Limelight 51

Limelight 51

LIMELIGHT A Tenet Group Publication for Appointed Representatives of TenetLime

Issue 51 n

2017

A SPOTLIGHT ON THE BUSY REGULATORY LANDSCAPE... plus what’s on the horizon

ALSO IN THIS EDITION…

Marketing Toolkit: Give your business a New Year boost Market Watch: Changes to the underwriting process for ‘Portfolio Landlords’ Tenet Events: Dates for your 2018 diary!

PLUS: A big congratulations to three of our member firms...

WELCOME

Editor’s Foreword Grace Godson TenetLime Marketing Consultant

Contents

TenetLime Support 04 Industry News The busy regulatory landscape 06 Give your business a New Year boost

06

Details of the marketing toolkit support available

Hello and welcome to Limelight: In this issue our Industry News article looks at a variety of developments and topical subjects that have taken place in September, including the second phase of PRA standards in relation to Portfolio Lending and the FCA’s Occasional Paper on the ageing population. It also looks forward to developments that are on the horizon, which certainly mean changes for the industry. Find out more on pages 4 and 5 . Think your business brand needs a fresh lick of paint? Does your website need ‘re-vamping’? Our ‘Marketing Toolkit’ brings you a whole range of support such as leaflets, brochures, posters and adverts across a wide range of themes, all of which is designed to give a professional look to your brand and promote your business. Most of the support is available free of charge, but we also work with external suppliers who specialise in providing services to advisers on support such as websites and newsletters. And what’s even better, all our materials are pre-approved by Compliance – so in the majority of cases you can use the items straight away! Get to grips with all the support available on pages 6 & 7 . In this issue’s ‘Market Watch’ Sam and Gav in our TenetLime team have focussed their attention on the new changes in the ‘buy-to-let’ sector, specifically the underwriting process when it comes to ‘Portfolio Landlords’. Whilst you may rarely see these types of cases, it is important for you to understand these changes. Even more so now, as it will be unlikely that a portfolio landlord will be in a position to apply for a mortgage without using a broker, meaning you might see these types of customers more frequently. You can review the full article on pages 22 & 23 . Need to top up your CPD? Our webinars are a perfect opportunity to update your knowledge on key issues, whilst earning that all important CPD. All our webinars are available to watch ‘on-demand’, so you can watch at a time that suits you. Check out full details on page 10 . Dates for your 2018 diary! With the last round of events having just taken place and the New Year fast approaching, it’s an ideal time to get the next round in your diary. Our first round of Non-Investment Roadshows starts on 17th April, visiting 9 locations around the UK. The Tenet Events Team will be getting in touch with you at the end of this year, giving you the opportunity to book all your chosen events for 2018 as a ‘one-stop-shop’. Full details on page 11 . And finally, it’s been another turbulent year in the industry as the financial landscape is continually evolving and the future will have challenges, but equally there is a world of opportunities for you to embrace. At our Adviser Forum (Thursday 7th December) we will be reviewing what is on the horizon, providing you with useful insight and sales tips, as well as the opportunity to network with other advisers, Tenet staff and our provider partners. And whatever may be around the corner in 2018 and beyond, withTenet at your side, you will feel reassured that you have a partner to help you successfully ‘Navigate the Future’ . If you are joining us at the Adviser Forum, we look forward to seeing you there to celebrate the end to another successful year. In the meantime, as the festive period is fast approaching, we wish you a very Merry Christmas and a Happy New Year from all of us here at Tenet. Happy reading!

11 Tenet Events

Dates for your 2018 diary…

23 Market Watch Changes to the

underwriting process for ‘Portfolio Landlords’

11

Provider Support: 20 AIG Life Get a head start with Life Start and CIC Start 28 Royal London Have we got our protection priorities all wrong? 33 Norton Broker Services Second charges – cheaper than remortgaging? 37 VitalityLife Even small budgets can benefit from big rewards… Tenet Community: 38 Award Ceremonies & Recognition A big congratulations to three of our member firms…

37

39

Editor: Grace Godson

LIMELIGHT is a Tenet Group publication 5 Lister Hill, Horsforth, Leeds LS18 5AZ. Tel 0113 239 0011 Fax 0113 239 5322

Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.

TENETLIME SUPPORT

Industry News A Spotlight on The Busy Regulatory Landscape

Lenders need to make sure borrowers are not over-exposed and now need to take the value of the whole portfolio into consideration when looking to lend on any new or existing property. Lenders must also look at existing borrowing across the portfolio, as well as a much more detailed assessment of the borrower’s personal finances, meaning that in some circumstances you may be asked to supply business plans and cash flow forecasts from your clients. Some lenders may also apply a higher Interest Cover Ratio (ICR) for Portfolio Lending. Whilst lenders will have similar requirements, their criteria will differ, so you need to ensure that you are fully conversant with each one. To assist with this, we have updated our Mortgage Research Matrix on the extranet to cover the new requirements and we would also suggest that you check with the lenders directly and engage with their Business Development Managers, who will be able to advise you on their specific requirements. So, whilst this will require new documentation from lenders and will raise some challenges for brokers in terms of differing criteria, it also offers opportunities for firms to consider annual charging for any larger portfolio clients. Also in September was the FCA’s publication of an Occasional Paper on the ageing population and financial services, which explored the treatment of older people within the industry phase of these changes came into play and new standards for Portfolio Lending now apply, with any borrower with four or more properties subject to new underwriting criteria. New PRA standards came into force in January of this year, with new underwriting standards affecting stress testing and affordability. With effect from 30 th September 2017 however, the second

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TENETLIME SUPPORT

and the ability to fulfil their needs. It concluded that there is scope for financial services firms to do more and is urging the industry to look at product and service design, customer support and engagement to essentially make their customer journey more joined up and ensure older people have access to a full range of products, with signposting to all relevant advice areas across the investment and non-investment markets. Don’t forget that we have a dedicated referrals service across a range of advice areas, including equity release, secured loans and will writing. Details on our referral partners including the service they offer, how to register and what enhanced referral fee you would receive are available on the extranet within the ‘Products and Providers’ area. Consequently, following work on the Occasional Paper, retirement interest-only mortgages could be making a comeback, following their redefinition as ‘lifetime mortgages’ after the implementation of the Mortgage Credit Directive. This means that mortgage advisers without an equity release licence will be able to recommend these products. This proposal is due to the FCA identifying a “regulatory barrier to a form of mortgage lending that could meet the needs of some older borrowers”, essentially those who have existing interest-only mortgages and no means of repaying the capital and so are currently faced with selling up and buying a smaller property or applying for specialist equity release loans. It should be noted that this only applies to mortgages for older clients (typically 55+) where the client is committed to paying interest payments from the outset and throughout the term until certain ‘life events’ occur triggering repayment of the debt through sale of the property. Any mortgage that offers an ‘interest roll up’ facility will still fall under the definition of a lifetime mortgage and require the appropriate equity release qualification to advise on and arrange. This proposed change will also lead to additional detail being required in a firm’s initial disclosure document in respect of it’s mortgage services. The regulator is currently canvassing views via a quarterly consultation on this issue, so it will

be interesting to see what the findings will be. We will update you accordingly once the FCA policy statement in this area is confirmed. Looking a bit further ahead, General >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 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40

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