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NEWBUILDNEWS
Issue 1
NEW: PMS
new build
help desk now
available
Help to Buy: ‘The
Harrogate Problem’
Nationally, lending under the Help to
Buy: Equity Loan scheme accounts
for almost half of new build lending in
England since 2016. The Help to Buy scheme
The Help to Buy scheme continues to grab
Find out how specialism the headlines, mainly for the right reasons.
is key in the new build A recent study from the Ministry of Housing,
Communities and Local Government showed
market
almost half a million completions have taken
Builders demand it, customers expect it, place since 2013, with 430,000 of these
but whatever part of the ecosystem you completions made by first-time buyers.
serve, it’s become increasingly evident
that to succeed in new build, specialism
is key.
ODD IS GOOD Welcome Contents
At Kent Reliance for Intermediaries, we’re for broader criteria. We are excited to bring you our first edition of New Help to Buy: ‘The 04
Build News magazine. The magazine is designed to
Our expert underwriters ensure we have the expertise to deliver Harrogate problem’
offer knowledge and insight on the latest industry hot
Skipton Building Society
more solutions for ‘odd’ residential cases. Speak to us to see how topics, emerging trends, and government policy from the
market’s leading lenders in this area.
we could help you place residential cases across the UK, including The Help to Buy scheme 06
With the government continuing to pledge that 300,000
near-prime, complex income, shared ownership and large loans. new homes will be built per year (by mid-2020) the new
Barclays Mortgages
build market shows no sign of abating. Plus, as 85% of all
new build mortgages are arranged by advisers, the need Help to Buy: Equity Loan 08
for financial advice in this area has never been greater. Homes England
That’s why PMS is launching a number of services and
initiatives to support this expanding market. As the Find out how specialism 10
newly appointed New Build Relationship Manager for is key in the new build
Sesame Bankhall Group my main objective is to ensure
that, you, our members, have access to all the support market
and information you need. Whether you currently have Nationwide Building Society
builder relationships and operate in this market, or
you’ve seen the potential and wish to know more about A tailor made approach 12
how you can expand your business, we hope New Build
Accord Mortgages
News can help.
I hope you enjoy this first ever edition of New Build News New build health check 14
– happy reading!
Lloyds Banking Group
Best wishes
New build experts on 16
Stacey Wood hand
National New Build and Surveying Virgin Money
Relationship Manager
Meet the new build Jardelle Moran-Bakes
NEW
Mortgage Helpdesk Consultant
helpdesk team
“With the continuing demand for housing , and the government
To support our new build firms further continuing planning reforms, this is a really exciting opportunity to
we have the exciting announcement
help guide our members through this ever evolving landscape.”
that we are expanding our mortgage
helpdesk. From the 3 June you will
have access to our new build helpdesk
which will provide you with expert Paul Silver
support and knowledge on all areas of Mortgage Helpdesk Consultant
this market.
To get in touch with the new build “I’m looking forward to working on the helpdesk and building on the
helpdesk please call 0345 230 9000, or relationships and knowledge we have gained with lenders to continue
email newbuilddesk@sbg.co.uk. offering outstanding support to brokers.”
Got a residential case in mind? This publication is issued by PMS. PMS is a trading style of Premier Mortgage Service Limited a company registered in England and Wales with number 5011650. Registered
office: Pixham End, Dorking, Surrey RH4 1QA. This document is for use by financial advisers only and is not approved for use with customers. The views expressed in this
Call us today on 01634 888260 publication maybe those of individual authors and do not necessarily reflect those of the Sesame Bankhall Group. Whilst every effort is made to ensure that contents of this
publication are correct, we cannot guarantee complete accuracy and do not accept responsibility for errors. No reproduction of any information within this publication is
or visit krfi.co.uk permitted without prior written consent from the Sesame Bankhall Group. © 2018 Sesame Bankhall Group.
