“PICTURE THIS” a lender with solutions for older borrowers Paradigm Later Life Lending Event
for intermediaries
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A snapshot of what I’d like you to go away with today
OLDER BORROWERS
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What options are available for the 55+? The older borrower market is growing fast yet their access to products can be limited. The Marsden offers conventional mortgages for those approaching or in retirement that are an alternative to equity release or for some, a ladder to support equity release in the future . Here are some of their options:
OLDER BORROWERS
An option to choose a residential mortgage
up to retirement
An option to review lifetime mortgages
such as equity release
If the borrower is able to make repayments, equity
release may not be the solution and instead our
older borrower range offers an alternative
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The picture by 2020…
OLDER BORROWERS
¹‘Overview of the UK population’, ONS, 25 June 2015. ²‘Lengthening the Ladder, the future of mortgage borrowing in older age. Building Societies Association, May 2017. ³Consumer Demand for Retirement Borrowing’, Louise Overton and Lorna Fox O’Mahony, November 2015. A report prepared for the Council of Mortgage Lenders (CML).
Over the next three years the older generation is set to double and has a huge impact on the borrowing requirement for this audience too. Borrowing is becoming the “norm” for people in and approaching retirement with 1 in every 5 people over the age of 65 carrying debts into retirement.
5 ¹‘Overview of the UK population’, ONS, 25 June 2015. ²‘Lengthening the Ladder, the future of mortgage borrowing in older age. Building Societies Association, May 2017. ³Consumer Demand for Retirement Borrowing’, Louise Overton and Lorna Fox O’Mahony, November 2015. A report prepared for the Council of Mortgage Lenders (CML).
30% of all mortgages for borrowers over the age of 65 are on interest only which can limit borrowers accessing a range of product rates and choice of conventional lenders.
Research highlights that there is a growing number of interest only mortgages maturing over the coming years and many of these will affect the older generation.
So… how can we help?
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At the Marsden, our Older Borrower range offers a conventional mortgage that can be taken in or into retirement as an alternative
to lifetime mortgages.
There’s lots of reasons to choose the Marsden for your 55+ clients:
• looking to remortgage to a new lender • looking to downsize at the end of their
mortgage term • looking for solution to transition to a part and
part mortgage • Support for interest only up to 60% LTV
• Where possible, debt consolidation up to £10,000
• To help children with gifted deposit to buy a house
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Eligibility
• Applicants aged 55+ • Income is based on Pension, Investments
and Property – a percentage of property income can be used to support affordability
• We can also accept earned and self-employed income up to age 75
• Minimum property valuations from £150,000
• Property must be main residence
Features
• Minimum loan £30,000 • Interest only up to 60% and repayment up to
70% LTV • If the loan is on interest only, affordability is
stressed on interest only. • Downsizing accepted as a repayment vehicle • Fixed and discounted rates available • Available for remortgages, purchase and
unencumbered applications, to include additional borrowing if required
• Spend the money released from the home on whatever you choose*
• Early Repayment Charges for only 2, 3 or 5 years - product dependent
*except business purposes, gambling debts, tax/ VAT bills
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Our product range | Key features
OLDER BORROWERS
Rates from
2 year 3 year 5 year
Fixed 2.59% 2.79% -
Discount 2.29% 2.49% 2.99%
Booking Fee £0
Arrangement Fee £998 or 0.50% dependent on loan size
Features We offer fee assisted remortgage legals and free standard valuation up to £500,000 on all Older Borrower cases
Procuration Fee We understand that processing an Older Borrower case can sometimes take a little longer which is why we offer 0.60% procuration fee on this range.
2, 3 and 5 year product terms available Fixed and discount options Interest only up to 60% LTV and
repayment up to 70%
Based on pension income, earning income (refer if taken over age 75)
Minimum loan £30,000 Maximum loan £750,000 (if above, please refer)
Simplified product set that is tailored to Older Borrower clients making it simpler for brokers to source, advise and process on a 55+ mortgage.
