than eight in 10 advisers saying they want more protection clients, Aviva has unveiled a new one-stop-shop to help them get here. Aviva has launched a new online hub to help financial advisers boost the protection side of their business. The ‘Adviser Business Accelerator’ website includes expert tips and step by step guides to help advisers get more from their business development and client acquisition efforts. Jim Hunter, National Sales Manager at Aviva, said: “We know from our research that many advisers – 86%, in fact – see protection as key growth area for their business. We also know that many don’t have as much time to dedicate to achieving this as they would like. That’s why we’ve launched Adviser Business Accelerator.

“The new hub is designed to help advisers grow the protection side of their business more quickly by giving them access to expert advice and tips. Tips which are also easy to put into practice.” A simple way to rack up CPD hours Topics covered by the new hub include: winning more business through your website; getting more referrals; networking with ease; simple marketing planning; and how to dominate your local market. Advisers can also access a library of more than 60 ‘Marketing in minutes’ guides – simple client acquisition and business-building tips which are quick to read and almost as quick to implement. Mr Hunter added: “The way the site is structured makes it easy for advisers to dip in and out of the content they need, whenever they happen to need it.

“Plus, it gives them an easy way to achieve the 15 hours of unstructured CPD they’ll now need to bank under the Insurance Distribution Directive – at the same time as learning something that could benefit their business.

Each of the articles and step-by-step guides can be used towards the 15- hour target, so advisers can learn something that’s going to be useful to their business whilst doing the reading they need to by law.”

For more information and to sign up free, visit adviserbusinessaccelerator.aviva.com

Our bridging loan helped The Clarks to downsize before they’d even sold. The upside of that, we helped them do it.

Lending for the new normal.

At Together our experience spans over decades and tens of thousands of bridging loans. So no matter the circumstances our flexible approach to lending means that it’s perfectly normal to us. Find out how we do things differently at togethermoney.com/bridging or call 0333 363 4904

For professional intermediary use only. ‘The Clarks’ has been used for illustrative purposes only.

TOGETHER – 9

Bridging loans market remains resilient

In spite of widespread uncertainty around Brexit and a housing market slowdown in parts of the country, the bridging loans market continues to grow significantly faster than the mainstream mortgage market. Specialist lender Together believes this can partly be explained by the growth in the number of uses for a bridging loan. As ever, house buyers desperate to move can use such a loan to secure their new property, while the sale of their previous home goes through. However, over time they have come to be used for more diverse reasons. For instance, they are now frequently used by people buying at auction to meet strict completion deadlines, and by people wanting to redevelop or refurbish a property before selling it on. Businesses are also using these loans to invest in new staff, space or equipment that will expand capacity; to buy raw materials before accepting a large order; to build up stocks ahead of an expected rush on seasonal orders; or for buying shares in other businesses. Daniel Owen-Parr Together’s Head of professional sector and auction gave these examples of various scenarios your clients may find themselves in, where they could use a bridging loan:

To buy a dream home “Imagine they’ve found the perfect new- build home, and the builder is willing to sell it at a discount – but only if they exchange contracts within three weeks and complete within four. “With such a tight timeframe, and a chain on the sale of their existing property, they might end up missing out. However they could secure the new property with a short-term loan, provided they have savings to cover any Stamp Duty, conveyancing fees, legal and moving expenses. “This loan would last typically up to 12 months, and they’d have no monthly repayments to make – so wouldn’t be paying two mortgages at the same time. Instead, the interest is ‘rolled up’ and repaid with the initial loan – which they can do whenever the sale of their old home is complete, and they receive the funds from the buyer. “As their home is involved, the loan would be regulated by the Financial Conduct Authority (FCA).” To secure an investment property at auction “If your client buys at auction, they have to put down a 10% deposit there and then – and they could lose it all if they don’t complete within 28 days. “Buying a former commercial unit – for instance, an old bank building at auction – to turn into flats could represent a profitable venture. But if they then find

themselves let down by their usual finance provider, because the building is classed as a non-standard property, they’d have to act fast to arrange alternative funding. “Traditional mortgages can take far longer than four weeks to complete, but they could turn to a bridging loan to both secure the purchase, and complete the conversion.”

To buy a new business premises “Imagine your client owns several units on a business park, and are considering investing in another. One of the neighbours needs to clear a tax bill, and quickly, so they’re willing to sell their unit to raise the funds. The catch? HMRC are demanding payment within three weeks. “If your client decided to invest in the unit, their bank may be unable to provide the money needed at such a short timescale. They could take out a bridging loan to cover the purchase cost, secured against the other units on the business park that you already own. This satisfies the vendor’s timescales, and gives their bank time to arrange longer-term borrowing.

Find out how we do things differently at www.togethermoney.com or call 0333 363 4904

Sharing our success For over 150 years HSBC has connected customers to opportunities, enabling businesses to thrive and economies to prosper, as well as continuing to invest in growth and innovation to make banking simple, safe and sustainable. Deeply rooted in the UK, our dedicated ‘HSBC UK for Intermediaries’ channel continues to offer the flexibility and functionality needed to provide a For HSBC UK, 2018 was one of the biggest in our 153-year history and definitely the most monumental in living memory. In response to the Financial Services (Banking Reform) Act 2013 we set up a separate ring-fenced bank to serve 14.5 million personal and business customers in the UK and UK Private Bank clients. This was one of the largest projects ever undertaken by the bank and required the reconfiguration of core banking platforms and payments infrastructure, including the successful separation of over 250 IT systems from the rest of the Group. In addition, 400,000 bank accounts were transferred to new high quality service to you and customers. Here are just a few of the reasons why together we thrive .

