Sustainable thinking leads to green change
Loans Officer, Newcastle Intermediaries
Cop26 ended with countless promises and initiatives promising to bring about the green change we need to preserve our world.
In terms of housing, green initiatives have been more difficult to start. These days have been littered with projects that have failed or have not taken off. From the Green Deal to subsidies for heat pumps, the efforts have so far been criticized for lacking buy-in or lack of ambition.
Collaboration and commitment will be essential
The question for lenders is not a simple one. We are not heating and insulation experts, and we will not try to be.
We’ve already seen the chaos of poorly thought out campaigns to insulate homes where damp cavity insulation has rotted.
Likewise, while many of our clients are engaged in the green agenda, they may not easily accept our opinions on how they should be a part of it or, for that matter, how and when they should decarbonize their homes.
The green loan is easy to defend and much more difficult to implement
It is a complex subject and the properties, like people, are never the same. Clients should not be penalized for not having the funds to own greener properties.
But what we can do is help them make informed decisions. Pressure from authorities, both political and economic, to understand the physical and transient risks to our business means that we will learn things about our loans that we can share with consumers.
These facts will in turn enable them to make informed and better decisions for their own properties and circumstances.
Green lending is an easy thing to defend and a much more difficult thing to implement when you look at the many moving parts of the housing value chain.
Help consumers make informed decisions for their properties and their situation
But that’s no reason not to begin the evolution of best practices in construction, financing and homeownership, where collaboration and commitment will be essential.
We consult with our members, partners and regulators to ensure we get off on the right foot and create an environment where borrowers can access trusted expertise, when and how they need it.
Big ideas for big borrowers
National Account Manager, Newcastle Intermediaries
In early November, much to the surprise of many, interest rates remained at a record low of 0.1%. The Bank of England voted to keep the current rate and the margin of agreement suggests it is unlikely to change its mind this side of the new year.
Although many lenders have revised product prices in anticipation of an increase they believed was inevitable, there are still some very attractive products, especially for those who wish to borrow large amounts. These borrowers, like many others, are well positioned to take advantage of this temporary reprieve from the expected rise in the cost of borrowing.
We understand the unique needs of these customers
Affordability issues still plague many homeowners and movers alike as resilient home prices continue to resist any real downward pressure. This is in part due to the constant lack of supply of new and current stock.
At Newcastle Intermediaries, a key pillar of our goal is to help people own their homes. Borrowers in need of large loans are no exception, so we have launched an offer to help those in need of larger financing. We have competitive loan-to-value ratios and good income multiples, and we can manage 100% of all income.
We are committed to helping high income borrowers
We have a range that addresses the main issues facing so many large loan borrowers. We offer up to 5.25 times income multiples on £ 2million loans at the discretion of the underwriter, and 80% LTVs up to £ 1million.
These new loans are available with interest only and principal repayment making a huge difference in affordability while recognizing the importance of using and proving the value of bonuses or commissions for high earners.
Complex income is a barrier for all kinds of borrowers in an economy where clients often earn their living from many dissimilar sources.
Affordability issues still plague many homeowners and movers
Extra income can be particularly tricky but, thanks to our large loan proposition, we now take up to 100% of frequent overtime (monthly and “on payroll”), bonuses and commissions. If additional payments are less frequent, the borrower will need a two-year record (as evidenced by his P60) and gross income above £ 100,000, to consider using 100% of that income.
Brokers also have direct access to senior underwriters to discuss individual cases from the investigation to the offer stage.
Our large loan proposition is a key part of our midstream offering and we are committed to helping high income borrowers. By understanding the unique needs of these types of clients, we offer competitive products, a tailored lending approach, and direct access to our underwriters.