Limelight 55

Limelight 55

LIMELIGHT A Tenet Group Publication for Appointed Representatives of TenetLime

Issue 55 n

Winter 2018

Help your clients manage the BTL Tax Changes in 2019 P R O T E C T I O N OUR CARE SUPPORT SERVICES CAN HELP CHANGE THE WAY YOU TALK TO CLIENTS ABOUT PROTECTION HANDLED WI TH CARE

ALSO IN THIS EDITION Market Watch - Find out more about our new mortgage sourcing partner Twenty7Tec Events - Book your space on the first round of our 2019 Roadshows

PLUS: Limelight gets ‘Up Close and Personal’ with our new TenetLime General Manager

SCOTTISH WIDOWS CARE BENEF ITS AT A GLANCE Scottish Widows Care, in partnership with RedArc, offers you a new way to start your protection conversations, by demonstrating the value of protection beyond a financial pay-out. AVAILABLE FROM DAY ONE Scottish Widows Care is available to your clients from the day their protection plan starts. EXTENDS TO THE CLIENT’S IMMEDIATE FAMILY Immediate family can also access our support service, whether for a serious physical injury or illness, a mental health condition or a bereavement. DEDICATED PERSONAL NURSE ADVISER Everyone who uses Scottish Widows Care has a dedicated RedArc Personal Nurse Adviser who can provide practical advice and emotional support. VALUABLE SECOND MEDICAL OPINION For those who need it, the Personal Nurse Adviser can arrange a second medical opinion through Healix Health Services. COVERS PRE-EXISTING MEDICAL CONDITIONS Clients with a medical diagnosis can still receive all the benefits of our support service from the day their policy begins. NO CLAIM NECESSARY Your clients can access Scottish Widows Care even if they’re not making a critical illness or life insurance claim. 1 2 3 4 5 6

Find out more at scottishwidowsprotect.co.uk/care

LIMELIGHT A Tenet Group Publication for Appointed Representatives of TenetLime

Issue 55 n

Winter 2018

Help your clients manage the BTL Tax Changes in 2019

ALSO IN THIS EDITION Market Watch - Find out more about our new mortgage sourcing partner Twenty7Tec Events - Book your space on the first round of our 2019 Roadshows

PLUS: Limelight gets ‘Up Close and Personal’ with our new TenetLime General Manager

Introducing Post Office Family Link ™ No deposit. No problem. Helping you place more business

Post Office Family Link™ is designed for your first time buyers who haven’t saved a deposit but have good affordability. They simply take out a 90% LTV mortgage against the property they’re buying. Then with their assistor (parent or close relative) they take out a mortgage for the remaining 10%, secured against their assistor’s mortgage free home. Help your first time buyers get their first home sooner with Post Office Family Link™.

Post Office Family Link™ For first time buyers with good affordability, but no deposit : • Made up of two loans • FTB loan at 90% LTV, assistor loan for remaining 10% • We’ll pay a 0.5% proc fee for both loans.

First Start Boosts the borrowing power of first time buyers, by combining their income with a sponsor’s: • Borrow up to £500,000 • Maximum age for sponsor up to 80 years old at the end of term • Up to 95% LTV.

Talk to your Corporate Account Manager or visit po4i.com to find out more. Together, we make it happen. Visit po4i.com to find out more today. Together, we make it happen.

Post Office Money® Mortgages are provided by Bank of Ireland (UK) plc. Post Office Limited is an appointed representative of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is registered in England &Wales (No. 7022885). Bow Bells House, 1 Bread Street, London, EC4M 9BE. Post Office Limited is registered in England and Wales. Registered Number: 2154540. Registered Office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money® and the Post Office Money® logo are registered trademarks of Post Office Limited. F0359 MA091 12475180710A Post Office Money® Mortgages are provided by Bank of Ireland (UK) plc. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England &Wales. Registered Number: 7022885. Registered Office: Bow Bells House, 1 Bread Street, London, EC4M 9BE. Post Office Money® and the Post Office Money® logo are registered trademarks of Post Office Limited. Registered office: Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ F0513 12707181018

Editor’s Foreword Natalie Yarwood Marketing Consultant

Contents

TenetLime Support 4-5 Industry Update Simon Broadley gives us an industry overview 6 Market Watch Find out more about our launch with Twenty7Tec as our new mortgage sourcing partner 7

