LIMELIGHT A Tenet Group Publication for Directly Authorised Representatives of TenetLime

Issue 48 n



And, if you don’t write protection, or simply don’t have the time to, you can refer it to us and still earn commission


A winning end to 2016 and a glittering start to 2017 as Tenet continue to rake in the awards… Market Watch looks at bridging finance and adverse credit Mortgage and protection roadshows are coming to a town near you! Intelligence Mortgage Solutions have a member of staff taking part in 2017’s London Marathon

PLUS: sales techniques and latest products from some of our key industry providers


Editor’s Foreword Contents Caroline Taylor TenetLime Marketing Consultant

TenetLime Support 04 Industry News  Gemma Harle shares the latest 07 Winning end to 2016  and a glittering start to 2017 10 New support to help you write more protection business 16 Tenet Events for 2017 Provider Support 21 One Family’s growth  in the lifetime mortgage market 24 The Source ask  what does 2017 have in store for you? 30 L&G ask are you having the income protection conversation? Tenet Community 31 Karl Mayhead keeps on running


Hello! and welcome to Limelight.

In this issue Gemma Harle looks at …….

We ended 2016 on a high by being awarded a three-star accreditation for ‘exceptional’ customer service by customer experience agency, Investor in Customers (IIC), more on this on page 7. Then we kicked off the new year with TenetLime winning the ‘Customer Excellence - network’ award at the L&G Business Quality Awards. Fantastic achievements already, let’s see what the rest of the year brings! On page 9 you can find out whose names are up in this issues Leading Lights table. And on page 16 we share with you details of this year’s Tenet events. We have two rounds of mortgage and protection roadshows, the first of which commence in May. And hosted on the morning of the last Friday of every month, we will host a live webinar with a single provider or lender which you will be able to view from the comfort of your own home or office. On page 10 and 11 you can find details about the new protection support coming your way. We have new helpdesk support making it easier for you to refer protection business and earn commission at the same time. We have new protection fact find and ‘demands and needs’ templates, a new protection declaration and new marketing materials to help you get the ‘importance of protection’ message to your clients. The Market Watch team share with you some of the most popular questions and queries they receive on the helpdesk this issue. They take a closer look at bridging finance, adverse credit and the latest they have on the ICR changes for buy-to-let. Finally don’t miss the Tenet Community article on page 31 where we see Intelligence Mortgage Solutions employee, Karl Mayhead, prepare to take on the London Marathon. And if you have anything unusual to shout about that you’d like to see in the pages of Limelight please get in touch – it’s always a pleasure to hear from you.




Happy reading!

Editor: Caroline Taylor

Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views expressed in this publication do not necessarily reflect those of the advertisers or the publishers.

LIMELIGHT is a Tenet Group publication 5 Lister Hill, Horsforth, Leeds LS18 5AZ. Tel 0113 239 0011 Fax 0113 239 5322


Industry News

At last: major lenders embrace proc fees In the wake of Santander and Barclays, Nationwide have now confirmed they too will pay them

As is the nature of columns such as these, I very often find myself using this space to champion change or advocate an amendment of some sort. That means that the tone can sometimes be a bit questioning and even controversial. So how nice to be able to lead with some good news in that, following Santander and Barclays agreeing to pay procuration fees, Nationwide (and their buy- to-let arm, The Mortgage Works), plus the Leeds Building Society have swiftly followed suit. This represents a very welcome about turn and acknowledges the value of advice – which when one considers that intermediaries’ share of mortgage distribution by value recently passed the 70 per cent mark, is long overdue. Proc fees are something I have campaigned passionately about for some time, due to the benefits they ultimately bestow on the end consumer. They encourage the closest co- operation between lender and broker, with both working together to source the best possible whole-of-market mortgage solution. The fees go some way to recognising the amount of work a broker has to do, thereby relieving the pressure on lenders’ branches. And whilst they are undoubtedly appreciated, they are pitched at a level where they do not constitute any form of inducement. With proc fees now effectively off my agenda, my focus has turned to the FCA’s Senior Managers Regime, where we are still awaiting the final rules. We’ve been working closely with the FCA and have stressed the need for any new measures to be fair and proportionate. That means implementing a different approach for a sole trader when compared to a major bank for example. Irrespective of the eventual implementation date, appointed representatives should not anticipate much impact, as the principle measures it contains are already well-embedded into TenetLime culture. FSCS levies continue to be a recurring bone of contention and it’s not just the size of our latest bill that we are unhappy with.