We’ve grown We are now live with over 80 Intermediary firms - around 13,000 brokers have access to our mortgages.

Technology upgrade Delivered a new Intermediary mortgage application platform, revolutionising how we work with intermediaries.

People powered Delivered Breakfast Seminars around the UK educating our brokers on technology, fraud and the economy.

HSBC UK sort codes and all HSBC branches in the UK were rebranded HSBC UK. This was completed on 1st July, six months ahead of the legal deadline. We have now moved into our new headquarters in Birmingham, a bespoke new building with extremely green credentials representing part of a £200 million investment that HSBC has placed within the West Midlands. Around 2,500 HSBC colleagues are now working from this new building in the centre of Birmingham. We are the first building to be completed in an area of great regeneration, so while we will be in the middle of significant construction work for the next few years, including the Birmingham City Council extending the tram network with it running parallel to our HQ, we are lucky enough to see the area transform before our very eyes.

HSBC UK Bank plc. Registered in England & Wales with number 09928412. Registered Office: 1 Centenary Square, Birmingham, B1 1HQ, United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 765112. ©HSBC Group 2019. All Rights Reserved. X2892

95% Help for FTBs Introduced 95% LTV mortgages and extended the maximum lending term to 35 years.

We’re committed A number of improvements have been made to reduce Packing Requirements and Time to Offer. 100%

Award winning Richard Beardshaw was named Best Head of Sales at this year’s British Mortgage Awards.

Helping hands Significantly increased our telephony team, handling over 200,000 calls in 2018 and our field based teams, offering local face to face and distance support.

Shaking things up Awarded ‘Editor’s Special Award’ at the Your Mortgage Awards 2018/19, in recognition of how we have engaged with mortgage brokers and shaken things up in the market.

Double act Approved double the number of mortgages in 2018, making HSBC UK the fastest growing intermediary lender in the market.

We’re consistent Our pricing strategy aims to place us in the top quartile across all product LTVs and terms.

This is very fitting, given the transformation that has taken place within HSBC’s Mortgage business. We have worked extremely hard to systematically grow our broker panel, making our products available to more of the broker market. Also, the amount of work that goes into the due diligence should not be under-estimated, a ‘must do’ given we operate in such a highly regulated industry. Our processes have also been transformed thanks to our broker platform – digital integration has reduced packaging requirements, income and expenditure requirements have also reduced along with our time to offer. We have increased the size of our BDM and telephony teams, with gender and diversity inclusion at the heart of our policy to ensure our colleagues are representative of the customers and markets they serve.

Product development remains a key priority for us. Introducing 95% LTV mortgages to our product range and increasing maximum lending term to 35 years has helped make property ownership more affordable to those with a smaller deposit without compromising our high quality of lending. We are proud of the great in-roads we have made in the broker market in the last 12 months and the momentum HSBC UK for Intermediaries has generated going into 2019. This year will be another chapter of continuous improvement, making the broker journey more frictionless, whilst providing attractive products for your clients who want to get onto or move up the property ladder.

Together we thrive

NatWest Intermediary Solutions Committed to supporting you and your mortgage customers To help you and your customers we: • Take different income types and benefit payments into consideration • Consider family gifted deposits and equity for first-time buyers • Provide an easy-to-use affordability calculator that mirrors the one our underwriters use Mortgages for how life is now.

ONLY FOR USE BY MORTGAGE INTERMEDIARIES

NATWEST – 13

Secure Document Upload Facility with NatWest Intermediary Solutions

In June we introduced a couple of solutions that allowed brokers to feel confident about the security of documents that they send to us in form of TLS and Egress Switch. We also informed you at that time that we were working on a facility that would enable you to upload documentation to our website. We are very pleased to confirm that this facility went live in December and it enables brokers and their administrators to directly upload documents in support of any applications submitted through our website: www.intermediary.natwest.com Prior to launch we piloted the secure upload service for 4 weeks with a number of brokers, who have been extremely helpful in shaping the finished service. Please review the simple steps outlined below in order to use this service. When you create your case on intermediary.natwest.com Within 4 hours of the application being submitted you will receive an email from us confirming the mortgage reference number of your application and when you log into our website and select the case the mortgage reference number will be shown against your client details. Select ‘Packaging Requirements’ from the summary header and case specific packaging guidance will now be displayed.

An option ‘Proceed to Upload Documents’ will be available below the packaging text. You will then be able to upload PDFs and Jpegs up to 10MB in size. Neither individual certification nor Certification Face sheet is required when using this method. You will see on screen confirmation that the documentation has been successfully submitted and the status will change to ‘Submitted’. Once the attached proofs have been recorded on our system (within 4 hours of submission) the status will change to ‘Received’. There is no need to pick up the phone and verify receipt. Administrator access Where you have an administrator to send us documents on your behalf, we have created a separate Admin access specifically for document upload. Administration staff can complete the instant registration by clicking on ‘Register with us’. Administrators will be restricted to uploading documents and will not be able to key illustration requests, AIPs or FMAs. For >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28

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