Lend Issue 1

Lend Issue 1

Lend Formerly Limelight

issue 1 / winter 2020

For all your Mortgage, GI & Protection needs

Industry Update

Up Close & Personal

Tenet Adviser Mentor Scheme

Solutions to Small Deposits J page 4-5

With Technical Services & Research Consultant at Tenet, Alicia Walsh J page 6-7

To achieve Competent Adviser Status (CAS) J pages 8-9

Celebrating 10 years of specialist lending solutions

Here at Precise Mortgages we’re proud to help landlords with complex lending needs as well as those who have been underserved by high street lenders. Whatever their circumstances we have a broad range of specialist lending solutions. Buy to Let Mortgages for complex cases

HMOs Available up to 6 beds

Limited Company Landlord No limit on number of shareholders under the age of 21, subject to them being a director’s dependant

5 year Fixed rates Affordability assessed at pay rate

YEARS 5

Portfolio landlords A dedicated team to do the heavy lifting for you

Contact your local BDM 0800 116 4385 precisemortgages.co.uk

Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.

FOR INTERMEDIARY USE ONLY.

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Editors Forew0rd Hello and welcome to the first edition of our Lend magazine. This magazine will focus on providing you with a range of solutions and market insight

We open this first issue with an Industry update from Alicia Walsh, Technical Services & Research Consultant at Tenet. Alicia discusses mortgage borrowing - looking at solutions for borrowers with small deposits, and how lenders can help. Also in this issue: We feature Tenet’s adviser Mentor Scheme on pages 8 & 9. The mentor to competent adviser status (CAS) course completed in September was another success, helping Tenet firms grow their businesses by taking care of the mentoring to their trainees, further dates are available in 2021. In this Lend issue we welcome to the stage the top five RI’s and AR’s in each category ranked via the figures from July to September this year. ‘When a four letter word simply isn’t enough’: LV= considers what the post-COVID economic recovery might look like and how to continue protecting clients’ incomes, full article page 17. Assurant’s article on page 18 illustrates how they are supporting the opportunity for advisers to take back control in the GI market. Income protection does not feature as high as it might do on some clients’ (and advisers’) priority lists. Zurich offers some guidance for advisers looking to break into the market. Full details on page 19. Unum’s Richard Edwards (Head of Networks) discusses the Unum Partnership Terms – available to all Tenet members thanks to the strategic relationship in place between our two companies – and how you can access these for your clients. Read more on page 20. This year norms were thrown into disarray across every industry, with processes and procedures that had endured many years suddenly now forbidden. Here more2life explore how innovation and creativity has enabled the later life lending market to continue (and some might even argue thrive) in a world that is anything but normal. Full article on page 21. We hope you enjoy reading this edition of Lend!

to help you deliver all your mortgage, GI and protection needs. Showcasing our provider partners who are here to lend their valuable support, expertise and business development ideas.

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Industry Update: Solutions to Small Deposits

When UK lockdown was first enforced the mortgage market adapted quickly to ensure lenders could still help new borrowers. As we saw, the majority of lenders were quickly able to accommodate the ban on physical property valuations, providing AVM and desktop solutions to ensure some, if not all, applications could still be considered and underwritten.

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The uncertainty of property prices, and the future impact on multiple work sectors and industries is yet to be known. Despite the easing of lockdown restrictions, lenders have continued to be cautious in providing loans for high loan to value cases. This could be owing to hesitancy around future house prices, or from a purely operational capacity, the wish to limit the number of applications received. This has had a large knock-on effect for first time buyers and borrowers with small deposits. Pre-lockdown first time buying was significantly more achievable when lenders required only 5% contribution from applicants. Now the prospect of obtaining even a 90% loan to value mortgage is the equivalent of gold dust, with lenders’ products being extremely limited and in much scarce supply. It’s now become usual practice for high loan to value products to be available for a one or two day flash sale, before a lender withdraws their tranches. As such, brokers and lenders are required to seek out innovative solutions to help clients move on to the property ladder, whilst still providing a responsible duty of care. Family Assisted Mortgages There are a handful of lenders on the market who offer some form of family assist mortgage. These products aim to accommodate borrowers with small deposits, but who can afford mortgage payments. For the most part, these products are exclusive for first time buyers, but some lenders extend the options to homemovers also. There are a various approaches from various lenders; and some providers will allow a combination of approaches to support one case. For instance, lenders may permit up to 12 separate family members, e.g. two sets of parents and grandparents, to pool their resources to aid just one application. The first approach we’ll consider is where the deposit takes the form of a charge on the helpers’ property. Family’s Property as Security How does it work? This type of Family Assist product can be considered where the assisting family member (parents or grandparents) do not have on- hand capital to give to the main borrowers as a gifted deposit. Instead, a charge will be placed on the helpers’ own property – which can be on either their main residential, buy to let, or holiday home, if applicable. For further flexibility, the helpers’ property may not need to be unencumbered, and the charge placed upon it could be a second charge. In which case, the charge placed on the helper’s property is likely to be capped at 60% LTV.

