Limelight 55

LIMELIGHT A Tenet Group Publication for Appointed Representatives of TenetLime

Issue 55 n

Winter 2018

Help your clients manage the BTL Tax Changes in 2019 P R O T E C T I O N OUR CARE SUPPORT SERVICES CAN HELP CHANGE THE WAY YOU TALK TO CLIENTS ABOUT PROTECTION HANDLED WI TH CARE

ALSO IN THIS EDITION Market Watch - Find out more about our new mortgage sourcing partner Twenty7Tec Events - Book your space on the first round of our 2019 Roadshows

PLUS: Limelight gets ‘Up Close and Personal’ with our new TenetLime General Manager

SCOTTISH WIDOWS CARE BENEF ITS AT A GLANCE Scottish Widows Care, in partnership with RedArc, offers you a new way to start your protection conversations, by demonstrating the value of protection beyond a financial pay-out. AVAILABLE FROM DAY ONE Scottish Widows Care is available to your clients from the day their protection plan starts. EXTENDS TO THE CLIENT’S IMMEDIATE FAMILY Immediate family can also access our support service, whether for a serious physical injury or illness, a mental health condition or a bereavement. DEDICATED PERSONAL NURSE ADVISER Everyone who uses Scottish Widows Care has a dedicated RedArc Personal Nurse Adviser who can provide practical advice and emotional support. VALUABLE SECOND MEDICAL OPINION For those who need it, the Personal Nurse Adviser can arrange a second medical opinion through Healix Health Services. COVERS PRE-EXISTING MEDICAL CONDITIONS Clients with a medical diagnosis can still receive all the benefits of our support service from the day their policy begins. NO CLAIM NECESSARY Your clients can access Scottish Widows Care even if they’re not making a critical illness or life insurance claim. 1 2 3 4 5 6

Find out more at scottishwidowsprotect.co.uk/care

LIMELIGHT A Tenet Group Publication for Appointed Representatives of TenetLime

Issue 55 n

Winter 2018

Help your clients manage the BTL Tax Changes in 2019

ALSO IN THIS EDITION Market Watch - Find out more about our new mortgage sourcing partner Twenty7Tec Events - Book your space on the first round of our 2019 Roadshows

PLUS: Limelight gets ‘Up Close and Personal’ with our new TenetLime General Manager

Introducing Post Office Family Link ™ No deposit. No problem. Helping you place more business

Post Office Family Link™ is designed for your first time buyers who haven’t saved a deposit but have good affordability. They simply take out a 90% LTV mortgage against the property they’re buying. Then with their assistor (parent or close relative) they take out a mortgage for the remaining 10%, secured against their assistor’s mortgage free home. Help your first time buyers get their first home sooner with Post Office Family Link™.

Post Office Family Link™ For first time buyers with good affordability, but no deposit : • Made up of two loans • FTB loan at 90% LTV, assistor loan for remaining 10% • We’ll pay a 0.5% proc fee for both loans.

First Start Boosts the borrowing power of first time buyers, by combining their income with a sponsor’s: • Borrow up to £500,000 • Maximum age for sponsor up to 80 years old at the end of term • Up to 95% LTV.

Talk to your Corporate Account Manager or visit po4i.com to find out more. Together, we make it happen. Visit po4i.com to find out more today. Together, we make it happen.

Post Office Money® Mortgages are provided by Bank of Ireland (UK) plc. Post Office Limited is an appointed representative of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is registered in England &Wales (No. 7022885). Bow Bells House, 1 Bread Street, London, EC4M 9BE. Post Office Limited is registered in England and Wales. Registered Number: 2154540. Registered Office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money® and the Post Office Money® logo are registered trademarks of Post Office Limited. F0359 MA091 12475180710A Post Office Money® Mortgages are provided by Bank of Ireland (UK) plc. Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England &Wales. Registered Number: 7022885. Registered Office: Bow Bells House, 1 Bread Street, London, EC4M 9BE. Post Office Money® and the Post Office Money® logo are registered trademarks of Post Office Limited. Registered office: Finsbury Dials, 20 Finsbury Street, London EC2Y 9AQ F0513 12707181018

Editor’s Foreword Natalie Yarwood Marketing Consultant

Contents

TenetLime Support 4-5 Industry Update Simon Broadley gives us an industry overview 6 Market Watch Find out more about our launch with Twenty7Tec as our new mortgage sourcing partner 7