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Virtually everyone it seems has their own version of why they think it is grossly unfair in its current form, but from a TenetLime perspective it is ludicrous that mortgage brokers are getting collared by pensions claims, simply because they write protection. We fundamentally disagree with the way the FSCS is structured and have been extremely active with the FCA, the relevant trade bodies and MPs, in a bid to make the whole system more transparent. To facilitate this we have long-championed the introduction of a product-based levy, where charges could be apportioned much more fairly and life & pensions could be split out to avoid protection-only advisers being eligible for disproportionately high fees. The HousingWhite Paper which was due last year has now been issued, with the aim of ‘offering a clear and stable long-term framework for investment, including products for rent’ and ‘calling upon lenders and investors to back developers and social landlords in building more homes.’ It covers custom build, lending on modern methods of construction and starter homes and gives consideration to the housing needs of the aging UK population. Also under scrutiny is the future of the help to buy equity loan scheme, support for longer-term tenancies and the banning of letting agents’ fees. There will be little change for the intermediary sector other than the knock-on effect of lenders expanding the types of properties and tenancy agreements they will consider when making lending decisions. Buy-to let has been an important driver of mortgage lending growth in the last four years, but the sector currently faces a mix of policy changes that could affect business volumes. The increase in stamp duty for investment buyers and the tapering of mortgage interest tax relief for higher rate tax payers have increased the cost of investing and affected demand. Despite the months of uncertainty that followed the April revisions, the market remained robust towards the end of last year and closed with December up 10

per cent on November. CML figures still show that lending is down nine per cent compared to a year earlier though, so lending has clearly taken a hit. There has been a subsequent trend towards five-year fixes, principally for limited company buyers, but the sector remains unpredictable and we share some commentators’ concerns about the dangers of a new generation of BTL mortgage prisoners. It is encouraging to see more lenders moving into the buy-to-let space, but they are generally the smaller ones and there is no guarantee that their models are sustainable. Not surprisingly then, the future prediction is for a flat market, with lending levels in 2017 lower than the 2015 peak as further tax changes come into force. That being said, it is still 70 per cent intermediary-led and therefore remains a valuable and profitable area of activity. Since 2009 the market has seen a series of thematic reviews by the Financial Conduct Authority, the Mortgage Market Review (MMR) and the implementation of the EU’s Mortgage Credit Directive. But the work hasn’t finished yet and in 2018 the FCA will publish the results of its study into competition in the mortgage market.

There has been a big call for data so far, covering such things as proc fees, sourcing systems, how panels operate and the levels of remuneration across the advice chain, so it looks likely that there could be some impact on the intermediary sector. At the time of writing, and until all the research has been conducted, it is too early to anticipate how it will manifest itself. As usual, we have been playing our part in the consultation process and will update you on any pertinent developments as and when they arise.

LIMELIGHT | ISSUE 48 2017 | 5


A WINNING END TO 2016 AND A GLITTERING START TO 2017 as Tenet continue to rake in the awards…

Things got rather busy on the awards and accolades front as 2016 drew to a close and 2017 began to unfold… Just days before Christmas Tenet was awarded a three- star accreditation for ‘exceptional’ customer service by customer experience agency, Investor in Customers (IIC), which represents its highest accolade. It followed the latest annual independent assessment of Tenet member firms and staff. We saw our rating rise from a two-star ‘outstanding’ company in 2015 to a three-star ‘exceptional’ company. This is testament to the hard work that has been put in by the group, resulting in its IIC score rising by 53 points since its 2013 assessment. Our Chief Executive, Martin Greenwood, said: “We are delighted that our ongoing efforts to improve customer service - by listening to the feedback given and putting the plans in place to improve - have been independently validated. Our ethos remains that great service to colleagues enables great service to advisers, which enables a great service to the end consumer. “Further to this, we have received lots of useful feedback from the survey, which will enable us to focus on areas where we can make further improvements in the year ahead.” Tony Barritt, Managing Director from Investor in Customers added: “Everyone at Tenet works incredibly hard to meet the needs of its advisers. The management team has embedded a customer- centric culture across the company and the results of our latest analysis clearly show that staff are aware of their role in delivering an exceptional customer experience, with advisers and consumers benefiting from an enhanced service.”

Thank you to everyone that took time to complete the survey. Your feedback is so valuable and this type of endorsement of our customer service will have a really positive impact on our business going forward. Less than a fortnight into the new year that was followed by the news that TenetLime had won the ‘Network of the year’ category at the LoanTalk Second Charge Mortgage Awards. Held in London, on 12 January, it is the only event dedicated to the UK second charge mortgage market and we were delighted to be named among the brightest and best in the sector, after a demanding year for the sector with the implementation of MCD. As this edition went to press, that was followed by another win, this time in the annual L&G Business Quality Awards – where Tenet secured the ‘Customer excellence - network’ award for the second time in three years. Managing Director at TenetLime, Gemma Harle, said: “It is a great achievement and testament to the excellent relationship we enjoy with L&G. We have just enjoyed another record year and this prestige endorsement is further recognition that we are making consistent progress on all fronts.” Now in their sixth year, the L&G awards are designed to reward those firms that have shown a proven commitment to putting customers at the heart of their business, ensuring more individuals and their families stay protected. We are also delighted to report that TenetLime firm, Protect Line, also returned to the winner’s rostrum to collect the ‘Best reinstatement performance award’.