NEWBUILDNEWS 03
This material is for professional intermediaries only
Help to Buy: ‘The Harrogate problem’
Nationally, lending under the Help to Buy: Equity Loan exorbitant £75m pay packet4. One has to ask: is this for beyond 2021, the new price caps might pose affordable, new homes.
scheme accounts for almost half of new build lending the best use of government cash? some issues. Step forward ‘The Harrogate Problem’.
in England since 2016. In fact, more than one in seven Next – might we also see the end of the bull run
first time buyers now use the scheme to access the The answer, as I touched on last month5, is probably Analysis I conducted using the latest gov.uk help to on housebuilder share prices? Lower caps will
property ladder, a fact that suggests that the scheme not. In fact, scratch the surface and you’ll see that buy data release6 suggests that based on average necessitate one of either lower margins or lower sales
has been broadly successful in supporting borrowers not all Help to Buy transactions are helping the most Help to Buy purchase prices for first time buyers in with Help to Buy no longer providing a panacea for
who would otherwise have struggled with either the needy would-be home owners. General consensus H1 2018, prices in 28 unitary authorities, three major profitability.
deposit or affordability for a first home. is that the scheme works best in facilitating ‘bigger, metro districts and 11 county districts already exceed
better, sooner’ purchases. In other words, scheme their regional caps – a full two years before the Finally and perhaps – most importantly, might we now
In their review published last October1, the Ministry users are buying larger houses that they could caps even come into force. Bad luck for developers see the end of reliance on Help to Buy to stimulate
for Housing, Communities & Local Government, drew otherwise afford, in better areas and more quickly with planning for first time buyer homes on sites the housing market – even before the 2023 closing
similar conclusions, stating that at a national level, the than would otherwise be possible without a helping in London where the new cap of £600,000 was date? Developers, faced with cuts to profitability
scheme has driven identifiable improvements to both hand from Treasury coffers. Proponents will say that exceeded based on the average purchase price in 26 in desirable regions will be more incentivised to
the supply and demand dynamics of the UK property the so-called ‘second steppers’ using the scheme in of the 33 boroughs. work more closely with lenders and fintechs, invest
market. this way are freeing up other suitable second-hand in innovative (and cheaper) modern methods of
properties for would be first time buyers. Critics will In London that might’ve been predicted. However, construction and explore partnerships with both
From a developer perspective, the result is that say the scheme encourages larger developers to outside the Capital there are similar issues. In public and private providers to provide the diverse
recovery in the new build market has been faster build more expensive homes with higher margins and Harrogate, not far from HQ here in Skipton, the set of housing propositions and tenures needed
and stronger with the Help to Buy supercharger that more investment is needed to support smaller average FTB scheme purchase price was £301,000 in to address the ongoing issues within our housing
firmly fitted to the engine. On the demand side, as developers, self and custom build initiatives and more H1’18. From 2021, the maximum permitted under the market. The so-called ‘Harrogate Problem’ might just
those opening stats suggest, the scheme continues targeted schemes like Starter Homes and Shared scheme is just £228,100 – nearly £73,000 less than be the start of the housing solution.
to facilitate a large number of transactions with Ownership. the current going rate, before we account for any
195,219 total sales to 30 September 2018 – 81% of house price inflation between June 2018 and April 1 https://bit.ly/2WDaK9E (Ministry of Housing, Communities and Local
which to first time buyers. Increased demand, more Whatever your personal view, what we do know 2021. Government)
transactions2, and a greater incentive for developers is that from April 2021, a new scheme will launch 2 https://bit.ly/2SIggFm (Ministry of Housing, Communities and Local
to increase the output of new build homes – what with first-time-buyer-only eligibility restrictions and Elsewhere, the exact same issue exists in other Government)
more do you want? regional price caps in place to deliver support for affluent provincial towns with Warwick, Malvern, 3 https://bbc.in/2SsO1dw (BBC)
additional 110,000 first time buyers through to March Colchester, Preston and most of Cheshire facing 4 https://bbc.in/2PLfji3 (BBC)
And yet Help to Buy isn’t without detractors. It’s no 2023. This new scheme will take total government the same issue. In metro areas, and perhaps more 5 https://bit.ly/2WGQdBh (Linkedin)
coincidence that the major housebuilders have seen lending on UK housing stock to £22bn – roughly the surprisingly, scheme purchase prices in North 6 https://bit.ly/2ExpLTZ (Gov.uk)
profits soar as developers continue to capitalise same size as total balance sheet assets at the 166- Tyneside, Trafford and Salford each already exceed
on the perfect storm of rising house prices, a lack year old building society for which this author works. future regional caps.
