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Treat borrowers as individuals

Mortgage Finance Gazette

The world of work is changing and we all need to adapt if we want to remain relevant, says Jeremy Wood, chief executive of Dudley Building Society

If the Autumn Statement was supposed to keep the UK economy in a holding pattern, it certainly achieved its primary goal. I think we were all expecting more about housing policy and although we did get the almost obligatory ‘target’ for new houses, there is still no sign of any joined up thinking across government departments.

I think it is reasonable to ask whether the government has or is formulating a clearly defined policy towards housing. Don’t worry; I am aware that no government in the past 30 years has either.

The new Housing and Planning Minister Gavin Barwell made reference to bringing together all the stakeholders but, oddly, did not include lenders. An interesting omission bearing in mind the importance of finance to help people onto the housing ladder or take the next step.

Housing supply

Given the relative lack of focus by successive governments, as a country we face a lack of affordable property due to the simple maths of supply and demand; and a population living in a largely post 18-65 working world and a growing number without an occupational pension at the end of it.

Also, we have more individuals working into retirement and beyond, a greater proportion of self-employed and those whose situations no longer conform to a traditional family unit.

Add in a desire among the retired to release equity to subsidise longer retirement and long-term care and we have a very interesting cocktail of circumstances, still trying to be addressed in a reactionary fashion.

The Mortgage Market Review and Mortgage Credit Directive have done much to tighten up poor lending practices and lenders have responded well. Regulatory change has been absorbed relatively comfortably even if interpretation has, in some quarters, stymied underwriting with common sense, in favour of a box ticking, one size fits all approach designed to remove risks of loss.

One of the issues that confronts us though is that while the public are looking for easier access to finance, the industry is in some ways straitjacketed because the template of consumer protection still leans heavily towards a less complicated world view. Everyone worked, preferably at as few employers as possible, and retired with ample provision for retirement.

First-time buyers in their 30s and 40s make traditional set mortgage terms impractical, the rise of self-employment and agency work, has also made mortgage borrowing in the early years very hard to source. We all know examples of FTBs struggling to gain a foothold on the housing ladder.

Lend intelligently

At the Dudley, we have pioneered products for the self-employed and older borrowers. Much of the work to change attitudes, especially on abolishing maximum age restrictions for borrowing has started with smaller lenders, particularly regional building societies.

We have demonstrated that it is possible to lend intelligently and safely without compromising customer outcomes. However, it is important that if mortgage provision is going to better reflect the needs of a rapidly changing life/work demographic, then there must be a fundamental re-evaluation of how consumer protection, and the needs of today’s customers, should be realigned.
Perhaps the simplest way to illustrate this is with a potential customer, possibly a FTB, currently paying £1,000 per month rent with a spotless payment record, to whom theoretically I cannot lend because he or she cannot ‘afford’ more than £650 as a monthly repayment figure.
The regulator has always made a case that regulation is not about hard and fast rules but about interpretation. As a building society, we have taken that as our starting point and the results have gone some way towards being able to innovate successfully. However, more needs to be done.

Customer decisions

Lending that is safe for us and also good for the client is everybody’s goal. We do not want another credit crunch. Unfettered lending without thought for long-term customer detriment is unacceptable. However, we need to re-examine the mindset that customers are unable to make decisions for themselves. Instead, they need to be treated as individuals capable of understanding the responsibility they must share for the decisions they take in their financial lives.

The customer currently renting, who is wishing to purchase and is going to cut his or her monthly outgoings by buying, should be able to have a say in whether he or she should be ‘allowed’ to borrow.

Similarly, a greater emphasis on personal responsibility being exercised by every potential borrower, but particularly for those who are self-employed, wishing to borrow into retirement, are in retirement or just do not fit the ‘norm’, would go a long way towards ensuring that all sections of society have access to funding, if they want it.

It does call for a nuanced move away from the current orthodoxy that lenders and advisers, not customers, should be held completely responsible for their financial decisions. I would argue for a better balance of responsibilities between lender, adviser and customer. I am not advocating a return to a state of caveat emptor. However, a recognition that as customers become more assertive in their life/work choices we help them to realise their ambitions rather than be hampered by overly constricting regulation.

Dudley Building Society hires Jim Muir to the board as a non-executive director.

Muir is a chartered accountant by training and also holds qualifications in regulation and compliance, operations management and financial advice.

