Residential news

‘Why a movie poster campaign?’ you might ask.

Every mortgage tells a story. Whether that’s a family buying their forever home or a buy-to-let landlord using mortgage finance to grow an exciting business.

Despite 2023 having some clear challenges for the advisory and lending community and our clients, 2024 has the potential to provide a far greater number of opportunities and a return to a market where activity levels have improved and so has income generation.

An interesting shift has also been noted in the market with the latest analysis from Zoopla outlining that buyers are securing huge discounts off the asking price as the number of homes for sale reaches a six-year high.

There is often precious little time to take a step back and process events which took place over any given period of time, especially in terms of how these events may have impacted your customer base, their behaviours and future outlooks.

The economic climate demands competitive, flexible and responsible products for first-time buyers and movers – but what if they don’t fit mainstream?

Time stops for no one, and neither does the possibility of change. What might seem like an irrecoverable position always has the potential to shift and develop, and for a more positive outcome to be achieved. There will be many borrowers who currently feel like this and require the services of an adviser to help move them to where they need to be.

When it comes to millions of mortgage borrowers, the notion of a ‘one size fits all’ product offering suitable for their wants and needs, well quite frankly, doesn’t fit at all.

We see a wide range of customers, from self-employed clients needing to use their latest year’s figures, through to first time buyers (FTB) who may simply have a thin credit file.

Even in - what looks like - an economy where inflation is heading downwards, the overall pressure on household incomes shows no signs of abating just yet.

New data displays the challenging realities facing borrowers, especially for the self-employed. However, Foundation can provide a path to homeownership for these individuals, outside of the mainstream.

It remains an ‘interesting’ time for the UK residential sector. According to the latest figures from the Bank of England the new interest rate ‘norm’ – that’s the average interest rate paid on newly drawn mortgages - continued to increase, rising by a further 7 basis points to 4.63% in June.

Before the pandemic, one might have had a few misconceptions defining what a ‘Key Worker’ was, and the work they carried out within the UK. We have come to understand the vital role they play at the heart of our most-trusted and valued services.

With Foundation Home Loans - Check out these first 4 ways 

At Foundation, we understand that every client has different circumstances and we are dedicated to providing specialised mortgage services that are tailored to their specific situation.

These days - different borrowers have different needs - we are not in the mortgage market of the 1970s or 1980s, when each lender offered one rate and there was one 25-year term that you stuck to.

When it comes to complex and specialist residential cases, finding the right fit can be challenging. 

For those individuals who, up until now, have only dreamed of extricating themselves from the rental market or indeed their parental home to get on the property ladder, there appears to be a growing amount of evidence to suggest the tide might be turning in their favour.

We have seen a growing band of near mainstream borrowers emerge who are more reliant than ever on the specialist lending market and an astute, professional advice process. This continues to generate strong levels of opportunity for advisers who maintain a robust handle on the ever-increasing breadth of lending propositions on offer.

Figures from the Office for National Statistics showed that, in March 2023, self-employment jobs rose by 82,000. The total increase in total workforce jobs is said to be the largest on record… so how does this affect your mortgage advice?

Many lenders have been highly proactive and innovative in the way they have engaged with the intermediary and landlord communities around the potential benefits attached to green mortgages in recent times.

We have always operated in a solutions-driven market. However, the current economic climate dictates that to better the service progressively complex borrowing needs, lenders are looking beyond a tick box criteria approach to generate a range of solutions which match these ever-shifting requirements.

The latest Money and Credit report showed that individuals borrowed an additional £1.6 billion in consumer credit in January, on net, following £0.8 billion of borrowing in December. This was suggested to be the highest net borrowing by individuals since June 2022 (£1.7 billion).

Are landlords planning to reject properties with poor EPCs? And what are their plans to cover the improvement costs? Our latest landlord panel reveals…

Around 40% of homes in the UK have an Energy Performance Certificate (EPC) rating of C or above already, but are your borrowers considering a Green mortgage when they remortgage or purchase?

How many current private rental sector (PRS) properties have an EPC rating of below C, are at threat of not being lettable after the 2025 or 2028 deadlines?

We’ve steadily seen the massive impact climate change is having on our planet and what could happen if we ignore the warning of credible experts. The ‘Green’ issue is going to play a much bigger role in the mortgage and housing markets now.

Over two-thirds of landlords (68%) say they would now be less likely to purchase a property if it has an Energy Performance Certificate (EPC) rating of below C – the level at which anticipated legislation is likely to be introduced for all new and existing private rental sector tenancies from 2025 onwards.