4

Hello and welcome to Limelight: I am delighted to bring you my first edition of Limelight since joining Tenet a few months ago. In this issue, our ‘Know your Lender’ feature is back after the success of its first appearance in our last issue with 11 lenders demonstrating their expertise within the mortgage market and how they can support Tenet advisers – see pages 24-37 . As 2019 beckons, our Industry Update looks at what has been happening within the industry and what’s on the horizon. BTL tax changes starting to bite, changes for HMOs, the FCA’s mortgage market study are discussed, along with looking ahead at technology for the future. Find out more on pages 4 & 5 . We’re pleased to welcome a new member to the team in the form of Richard Conway, who joins us as the General Manager of TenetLime. Learn more about Richard in our ‘Up Close and Personal’ feature on pages 8 & 9 . Dates for your diary! After another successful round of events coming to a close, we now have our first round of 2019 Non- Investment Roadshow events in place. We kick off in London on 12th February, with more to follow around the rest of the UK - full details on page 7 . 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. We hope you enjoy reading this edition of Limelight. Best wishes Natalie Yarwood

Events Overview Announcing our first batch of 2019 Non- Investment Roadshows

8-9 Up Close and Personal

7

with Richard Conway, General Manager of TenetLime

Provider Support 13 JUST

Build equity release into financial planning NatWest NatWest: dedicated to the New Build market

17

24

24

Know Your Lender

41

AIG Income Protection: Shifting The Focus Plus much more...

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

We’re here to provide you with simple specialist lending solutions: • First charge • Second charge • Bridging • Commercial

• Development finance • BTL • In-house regulated bridging

Register now to benefit from our fantastic products and services Visit cleverlending.co.uk or call 0800 316 2224

WELCOME - 3

I can hardly believe that we are nearing the end of my first calendar year at Tenet! It’s certainly been eventful but I feel really confident that the focus over the past year of putting new team structures and processes in place will really start to deliver positive, tangible changes over the next few months. The last piece in the team structure puzzle was Richard Conway joining the team on 5th November to take up the role of General Manager of TenetLime. Richard joins us from Yorkshire Building Society Group, having held a number of product development and operational roles across mortgages and retail savings, and I feel that he’ll be a great addition. We have a great foundation to build on, with a 12% year on year growth in adviser numbers, £9bn of mortgage lending and a 15% growth in protection business. Thank you also to everyone who supported our recent non-investment roadshows, where we’ve seen excellent attendance levels and great engagement with both Tenet staff and our lender partners.

Industry OVERVIEW

Simon Broadley Managing Director, TenetLime Ltd

4 - TENETLIME SUPPORT

So, what’s been happening within the industry and what’s on the horizon? BTL Tax Changes starting to bite We’ve been talking about these BTL tax changes for a while, but it’s the tax returns in 2019 when this will all become more apparent, so you may start to get more queries from your landlord clients. Indeed, one in five landlords is considering selling up as a result of the tax hit, according to the National Landlords Association (NLA). The Government decided to phase in the new mortgage interest rules over a four year period with the amount of mortgage interest tax relief steadily falling each year from 75% in the 2017-18 tax year to 25% in the 2019-20 tax year. By April 2020, all of the rental income landlords earn will be taxable, and instead they will receive a 20% tax credit for their mortgage interest, meaning they can cut their final tax bill by 20% of their interest. One change has been an increase in people buying properties within a limited company structure, as this will have different tax rules, but from a broker perspective, the most important thing to remember is that you cannot give tax advice but must encourage your customers to get this advice before they decide which is the best structure to buy within. It may be worth showing customers illustrations for both options therefore. Changes for HMOs October also saw the introduction of a significant change to the licensing of houses in multiple occupation (HMOs) for landlords. Previously, you only have to get a licence if the property has at least three storeys and is being occupied by five or more individuals who are from separate households or more, but the minimum property size has now been removed. As a result, any HMO properties with five or more occupants now require a licence (with a few caveats). Landlords should have applied for a licence already but it appears that many local councils are on the back foot with these new regulations, so please ensure you are having these conversations with your landlord clients going forwards as The Residential Landlords Association estimates that an additional 177,000 HMOs will become subject to mandatory licensing in England alone. Landlords have undoubtedly been in the political spotlight over the past few years, but with more and more people renting, politicians are increasingly recognising there’s a public appetite for housing reform, so there’s likely to be more changes, even before the next tax year. We’ll keep you updated.