He: “I am a keen advocate for the member owned building society business model and the benefits that this brings to its members.

“I’m joining Dudley Building Society at a really exciting time.

“For a relatively small building society they have an obvious desire to innovate and grow in a sustainable way and I’m pleased that I’m now going to be a part of this journey.”

Jeremy Wood (pictured), chief executive of Dudley, said: “We are really pleased to welcome Jim to the Society and the depth and breadth of experience he brings.

“It was very noticeable from the outset that he shares our ideals and has enthusiasm in abundance.”


Government Must Avoid Another Groundhog Day For Housing

As the newly-appointed housing minister, Gavin Barwell has the opportunity to create a more coordinated policy for the market. Dudley Building Society's Jeremy Wood explains how the government could achieve this.

It may be reasonable to ask if the government has a clearly defined policy towards housing. I say reasonable because in recent years there has been talk of the number of new houses needed while losing the broader context of overall housing policy.

On Gavin Barwell’s recent appointment as housing and planning minister he made reference to bringing together all of the stakeholders but, oddly, forgot to include any reference to lenders. Strange, you may think, given lenders’ roles and stakes in many forms of housing provision?

The mortgage industry has adapted extremely effectively to changes in housing preferences. The buy-to-let phenomenon was an example of lenders recognising a different approach by consumers and introducing products which investors snapped up. There is every reason to believe that if policy turns once more to owner occupation, we can be equally adaptable, assuming that we, as lenders, are given the confidence and direction to plan and execute.

Some may point to increased regulation as an obstacle to greater levels of mortgage finance. However, the implementation of MMR and MCD were really only modest bumps in the road compared to the fallout from the financial crisis. Lenders have demonstrated that they can absorb regulatory change relatively comfortably even if interpretation can lead you to question their intent.

There have been calls to place housing at the centre of government policy. That doesn’t really work unless it is part of the overall thinking sitting alongside wider strategies concerning regional development, for example. So here’s a thought; if greater economic investment (overseas or domestic) could be encouraged into the regions, is there a case to support the view that the pressures on housing in London and the South East might ease?

This presupposes that joined up thinking combines the need for new housing and the vital infrastructure that supports that development, such as schools, shops, surgeries and so forth. However, this will not prevent new homeowners from commuting to work elsewhere, unless some thought goes into a more integrated strategy that also gives consideration to developing and encouraging business to grow where that workforce actually lives.

Without it, the magnet that is London and the South East will continue to skew house prices and overload our already failing transport infrastructure.

The housing issue is not therefore a question of building property wholesale in order to simply reach a quota. It has to be part of a coordinated plan, supported by all political parties that lasts longer than one government’s tenure on power.

Lenders can be a dynamic part of the housing debate, but without a non-partisan, coherent and inclusive strategy, it is likely that this debate will be repeated ad infinitum like Groundhog Day but without the humour or the eventual solution.

Dudley Building Society Reduces Rates and Improves Options Across BTL Range

Dudley Building Society has released the latest set of enhancements to its acclaimed BTL range, with new products, comprehensive rate reductions and improvements to criteria.

The Society, which announced strong annual results for the 2015/2016 financial year with pre-tax profits of £1,335,000, is responding to a BTL market which needs encouragement according to Head of Credit, Jonathan Moore.

He said, “Landlords have been in the firing line over the past twelve months because of the Stamp Duty changes and, with the tapering effect on tax relief due to start in 2017, it is important that lenders like the Dudley do everything that we can to provide the kind of products that offer value, flexibility and a common sense approach to underwriting BTL mortgages.

Therefore, our partners will be pleased with the overall reduction in rates, some of which start from 2.99%. We have introduced new 3 and 5 year discounted products as well as options which have no ERCs. Dudley Building Society continues to lead the way by working exclusively through intermediaries and being among the first to abolish upper age limits for applicants. On top of which has been our commitment to manual underwriting and a holistic approach to every enquiry, which has given us a deserved reputation for the kind of service that brokers require for their customers.”

Features of the new BTL range include: -

• Reduction in interest rates across all products
• All fixed rate products have been reduced by 0.30%
• Rates now starting at 2.99%
• Products now include options with no ERCs
• Brand new 3 and 5 year discount products, with maximum ERC period of 3 years
• Majority of products now carry new maximum loan of £1M (increased from £500k)
• Stressed Rate calculation simplified through the removal of separate requirement for flats
• Minimum income reduced to £20k per application
• LTV requirements on background residential property removed

Dudley Building Society Appoints New NED

Dudley Building Society has announced the appointment of Karen Wilshere as a non-executive director. 