4

Hello and welcome to Limelight: I am delighted to bring you my first edition of Limelight since joining Tenet a few months ago. In this issue, our ‘Know your Lender’ feature is back after the success of its first appearance in our last issue with 11 lenders demonstrating their expertise within the mortgage market and how they can support Tenet advisers – see pages 24-37 . As 2019 beckons, our Industry Update looks at what has been happening within the industry and what’s on the horizon. BTL tax changes starting to bite, changes for HMOs, the FCA’s mortgage market study are discussed, along with looking ahead at technology for the future. Find out more on pages 4 & 5 . We’re pleased to welcome a new member to the team in the form of Richard Conway, who joins us as the General Manager of TenetLime. Learn more about Richard in our ‘Up Close and Personal’ feature on pages 8 & 9 . Dates for your diary! After another successful round of events coming to a close, we now have our first round of 2019 Non- Investment Roadshow events in place. We kick off in London on 12th February, with more to follow around the rest of the UK - full details on page 7 . As the festive period is fast approaching, we wish you a very Merry Christmas and a Happy New Year from all of us here at Tenet. We hope you enjoy reading this edition of Limelight. Best wishes Natalie Yarwood

Events Overview Announcing our first batch of 2019 Non- Investment Roadshows

8-9 Up Close and Personal

7

with Richard Conway, General Manager of TenetLime

Provider Support 13 JUST

Build equity release into financial planning NatWest NatWest: dedicated to the New Build market

17

24

24

Know Your Lender

41

AIG Income Protection: Shifting The Focus Plus much more...

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

We’re here to provide you with simple specialist lending solutions: • First charge • Second charge • Bridging • Commercial

• Development finance • BTL • In-house regulated bridging

Register now to benefit from our fantastic products and services Visit cleverlending.co.uk or call 0800 316 2224

WELCOME - 3

I can hardly believe that we are nearing the end of my first calendar year at Tenet! It’s certainly been eventful but I feel really confident that the focus over the past year of putting new team structures and processes in place will really start to deliver positive, tangible changes over the next few months. The last piece in the team structure puzzle was Richard Conway joining the team on 5th November to take up the role of General Manager of TenetLime. Richard joins us from Yorkshire Building Society Group, having held a number of product development and operational roles across mortgages and retail savings, and I feel that he’ll be a great addition. We have a great foundation to build on, with a 12% year on year growth in adviser numbers, £9bn of mortgage lending and a 15% growth in protection business. Thank you also to everyone who supported our recent non-investment roadshows, where we’ve seen excellent attendance levels and great engagement with both Tenet staff and our lender partners.

Industry OVERVIEW

Simon Broadley Managing Director, TenetLime Ltd

4 - TENETLIME SUPPORT

So, what’s been happening within the industry and what’s on the horizon? BTL Tax Changes starting to bite We’ve been talking about these BTL tax changes for a while, but it’s the tax returns in 2019 when this will all become more apparent, so you may start to get more queries from your landlord clients. Indeed, one in five landlords is considering selling up as a result of the tax hit, according to the National Landlords Association (NLA). The Government decided to phase in the new mortgage interest rules over a four year period with the amount of mortgage interest tax relief steadily falling each year from 75% in the 2017-18 tax year to 25% in the 2019-20 tax year. By April 2020, all of the rental income landlords earn will be taxable, and instead they will receive a 20% tax credit for their mortgage interest, meaning they can cut their final tax bill by 20% of their interest. One change has been an increase in people buying properties within a limited company structure, as this will have different tax rules, but from a broker perspective, the most important thing to remember is that you cannot give tax advice but must encourage your customers to get this advice before they decide which is the best structure to buy within. It may be worth showing customers illustrations for both options therefore. Changes for HMOs October also saw the introduction of a significant change to the licensing of houses in multiple occupation (HMOs) for landlords. Previously, you only have to get a licence if the property has at least three storeys and is being occupied by five or more individuals who are from separate households or more, but the minimum property size has now been removed. As a result, any HMO properties with five or more occupants now require a licence (with a few caveats). Landlords should have applied for a licence already but it appears that many local councils are on the back foot with these new regulations, so please ensure you are having these conversations with your landlord clients going forwards as The Residential Landlords Association estimates that an additional 177,000 HMOs will become subject to mandatory licensing in England alone. Landlords have undoubtedly been in the political spotlight over the past few years, but with more and more people renting, politicians are increasingly recognising there’s a public appetite for housing reform, so there’s likely to be more changes, even before the next tax year. We’ll keep you updated.