Mortgage Market Study AMI’s Chief Executive, Robert Sinclair, considers the FCA’s Mortgage Market Study to be the most important issue that has faced him since joining the trade body world in 2006 and it has therefore been a key topic of debate at the recent AMI board meetings I have attended. Why the concern? This is primarily because the proposals have the potential to change our market significantly and redefine the value of advice. One issue is that the study has a total focus on price, without proper consideration of suitability, which we all recognise is the foundation of advice. ‘Needs’ has been interpreted in the study to mean ‘cheapest product’ and this is demonstrated by the FCA’s conclusion that some for customers who are “are capable of picking a well-priced mortgage product on their own; a relaxation of the requirement to receive advice may better meet their needs”. There are big concerns therefore that redefining advice in this way will not deliver good outcomes for the majority of consumers and we feel it is very dangerous to assume that a customer who did receive advice would have ended up with the same product as comparison tool, if not managed carefully, could also cause more detriment than benefit. The tool is yet to be defined and could include anything from the number of complaints, the breadth of product range or the distance from the customer’s home - none of this is clear at present. We must ensure however that the final product doesn’t become anti- competitive or drive behaviours amongst brokers to artificially improve their standing on the website, like has historically occurred with some insurers on aggregator sites. The proposal to redefine advice appears to stem from the FCA’s push for innovation, yet we cannot see any barriers to this within the current market and certainly do not support any move to grow execution-only at the expense of FCA, FOS and FSCS protections. We must stand firm and together as one industry and we will be doing all we can at a senior level to promote and protect the value of advice going forwards. As the report itself noted, “the mortgage market is working well in many respects” so the FCA needs to ensure any changes are proportionate to this statement. Technology for the Future As I’ve just outlined, we firmly believe that for years to come, the mortgage and protection customer experience will continue to thrive on the personal interaction of broker and customer; but there is undoubtedly an opportunity to look at how technology if they had not spoken to an adviser. The criteria for the proposed broker

can better support you as an adviser. We recognise from the conversations we have with you on a one to one basis, and the feedback from our focus groups, that technology is becoming more and more important to you in serving your customers. The first step in this direction is our decision to move to Twenty7Tec as our preferred mortgage sourcing provider from January 2019. The functionality that MortgageSource offers, what they plan to introduce over the next 18 months, as well as their determination to get out and support our members with maximising the use of the system was really impressive and fundamental to our decision to partner with them. We know that you are very busy and that we need to support you to manage this change so you can take advantage of the benefits that forward-looking development can bring. It is disappointing that we had to take the decision to delay the implementation of focus:adviser and the new remuneration functionality. However, it was important that we at Tenet were 100% confident that everything was robust before it was rolled out. After we completed a few weeks of testing on the new system, we uncovered a large number of critical “bugs”, and we were not prepared to go live under these circumstances. Over the past few months there have been a number of high profile financial services firms launching new technology that wasn’t robust, and their customers have suffered as a result. We didn’t want to do that, especially given that it relates to commission payments. Aside from the focus:adviser implementation, earlier this year we identified some key changes that needed to be made to Focus to better support mortgage and protection advice. There are over 70 changes that Focus are now working on as a result of that, and the plan is for these to be rolled out over the next 12 months.

Thank you for your support this year, which has seen TenetLime go from strength to strength. I’m really pleased with the strong position we have created for ourselves, and with our new structures and processes in place, I’m confident that 2019 will be incredibly successful and rewarding for everyone.

TENETLIME SUPPORT - 5

MARKET WATCH with TENETLIME’s Research & Technical Specialist

Samantha Gray

We were delighted to announce our launch with Twenty7Tec as our new mortgage sourcing partner from January 2019. So far, we have had a great uptake and positive feedback on the new system, so we’d really encourage you to take advantage of your free trial and complimentary licence. We know that you are very busy and that we need to support you to manage this change, but in the fast-paced mortgage market, technology really is the key to ultimately making your job easier and enhancing your customer experience. One TenetLime member who had already made this change from Trigold to Twenty7Tec about six months ago is William Underwood from Phillips Clark UK Ltd. The absolute essence of the MortgageSource system to him is that it’s up to date with everything, with no manual updates required, giving him the confidence that all the rates and products that he presents to clients are the latest. In terms of other features, he comments “I really like the ability to source second charge loans as well as purchase or remortgage, or a combination of both - it essentially enhances our capabilities for advice. The filters are far more extensive than I had previously and another feature I find useful is that when I’m looking at products in depth, I can then