Wilshere (pictured) has spent 30 years specialising in credit and fraud risk control in financial services and runs a risk management consultancy. She has held director positions at Alliance & Leicester, Abbey National and Zopa before spending eight years at the FSA and FCA, looking at both credit risk and conduct risk in Firms.

Jeremy Wood, chief executive of the Dudley Building Society, said: “As a regional building society, we are delighted to welcome someone with Karen’s experience and her proven skills in the area of risk management will be of particular value. We face the challenges of a market where mortgage customer needs are changing.

“Ensuring best outcomes for those customers have to be balanced with maintaining profitability and fulfilling our obligations to our saver members as a safe haven for their money. Karen’s expertise will be a valuable asset.”

Wilshere added: “I am delighted to be joining Dudley Building Society. Now more than ever the UK needs greater diversity in its retail financial markets. Regional building societies play a vital role in not only providing a strong local focus for savings and investment by the communities they serve, but also in their ability to deliver more choice for mortgages through common sense approaches to servicing a wider range of consumer needs than can be achieved by the bigger players.

“I am looking forward to working with Jeremy and my new colleagues to help Dudley Building Society achieve its aims and further improve the relevance of regional building societies in a 21st century market.”

 

Dudley BS Appoints Former RBS Underwriting Manager

Dudley Building Society has appointed Paula Millard as Underwriting Manager.

Paula joins from Royal Bank of Scotland where she headed up training for new underwriters and created the blueprint for their Technical Learning Team, producing technical training modules for the whole mortgage process as well as training new and existing underwriters. She previously spent five years managing underwriting and customer service teams at the bank.

Head of Credit, Jonathan Moore, said: “Paula’s experience of the underwriting role in a large organisation like RBS will be invaluable to us as we continue to develop our own underwriting capability in the wake of growing demand for our products and service. Her enthusiasm for lending and what she brings in terms of structure, when allied to Dudley’s commitment to assessing each case on its merits, will be particularly valuable. She is already making a difference!”

Paula commented: “Dudley Building Society is a progressive regional society with strong roots in the West Midlands. As someone who grew up with local links, I am particularly delighted to be working on home ground as part of this very forward thinking team.

"My emphasis is to build on the relationships we have with our introducing partners and the importance of how, between us, we can cooperate to ensure that more enquiries turn into successfully submitted cases. I want to create a culture where our partners send in applications where our underwriters can make a lending decision on a first touch basis. This would mean that the vast majority of cases would move though to offer much more seamlessly, without further requests for information. Clarifying and tailoring our requirements for a particular case at the enquiry stage will create opportunities to provide a better customer service to our brokers.”

BTL’s MMR moment?

Dudley Building Society’s Head of Credit, Jonathan Moore, believes that the PRA’s estimate that annual Buy to Let lending might shrink by 10 to 20% (as a result of its proposed changes to affordability and stress testing) might be too conservative.

Jonathan Moore

According to Jonathan, the proposed underwriting changes outlined in the PRA’s Draft Supervisory Statement could have a far greater effect because of the proposed deductions or ‘adjustments’ that the Society believes will need to be made against the gross rent. He said, “We clearly need more clarification from the PRA as it is not yet clear how much of their proposals will become reality. There is however real potential for this important market to be affected in ways which have unintended consequences.

There are a number of areas within the proposals which are currently vague and we therefore need to make some assumptions which could of course prove to be wrong. However, given the following scenario, we feel that a lot more cases could be turned down or a lower amount offered.

Let’s look at two examples. Currently a loan of £75k/75% LTV will achieve the following assessment:

(1). £75k x 5.00% (reversion rate) x 125% coverage ratio = £4687.50/12 = £390.63 per month. In other words, so long as the rent is £390.63 pm then we can proceed at the requested loan amount. A £100k property might achieve a yield of 6%, so this would equate to £500 a month, which is more than adequate.

Under the new regime we might end up with the following:

(2). In the case of a £75k mortgage x 5.50% (the minimum permissible stressed rate that can be used) x 125% coverage ratio = £5156.25/12 = £429.69. In other words, so long as the rent is at least £429.69 then we’re ok to lend.