Winners of L&G’s 2013 ‘Best customer retention performance’ category, the latest award acknowledged Protect Line’s exceptional customer dedication after investing heavily in its systems and customer retention department over the last five years. Commenting on the win, joint Director, Jo Brewer, said: “We are extremely proud that all of our hard work and commitment over the past year has been recognised. It is an honour to be awarded the best customer retention performance award, which truly highlights the outstanding effort we put in to ensure our customers are receiving the best quality service possible.” Congratulations are also in order to another TenetLime firm, One 77 Mortgages, who were confirmed as winners of the ‘Best financial adviser to work for’ category at the 2017 Professional Adviser Awards. And that’s hopefully just the beginning of the 2017 awards trail. Gemma Harle travelled to London on 8 February for an interview after TenetLime were shortlisted for the ‘Best network 300-plus ARs’ category at the Mortgage Strategy Awards. The results will be announced at the Grosvenor House Hotel, London, on 29 March.

Serial winner: Gemma receives the ‘Customer excellence - network’ award for the second time in three years at Legal & General’s annual Business Quality Awards. Making the presentation are L&G’s Managing Director – Protection, Stephen Griffiths (left), and Steve Bryan, Director – Intermediary.

Poole-based Protect Line were also among the honours, winning L&G’s ‘Best reinstatement performance award’. Principals, David and Jo Brewer, are pictured here receiving the trophy, again with Stephen Griffiths and Steve Bryan.

LIMELIGHT | ISSUE 48 2017 | 7

• • • • •


Following on from adviser feedback, we have slightly changed our methodology for determining our league table results, which will hopefully make them easier to understand. And when compiling these tables we also take into consideration the overall quality of service and advice provided to the end customer - this includes customer satisfaction, adherence to our compliance standards and clawbacks.

Registered Individual

1 st 2 nd 3 rd 4 th 5 th 1 st 2 nd 3 rd 4 th 5 th 1 st 2 nd 3 rd 4 th 5 th 1 st 2 nd 3 rd 4 th 5 th 1 st 2 nd 3 rd 4 th 5 th 1 st 2 nd 3 rd 4 th 5 th

Graham Thomson Andrew Lock Jeff Harris Christopher Naismith Mark Watson Christopher Naismith Robert Town Kevin Travis

GT Mortgages Ltd Larkbridge Mortgages Ltd Hampden Financial Services Ltd C N Mortgages Watson & Company (Bristol) Ltd C N Mortgages Intelligence Mortgage Solutions Ltd Intelligence Mortgage Solutions Ltd McNicholl Financial Services Ltd Intelligence Mortgage Solutions Ltd

Top Mortgage Adviser *based on loan amount and number of transactions to take into consideration higher property prices in London

Top Protection Adviser by gross receipts

James McNicholl Alexander Adams Chris Watts James Hill Lewis Houlston Jenelle Homer Daniel Burgess

Protect Line Ltd Protect Line Ltd Protect Line Ltd Protect Line Ltd Protect Line Ltd

Top Protection Arranger by gross receipts

Christopher Naismith Robert Town Puja Vadher James Akers Brian Wright

C N Mortgages Intelligence Mortgage Solutions Ltd Honest Finance Limited The Wright Mortgage Company Ltd The Wright Mortgage Company Ltd

Top GI Adviser by gross receipts

Appointed Representative

League table – written business for quarter 4 – 2016 For all business via Office Net through October, November and December. These are productivity figures based on Q4 only. Leading Lights qualifiers are based on a 12 month period. Qualifying criteria includes quality of business, compliance standards and business productivity.

Protect Line Ltd Larkbridge Mortgages Ltd Enduralife Ltd KT Partnership Ltd Intelligence Mortgage Solutions Ltd C N Mortgages The Wright Mortgage Company Ltd GT Mortgages Ltd Hampden Financial Services Ltd Watson & Company (Bristol) Ltd

Top Large AR (5 and above) by average gross receipts per adviser

Top Small AR (4 and below) by average gross receipts per adviser

DA results: 1 st

Eafield And Maple Financials Ltd

Directly Authorised firms – league table for business written – Q4 2016.

2 nd Active Quote Health Limited 3 rd J L M Mortgage Services Ltd 4 th The Finance Planning Group 5 th April UK (Insurance Services) Ltd

LIMELIGHT | ISSUE 48 2017 | 9


New support to help you write more PROTECTION BUSINESS

And, if you don’t write protection, or simply don’t have the time to, you can refer it to us and still earn commission

Protection provides clients with peace of mind about their financial future and enables advisers to generate additional income. It’s a win-win situation. However, there are many clients that aren’t getting the protection advice they need when they receive mortgage or financial advice. In order to improve our service to you to help ensure clients get the cover they need, and

also meet our regulatory requirements, we are delighted to share with you a new range of protection support. This includes new tools, technical support, and even a referral service where, on request, we can advise the client and write the business on your behalf, sharing the commission with you.

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New support available now…

• New helpdesk support – we now have a protection specialist, called Dale Hepworth, on our mortgage and protection helpdesk. Dale has been selling protection for the best part of 10 years having previously worked for LifeSearch, Barclays, HSBC and Santander, and is particularly skilled in solution building and understanding providers’ underwriting practices. (You can find out more on Dale in the ‘up close and personal’ feature on page ??) • New protection fact find and ‘demands & needs’ template – these are much shorter than the previous versions, making them quicker and easier to use. • New protection declaration – to use with clients who refuse to have protection advice or don’t go ahead with a recommendation. By asking the client to sign the waiver form it heightens the importance and may make them think differently.