This is also the first sourcing system to have standalone bridging sourcing, which is a useful tool to have. The system offers three different sourcing options in fact, ‘MortgageSource’ which can be used for a purchase or straight swap remortgage, ‘LoanSource’ for second charge or bridging and then ‘Combined Source’ where both options can be compared. We have numerous calls on the helpdesk where advisers are unsure how to source bridging and remain compliant, so this provides a solution that avoids manual research. Another useful element of the combined search is that if you have included your customer’s date of birth and they are over 55, it can compare against equity release if you advise in this area. Later on in the sourcing there is also a ‘situations’ filter that will give you a broader view and can be used if your client is unsure of their exact credit issues, plus can be used to filter which lenders are generally sympathetic to ‘defaults’ for example. For the self-employed you can include how many years’ accounts are actually available, which is another common query we see here on the helpdesk. On property, there are some other useful filters including ‘studio flat’, ‘properties above commercial’ and it even allows you to add the percentage of a flying freehold. In MortgageSource, you add the sourcing details first and then the client’s details. If you include the very basic details of your client’s date of birth and smoking status, the system is integrated with iPipeline SolutionBuilder and along with your sourcing results, an indicative protection quote will also show at the top of the screen, which is a fantastic tool to help you protect your customers. All relevant documentation can be produced as you would expect and within the evidence of research document there is also a free text box, which can be really useful for you to note why you may not have disregarded one of the higher lenders. Twenty7Tec tend to update every four to six weeks and each time there is a ‘what’s new’ document so you can easily see what has changed. One of the reasons we selected Twenty7Tec was their agility, in terms of the fact that they value and welcome broker feedback and will work on improving the system in line with this all the time.” If you haven’t yet explored what the system has to offer, why not register for an introductory 30 minute webinar - they run every day at 10:30 and 14:00 (except bank holidays) . For further information you can also call on Twenty7Tec on 01202 553457, email [email protected] or visit www.twenty7tec.com .

link through to the relevant lenders’ sites. In terms of making the initial transition, I found MortgageSource

”technology really is the

really intuitive and easy to familiarise myself with, plus

key to ultimately making your job easier and enhancing your customer experience”

there is lots of support on hand if you need it. Twenty7Tec are also very open to suggestions from brokers, which seems to be the key to them evolving with the market. I just wish I had made the move earlier!” Samantha Gray in our Technical Services and Research department has also spent some time on the MortgageSource

system and was particularly impressed by the search criteria, which with over 400 filters, was the most sophisticated she had seen. Below she shares some of her initial thoughts: “I think that brokers will find that the system really caters for all the scenarios in the current mortgage market. Within credit history for example, you can detail individual CCJs and defaults with specific information such as dates and amounts, as well as the facility to filter against payday loans and DMPs, both of which are becoming more relevant. On buy to let, if you include the rental income it can search on each lenders’ specific ICR and there is also the option to include lenders who top slice. The system can also show near misses, which can also be valuable when it is close on the rental income. For portfolio landlords there is the facility to add the full details of the portfolio.

6 - TENETLIME SUPPORT

TENET EVENTS

Non-Investment Roadshows With the New Year fast approaching, we are gearing up and planning for our first round of our popular Non- Investment Roadshows. These events cover topics such as Mortgage, Protection and General Insurance and combine formal presentations from Lenders, interactive round tables and plenty of tips to help you provide the best service for your clients. Starting in London on the 12th February, our Roadshows are free and open to all advisers, staff, paraplanners and directors/principals so book yourself a space now.

DATE

LOCATION

VENUE

London Belfast

12/02/2019 14/02/2019 26/02/2019 27/02/2019 28/02/2019 05/03/2019 06/03/2019 07/03/2019

Amba Hotel

Stormont Hotel

Manchester (Merseyside)

Haydock Park Racecourse

Durham

Ramside Hall Hotel & Golf Club

Leeds

Village Leeds South

Southampton

Hilton at the Ageas Bowl (Stadium) Doubletree by Hilton Bristol North

Bristol

Birmingham

Village Solihull

To book your place onto Roadshow Round Two just follow the link below: https://events.tenetgroup.co.uk/ADP2019 Webinars on-demand Plus you get 30 minutes of CPD for each webinar you view!

Throughout 2018, Tenet hosted a series of CPD webinars that are available to view from the comfort of your home or office, at a time to suit you. So if you need to top up your CPD, take a look at the webinars that are available. All you need is a device to view it on and your headphones! The following webinars are available to watch on-demand:

n Small Portfolio Landlords Are Confident About The Future - So You Can Be Too!

n Life Cover for Hard to Insure Risks

n The Specialist BTL and Short-term Loan Landscape n Survive? The Value of Critical Illness Cover? n Understanding the Specialist Lending Market n Helping you Meet the Needs of Your First Time Buyers n The 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 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52

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