of affordable housing and the never-ending queue A remarkable statistic.
of desperate millennials open-palmed and ready So what does this mean for both developers and
to spend their state-sponsored cash on new build Looking at the new rules, the logic makes perfect first time buyers? Firstly, I wouldn’t be surprised if
property. Just ask ex-Persimmon CEO Jeff Fairburn, sense, with funding now targeted more directly the new caps have already seen developers tear up
under whose stewardship the builder saw profits hit at would-be first time buyers requiring the most existing site plans in more expensive regions with Alex Beavis
£1bn3 for the first time in 2018; netting shareholders support. However, for housebuilders, particularly the architects and planners asked to concentrate efforts Head of Mortgage Products
a tasty dividend yield of 10.36% and Mr Fairburn an larger ones with development plans already in place on designing lower cost, smaller and therefore, more
04 NEWBUILDNEWS NEWBUILDNEWS 05
SPECIALIST LENDING SOLUTIONS
HELP TO BUY MORTGAGES
The Help to Buy scheme
Help to Buy Mortgages
At Precise Mortgages we’ve developed a range of products in support of the Help
to Buy shared equity schemes. As a new build specialist lender we’re committed to
The Help to Buy scheme continues to grab the sector. And major housebuilders/developers are fully helping more people get onto or move up the property ladder. With the government
headlines, mainly for the right reasons. A recent aware of how important it is to reach a healthy and offering a regional dependent equity loan of up to 40% of the property value (20%
study from the Ministry of Housing, Communities cost-effective equilibrium. outside of London and 15% in Scotland), this scheme could be ideal for customers
and Local Government showed almost half a million with only a 5% deposit.
completions have taken place since 2013, with The recent Spring Statement was obviously
430,000 of these completions made by first-time dominated by Brexit related undertones. Although Liza Campion,
What’s more our New Build Priority Processing Team are committed to assessing
buyers. it was a positive step to see the launch of a new cases within 48 hours. You can contact them directly by calling 0330 159 6001. Head of Key Accounts
£3bn Affordable Homes Guarantee scheme aimed
This data outlined that: at delivering around 30,000 affordable homes. The
Government will also unlock £717m from the Housing
%
• A total of 494,108 completions have taken place Infrastructure Fund to deliver up to 37,000 new RESIDENTIAL AV.
ployed
using one or more of the government’s Help to homes on sites in West London, Cheshire, Didcot, and
Self-em
Buy schemes, over 93 per cent of which took Cambridge. Additionally, the Chancellor announced
place outside of London that new homes will be banned from having fossil fuel Proof of address Employment solutions Limited Edition Credit history
heating systems from 2025, “delivering lower carbon, Not needed if able to Customer on a zero hour Limited Edition products From secured and
• The average house price purchased through the
and lower fuel bills too” to further emphasise that verify electronically contract? Self-employed with Revert Rates from unsecured arrears to
schemes is £202,815
energy efficiency within new build property remains with 1 year’s figures? 4.79% CCJs, defaults and DMPs,
• First-time buyers have now opened 1.4 million high on the government agenda.
Get in touch today we could help
Help to Buy: ISAs, offering government bonuses
There remains an important balance to be found
of up to £3,000 on top of their savings
between bolstering productivity/volume and energy
These figures highlight how invaluable the Help to
Buy scheme has become, and how it will continue
to support home buyers into the next decade. It
efficiency, with the affordable new build housing
supply gap proving to be an increasingly tough one
to bridge. Help to Buy has certainly created a well-
09 ltv ££
has also helped prop up the new build sector and trodden path for growing numbers of purchasers, Offers Valid up to 9 months Maximum LTV New Build Houses and Flats Remortgage
provided housebuilders with a solid target plan for housebuilders, lenders and intermediaries but we, 6 Month offers with 3 month 80% Scotland Flats in blocks up to 20 Pound for pound now
the delivery of new homes, although many short, as an industry – backed by the government – need extension option storeys accepted available in England,
to continue pushing for innovative and responsible 75% England & Wales
medium and long-term challenges are evident. Scotland and Wales
solutions to further support a scheme which will not
Demand will continue for new build homes even be around forever.