Mortgage Market Study AMI’s Chief Executive, Robert Sinclair, considers the FCA’s Mortgage Market Study to be the most important issue that has faced him since joining the trade body world in 2006 and it has therefore been a key topic of debate at the recent AMI board meetings I have attended. Why the concern? This is primarily because the proposals have the potential to change our market significantly and redefine the value of advice. One issue is that the study has a total focus on price, without proper consideration of suitability, which we all recognise is the foundation of advice. ‘Needs’ has been interpreted in the study to mean ‘cheapest product’ and this is demonstrated by the FCA’s conclusion that some for customers who are “are capable of picking a well-priced mortgage product on their own; a relaxation of the requirement to receive advice may better meet their needs”. There are big concerns therefore that redefining advice in this way will not deliver good outcomes for the majority of consumers and we feel it is very dangerous to assume that a customer who did receive advice would have ended up with the same product as comparison tool, if not managed carefully, could also cause more detriment than benefit. The tool is yet to be defined and could include anything from the number of complaints, the breadth of product range or the distance from the customer’s home - none of this is clear at present. We must ensure however that the final product doesn’t become anti- competitive or drive behaviours amongst brokers to artificially improve their standing on the website, like has historically occurred with some insurers on aggregator sites. The proposal to redefine advice appears to stem from the FCA’s push for innovation, yet we cannot see any barriers to this within the current market and certainly do not support any move to grow execution-only at the expense of FCA, FOS and FSCS protections. We must stand firm and together as one industry and we will be doing all we can at a senior level to promote and protect the value of advice going forwards. As the report itself noted, “the mortgage market is working well in many respects” so the FCA needs to ensure any changes are proportionate to this statement. Technology for the Future As I’ve just outlined, we firmly believe that for years to come, the mortgage and protection customer experience will continue to thrive on the personal interaction of broker and customer; but there is undoubtedly an opportunity to look at how technology if they had not spoken to an adviser. The criteria for the proposed broker

can better support you as an adviser. We recognise from the conversations we have with you on a one to one basis, and the feedback from our focus groups, that technology is becoming more and more important to you in serving your customers. The first step in this direction is our decision to move to Twenty7Tec as our preferred mortgage sourcing provider from January 2019. The functionality that MortgageSource offers, what they plan to introduce over the next 18 months, as well as their determination to get out and support our members with maximising the use of the system was really impressive and fundamental to our decision to partner with them. We know that you are very busy and that we need to support you to manage this change so you can take advantage of the benefits that forward-looking development can bring. It is disappointing that we had to take the decision to delay the implementation of focus:adviser and the new remuneration functionality. However, it was important that we at Tenet were 100% confident that everything was robust before it was rolled out. After we completed a few weeks of testing on the new system, we uncovered a large number of critical “bugs”, and we were not prepared to go live under these circumstances. Over the past few months there have been a number of high profile financial services firms launching new technology that wasn’t robust, and their customers have suffered as a result. We didn’t want to do that, especially given that it relates to commission payments. Aside from the focus:adviser implementation, earlier this year we identified some key changes that needed to be made to Focus to better support mortgage and protection advice. There are over 70 changes that Focus are now working on as a result of that, and the plan is for these to be rolled out over the next 12 months.

Thank you for your support this year, which has seen TenetLime go from strength to strength. I’m really pleased with the strong position we have created for ourselves, and with our new structures and processes in place, I’m confident that 2019 will be incredibly successful and rewarding for everyone.

TENETLIME SUPPORT - 5

MARKET WATCH with TENETLIME’s Research & Technical Specialist

Samantha Gray

We were delighted to announce our launch with Twenty7Tec as our new mortgage sourcing partner from January 2019. So far, we have had a great uptake and positive feedback on the new system, so we’d really encourage you to take advantage of your free trial and complimentary licence. We know that you are very busy and that we need to support you to manage this change, but in the fast-paced mortgage market, technology really is the key to ultimately making your job easier and enhancing your customer experience. One TenetLime member who had already made this change from Trigold to Twenty7Tec about six months ago is William Underwood from Phillips Clark UK Ltd. The absolute essence of the MortgageSource system to him is that it’s up to date with everything, with no manual updates required, giving him the confidence that all the rates and products that he presents to clients are the latest. In terms of other features, he comments “I really like the ability to source second charge loans as well as purchase or remortgage, or a combination of both - it essentially enhances our capabilities for advice. The filters are far more extensive than I had previously and another feature I find useful is that when I’m looking at products in depth, I can then

This is also the first sourcing system to have standalone bridging sourcing, which is a useful tool to have. The system offers three different sourcing options in fact, ‘MortgageSource’ which can be used for a purchase or straight swap remortgage, ‘LoanSource’ for second charge or bridging and then ‘Combined Source’ where both options can be compared. We have numerous calls on the helpdesk where advisers are unsure how to source bridging and remain compliant, so this provides a solution that avoids manual research. Another useful element of the combined search is that if you have included your customer’s date of birth and they are over 55, it can compare against equity release if you advise in this area. Later on in the sourcing there is also a ‘situations’ filter that will give you a broader view and can be used if your client is unsure of their exact credit issues, plus can be used to filter which lenders are generally sympathetic to ‘defaults’ for example. For the self-employed you can include how many years’ accounts are actually available, which is another common query we see here on the helpdesk. On property, there are some other useful filters including ‘studio flat’, ‘properties above commercial’ and it even allows you to add the percentage of a flying freehold. In MortgageSource, you add the sourcing details first and then the client’s details. If you include the very basic details of your client’s date of birth and smoking status, the system is integrated with iPipeline SolutionBuilder and along with your sourcing results, an indicative protection quote will also show at the top of the screen, which is a fantastic tool to help you protect your customers. All relevant documentation can be produced as you would expect and within the evidence of research document there is also a free text box, which can be really useful for you to note why you may not have disregarded one of the higher lenders. Twenty7Tec tend to update every four to six weeks and each time there is a ‘what’s new’ document so you can easily see what has changed. One of the reasons we selected Twenty7Tec was their agility, in terms of the fact that they value and welcome broker feedback and will work on improving the system in line with this all the time.” If you haven’t yet explored what the system has to offer, why not register for an introductory 30 minute webinar - they run every day at 10:30 and 14:00 (except bank holidays) . For further information you can also call on Twenty7Tec on 01202 553457, email enquiries@twenty7tec.com or visit www.twenty7tec.com .