However, whereas under example one the rent need only be £390.63, we now need to make adjustments for ‘other costs’. So, for example, we might have to deduct a service charge of £100 a month, management fees of 12% (£60 a month) and annual safety certificates, boiler insurance and service contracts totalling £25 a month. In all, this would equate to a total of £185 a month.

It is unclear how lenders are expected to deal with these deductions but if we subtract this from the £500 rent, then the new minimum rent threshold becomes £315, and as the required amount is £429.69, it doesn’t work. We then have to either decline the loan, or significantly cut back the loan size until it does work (and in so doing, risk creating a loan size which doesn’t work for the applicant). In this example, the maximum loan would be circa £68k against a request for £75k.

The proposals for portfolio borrowers (the current proposal is to define them as borrowers with four or more properties across all lenders) will require an even greater set of changes to those set out above. For these borrowers, lenders will need to undertake a far more involved underwriting process which deals with substantial levels of background verification. It is difficult to see how this will work with the automated systems of assessment that most larger lenders utilise.

Our worry for the market is that the challenge could also be compounded if BTL lenders respond in the same overly defensive way to affordability testing as the main players in the first charge market did when MMR was first introduced. Many more landlords and prospective landlords will have an even more difficult job finding finance. Equally however, we would also worry that if this time around the regulator made the rules more prescriptive as, with all lenders then making the same assessments, there could be a lack of variance, stifling competition within the market.

If any of this leads to lower financial strain for borrowers and consequently lower default rates, then this has to be a good thing, especially if it leads to a more stable property market, as this has benefits for landlords and homeowners alike. However, the knock on effect of the changes already introduced could be to promote exactly what the government does not want: a dumping of property on the market by landlords. Given that Buy to Let properties are rarely evenly distributed across a region, this could have a detrimental impact on values in certain localities.

At the Dudley, we welcome any move which leads to better quality, more considered decision making. However, lenders need to feel that they have time to test what works for them and the way they interpret any new rules. At the same time, suitable time must be allowed to ensure lenders’ employees and the broker community are fully up to speed with any changes. Most importantly of all, we need to understand the impact of the already implemented/announced BTL changes, because there is a real risk that the cumulative impact of all of these changes will create the very chaos which the regulator is seeking to avoid.”

 

Dudley Building Society releases new BTL range

Dudley Building Society, the intermediary only mortgage lender, has released a range of strongly priced new products aimed at the BTL market.

The Society, which announced strong annual results this month, is rolling out new products in a series of announcements over the next month.

Features of the new range include: -

• 2 new Discounted Rate for term products for purchase and remortgage from 3.19% up to 70% LTV (previously 3.99%), 3.49% up to 75% LTV (previously 4.24%)

• 2 new 3 year Fixed Rate products for purchase and remortgage from
3.29% up to 70% LTV (previously 4.24%), 3.59% up to 75% (previously 4.49%)

• 2 new 5 year Fixed Rate products for purchase and remortgage from
3.59% up to 70% LTV and 3.89% up to 75% LTV

• No upper age limits
• Manual underwriting
• Tiered BTL rental calculations from 125% dependent on LTV (125% for up to 70% LTV and 130% for up to 75% LTV; 140% for flats across all LTVs)
• Lends from £25000 to £1 million

Speaking about the new products, Jonathan Moore, Head of Credit, commented, “We have introduced a very strong line up of products for the BTL market that reflects our commitment to the sector. Landlords can choose between discounted rate products where the discount from the SVR lasts for the term of the mortgage or three or five year fixed rate options. Capital repayments of 10% of the advance amount can be made every year, along with interest only and repayment options.

The BTL market is readjusting to the recent changes to tax relief and our Society has responded with a comprehensive range of attractively priced products, where we have cut rates in some cases by up to 0.8%. We are fully committed to the intermediary market and with this range we are offering today’s landlord a particularly well balanced range backed up by individual underwriting which has become a hallmark of our successful distribution strategy.”

Seven day switching – life isn’t that simple

Feature Article: Dudley Building Society head of credit Jonathan Moore reflects on the seven day mortgage switch proposals.

The recent suggestion that the government could attempt to introduce a seven day remortgaging process as part of its upcoming Digital Economy Bill is an interesting one, and is one which raises a number of important questions about the future direction of travel of the industry.