Contact your local BDM
Get in touch
though some question marks remain surrounding
price, value, borrowing requirements and affordability
0800 116 4385
- especially in areas where house prices are relatively
stable but still high. Build quality and energy efficiency precisemortgages.co.uk
Matt Aston
standards attached to new build properties continue
to be a primary focus for those operating within this New Build Manager
06 NEWBUILDNEWS
Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and
01966 (1)
FOR INTERMEDIARY
regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549).
USE ONLY. Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.
Help to Buy: Equity Loan
Help to Buy: Equity Loan scheme helped more than a deposit, that means a mortgage for only 55% of the Mortgage brokers and advisors also help with the reconnect with their clients to assess if their needs
thousand households a week to buy a home in 2018 property value is needed. Government’s financial sustainability check carried and circumstances have changed, and whether there
- confirming its position as a cornerstone of today’s out for each Help to Buy applicant via a calculator are other payment routes which would suit them
property market. The loan is for the borrower’s main home only, and designed to check long-term sustainability. better.
not for buy-to-let. The equity loan is interest-free for
The government scheme, administered by Homes the first five years. Borrowers have to pay a monthly Local agents can be found here: https://www. All brokers will need to work across the whole market
England, has lent approaching £12 billion to more £1 administration fee from the outset. After five years, helptobuy.gov.uk/equity-loan/find-helptobuy-agent/ to find the best overall deal for their client and make
than 210,000 borrowers since its inception in 2013. they start to pay an interest fee of 1.75%, which rises the next stage of their Help to Buy equity loan journey
And, by stimulating the lower rungs of the property every year by the rate of inflation, plus 1%. Throughout the lifetime of the loan, customer smooth and sensible.
ladder, it has provided support to the whole sector. care and contact is led by the scheme’s appointed
The loan must be repaid when the property is sold mortgage administrators, Target. The Help to Buy: Equity Loan scheme in its present
To qualify, borrowers need to be able to offer or after 25 years. Customers can pay off the loan in form is due to end in 2021, and altogether in 2023.
a deposit of 5% of the total property price. The full using savings, if available, and can also use re- They set up the monthly £1 administration fee from However, customers will be paying back for the term
government then lends them 20% of the property mortgaging to pay off a portion of the loan, known as the outset and prepare the customer so that the first of their mortgage, so Brokers will continue to play a
price, so they only need a mortgage for the remaining staircasing. monthly repayment isn’t a surprise at the start of
vital role for a long time to come.
75%. Most of the home purchases in the scheme are Year 6, and there is a clear route for them to access
indeed made by First Time Buyers, who account for The first step for anyone considering a Help to Buy: information or raise queries at all times.
Equity Loan should be to get in touch with a Help to 1 Source: Ministry of Housing, Communities and Local Government,
81% of total purchases. Help to Buy: Equity Loan Official Statistics – 30th April 2019
Buy Agent in the area where they want to buy a new- Brokers often become key players, particularly when
It is restricted to new-build properties in England, build home. it comes to deciding how to repay the loan.
with a maximum purchase price of £600,000. The
Agents guide customers through their purchase, from For some customers after the interest-free period, a
average purchase price of a property bought under
providing general information about the scheme remortgage may be possible, while others may decide
the scheme was £258,223, with buyers using a mean
and the eligibility criteria, to securing the Authority to to look at other options available to them to manage
equity loan of £55,498.1 Andy Nelson
Proceed (ATP) to formal mortgage application, which their mortgage and other financial commitments.