In addition, to all this we are also improving the Training & Competence scheme with an increased focus on protection to ensure clients are receiving the protection advice they need. • New client protection guide – hot on the heels of our popular mortgage guide, we are currently developing a ‘guide to protection’, which you’ll be able to use with your own firm’s logo and contact details. • More protection marketing – more flyers, posters and sales aids to promote protection to your clients. There is already some marketing support available – take a look at Marketing Toolkit on the extranet for details or speak to any member of Marketing team.

The templates mentioned, and more details about the service available via our helpdesk, are available via a new and improved

section on the extranet which you can access here:

Protection referral service If you don’t currently advise on protection business or struggle to have enough time to do it for every client, you can still ensure your clients get the cover they need by referring them to our mortgage & protection helpdesk. You will retain ownership of the client and we’ll only advise the client on the areas of business you ask us to. For any business we write, you will receive 30% of the initial commission, with no clawback after 6 months. What’s more, by having the right cover, your clients or their loved ones could have access to money they need at a time in their life when they need it the most.

Further marketing support - client communication package for mortgage and protection firms

The mortgage and protection client communication package, developed in conjunction with The Outsourced Marketing Department, is designed to help you keep in regular contact with your clients, add value to your overall service and help maximise business opportunities. Subscribe to the package you will get unlimited access to the following items: • Monthly Property Market Review • Monthly Residential Property Review • Two newsletters published quarterly (Your Money & Your Home Finance) • Budget & other relevant updates • Tax guides • Mortgage & insurance related guides These items will all be produced with your logo and contact details on them and the service is fully endorsed / approved by Tenet, so as and when new items become available

you can simply download them from the Tenet Marketing Store, which you will be given access to, and use them straight away. If you would prefer to send the items to your clients via an html email, you can do so by accessing the email facility from the Tenet Marketing Store. You can also choose to have printed copies, albeit at an extra cost. All of this is available on an annual subscription basis for only £600+VAT, or you can do it on a ‘pay as you go’ basis if you only want to use individual items. For more details, simply visit this website: You can also speak to someone or arrange a demonstration of the service, by calling 01279 657555.

This referral service is also available for mortgages and general insurance.

What to do next If you would like to more

information about our protection support, you would like technical help on a particular protection case, or you would like to refer protection business to our helpdesk, please get

in touch with them by calling 0113 239 5111 or emailing

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Life Insurance IN TRUST This month we are going back to basics on how and when life insurance policies should be written in trust. In this article we look at which policies and circumstances a trust could be a good idea, the different types of trust and some of the “dos and the don’ts” of writing life policies in trust.

What is a trust? The basic premise of a trust is quite straight forward. It is a private legal arrangement where the ownership of someone’s assets (which could include property, shares, cash or an interest in a policy) is transferred to someone else to look after for the benefit of a third person (or group of people). There are a wide variety of different trusts that are used for different circumstances and here we will be going through the ones which may be appropriate to use with personal protection policies. Who are the main parties in a trust? There are three main parties to a trust: The Settlor The person, or people, who set up the trust and put their assets or the life insurance policy into it. For personal protection, these are usually the owners, and lives assured, of the policy. It is the settlor’s job to choose the trustees, the beneficiaries and the type of trust to be used. The Trustees The trustees are the legal owners of the assets whilst the trust is in force. They are responsible for looking after the assets within the trust for the benefit of the beneficiaries. The Beneficiaries The beneficiaries are the only people that can benefit from the trust, via income or capital.

Why do we need to use trusts for personal protection policies?

Personal protection policies are used to provide a financial benefit in the event that something bad happens. The situation that is being protected against will normally determine where the proceeds of the policy need to go to and the timeframe in which the funds are required. If there is not a trust in place, any proceeds from an insurance policy pay out would go directly back to the settlor’s estate. For a policy like income protection, this is exactly what is needed as it is the insured person that needs the income so that they can fund their lifestyle; however life assurance is a different story. If a life insurance policy pays out to the insured person’s estate, this will normally have to go through probate before the proceeds can be accessed causing delays. By using a trust, the proceeds can be paid directly to the beneficiary immediately as the trust renders the funds outside of the settlor’s estate. Whilst speed is important, there can be even larger concerns when the settlor has an IHT liability. In this situation, if the proceeds of the life insurance fund were not written in trust they would be paid back into the estate, at which point they would become liable to IHT at 40%! As we have touched on earlier, although trusts can be incredibly useful, they are not right in all circumstances. Let’s now look at which types of policies and situation could benefit from the use of a trust. Should policies always be written in trust? So in what circumstances should a protection policy be written in trust? The table below provides some guidance on this; however you should always make sure that this is the right thing for your individual client’s circumstances.

