The stamp duty land tax temporary reduced rates deadline of 31st March 2021 is approaching quickly. Please be reassured that we are doing everything possible to support our borrowers in completing their property transaction before the end of the stamp duty deadline, however we can offer no guarantee that mortgages will complete by 31st March 2021.
• We have removed the automatic request for bank statements on owner-occupied cases
• We have removed the need for the limited company funding declaration on limited company buy to lets
• We have improved the broker portal: once the residential requirements for affordability and deposit (on purchases) are uploaded on the portal your underwriter can commence the underwriting process, instruct the valuation and move your case to offer.
• We’ve updated the residential summary page of the Foundation portal and introduced a new Notes Page which will contain any case notes.
Our priority is to bring the business you’ve entrusted us with from application, to offer and completion in a timely manner. We are in the fortunate position that our in-house servicing means we can redirect resource to service areas of high demand. As such – more staff are currently supporting the Underwriting team in chasing in the final requirements on all applications. We are pleased to advise that these tweaks mean that we have been able to double our average daily rate of offers, while continuing to accept new business as normal at competitive rates.
We have a real appetite to lend and we thank you for your ongoing support, for trusting us with your existing business and continuing to work with us closely, in what has become once again more challenging times.
Like you, we too are constantly managing the dual goal of focussing on progressing the existing pipeline, while still maintaining an incredibly high run rate of new loan originations, and our structure helps us to be agile; because of our in-house servicing teams, we are able to refocus resources on areas of the business in high demand. This means we are able to continue to welcome new business. We continue to release competitve products to support you in generating new business as well as completing exisitng cases.
Take a look at our video of 4 tips to get your application right first time. Also please refer to our top tips for submitting a buy to let case here and our tips for submitting an owner-occupied (residential) case here.
For any mortgages currently in the pipeline, we can offer no guarantee that mortgages will complete by the reduced Stamp Duty Reduced Rate deadline of 31st March. There are considerable challenges across the mortgage market including with surveyors and conveyancers, as well as with lender capacity as we all try and meet the pent-up demand driven by the initial lockdown, and customer appetite to take advantage of the stamp duty temporary reduced rates. Please check for updates on your specific case via the broker portal.
We have taken the decision to prioritise business already in the pipeline to enable those cases, subject to all other external processes being met e.g. legal work, to move towards completion before 31st March deadline. We cannot guarantee that if a case is received now that the deadline will be achieved but we are trying as much as possible to help where we can. A purchase is a process typiclly with a longer time period and naturally more time sensitive now due to the effect that the surge in purchases is having on solicitors, council search times and all other areas of the property market.
Foundation Home Loans mortgage offers are currently issued with an expiry date of 4 months. If your client is aiming to complete before the deadline and requires an extension, you or the solicitor can contact us giving at least two weeks’ notice to request for an extension. This must be done early enough to allow 2 weeks (10 working days) to administer the extension plus an additional 10 working days after the extension is granted for us to process the Certificate of Title to release funds. Please therefore consider any pre-completion offers nearing 20 working days of their expiry.
This additional time is to allow for the high number of Certificates of Title we receive which are incorrect or relating to Mortgage Offers with unsatisfied conditions.
If a mortgage offer is expired we would need 20 working days in total: that’s 10 working days to extend the offer and 10 working days to verify that the Certificate of Title is unconditional. Funds will only be released when an unconditional Certificate of Title is received and all mortgage offer conditions have been satisfied and the mortgage offer has not expired. Please ensure that the Borrower is aware of the implications of this.
All Foundation staff have been successfully working from home since March 2020 and did not return to the office. We already had an established remote working infrastructure which has only strengthened in efficiency over the last year. Therefore, national or regional tiered lockdowns have no direct effect on our staffing capacity. Other parties involved in your transaction such as solicitors, estate agents may be affected by the restrictions so we advise that you appraise their capacity before committing. In the second lockdown of November 2020, surveyors continued to be allowed to do physical inspections (unlike during the first lockdown).
1. Place an application – Login to your broker portal to submit a full mortgage application by entering the most accurate information you have and pay the application fee and the valuation fee straight away.
2. Initial assessment – We will initially assess the application and set a list of specific document requirements, and confirm that we are able to instruct the valuation.
3. Upload documents – Simply upload the individual documents against their specific requirement. If you would like to tell us anything else, please add a portal note.
4. Underwriter review – When all the case requirements have had a document uploaded against them and we have received the valuation, your allocated underwriter will review the case. If further information or clarification is required we will let you know.
Please refer to our top tips for submitting a buy to let case here and our tips for submitting an owner-occupied (residential) case here.
Yes it does differ, due to volumes, resources, and the underwriting process, but we are constantly striving to deliver as swiftly as possible across all products and we aim to keep as close as possible to the SLAs.
If you need to call us, you can reduce the time you might have to wait by avoiding calling between 12 and 3pm when we tend to be busier. We are open weekdays 9am - 5.30pm, apart from Wednesdays when we start at 10am. To help speed up your call, make sure that you have the case reference number to hand, and details of the application to complete our Data Protection questions.
Or why not try … the ‘request a call back’ button on our website- we will ask someone from the team will give you a call.
For case updates, log in to the broker portal where you can see the latest updates on your case, and the status of any requirements. If anything is still outstanding, prioritise getting these uploaded for our underwriters to review. Then, check our latest current service levels on the home page of our intermediary website- you will see how long it will take for your case to be reviewed once all requirements have been received.