If buying a property in London, the government will is then handled by brokers and lenders. Head of Relationship
Brokers have a great opportunity at this point to Management - Help to Buy
lend up to 40% of the property price. With the 5%
08 NEWBUILDNEWS NEWBUILDNEWS 09
Find out how specialism is key in the new
build market
Builders demand it, customers expect it, but whatever additional sting in the tail if things don’t go to plan, of distress and heartache for applicants, for example with our new build support team and property risk
part of the ecosystem you serve, it’s become as not only has the broker got applicants to serve when a conveyancer uncovers something during final colleagues, but as it’s still a pilot currently and we’re
increasingly evident that to succeed in new build, and guide through the house-buying process, they’ve checks that should have been picked up in the sales keen to learn from it, I’d encourage you to speak to
specialism is key. also got a relationship with the developer that needs process. your BDM with any feedback or questions you may
continual support. Time is of the essence, and early have.
Having been on my own steep learning curve over the qualification of the applicant, as well as access to an Specialism is equally important for lenders too. As a
past 12 months, I now have a deeper understanding intermediary whose working pattern matches that lender that’s been supporting new build over many If you’re considering venturing into new build, this
and appreciation for the level of knowledge and of the site, is often necessary. Larger developers years, we recognise the importance of this and have need for specialism shouldn’t deter you. The new
expertise that’s required for intermediaries to be are also increasingly expecting their intermediaries tailored many different aspects of our proposition build market continues to demonstrate a level of
successful in the new build sector. to embrace technology to support qualification to reflect it, From our BDMs in the field and over the resilience and growth that isn’t as evident in other
and communication throughout the mortgage phone to our new build support team with access areas of the mortgage market, so it’s a great space
New build throws up a number of additional to information on your cases, we have an extensive to be in. I believe it’s not an area in which you can
journey. Excellent knowledge of the new build buying
complexities and factors that are either absent or not network of contacts and escalation routes. dabble. It requires sustained commitment, effort and
process from navigating different scheme types to
as prevalent as with other purchases. a dedication to familiarising yourself with everything
understanding lender service levels or exposure on
Over recent years our property risk team has grown you need to know about new build. That’s where we
Take lending criteria for example; new build versus sites, is a prerequisite, as is good upfront packaging
into the industry’s leading in-house surveying team. can support, so I’d encourage you to reach out to
standard has many shades and nuances. Be it of cases to ensure the fastest possible turnaround.
With a remit that now cuts across panel management your BDM and utilise the support available from SBG
maximum LTV, offer validity periods, leasehold or and the setting of risk policy, they provide support to
One large national developer was heavily criticised in if you wish to become a true expert in new build.
ground rent terms or the treatment of incentives, both you and our BDM teams.
the national media last year for only giving access to
one lender’s policy can vary hugely from the next,
their incentives to applicants using their designated
meaning it can sometimes be a minefield for brokers. Application to offer timescales now stand at just over
broker, and, while the practice is undoubtedly
nine working days on new build applications, and
Builder demands add another layer of pressure. questionable and not to be advocated, their defence
our proactive end of quarter prioritisation of new
Building companies come in lots of different shapes that their brokers “specialise” in new build does hold
build cases means that our BDMs are being asked to
and sizes, which may at times dictate a variety of water.
intervene less frequently. Our new build case owners Andy Dean
approaches, but generally builder expectations of are building up an expert knowledge of the field, and
The consequences of inexperience in the new build Head of Intermediary Support
intermediaries are arguably more consistent from we’re confident that this specialism will help us deliver
process can be telling. I’ve personally seen examples & New Build
one to the next. Nonetheless they do pose an an even better level of service. They’ll work closely
10 NEWBUILDNEWS NEWBUILDNEWS 11
A tailor made approach
In the current climate, there has never been a more will lend on a particular development, or ensuring and down valuations. It also enables us to discuss At Accord we’re also committed to supporting brokers
opportune moment to be in the business of offering day one instruction of valuations will all help increase future plans and work together to respond to market develop their business. Our Welcome Box initiative
reassurance and support. efficiency, ensuring the broker can deliver a great changes. has delivered more than 30,000 complimentary
experience for their client. hampers to first-time buyers or home movers who
Despite the economy being under threat and media From working alongside brokers we understand the complete a mortgage with Accord on behalf of their
negativity around Brexit, the housing market has Accord launched its bespoke new-build proposition current complexity in the lending space. Many first- broker. And our Growth Series content hub, which
been remarkably resilient, but the imbalance of in September last year after a successful pilot. As a time buyers are millennials who do not fit neatly into is now subscribed to by more than 3,500 brokers,
supply and demand is putting additional pressure on new-build lender, not just a lender that does new- the ‘standard’ mortgage application. They may have gives free access to blogs, podcasts and practical
those keen to get on the property ladder. build, we invested in the creation of dedicated new- challenges which impact their income, credit history tips, including a ‘New Build Market Cheat Sheet’ and
build teams, alongside a range of new or enhanced or employment. They may also be reliant on parents a guide on ‘Things to do in your new build in the first
There is hope though. The government focus on initiatives and improved criteria to provide an end-to- to support them for this first move. year’ which brokers can download for clients.