Without CIC

With CIC

Single Life

Joint Life

Single Life

Joint Life

Yes Yes Yes No

No No No No

Yes - Split Trust Yes - Split Trust Yes – Split Trust

No No No

Decreasing Term

Level Term

Family Income Benefit



Income Protection

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Tracy Worsnop Technical Services & Research Consultant

Joint Life Considerations Joint life first death policies for pure family protection do not need to be written in trust as these types of policies aim to pay benefits directly to the surviving person. Where a joint life policy is written in trust it would be advisable to check if it has a survivorship clause. This could be, for example if the policy is a joint life second death policy (usually only needed for estate planning) or for a joint life first death contract and a client has a particular concern about the proceeds should they both die together i.e as a result of an accident. A survivorship clause allows the surviving settlor to receive the proceeds of the trust if they survive for a set period (usually 30 days from first death). If both settlors die within 30 days of each other, then the trust property reverts to the beneficiaries. Family Income Benefit A joint life Family Income Benefit plan should not normally be written under trust. However, if the clients have an IHT liability it may be appropriate to write two single life contracts and placing each in trust for the benefit of a dependent child with the surviving partner as the trustee. This means that the surviving partner has authority on when the funds can be used for the benefit of the child, without having the policy proceeds increase their IHT liability by being paid into their estate. Income Protection These policies should not be written in trust as their purpose is to provide replacement income to the policyholder if they are too ill to work. Split Trust Critical Illness Cover (CIC) pays out a lump sum on diagnosis of a serious illness, which could be used to pay off a mortgage, cover any increased lifestyle costs as a result of their illness or just enjoy themselves. If recommending a life cover policy with CIC to be placed in trust, the most suitable trust arrangement would be a Split Trust. This ensures that in the event of a CIC claim, the benefits are paid to the life assured and not the beneficiary of the trust, however in the event of death; the benefits are still paid to the beneficiaries.

What type of Trust should I use? Once established that a trust is appropriate, the next step is to consider which type of trust to use. Product providers offer a range of trusts with different titles, however they are generally variants of either a flexible trust (often referred to as discretionary) or absolute trust (sometimes referred to as bare). The main features of each trust are: •  Absolute Trust - the beneficiary has to be selected at outset and can’t be changed at any point. Proceeds of the trust pay directly to the beneficiary who legally takes full ownership of any trust assets at age 16 (Scotland) or 18 (England andWales). • Discretionary Trust - this arrangement is much more flexible by providing the trustees with discretion on how and when to pay the benefits. Trustees can be added or removed as can beneficiaries making this by far the more popular trust arrangement for personal protection plans.

The majority of protection providers will have their own versions of a particular trust but may not offer the most appropriate trust for your client’s specific situation. Whilst it is possible to get a trust drawn up by a solicitor, it’s usually much more cost effective to select another provider that provides access to the appropriate trust. Tenet doesn’t operate a panel of trust

arrangements so you should make sure that you understand the trust that you are using and that it is the right one to meet the client’s needs. The Technical Services & Research team are always on hand to answer any questions you have about trusts, or anything else technical so feel free to give us a call on 0113 2395317 or email

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We are also seeing more enquiries where parents are keen to help their children get on the property ladder by supporting them with their income to be included in the mortgage application. There seems to be a move from the traditional guarantor mortgage where the guarantor could be hit with the new 3% stamp duty levy. The ‘joint borrower sole proprietor’ is becoming increasingly popular whereby both incomes are included in the mortgage application but only one name needs to be on the deeds to the property negating the need to pay the extra stamp duty. The go to lenders in this area are Barclays, Darlington Building Society, Dudley Building Society, Hinckley & Rugby Building Society, Metro & Newbury Building Society. Another good option here is the ‘Family Mortgage’ from The Family Building Society whereby parents can offer a 20% security by way of either cash deposit or equity in their own property and can also gift a 5% deposit meaning your customer requires a 75% LTV mortgage. As always if you need any help placing a tricky case give the Tenet mortgage & protection helpdesk a call on 0113 2395111 or look at the mortgage research tables on the extranet. If there are any areas you would like to see added to the tables or any lenders you would like to be included please email and we will do our best to accommodate. MARKET WATCH with TENETLIME’ s Research & Technical Specialists