link through to the relevant lenders’ sites. In terms of making the initial transition, I found MortgageSource

”technology really is the

really intuitive and easy to familiarise myself with, plus

key to ultimately making your job easier and enhancing your customer experience”

there is lots of support on hand if you need it. Twenty7Tec are also very open to suggestions from brokers, which seems to be the key to them evolving with the market. I just wish I had made the move earlier!” Samantha Gray in our Technical Services and Research department has also spent some time on the MortgageSource

system and was particularly impressed by the search criteria, which with over 400 filters, was the most sophisticated she had seen. Below she shares some of her initial thoughts: “I think that brokers will find that the system really caters for all the scenarios in the current mortgage market. Within credit history for example, you can detail individual CCJs and defaults with specific information such as dates and amounts, as well as the facility to filter against payday loans and DMPs, both of which are becoming more relevant. On buy to let, if you include the rental income it can search on each lenders’ specific ICR and there is also the option to include lenders who top slice. The system can also show near misses, which can also be valuable when it is close on the rental income. For portfolio landlords there is the facility to add the full details of the portfolio.

6 - TENETLIME SUPPORT

TENET EVENTS

Non-Investment Roadshows With the New Year fast approaching, we are gearing up and planning for our first round of our popular Non- Investment Roadshows. These events cover topics such as Mortgage, Protection and General Insurance and combine formal presentations from Lenders, interactive round tables and plenty of tips to help you provide the best service for your clients. Starting in London on the 12th February, our Roadshows are free and open to all advisers, staff, paraplanners and directors/principals so book yourself a space now.

DATE

LOCATION

VENUE

London Belfast

12/02/2019 14/02/2019 26/02/2019 27/02/2019 28/02/2019 05/03/2019 06/03/2019 07/03/2019

Amba Hotel

Stormont Hotel

Manchester (Merseyside)

Haydock Park Racecourse

Durham

Ramside Hall Hotel & Golf Club

Leeds

Village Leeds South

Southampton

Hilton at the Ageas Bowl (Stadium) Doubletree by Hilton Bristol North

Bristol

Birmingham

Village Solihull

To book your place onto Roadshow Round Two just follow the link below: https://events.tenetgroup.co.uk/ADP2019 Webinars on-demand Plus you get 30 minutes of CPD for each webinar you view!

Throughout 2018, Tenet hosted a series of CPD webinars that are available to view from the comfort of your home or office, at a time to suit you. So if you need to top up your CPD, take a look at the webinars that are available. All you need is a device to view it on and your headphones! The following webinars are available to watch on-demand:

n Small Portfolio Landlords Are Confident About The Future - So You Can Be Too!

n Life Cover for Hard to Insure Risks

n The Specialist BTL and Short-term Loan Landscape n Survive? The Value of Critical Illness Cover? n Understanding the Specialist Lending Market n Helping you Meet the Needs of Your First Time Buyers n The General Data Protection Regulation – GDPR

n Insurance Distribution Directive

Webinar details: Use this link to view - webinars.tenetgroup.co.uk

If you have any queries, please call the events team on: 0113 239 5334 or email: events@tenetgroup.co.uk

TENETLIME SUPPORT - 7

UP CLOSE & Personal We’re pleased to welcome Richard Conway as General Manager of TenetLime. In this new role, Richard will have day-to-day responsibility for building on and enhancing our non-investment proposition and truly understanding the needs of our client firms in this fast moving market.

We caught up with Richard to find out a bit more about his work and home life, as well as why he chose to join Tenet Group.