balance on the main mortgage reduces and a certain trigger is reached, then the charge on the helper’s property is released. This trigger could be when the loan to value on the main borrower’s property reaches a specific threshold, e.g., 75% LTV, or, when a set number of years has elapsed, which would then prompt a review of the mortgage arrangement in general. In all circumstances, it is a stipulation from all lenders that the assisting family member MUST take independent legal advice before proceeding, and be fully aware of the implications to the agreement, which are covered later in this article. Family’s Assets as Security How does it work? Instead of placing a charge on the helping family’s property as security for the lender, another option would be for the assisting family member to lodge other assets, such as cash savings, with the lender. The savings are held in the lender’s security account, and will accrue interest at the same time, whilst remaining in the name of the helper. This differs significantly to gifted deposits, which are on a ‘gift without reserve’ basis, without any expectancy of repayment. By placing the money in a linked family assist savings account, the money remains in the name of the assisting family member and ultimately the property of the donor. This is particularly useful when considering that borrowers using gifted deposits may incur potential IHT liabilities in the future if utilising gifted funds. Things to be aware of with Family Assist mortgages When looking at either of these borrowing routes, it is important to understand that the helping family members will have no rights to new property being purchased, as the mortgagor(s) will be the only party named on the deeds. As mentioned earlier, it is vital for all helpers to obtain legal advice to help comprehend the implications of any agreement. Although the helper holds no claim to the property being purchased, their own security (either savings or property) is at risk and could be called upon to make up any shortfall were the main property to be sold due to repossession. This could occur if the sale of the main property resulted in proceeds which were less than the mortgage and fees outstanding. Alternative Routes for Raising a Deposit The majority of lenders require the source of a deposit to be from either; savings the applicant has accrued, gifted from a third party, or from

existing equity in another property. Lenders do not usually allow a deposit which has been borrowed. However, there are a limited number of lenders who will permit an unsecured loan to be used as a deposit. The vital question for lenders when underwriting this would be to question if the borrower is realistically able to afford both commitments in addition to any other outgoings? As a rule, personal loans tend to run for much shorter terms than mortgages, resulting in heftier monthly repayments. When taking into account a personal loan of £15,000 may have monthly repayments in the region of £280, this committed expenditure may dramatically affect the amount a provider is willing to lend on a mortgage. When considering the restrictions that come with a borrowed deposit, it’s likely only viable for a small number of borrowers, and the choice of mortgage lenders is limited. However, it is not impossible, and could be a solution in some cases. Responsible Lending When looking at any of these options, it is important stress the purpose of these borrowing solutions is not to make an unaffordable mortgage affordable. Lenders will only look to lend money when it is feasible and responsible to do so, hence why underwriting decisions are so heavily dependent on affordability assessments. The options touched on here are to help borrowers who can realistically afford mortgage repayments, but can only offer up a small deposit. The routes mentioned above make brokers’ roles in the market ever more prevalent; as most consumer aggregate websites simply showcase standard mortgage options, vastly limiting the results on high loan to value mortgage providers. Having knowledge of the alternative options available to clients really showcases how advisers can better serve their customers by providing great, intricate and whole of market advice.

Alicia Walsh Technical Services & Research Consultant

The borrowing for the main applicants must be on a repayment basis, and as the outstanding

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Up Close & Personal

Under the spotlight in this issue is Alicia Walsh, Technical Services & Research Consultant at Tenet.

We caught up with Alicia to find out a bit more about her work and home life, as well as why she chose to join Tenet.

Can you give us a brief history of your career to date? I’ve been working in financial services for nearly 7 years now. My FS career started at Nationwide Building Society as a cashier, then progressing to a Personal Banking Manager, then onwards as a Mortgage Consultant. I joined Tenet’s Technical Services and Research team back in January this year to broaden my whole of market expertise and refine my protection knowledge. Before making the move into financial services I was actually a self-employed singer dancer,

so risk and regulated environments were a bit of change to my usual routine. What do you enjoy most about your role at Tenet? Definitely the variety. As the job title suggests, a large part of my role involves researching where to place the weird and wonderful mortgage cases that crop up. It’s a great feeling of satisfaction when you have a ‘Eureka!’ moment and know exactly which lender’s criteria will be able to help an advisor and their client.