building new homes to address the UK housing end, first-class service to brokers.
shortage, further boosted by schemes such as Help Acknowledging the changing needs of borrowers Whilst what happens to the country in the coming
to Buy (HTB), provides additional availability and Working together has resulted in the Accord ‘Principle Based Lending’ months is still not clear, what is certain is that new
choice for borrowers. approach, essentially ‘common sense lending’. In build properties will continue to be purchased and
A major part of my role is forging partnerships with the last quarter of 2018, a fifth of the cases Accord financial guidance and support to do so will still be
For brokers, there is a clear opportunity to help those the key players to get the best results. Working accepted were underwritten using this approach. required. Therefore, it’s imperative that developers,
moving out of the parental home or from rented with Sesame Bankhall Group (SBG), in particular Complemented with our new-build helplines, enabling brokers and lenders continue to talk to each
properties, as well as supporting those who want Stacey Wood, New Build and Valuations Relationship brokers to speak directly to specialist new-build other, understand the opportunities and make the
to live in a modern home with all the benefits that Manager, we have built a close relationship with underwriters, our increased flexibility means we offer necessary adaptations to ensure we can support a
brings. Homes England. Our focus has been to improve borrowers specialist lending solutions at high street future generation of home-owners.
its understanding of the intermediary market and rates.
Specialist service support its digital transformation within the broker
channel. Our ongoing relationship with them enables Add value
To make an impact brokers need to understand the
us to lobby on issues such as the second Help to Buy
unique challenges that people who are looking for Brokers who want to grow their new-build business
affordability sustainability check, improving customer
new-build mortgages will come up against. should look to add value to the customer experience.
outcomes and helping to shape policies.
Having conveyancing solicitors and snagging
They need to rely on lenders who are specialists
Our close relationship with Barratt Developments inspectors to recommend saves buyers the hassle of
and can work alongside them and their clients to
ensures we understand the challenges developers searching themselves and encourages referrals from Nicola Alvarez
navigate the process. Offering access to Help to
face and how we can improve service and policies, friends and family.
Buy loans, competitive high loan-to-value (LTV) Corporate Account Manager
with discussion on key areas such as lease terms
mortgages, providing early certainty on whether they
12 NEWBUILDNEWS NEWBUILDNEWS 13
New build health check
The UK Government is on record as wanting to see in market fortunes – private sector down 6% and for ‘diversity’ in production. This translates in to bodies understandable calls for better regulation
300,000 new homes per annum (England) delivered affordable/PRS up 36%. developing different ways to build homes using and consumer redress I am again working with UK
by the mid-2020s – proportionate increases in the Modern Methods of Construction (MMC) including off Finance colleagues and key stakeholders in the
devolved countries feels about right. The NHBC do show regional variances and of site manufacturing of full homes or components and house building industry to improve buyer protection.
course whilst they are the largest provider of new by using innovative materials. I have been round long This is an important and complex matter given the
Perhaps an important caveat is that this aspiration home warranties, giving these statistics and trends enough to remember previous ‘innovations’ which diverse range of builders and the products they
was stated before the treacle of Brexit ensued with its credibility, there are other providers. included Pre-cast Reinforced Concrete featuring in build, however, we remain determined to produce
consequential impact on consumer uncertainty and the market!! You will hopefully be pleased to read a credible proposition that informs and simplifies
the supply of labour and materials. Are we seeing a much trailed shift in the choice of
that as a responsible lender and through working the process for consumers while creating clear
tenures for home occupancy, is the ability to save a
with UK Finance we have convinced Government accountability for quality.