Can you give us a brief history of your career to date? I joined Yorkshire Building Society working in the Investor Services department. 17 years passed by in a flash and I find that I’ve covered a broad cross-section of the business, leading operational, sales and commercial areas through mergers, regulatory upheavals and cost challenges. I picked up a business degree part-time along the way, as well as spending seven years chairing a school governing body. My most recent role at YBS included setting the five-year financial plan for the group’s product proposition, leading the response to the first Bank of England base rate changes in almost a decade, and delivering several initiatives to improve the product range for customers, as we move into a new world where open banking will change the way everyone does business. Why did you choose to work at Tenet? Having worked in financial services for a good while now, I’m passionate about delivering the best for customers. I’m also a big believer that to deliver the best, an organisation must remain forward-looking and embrace change. Whenever I scanned the industry, Tenet kept appearing as a company who shares those values. Our recent announcement of partnering with Twenty7Tec demonstrates this perfectly – we’ve joined forces with an innovative and award-winning sourcing provider to deliver what we believe is the very best solution for our members. The other thing I’m passionate about is people. I believe strongly that the right people and the right culture make all the difference. The first time I stepped through the doors at Tenet, I genuinely felt that everyone really is ‘on the same team’, and was touched by the warm welcome I received. That’s when I knew for certain I’d made the right choice in joining Tenet. What are your hobbies and interests outside the office? I’m a big fan of the gym. I particularly love high-intensity classes like Insanity – loud music combined with the uncertainty of if you’ll still be able to stand upright afterwards is strangely addictive! If you’ve not heard of it, I encourage you to look it up. I have a son (8) and daughter (6). Those are their ages, not their names. As a Dad, ‘my’ hobbies and interests usually follow theirs very closely. At present this involves being beaten by my son on his Xbox and eating whatever buns my daughter has baked…what can I say; parenting is tough!

RICHARD CONWAY General Manager of TenetLime

8 - TENETLIME SUPPORT

What music do you listen to in the car? I used to DJ in my younger days, so enjoy a very wide range of music. I gravitate to music that has a lot of energy to it; dance music is a given, but Green Day are my band of choice.

What are you currently reading? I usually have a couple of books on the go - something to get the brain going and something that definitely doesn’t require any brain work. “The Naked Trader” and “The Burden of Loyalty” are the current two reads – I’ll let you figure out which is which.

What’s your favourite film of all time? Don’t make me choose! I am a huge Star Wars fan, and was going to cheat and say “all the Star Wars films”, but if I had to pick, I’d say Rogue One. I’d also include Back to the Future: Part II and Anchorman.

If you could trade places with anyone for the day, who would it be and why? Elon Musk. If we ignore his recent misguided activity, I honestly believe he’s one

individual who is trying to make a positive change in the world. I think trading places for one day would be enough; the man never stops!

What’s the biggest lesson you’ve learnt in life? There is a powerful truth in the adage “It is better to ask for forgiveness than permission”…except where my partner is concerned.

And finally, tell us an interesting fact about yourself… I once took a 6-month course in Mandarin Chinese because I figured it would be a challenge to learn such an intricate language… I was right!

TENETLIME SUPPORT - 9

This year, we’re bringing the annual Leading Lights awards back home to the Tenet Adviser Forum 2018, taking place on Thursday 6th December at the Queens Hotel, Leeds. During this year’s gala dinner and masquerade ball, we’ll celebrate the top achievers from TenetConnect and TenetLime. Guaranteed to be a night to remember, and in recognition of the hard work and contribution to Tenet over the last twelve months, we invite our top advisers to join us for a VIP award ceremony, hosted by Channel 4’s ‘SAS: Who Dares Wins’, Jason Fox . In this Limelight issue we welcome to the stage the top five RI’s and AR’s in each category ranked via the figures from July to September this year. We would like to say a huge well done to each and every firm and adviser who made it in to the top five, raise a glass to yourselves and we hope to see some of you taking home that ‘Adviser of the Year 2018’ in December.

Registered Individuals

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 Alan Edward Johnston Richard Tingey Mark Daniel Watson Steven Richard Pritchett Alexander Adams Christopher Peter Naismith Graham Wilson James Alexander McNicholl Daniel Wyke Stephen Alexander Miles Lauren Ann Riley Cameron Strangeway Lukas Danso Heinrich-Amenu Ahmed Safar Johan Kruger Christopher Peter Naismith Jason Griffiths Brian Thomas Wright Kylie Dawn Arnold

GT Mortgages City Gate Aberdeen Ltd Options Mortgage Centre

Top Mortgage Adviser (by number of cases)

Watson & Company (Bristol) Ltd The Wright Mortgage Company Ltd Intelligence Mortgage Solutions Ltd C N Mortgages Options Mortgage Centre McNicholl Financial Services Ltd Wyke Financial Ltd

Top Protection Adviser (by gross receipts)

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

Top Protection Arranger (by gross receipts)

Kind Financial Services Ltd C N Mortgages Swindon Property Group Ltd

Top GI Adviser (by gross receipts)

The Wright Mortgage Company Ltd Fidenti Mortgages & Protection Ltd

Appointed Representative

Fox Davidson Ltd Options Mortgage Centre

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

KT Partnership Ltd Mortgage Style Ltd Kingston Mortgage Services Ltd C N Mortgages GT Mortgages Ltd The Wright Mortgage Company Ltd PS Morris Financial Watson & Company (Bristol) Ltd

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

10 - TENETLIME SUPPORT

Give your business a New Year boost

The New Year will soon be here. If, like many business owners, you use that time of year to have a fresh new start and give your business a boost, our marketing service could be perfect starting point. That’s because there is a wide range of compliant options such as leaflets, brochures, posters and adverts across a wide range of themes for you to choose from. All of which are quick and easy to use… and it needn’t cost you a penny!