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Picture this…
OLDER BORROWERS
Andrew and Jilly are 62 and have an interest only mortgage of £70,000 outstanding with a
bank.
They can’t afford to repay the outstanding balance before Andrew’s 64th birthday, their current term. Selling their home to repay the debt is not an option they’d like to take at the
moment.
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Marsden provides a solution…
• Couple aged 62 (still working) • Have an interest only mortgage for £70,000 • Don’t want to move out
Broker said: A short term to take them to age 70 is not suitable as they don’t plan to sell and they have no repayment vehicle in place but do have significant equity in the property. Due to their age, taking a mortgage beyond retirement is a limited option. The couple can evidence their earned income of £40,000 as well as pension income of £28,000 and confirmed they will start to take the pension from age 65.
We said: We would accept the mortgage due to evidence of income now and in retirement from their pension. The applicants will be able to continue their mortgage on an interest only basis as the Society will accept downsizing as a repayment vehicle (the property is worth £280,000 and they only require £70,000) giving an equity amount of £210,000.
What are we looking for? • We would carry out an affordability test using the earned income of £40,000 and another once the applicants
retire and providing affordability passes in both instances we can offer a mortgage up to Andrew’s 84th birthday – providing the applicants with a longer term and allowing them to remain in the property.
• Property value £280,000 • Couple on good income
OLDER BORROWERS
Older Borrower Toolkit Everything you need to get started…
ABC123 abc123
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Everything you need to support your Older Borrower application is available online, this includes; • Product Portfolios • Application and AIP forms • Criteria
OLDER BORROWERS
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Top tips from our underwriters…
Our affordability is built specifically for Older Borrowers based on ONS data, this is built into tailored calculators for this market. Check your case on our
Older Borrower affordability calculator.
Before you submit an
application use our Agreement in Principle Service to check
that your client meets criteria.
Interest only applications are stressed on interest only…
We accept cases on interest only and your application is assessed on interest only and not repayment.
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Our Older Borrower mortgages are underwritten as we would usually do with a residential mortgage, we just run a different affordability to cover the needs of an older audience.
OLDER BORROWERS
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OLDER BORROWERS
“I’m interested… How do I
source you?”
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How to find us on IRESS Trigold Prospector
OLDER BORROWERS
Our products source differently to standard residential as they’re built with Older Borrowers in mind. Use our guide to help find our products on Trigold Prospector
Search: Remortgage | 27% LTV Age 72| Income £52,000 | Repayment method – Interest Only (RV)
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1. Keep in mind we have a specific interest only filter- make sure you select (RV)
2. Our term length is guided by our mortgage term length, if we’re not profiling- check our criteria
3. Check the Free Legals and No Valuation fee box to include our features
4. Panel- check all lenders as we profile under linked partners with reference to ‘Marsden BS’ and ‘Lending to the Retired’
5. Note for joint applications we accept based on the primary applicant being +55 but if you source with the secondary applicant below the age of 55 our products won’t source.
6. Not sure? Get in touch… our product portfolios are on our website and our intermediary team are available to help
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How to find us on Mortgage Brain
OLDER BORROWERS
Our products source differently to standard residential as they’re built with Older Borrowers in mind. Use our guide to help find our products on Mortgage Brain
1. We profile on interest only products- we do have part and part and repayment options available.
2. Check the free valuation and free legals box to profile our features
3. Overpayments are available up to 5% 4. Take care on age, we accept cases 55+
based on the primary applicant. If the secondary applicant is below 55 sourcing will not recognise this.
5. Our criteria means you can source on retired/ employed income
6. Our term length is guided by our mortgage term length, if we’re not profiling- check the criteria
7. Not sure? Get in touch… our product portfolios are on our website and our intermediary team are available to help
Search: Remortgage | 30% LTV Age 72| Income £52,000 | Repayment method – Interest Only Other
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OLDER BORROWERS
“Stop… I’m losing count of all
the ways you can help me!”
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OLDER BORROWERS
6 reasons you should choose us to be your Older Borrower lender
1. We take a personal approach
With individual underwriting, we
take a more personal approach when we look at your case. We’ll
always take a look, even if it is initially outside of criteria.