This issue we are taking a closer look at the most popular enquiries we’ve had on the helpdesk over the last few months. The last year has been extremely unpredictable in the mortgage world. We have seen more and more brokers ‘thinking outside the box’ and taking enquiries from clients they may have previously disregarded or simply passed onto a packager. Tenet appointed representatives now have more direct access than ever to specialist lenders and providers. One of our most common queries has been around bridging finance, and in particular the regulated loans. Tenet is currently working on a regulated bridging panel in a similar vein as to what we have done with the 2nd charge lenders. One of the biggest issues with bridging is that there is no specific sourcing system, also with bridging the rate quoted is unlikely to be the rate your client will actually get, as each case is underwritten on its own merits. As timing is usually of the essence with bridging, once the rate has been offered, it is unlikely that the client will have time to go back to research for a better price. Currently Tenet AR’s can go direct to Greenfields Capital, Harpenden Building Society, Market Harborough Building Society, Precise & Shawbrook. And we are working on adding to the panel towards the latter part of the year with clearer guidance on the extranet also. Another area is adverse credit. If your client has had no adverse credit in the last 3–12 months, we have a number of lenders who can help including Bluestone, Magellan, Mansfield Building Society, MBS lending, Precise & The Mortgage Lender. The rates & LTV’s are usually tiered depending on the level of historic adverse. Of course rates will be slightly higher than the high street, but should still be better for your customer than going through a packager and paying the associated fees. There also seems to be an increasing demand for lenders who offer a first time buyer & first time landlord proposition. The best lenders in this area are Aldermore, Bluestone, Buckinghamshire Building Society, Clydesdale, Melton Building Society, & RBS. As we also know the ICR changes for buy-to-let are a hot topic at the moment with the impending changes on tax relief for landlords. Some lenders such as BM & Precise are taking a more tailored approach to individual circumstances where the ICR could remain at 125% depending on the borrower’s tax status. Other lenders such as Clydesdale & Fleet have kept their ICR at 125% however overall affordability will be looked at much closer. The ICR calculations can be different for limited companies, but remember you cannot offer tax advice to your customers – you must refer them to a tax specialist. However, it is important as advisers you understand the changes that will be starting in April this year. TMW’s website has a really handy guide to refer to for more information.

it is important as advisers you understand the changes that will be starting in April this year

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Striving for a perfect 10 in customer service Tenet is committed to providing to providing consistent, first class, customer service. And as you will have read on page 7, at the end of last year we were awarded a three-star accreditation for ‘exceptional’ customer service by Investors in Customers (IIC) which represents its highest accolade. As you will be aware by now, we have been running a ‘striving for ten’ campaign with our employees to help ensure we deliver continual service improvements, which has proved its worth in us achieving this fantastic award. As part of this campaign we run quarterly employee awards to recognise key achievers. These are based on nominations from colleagues, underpinned by our ethos that ‘great service to colleagues enables 1. Fresh Thinking For individuals who generate new and pragmatic ideas for customer-centric improvements. They have a creative instinct, proactively try out new methods and approaches and make a positive contribution to projects and change initiative. Winner: Chris Myers, Infrastructure & Security Technician, IT 2. Taking ownership Awarded to the individual who takes ownership of a colleague, member or customer issue or request for help and demonstrates commitment to ensure a positive outcome. The issue may not be within the person’s remit or area of responsibility but they still communicate with 4. Team Player For excellence in teamwork and demonstrating our shared success, whether as part of a particular project or working group, or through the normal course of their work. Shares knowledge and experience across teams, has an open working approach, demonstrating honesty and integrity at all times Winner: Beverley Allan, Customer Care & Investigations Administrator, Customer Care & Complaints. End of year awards go to: 5. Jenni Jowett Award, Outstanding Contribution to Charities Tracy Dillon and the CoppaFeel Team the customer until a solution has been found. Winner: Richard Davis, Conduct Risk Analyst, IT

great service to advisers, which enables great service to customers’. We also take into account any unprompted feedback provided by advisers, although we don’t actively ask for advisers to nominate our employees until the end of the year. Our end of year awards and winners for quarter four in 2016 are as follows:

6. External Customer Service Sarah Keyse, Regulatory Consultant, TenetSelect Field Audit 7. Employee of the Year Laura Goodall, Senior Customer Services Consultant, Customer Services

3. Delighting Customers For regularly surprising customers by exceeding their expectations and demonstrating a personal interest in understanding and meeting their needs, going above and beyond. Winner: Kirsty Lloyd, HR & Payroll Administrator, Human Resources.








In May we will be holding the first round of two roadshows for 2017, both of which are tailored to our non-investment advisers. The day will cover mortgage, general insurance and protection topics and will feature a combination of stand-up formal presentations and interactive round tables. Each provider partner involved in these events will be showcasing and demonstrating their new tools, products and services, whilst providing you with new hints & tips to enable you to provide the best possible service to your clients. The day will commence at 9am for arrival, concluding at around 3.45pm, offering over 4 hours of CPD (unstructured and structured). The full agenda will be available early April, but in the meantime if you wish to reserve your place, please visit the events booking site - MAY’S NON INVESTMENT ROADSHOWS




16/05/2017 Durham 17/05/2017 Leeds 18/05/2017 Manchester 25/05/2017 Cumbernauld 06/06/2017 Southampton 07/06/2017 London Central 23/05/2017 Bristol

Lumley Castle

Oulton Hall

Haydock Park Hilton Bristol

The Westerwood Hotel

Botleigh Grange

DeVere Holborn Bars

08/06/2017 Birmingham Village Solihull

For Intermediaries


ADDITIONAL EVENT FOR 2017: WEBINARS Hosted on the morning of the last Friday of every month, Tenet will host a live webinar with a single Provider, Fund Manager or Lender which you can view from the comfort of your home or office. You will have the opportunity to view the webinar and interact with the speakers, asking any questions you may have. On the 31 March join Claire Rankin, Head of Network Distribution at Shaw- brook Bank’s Residential Mortgages team who will be on hand to answer all of your questions around second charge mortgages and demonstrating the process on transacting business with Shawbrook. This is an invaluable opportunity to learn more about these often-overlooked products, and the scenarios where

they might be the best fit for your customers. To register for this webinar you can click here:

Webinars will last around 30 minutes and you can view live on the day or watch on-demand at a time that suits you. To view information on all of our webinars for 2017, please click here:

We are delighted to introduce our new app which will give delegates attending Tenet events throughout the year an enhanced experience. Delegates can access details about the event including the agenda, session details, speaker names and their contact details. The interactive features include answering live questions, responding to feedback questions and sharing contact information or messaging other attendees. If you are attending a Tenet event, you will receive an invite shortly to download the app.

WILL YOU BE JOINING US AT THIS YEAR’S LEADING LIGHTS EVENT? As you will be aware each issue of Limelight we announce our Leading lights winners for the last quarter, see page 9. Here we highlight our top performing firms and individuals and put their names up in lights. As a reward for appearing in the top positions, we hold an exclusive annual ‘invite only’ event to say thank you and well done to the advisers and to congratulate them on their success. We are now delighted to be able share with you that the next Leading Lights exclusive event will take place on board the Sunborn London Yacht Hotel on Thursday 1st February 2018, look out for further details in the next issue!

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Transfer window stays open for brokers

Staying one step ahead of when your client’s mortgage product comes to an end can give you the upper hand when it comes to securing them the best new deal. A product transfer is often an efficient and cost effective option for borrowers looking for a new mortgage. Across the Lloyds Banking Group brands, we have a highly knowledgeable, skilled and trained team of BDMs to support brokers’ product transfer needs at all times. Making Contact It’s wise to contact borrowers a few months prior to their current deal expiring. This will give you the chance to not only review their mortgage options but also any other financial commitments, such as their general insurance. There are a number of advantages to opting for a product transfer, provided it’s the best deal for the client. Product transfers are usually quicker than a remortgage for borrowers, due to there being no need for conveyancing. Existing customers and those wanting a further advance may also benefit from exclusive deals, including fixed and discounted mortgage rates. For Halifax Intermediaries customers, any Early Repayment Charge which may apply to the existing mortgage will be waived if the product has less than 3 months to run. Product fees will still be payable but there are no legal fees to pay when the borrower opts for a product transfer.

On top of this, brokers will also benefit from a proc fee for the new deal and have access to regular email updates from our team on the progress of the case. Buy-to-Let Product transfers are also available through BM Solutions for non-regulated Buy-to-Let mortgages only. An application can be made within two months of the expiry of the existing product and as with Halifax products, no Early Repayment Charge will need to be paid. Product transfers are not available for customers with a regulated mortgage however, including Self-Build, regulated Buy-to-Let and all other residential mortgages. BM Solutions has been operating in the

BM Solution’s Buy-to-Let range currently offers options with full portability and overpayments of up to 10% of outstanding capital per annum. For those borrowers who took out their mortgage prior to the Mortgage Market Review, a product transfer can often be a good way for them to switch to a more competitive deal. Certain clients may struggle to remortgage elsewhere due to a change in affordability rules and lenders’ criteria. A product transfer may be the solution for such borrowers, even if they no longer fit within a lender’s current criteria.

Buy-to-Let market for many years and has the expertise and knowledge to provide the needs to the customer to match their requirements,

offering a diverse range of products with both fee and no-fee options.

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GREAT NEWS from Santander for Intermediaries

We want to help even more of your clients get a Santander mortgage through our competitive pricing and policy improvements. Since the start of the year we’ve announced the following improvements: From Monday 13 February we now pay: • A minimum proc fee of £400 is paid for Residential and Buy to Let new business on all loans of £25,000 and above • There is no maximum proc fee Retention proc fee • From 18 April 2017 we’ll be launching the payment of a 0.20% procuration fee on residential and Buy to Let retention business submitted via our existing Online Mortgage Transfer Service that then goes onto complete. What’s new in Introducer Internet? • We’ve improved Introducer Internet to make it easier for you to do business with us: - New look and feel making it user friendly and simpler to complete AIPs and FMAs - Case tracking (MATS) fully integrated into Introducer Internet giving you a simple view of all your cases, uploaded documents and notes - Use on tablet devices helping you do business on the move - Accessible through more web browsers – Internet Explorer 10 and above, Chrome and Firefox on desktop/laptop and Safari and Chrome on tablet Please visit our website to watch our short video showing all the great features of Introducer Internet. Please give your dedicated contact a call if you would like more information or to discuss any new cases that we may be able to help you with.

Santander for Intermediaries. Aimed at intermediaries and investment professionals only: not for public distribution.