Plus , don’t forget to take advantage of our range of social media posts and adverts. You can choose between a range of Facebook, Twitter and LinkedIn posts, and all are designed to work alongside advert images which have been produced as JPEGs. In the majority of cases it is necessary to include the relevant advert image to make the post compliant (as it carries any necessary risk warnings), but there are also some posts which can be used with or without an advert. The advert images are important in social media terms as they will help your post stand out.

If you need any help, call 0113 239 0011 and ask to speak to the Marketing Team or email marketing@tenetgroup.co.uk

Together

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TENETLIME SUPPORT - 11

JUST THE JOB Our Income Protection is tuned to your clients’ needs

Absence from work because of illness or injury is one of the biggest risks your clients face. And it could have a devastating impact on their finances. Our Income Protection includes a range of benefits to help your clients and their families get the financial support they need - when they need it. Find out more at adviser.royallondon.com/protection

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October 2018

ADVP8P1001

Build equity release into

financial planning

Good financial planning is about putting the right amount of money, into the right hands, at the right time. That’s why we believe in building equity release into the financial planning process.

Here are some scenarios where it may be useful to consider equity release as part of the client’s overall financial plan.

Debt repayment • Clients with maturing interest-only or endowment mortgages (particularly where there is a shortfall). These clients may now be receiving letters from lenders asking for a resolution. • Clients with high credit card debt or payday loans and no clear repayment strategy. However, please think carefully before recommending securing other debts against your client’s home. Day-to-day living expenses • Clients who are on a fixed income and struggling to cover one-off unexpected purchases. This might be replacing white goods or car repairs. • Clients who are struggling to cover household bills because of inflation and rising energy costs. Maintaining lifestyle • Clients unable to buy a new car through existing cash resources or regular payments. • Clients struggling to fund a regular holiday. They might not want to sacrifice the enjoyment of an annual getaway. Improving lifestyle • Clients who are looking to pay for private medical care. They may wish to fund this privately in order to avoid a potentially lengthy (and lifestyle-limiting) wait for NHS treatment. • Clients who want a one-off holiday of a lifetime. Or they might want to buy a caravan, motorhome, or holiday home.

Family financial planning – advancing inheritances and skipping a generation • Clients with grandchildren who can’t afford a property deposit. Your clients might not have the money or assets to help. And inheritance may be too late to meet their grandchildren’s needs. • Clients helping with grandchildren’s education costs. Some grandparents may want to advance some of their inheritance now, skipping a generation. But they may not have enough non-property liquid assets. • Clients who want to give an early inheritance to the family, perhaps for a wedding or to ease the financial effects of a divorce. • Clients who are reluctant to enter long-term care. They (or their partner) may want to remain in their own home but need help with the costs of adapting their home and/or daily healthcare support. They may even be looking to find ways to prefund the cost of a funeral plan for themselves and their partner, but may not have the cash resources available.

Later life planning – things to remember

It’s possible to either service or roll up the interest on a lifetime mortgage. It’s also possible to take an initial advance with an added pre-arranged drawdown facility. While we offer an interest roll-up and drawdown facility, we don’t currently have an interest-serviced option. Other lifetime mortgage providers can offer the interest serviced facility (if that’s what your client needs). Another option is a home reversion plan. This is where a percentage of ownership is transferred to the home reversion provider from the start of the policy. No interest is charged as home reversion is not a mortgage or loan. It’s important to note that clients will receive less than the current market value for the share sold. Already qualified? Then your dedicated account manager can help grow your equity release business, using our wide range of tools and marketing support.

For more information Call: 0345 302 2287 Lines are open Monday to Friday, 8.30am to 5.30pm Or visit our website for further information: justadviser.com

PROVIDER SUPPORT - 13

Income protection made easy 9 reasons why we’re different

No automatic medical underwriting limits at any age

Only 1 year UK residency required

Hazardous pursuits considered

Type 2 Diabetes considered

Reviewable exclusions

Generous BMI limits

Maximum benefit £60,000

Guaranteed income level

Premium discounts considered

Contact us. We’re here to help.

 0800 716 654  advisers@holloway.co.uk  holloway.co.uk

Keeping life colourful

Holloway Friendly is the trading name of The Original Holloway Friendly Society Ltd. Holloway Friendly is registered and incorporated under the Friendly Societies Act 1992, registered No. 145F. Registered office: Holloway Friendly, Holloway House, 71 Eastgate Street, Gloucester, GL1 1PW. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. FRN 109986.