2. Struggling to place? We will take a look
We deal with lots of clients where
the existing lender is seeking repayment of the mortgage.
Whether a like for like, or with some additional borrowing.
We’ll try our best to help you.
3. We look at a range of income
For pensions, we will look at a range
of sources; state, foreign and occupational. For income, we look at
multiple sources from investment income including SIPP’s, to earned
and even rental income.
4. We have plenty to choose from
We have a range of fixed and
discount products that provide both interest only and repayment
options. We have split the range to give more flexibility for those
borrowing up to £250,000 and over £250,000.
5. Recommended by you
When surveyed, 100% of brokers would recommend us to a
colleague, highlighting our personal service and willingness to ‘go the
extra mile’*
6. One of the 3 top lenders for Older Borrowers
We asked brokers and Marsden
were mentioned repeatedly as one of the top 3 lenders in the Older Borrower conventional mortgage
market.
*Broker surveys run across 2016 by Marsden Building Society
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Key Principles
SERVICE STANDARDS
Our Service principles are designed to support you throughout your application process. Meaning that our Intermediary Team can service you and your client as quickly as possible whilst maintaining our high standards of personal service. We aim to: Turn your offer round within 16 days Review all Application in Principles (AIP) within 1 day Review new applications on the same day Instruct a valuation on same day in receipt of your application and arrangement fee Check supporting documents received the same day Play your part We will go the extra mile to assess your case as quickly as possible but we do ask that you help us to achieve this by providing good supporting information, please take a look at our submission requirements on the application form relevant to your selected product. What can you do to speed your case up? Scan and attach any supporting documentation to the application Be honest and accurate with information you provide Send in all required support documentation and fees promptly
Our Service standards are update on our website
weekly
Over the past year we’ve reduced our service
times: • Applications from
9 days to 1 • ‘Time to offer’ service
reduced by 65% • AIP service reduced by
50%
All whilst increasing our lending volumes by 45%
SERVICE STANDARDS
Our Latest Service Levels
Offer turnaround
15 days The offers issued in the last five working days took an average of
Review of new applications
We aim to review new applications received the same day 1 day
Review supporting documents
We aim to check supporting documents received on the same day 1 day Valuation instructed
We aim to instruct a valuation same day in receipt of your application and arrangement fee 1 day
We aim to review all AIP’s on receipt and provide an outcome for 85% of cases on the same day and 100% by the next working day
1 day
Application in Principle (AIP)
Application to offer
Applications in process
Last updated Monday 29 May
Our service levels are based on a working week Mon - Fri 9am - 5pm
Answering your calls
New intermediary enquiries
92% The percentage of intermediary calls answered
New intermediary enquiries
12.8 secs Our average call waiting times show how long it has taken us to handle your enquiry
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SERVICE STANDARDS
Don’t just take our word for it…
*Based on completions surveys from March - November 2016
We found the Marsden’s Older Borrower products a perfect fit for our clients, they catered for a range of circumstances, were competitively priced and applied a flexible approach to criteria when we had an unusual case. Marcus Beech, mortgage broker Remortgage.com
100 % Of brokers who used us would recommend the Marsden to their colleagues*
“The Marsden are approachable and think outside of the box. They always do their best to find a way to help place a case. I know that I can trust them to deliver on a promise, if they say they will do it, they will.” Dave Stringer, mortgage broker
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GET IN TOUCH
Tina Panayi Business Development Manager Providing support for your network 07970 328045 [email protected]
Like more information? Visit www.intermediaries.themarsden.co.uk
Heather Crinion, General Manager (Operations) Heather has oversight for intermediary distribution and servicing and for the retail and member services team. 01282 440 577 [email protected]
Intermediary Support Team Available to service our intermediary brokers via phone or email with criteria queries or to support the packaging of cases. Case outside of criteria? We will always take a look
01282 440583* [email protected]
Please note: All information in this presentation was factually correct at 6 June 2017. Please refer to our website for our up to date products and criteria if using as a reference tool.