For Intermediaries

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OneFamily’s growth in the lifetime mortgage market

With over 40 years’ expertise in finance, OneFamily is well known for its products, from its well established life insurance - Guaranteed 50 Plus Life Cover - to its new and innovative Lifetime Mortgages, launched in May 2016. Over the past year this product development has grown rapidly, with the Interest Payment Lifetime Mortgage being added to the existing Roll-up and Voluntary Payment products this January. Leading this exciting expansion is Managing Director, Georgina Smith, who has a wealth of experience in the lifetime mortgages sector. The expertise and knowledge from both her and her team, contributed to the winning of “Best Provider for Product Innovation” at last year’s Equity Release Awards and the establishment of OneFamily in the lifetime mortgage market. The two new Interest Payment Lifetime Mortgage products, give customers the option to repay up to 100% of the interest on the loan, with a variable or fixed interest rate. Responding

to those borrowers or family members who may have concerns about the impact of interest rolling up on the loan. Understanding customers’ needs is at the heart of OneFamily’s product development. There are many different reasons someone may choose a lifetime mortgage and OneFamily’s aim is to provide flexible products that meet its customers’ needs. For example, recent research shows one in five of the UK’s parents and grandparents (19%) have provided their loved ones with financial support when buying a new home – this follows a proud tradition of ‘family finance’ in the UK with a similar amount admitting their own family once helped them get on the property ladder (20%).* The new product will feel familiar to many and work in the same way as any mainstream interest only mortgage, so borrowers who have been used to making monthly payments on their mortgage in the past and are looking for the discipline of regular payments on some or all of the interest, can do this from day one of their loan. These products differ from mainstream mortgages in two ways, firstly the amount borrowed is not

based on an affordability assessment but on the age of the applicant and secondly the customer can keep the loan for life if required or even convert it to a rolled up interest should their circumstances change.

To find out more information about OneFamily Lifetime Mortgages new Interest Payment product, or any product, please visit or you can call 0800 802 1645 ** where you have full access to the OneFamily sales and underwriting team.

Subject to approval for Tenet Panel

*Opinium Research carried out an online survey of 2005 GB adults from 20 to 23 January 2017. Results have been weighted to nationally representative criteria **Lines open Monday to Friday 9am to 5.30pm. We might record your call to help improve our training and for security purposes. We hope you don’t mind. Calls are normally free from UK landlines and from mobile phones.

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Has Indexation’s time finally come?

Too often overlooked in times of low inflation, Vitality’s Justin Taurog argues the time is now right for advisers to talk about Indexation, to safeguard their clients’ future protection needs. Sterling’s struggles against the euro in the last six months or so are finally beginning to be felt at the sharp end. The Consumer Prices Index (CPI) hit 1.2% in November, with most observers tending to agree that this is no short-term blip. In fact, many expect the rate to continue rising throughout 2017, with the likelihood of it reaching 3% by the end of 2017*. After such an extended period of low inflation, this has led even the most optimistic of inflation-watchers to believe that this rise in CPI could mark a new era of steadily rising prices. Some have even suggested we could actually be reaching a turning point. For the protection industry, this has some potentially significant implications. On the one hand, it’s true that pure mortgage-related cover will be unaffected by the effects of inflation. But mortgage-term protection made up less than 20% of all sales in 2015, according to analysis from Equifax Touchstone**. That means around 80% of all plans could face a sizeable correction in long-term value. In addition, the industry uses the Retail Prices Index (RPI) as opposed to CPI when considering inflation, as RPI includes housing costs, such as rises in mortgage payments and rents, which CPI does not. With RPI sitting around 1% higher than CPI, this further exaggerates the erosion effect. This has the potential to throw up some awkward dilemmas for advisers. Take this by no-means exaggerated scenario: if inflation rises to 3% and stays there, £100,000 of cover today will be worth almost half in 20 years’ time, when measured at current prices. I’m sure that’s not a conversation any adviser will want to be having with their clients in future. However, it’s a conversation that could be easily avoided, simply by speaking to your clients about Indexation – making sure cover grows

in line with inflation. Indexation doesn’t just benefit clients by protecting them from the eroding effects of inflation. Advisers also benefit, through improved client relationships and increased commission. Indexation makes even more sense because as clients get older, their mortality and morbidity risk increases. So it becomes harder and harder for them to get protection later in life, due to the need for medical underwriting. Therefore, it provides clients with the cover they need today, as well as the peace of mind that their cover will be protected against inflation to make sure it also meets their needs in future. At Vitality, we recognise the importance of protecting policies against inflation. So our Indexation option offers a unique upfront premium discount on indexed policies, which also helps combat the affordability objection and smooth the path to sale. For added flexibility, our option gives clients the choice to accept or decline their annual Indexation increases. Even if they turn down an annual increase, they may not lose their right to receive Indexation increases in future. When you also consider that yearly salary increases should more than keep pace with annual premium increases due to Indexation, it can make it seem a bit of a no-brainer. All this leads to happier, better-protected clients and improved persistency. I would go as far to say that, with the inflation outlook more uncertain than it has been for years, indexing protection policies is a commendably responsible choice. Not to mention a mutually rewarding one for advisers and clients, who will probably thank their advisers for it in years to come. Justin Taurog is Managing Director Distribution & Sales, VitalityLife

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