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What have you most enjoyed about working from home? Other than getting a lie-in, I’ve loved being at home with my cat. Ordinarily she’d be on her own for 10 to 11 hours a day, but she’s loved having me home all the time – even if she does have a habit of sitting on my laptop whilst I’m typing. What are your hobbies and interests outside the office? I like keeping active, so going for walks or yoga have been the main things this year. Sadly, owing to lockdown, the theatre group I’m part of will likely have to postpone any productions for the foreseeable future. I do enjoy home renovations projects; decorating the house or landscaping the garden. I sometimes upcycle old vintage furniture too. What kind of music gets your toes tapping? Unsurprisingly I’m always happiest when there’s some West End musical cast recording blaring out. It does make it somewhat awkward when you’re at the gym and just want to go into full song and dance mode though.

What’s the biggest lesson you’ve learnt in life? If you want something, it’s up to you go after it. No one can change your life except you. Is there anything you’ve become more grateful of as a result of the pandemic? Video calls and face timing. My mum is undergoing chemotherapy, so my parents have been shielding since March. It’s bad enough not being able to give them a hug, but without video call it would have been one hundred times worse. We have a weekly games night via Zoom, playing games like ‘The Price is Right’ or ‘Blockbusters’, and being able to see their faces is so much better than just hearing a voice down the phone line.

When it’s not musicals, it tends to be Kisstory radio on in the background playing old school hits.

What book are you currently reading?

I’m somewhat of a history geek; either historical fiction or biographical. I’m currently reading ‘Fatal Purity’, a biography of Maximilien Robespierre and his rise and fall from power during The French Revolution. What’s your favourite film of all time? Without a doubt, it must be the film ‘Clue’. It’s based on the boardgame Cluedo, with all the usual characters, Miss Scarlet, Professor Plum etc. It stars Tim Curry as the butler, with the usual “who dunnit” story line, but it’s so witty. I still laugh out loud every time I watch it. If you could meet any famous person, dead or alive, who would it be and why? I think it would have to be Serena Williams. She is just awesome, and a complete inspiration. Such a class act.

And finally, tell us an interesting fact about yourself…

The last theatrical role I played was Dolly Parton in 9 to5 The Musical. It was such a laugh becoming Dolly, and probably my proudest stage moment to date.

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Tenet’s Adviser Mentor Scheme

Mark Penswick Adviser Recruitment Coordinator, Tenet Group

Tenets Mentor programme has been growing from strength to strength since its launch in October 2019. The most recent course in September was another great success. Our exciting programme offers full support for people who have achieved CeMAP (or equivalent) and are looking to achieve Competent Adviser Status (CAS) within 6 months for Mortgage and Protection.

What can our Mentor Programme offer? We provide the knowledge and training through our 7-day assessment centre.

Each trainee is assigned a dedicated Mentor who will provide ongoing 1 to 1 coaching and hold their hand through the process. Observing role-plays until the trainee is comfortable with the advice process and supporting them to start earning straight away. The Mentor will provide ongoing support and guidance around compliance, file quality and the advice process.

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Course Dates

Monday 7th December 2020 Monday 8th March 2021

Tuesday 1st June 2021 Tuesday 31 August 2021 If you are interested in growing your business and taking on a trainee mortgage and protection adviser, but do not have the time to mentor them to CAS, contact Mark Penswick [email protected] to discuss how our mentor programme can support you.

Tenet Group Mortgage Mentor Video Please click below for an informal introduction to the course and an explanation from one of our mentors.

https://tenet-group.foleon.com/lenderinsight/issue10/tenet-group-adviser-mentor-scheme/

For further information... on the Tenet Adviser Mentor Scheme, please contact Mark Penswick: [email protected]

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Tenet Online Events Programme 2020

We’re pleased to announce that our online events programme was a success throughout 2020 and will continue into 2021… watch this space for all upcoming events. We encourage you to attend as many online events as possible, not only to satisfy your CPD requirements, but to keep your awareness,

comprehension and understanding of industry changes and developments at the highest level. All of our events are free to attend, and open to advisers, paraplanners and administrators.

On-Demands Available to Watch at Any Time

This year we have hosted a range of online mortgage and protection events. All of which are now available to view on-demand at a time to suit you. We introduced our online events programme online back in April, enabling us to continue supporting adviser development, offering the same CPD that you would expect to receive at our live events. To view our library of online content visit https://events.tenetgroup.co.uk/ADP2020

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Webinar coming soon... LV= http://webinars.tenet.co.uk/ webinar-10-2020/

Webinars On-Demand Get 30 minutes of CPD for each webinar you view!