So anyway, how is the market shaping up to achieve deposit prohibitive or are we seeing a hesitant buying
to ‘pause’ and to reflect on the lessons of the past
this target? public deferring a buying decision until the economic The health of the New Build sector feels good but
and to create a process for independent testing,
landscape looks more certain? Either way it will be like me would benefit from some refinement, some
On the face of it evidence of progress is out there verification and certification of new, non-traditional,
interesting to see if the various changes impacting on diversification and some attention to quality in certain
with the National House Building Council (NHBC) methods of construction entering the market. This
the Buy to Let market have resulted in suitable stock parts...
publishing their Q1 results for the registration of project is well advanced and I hope that later in
to satisfy even a temporary increase in demand.
new homes by developers. These results show a UK 2019 we will be able to produce details of a robust
wide, year on year, increase of +3% to over 37,600 As you would expect, given my day job, the New Build accreditation scheme that gives the consumer, Source: NHBC press release 02/05/2019
new homes registered in the period. However, they sector remains attractive to buyers with the benefit lender, adviser, valuer, conveyancer and insurer the
do qualify this good news by reference to the “Beast of Help to Buy to make hard saved deposits go that rightfully deserved confidence in MMC. To achieve
from the East” which made a significant dent in bit further. The New Build market does have its own this also creates the potential for high quality ‘factory
developers’ construction plans at the start of 2018. challenges, particularly in increasing output of the finished’ homes whilst attracting new providers in to
Furthermore, when you break down the headline right types of good quality homes. the house building market.
figures the spilt between the registering of homes for Douglas Cochrane
Once again the Government has voiced its opinion On the ever topical subject of new homes quality
private occupancy when compared to the affordable Head of Housing Development
on the pace and quality of output and has called and in response to Government and consumer
and Private Rental Sector (PRS) shows a stark change
14 NEWBUILDNEWS NEWBUILDNEWS 15
New build experts on hand
Knowledge, experience and full case ownership are Why is new build so different? build applications are prioritised. Our team
at the centre of our proposition, says Richard Walker,
Head of Intermediary New Build Sales at Virgin For starters, exchange of contracts needs to be within We both underwrite and instruct the valuation on One of the members of our New Build desk is
Money. 28 days, and the clock is already ticking before the day one, so no time is wasted. Once that’s done the Megan, she and the rest of the team sit with and
deal gets to the lender. intermediary can be confident that we’ll get the job are supported by a large team of processors and
Whether you’re a new build specialist intermediary done. underwriters. They know the market inside out and
or you deal with cases as and when they come to At Virgin Money we launched a specialist new build can help brokers with any queries.
you, you need the same thing from your lenders – mortgage desk in 2016 with a commitment to What about the products?
reliability and consistency of service. delivering consistently reliable service. We’ve proved If you want to talk through a potential case, call the
ourselves with new build offers out within ten working It’s a great time to be a buyer or an intermediary in Virgin Money New Build Desk on 0191 279 3553.
In this sector more than any other it’s essential that days. new build, but remember that knowledge, experience
you don’t have any nasty surprises from the moment and reliability is crucial.
you submit the case onwards. If a complex or borderline case comes in, our new
build team can discuss it with the underwriters there At Virgin Money we continue to make changes to our
New build lending is time critical and intermediaries and then, look at ways of working through it and give new build proposition following feedback from our
need to know that competitive products and flexible the intermediary an answer that day. partners. For example, we will now lend up to 90%
criteria are always supported by service they can LTV on new build houses and our mortgage offers are Richard Walker
trust. There is often no wiggle room. As well as having a New Build desk we also have a valid for seven months with a seven month extension Head of Intermediary New Build
specialist New Build processing team, where new available.
Sales & Channel Development
16 NEWBUILDNEWS NEWBUILDNEWS 17
NOT EVERYONE FANCIES 9–5, OR 2.4 KIDS — BUT WE
DON’T SEE THAT AS A REASON TO STOP THEM FROM
GETTING THEIR PERFECT MORTGAGE . REAL LIFE NEEDS
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