Second Charge

Specialists: the Rising Demand

If there’s one thing you can rely on the second charge market for, it’s the unpredictability. There are always changes and updates happening to keep on top of. Whilst this is great for the development of the industry – better rates and products mean more positive outcomes for customers and brokers – with the ever-changing landscape, some cases can feel too complex to process, leaving both customers and intermediaries feeling deflated by secured loans. The deflation could cause a reluctance in advisers to recommend secured loans, as their confidence in them could be knocked. So, the demand for specialists in the second charge market continues to grow, as many find they need the guidance to rebuild their confidence. The changes that are regularly occurring can sometimes feel overwhelming, but they are an advantage to the industry. What’s the main force behind all these changes? The customer – there’s no such thing as a ‘typical’ customer anymore, so lenders have to keep up with the growing demand for specialist situations. According to the ONS, the number of self-employed customers has increased from 3.3 million (12% of the work force) in 2001, to 4.8 million (15.1% of the work force) in 2017. So, imagine the impact this will have on borrowers and the lender market. Some of these self-employed workers may have irregular incomes, which is where they can struggle with finance on the high street. However, many second charge lenders have embraced self- employed customers, opening up opportunities where they have previously been limited. With changes in our employment and the way we live so prevalent many consumers can begin to struggle with their finances, which (again) can cause issues when applying for finance. Second charge lenders away from the high street are much more understanding of less-than-perfect financial situations, and provide solutions for customers with an array of financial backgrounds. All these changes sound great and they are! But, with all these changes comes the need for more education and support. This is when many turn to Master Brokers and we’re more than happy to help. As a Master Broker, we have regular visits and training from lenders, which helps us to stay abreast of the updates. Our experienced Customer Relations Managers (CRMs) are used to how quickly the market changes, and ensure they know and understand new criteria, so our customers are always getting the best deal that we can find. We’re happy to support our brokers and always keep them updated of any new products we have available. We also think it’s important to remind brokers of regulatory changes, to help them stay compliant in what can be a difficult industry. With the fast-paced environment of the second charge market, many intermediaries can feel inundated with information, which in turn can have an impact on their work. This is another reason we’ve found that the demand for specialist Master Brokers, such as ourselves, is growing. Brokers are finding that by referring cases over to us, that they are struggling to place with their own lenders, or don’t have the resources to place, they’re saving themselves valuable time and money. Yet, by utilising a Master Broker, they still have potential to earn income from cases that they would have otherwise rejected. If the second charge market is leaving you feeling the need for specialist support from the experts, feel free to contact Norton Broker Services, as we pride ourselves on being expertise you can trust.

“the demand for specialists in the

second charge market continues to grow, as many find they need the guidance to rebuild their confidence”

THIS INFORMATION IS FOR INTERMEDIARIES ONLY AND SHOULD NOT BE DISTRIBUTED TO POTENTIAL BORROWERS.

PROVIDER SUPPORT - 15

How we support self-employed applicants

A growing market Since 2008, the number of people working for themselves in the UK has increased to around 4.8 million people – that’s over 15% of the workforce according to ONS data*. With this in mind, it makes sense for lenders to be more flexible – and sensible – in their lending policy for the self-employed.

Our approach

• For tax purposes it often makes sense for Directors of limited companies to lower their salary and take higher dividend payments. But this may be considerably less than the profits the company actually made, and many lenders don’t take this into account when they calculate mortgage finance. We do. • A number of lenders still ask for three years’ figures for self-employed applicants. We ask for two. • For Directors of limited companies who have 20% or more shares, we take their total share of the latest year’s net profit (after deducting Corporation Tax) and add this to their salary to calculate their annual income for borrowing. This often means we can lend them more. • We ask for proof of income over a two year period. However, we use the latest year’s figures to determine income unless the two figures vary significantly (in which case we may need to average). This allows for a rising year-on-year profit, and can help self-employed clients borrow more.

* Source: Office for National Statistics – UK labour market: June 2018

It all adds up to more flexibility for self-employed applicants. You can see all of our employment criteria on coventryforintermediaries.co.uk

FOR INTERMEDIARY AND PROFESSIONAL FINANCIAL ADVISOR USE ONLY. Our mortgages are provided by Coventry Building Society and/or Godiva Mortgages Limited. Coventry for intermediaries is a trading name of Coventry Building Society. Coventry Building Society. Principal Office: Economic House, PO Box 9, High Street, Coventry CV1 5QN. Godiva Mortgages Limited. Registered Office: Oakfield House, Binley Business Park, Harry Weston Road, Coventry CV3 2TQ.