According to the 2022 Simply Business SME Insights Report, half of small businesses are planning to increase their prices to help get them through the rest of the year.

With the fresh new year, many landlords will be planning their remortgage and purchase finance for this interesting year now coming over the horizon.

Advisers and borrowers still have the chance to work together in other ways. 

As we transition into 2023, we have made new improvements to make it easier to do business with us.  

UK homes remain the least energy efficient in Europe with the heating of homes representing 14% of our total carbon emissions

The mortgage market has gone through many changes. Our latest research shows some fascinating results…

For borrowers purchasing a house for the first time, the market fluctuations of the last month may have been concerning. However, if they are working with you, they already have the advantage.

Many credit-worthy potential and existing homeowners continue to be financially impacted by events beyond their control, but here's how you can help...

A huge number of factors continue to weigh heavily in the thinking of both potential and existing landlords, no matter how large or small their expectations or portfolios.

Heightened awareness around Energy Performance Certificates (EPCs) has been evident across the BTL sector since the initial announcement of the government’s Improving Energy Performance Certificates action plan. 

The UK housing market has frequently proven its appeal and resilience in various ways. Inevitably, there are periods when it will come under greater scrutiny in terms of price, supply and activity.

It’s well stated that the cost of living has increased, and effects of the pandemic in terms of live events such as unemployment, redundancy, health concerns and relationship changes are ongoing. But how are those factors truly impacting the short-term credit payments of borrowers?

1^st August 2022 marked the 15^th anniversary of the EPC in England and Wales.

A common misconception among the self-employed is that applying for a mortgage is difficult, and therefore, so is getting onto the property ladder.  However, in truth, the specialist mortgage market has evolved significantly to make it easier for those with irregular or complex income to secure a mortgage.

Sustainability has become an essential goal for many different businesses over the last few years, where sectors would look at how environmentally conscious they are being. One of the main sectors that’s seeking out to include sustainability and tackle climate change is the housing market.

Few in our sector will have failed to notice the government’s recent proposals which focus on the mortgage and housing markets.

Our latest BVA BDRC Landlord Panel research for Q4 2021 discovered that around 4 in 10 rental properties currently have an EPC rating of ‘D’ or lower.

According to our most recent owner-occupier survey, 67% of all homeowners, or those who want to become homeowners, would consider a lower mortgage rate based on their property’s Energy Performance rating an appealing element when looking at product features.

A softening of criteria amongst lenders is reported to have seen brokers challenged with a rush of newly self employed applicants with just one year’s worth of accounts.

Our latest research show that almost two thirds of self employed individuals believe it is more difficult for them to secure a mortgage.

On the back of such an uncertain period for many people, it’s vital for lenders to establish a real understanding of how people view their homes (whether rented or owned), how/why any views may have shifted and how people have adapted. Not to mention, future property objectives and their perceptions of the current mortgage market.

Many questions have been asked of employed and self-employed people over the course of the pandemic and, as a lender and as an industry, we are constantly evaluating how to better service their borrowing needs.

What does the future hold? Robots are now a critical part of what we do but the need for human assessment of clients’ complex situations is where Specialist Lenders lead. Mark Whitear, Head of Commercial Development, explains all.

The importance attached to the advice process in sourcing appropriate and responsible solutions to combat the challenges of homebuying has never been more apparent, yet some potential borrowers continue to go it alone.

It will come as little surprise that the effects of the last 18 months are now resulting in rising demand for flexible underwriting for complex income residential cases; and this is true for both employed and self employed borrowers.

I’m sure we can all appreciate the highs and lows experienced across the self-employed community over the past 12 months and some of the existing shortfalls when it comes to their mortgage requirements.

Green mortgage options are expected to be a growing option for landlords and owner-occupiers over this next decade and we are pleased to be among the trail blazers with our ‘Green Reward’ remortgages.

As some lockdown restrictions are lifted, the scale of the impact on household finances and its likely consequences on the UK economy remain to be seen.

With the majority of 2020 and the early part of 2021 having a significant impact on many individuals’ income and financial situations, we anticipate that the self-employed particularly will require specialist residential finance going forward, whose propensity for complex income structures often throws them out of mainstream lending criteria.

Back in November, the Chancellor Rishi Sunak further extended the furlough scheme to provide additional support for a variety of businesses and individuals.

It’s testament to the UK’s continued appetite for homeownership, government intervention and sustained commitment from lenders that we're in this quite remarkable position at the end of 2020.

We're here to support those extra-ordinary clients with unsual income sources or those recently self-employed who may now no longer be fitting the criteria of mainstream lenders.