Zurich- ‘Why Protection Should Be a Keystone of your Clients’ Plans’ Presented by Andy Woollon, Retail Specialist Presenter http://webinars.tenet.co.uk/webinar-5-2020/ The Exeter- ‘An Unhealthy Situation’ Presented by Wendy Ellison, Regional Account Manager http://webinars.tenet.co.uk/webinar-6-2020/ Unum - ‘How to Write Group Risk Business’ Presented by James Lawley, Business Development Consultant Adam Aldred, Business Development Consultant Laura Bilgic, Business Development Consultant http://webinars.tenet.co.uk/webinar-7-2020/ Vitality – ‘Living an Unhealthy Life Expectancy’ Presented by Paul Craven, Protection Specialist http://webinars.tenet.co.uk/webinar-8-2020/

Throughout the year, Tenet are hosting a series of 10 webinars on the morning of the last Friday of every month with a single Provider, Fund Manager or Lender. You will have the opportunity to view the webinar and interact with the speakers, asking any questions you may have.

Protection Events On-Demand

These events focus on the protection market. With Tenet and the industries focus in this area, they are designed to meet advisers’ development needs and provide a valuable insight into this market. All of the sessions at these events offer IDD CPD, and are open to advisers, paraplanners and admin staff. Our Provider partners also look at other ways you can obtain further IDD CPD. Protect Two - CPD Available: 4 hours & 30 minutes IDD Protection Seminars - CPD Available: 2 hours & 55 minutes IDD CPD

Webinars available to watch on-demand

Bank of Ireland - ‘Serving the complex customer’

Presented by Lauren Wiles, National Account Manager http://webinars.tenet.co.uk/webinar-1-2020/ LV= - ‘Change is the only constant: Are you generation future-proof?’ Presented by Marcus Primhak, Business Protection Product Manager http://webinars.tenet.co.uk/webinar-3-2020/

Watch On-Demand: https://events.tenetgroup.co.uk/ADP2020

Lend Events On-Demand

These events focus on mortgages and lending. They are designed to meet advisers’ development needs and provide a valuable insight into the growing lending market. Lend Business Focus Events (Two): 4 hours & 5 minutes unstructured CPD Lend Two – CPD Available: 2 hours & 10 minutes unstructured and 1 hour structured CPD Lend Business Focus Events (One) – CPD Available: 3 hours unstructured CPD Lend One - CPD Available: 1 hour & 45 minutes unstructured CPD

Online Adviser Forum 2020 – Growing Together

Dates:

Monday 30th November – Friday 4th December

video chats. For those of you who would prefer to chat 1-2-1, you can utilise our appointment booking system, or messaging service to speak with our provider partners. Each afternoon between 1.00pm-2.00pm you’re invited to join us for the ‘Main Stage’ event, which will include sessions from Tenet Directors, Keynote Speakers and of course, our Annual Adviser Awards. Book your place: https://events.tenetgroup.co.uk/ADP2020

Open To: All Tenet Advisers,

Paraplanners and Support Staff

Timings: 10.00am-2.00pm Daily Join us each morning, as we host a series of ‘Breakout Sessions’ with our Provider, Fund Manager and Lender partners. Over lunch, visit our virtual exhibition booths, see demos from our provider partners and interact with live provider

Watch On-Demand: https://events.tenetgroup.co.uk/ADP2020

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‘Kill your darlings’ to scale your business

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American novelist William Faulkner reportedly gave aspiring authors the advice, “In writing you must kill all your darlings,” because cutting even favourite characters and storylines can greatly improve the quality of your work if they aren’t adding anything to the overall composition.

This idea translates well to growing a business. Often, we become so ingrained in doing things a certain way that it can be hard to let go, even when there are clear benefits to doing so. Sometimes changing how you operate and moving away from the old comfortable and familiar ways is the best thing you can do to drive your firm forward. It could be acknowledging that working practices or remuneration structures that suited the business when it was first established are no longer appropriate when you reach a certain size. You might have outgrown an office but be loathed to move because of the time and money spent transforming it to suit your team. Or it might be that a supplier who you’ve worked with for some time is no longer the right fit for your growing business.

Making the decision to ‘kill’ a way of doing things and move on is not always easy, especially when the alternative might first require an investment of money or resource, or both. This is particularly true when looking at your IT infrastructure. In this instance, your ‘darlings’ are the processes, systems and tools you put a great deal of hard work into researching, developing and implementing to meet the needs of clients or solve specific problems. However, knowing when to kill your technology darling isn’t always straight-forward either. As with many challenges, recognising there is an issue is the first step towards being ready to take the plunge and implement a solution. When deciding if it’s time to move on, one thing to consider is whether your workflows and processes are helping or hindering the business. If you’re constantly finding manual workarounds to problems created by legacy systems or a lack of integration between different solutions, it might be time for a thorough review. Maintaining business as usual throughout any technology change project is essential. Technology has evolved enormously over

the last decade to offer far more integrated solutions and >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

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