NatWest: dedicated to the New Build market

At NatWest we recognise that many of our brokers that specialise in New Build cases face pressure to deliver on their service level agreements in place with their developers. We know that brokers need to ensure that they can trust the lender when they place New Build cases and that the lender understands the process and has quality service to back this up. So at NatWest we want you to have confidence in us when placing your business and we believe we’re very slick to liaise with due to our constant efforts to improve our service and criteria. Dedicated New Build Support team You’ll have access to our friendly New Build Support team, who’ll help to progress your cases through to offer and completion. The team offer a holistic service which includes: • Focused monthly pipeline management of your cases which are due to complete throughout the whole year. • Dedicated half year and year end exchange and completion support to ensure deadlines are not missed. • Direct contact with Legal and General new build surveying team. • Ring fenced underwriting team that solely focuses on new build applications, with direct contact to your underwriter. • Dedicated new build phone number for your BDM to quickly escalate urgent and complex cases. Our New Build Support team have a great understanding of the New Build proposition and can deal with any post valuation queries as they have great links with our new build panel managers who link into the valuers. The work our New Build Support team performs is complemented by our constant efforts to improve our criteria and streamlining our service.

Improvements in criteria and service • 6 month offer extension – We were delighted earlier this year to launch our New Build offer extension facility, which means that customers could have a total offer period of up to 12 months. • Day one valuation instruction • ATP forms no longer required. • Removal of direct debit mandate. • Brokers no longer need to certify every document they provide, due to our simple certification sheet. • E-mailing offers. • Builders incentives - We allow up to 5% builders incentives and this can be as cash or go towards legal fees, valuations etc. • Armed Forces – We allow the Armed Forces Help-to-Buy scheme to be part of the deposit and offer consent to let at day one. • We made the move last year to increase our LTVs on New Build purchases to now include 80% and 85% LTVs. (Houses only.) • New build exposure – We help brokers understand what the exposure and lending limits are on New Build developments. • Speed to offer - we are geared to meet the required speed to offer for 28-day exchange deadlines and it’s possible under some circumstances to do this in just 7 working days to meet New Build deadlines. As a responsible lender, we have been able to make these changes whilst ensuring that we maintain our risk appetite and the quality of business we accept. The key message to underpin with all these improvements is that we are not done yet. We are dedicated to the marketplace and will continue to improve the proposition for you and have enhancements still to come!

For more information, please consult our New Build guide, which can be found in the forms and guides section of our website. If you have any further queries, please contact your BDM.

PROVIDER SUPPORT - 17

A winning partnership

Have you ever been unable to assist a client with GI because no one offered the cover they required? Has this ever cost you a mortgage deal? Would you like to stop the income slipping through your fingers and earn commission on hard-to-place cases? Now you can! Tenet’s latest partnership with Towergate is here to help you refer your clients for general, commercial and property insurance, tailored even to complex cases. Why refer to Towergate? Benefits for you: 3  Straightforward referral process with little input from you 3  Easy-to-use online referral form 3  40% share of the total commission earned by Towergate for every referral that goes on cover for the lifetime of the policy 1 3  No cross-sell of other financial services you could arrange 3  Speedy approach to establish contact with referred clients 3  Access to insurance covers for risks that are outside of the Paymentshield proposition 2 3  Mid-term adjustments arranged as and when needed 3  Assistance in identifying additional needs and / or gaps in your clients’ insurance PLUS: By referring to Towergate, you not only enable your customers to get reasonably priced and bespoke covers that meet their needs, but also open an additional income stream for your business as shown on the illustration below 3 . 3  All compliance handled for you Benefits for your clients:

Year 1

Year 2

Year 3

Potential income: £3,600 per annum £300 per month

Potential income: £6,588 per annum £549 per month

Potential income: £9,068 per annum £755 per month

Referring to Towergate is easy Follow this simple guide on how to submit a referral and our team will do all the hard work for you. 1. When you speak to your client, establish what policy type they require 2. Ask them about their current policy and get permission to pass their details to us for a quote 3. We will contact your client and obtain all of the information we need to provide a quote 4. Most importantly - we will pay you the commission through your network online referral form https://www.towergatepartners.co.uk/riskline-ifa/referral-form?v1

Personal approach Our team is on hand to answer any questions you may have about the referral process or how Towergate can support your business growth. Simply call 0344 892 6210 or visit www.towergatereferrals.co.uk to find out more or request a face-to-face meeting.

3  The illustration shows potential earnings for a typical Tenet adviser with 10 new referrals each month for a 3-year period converted at 40% and with 83% retention rate of renewal customers (years 2 and 3). The average commission per policy is £187.5, of which a Tenet adviser would earn 40%.

1  40% of total commission earned by Towergate for as long as you are part of a regulated firm or network with a valid Towergate Terms of Business Agreement. 2  Towergate Insurance and Paymentshield are part of the Ardonagh Group. Towergate’s referral service is designed to complement Paymentshield by offering insurance for risks that are outside of the Paymentshield proposition.

Towergate and Towergate Insurance are trading names of Towergate Underwriting Group Limited, Registered in England with company number 4043759. Registered address: Towergate House, Eclipse Park, Sittingbourne Road, Maidstone, Kent, ME14 3EN. Towergate Underwriting Group Ltd is authorised and regulated by the Financial Conduct Authority.

18 - PROVIDER SUPPORT

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