We have all become used to improvements in technology transforming our lives in ways which only a few years ago would have been unthinkable. Even ten years ago, who would have thought that we would be able to use debit cards without a pin; board a plane using our phones rather than a boarding card; easily and reliably switch our bank accounts in only seven days, and apply for a loan and receive the funds in less time than it takes to make a cup of tea. The consumer revolution is in full swing, and continually finds ways to surprise and delight us.

Within our own industry, we have seen tremendous change over the last couple of decades. Applications now arrive via a portal rather than via Royal Mail. We release charges electronically (and instantaneously) rather than via sealing documents. We carry out credit searches in moments which reveal the most startling level of detail of the behaviour of our applicants.

It is worth then asking whether a move to a seven day process is simply a welcome continuation of all of the above, or whether it represents something which is not needed, and could even be unhelpful. There is no doubt that the technology already exists to facilitate the suggestion, albeit few lenders would currently be able to manage it on such a vast scale. Is it helpful though?

A move to seven day turnaround has the potential to overly commoditise the process. It could create a sense of expectation, and foster a sense of the process being a relatively trivial one. After all, if you can remortgage in seven days, then why not do it every time you want to capital raise. You want a new car and can collect it next weekend? Remortgage is your answer. You want to book a ‘round the world cruise’ but don’t have the cash? Remortgage!

For applicants with strong credit scores, vanilla characteristics and a low LTV, it should be relatively easy to introduce. The process can be automated to ensure this. Even for these applicants though, the expectation of a seven day process will result in a risk that the selection process (of lender and product) is rushed.

For many applicants however, life is not so simple, and their needs are complex. For these applicants, a process which takes longer may well be advantageous. They will have time to reflect, and time to pull together the paperwork. For the lenders who deal with the more complex borrowers, it will give them time to ensure that the right assessment is made, which in the long run should lead to better decision making by lenders, better outcomes for customers and lower subsequent default rates. If seven day remortgaging is introduced, then manual underwriting will inevitably be rushed to accommodate this.

The proposal is worthy of consideration. Technological advances should challenge our ways of doing things, and in many or even most cases, we should find that we can do things better and that will usually mean more quickly as well. This particular proposal though has the potential to lead to poorer decision-making for both the consumer and the lender, and if that is the outcome then it is not a price worth paying, especially given that there appears to be little consumer pressure for this particular turnaround time, and where it does exist, it can often already be accommodated.

In the Spotlight with Angie Taylor, Dudley Building Society

This article has been taken from the Financial Reporter. You can find the original article here.


We spoke to Angie Taylor, BDM at Dudley Building Society, about 'mortgage misfits', lending into retirement, and how to keep up with the volume and complexity of regulatory change.

FR: Dudley is the only mutual to adopt an intermediary only distribution policy - why is this important and what message would you like to give to intermediaries?

As a response to the Mortgage Market Review, Dudley Building Society decided that it would distribute its mortgage products only via the intermediary sector and use a panel of carefully selected partners. We wanted to demonstrate our total support for the broker community and the primacy of whole of market advice to give customers the best deal available.

FR: You have issued a 'mortgage misfits' challenge - how can this problem be tackled and what products would you like to see offered more widely across the market?

Our aim is to ensure that introducers are aware that just because the big lenders turn down a case where it does not fit one of their neat boxes, regional building societies like The Dudley treat every case individually. The issue is not necessarily about designing new products, instead we have looked at positive criteria changes, and by making use of our specialism for bespoke underwriting.

As a true mutual we are very passionate about helping people own their own homes. The market has evolved in a way that favours the super prime borrowers with straight forward affordability calculations. We were mindful that some potential borrowers within the market are very much underserved. The only way this will be tackled is with a common sense approach – something that we pride ourselves on here. Also the changes we have made in recent months e.g. scrapping upper age limits across our whole product range, had a bigger impact on serving disenfranchised borrowers than any of our product changes.

FR: How will upcoming regulation and a potential rate rise affect brokers and the wider lending market?

Our partners face a challenge keeping abreast of the volume and complexity of regulatory updates. Intermediaries have just gone through MCD and are already facing further regulation relating to Buy to Let lending.

Brokers need to keep in mind the effect on clients of a potential rate rise, when it does come. Fixed rate and remortgage activity will obviously increase at the time, but good brokers will be making sure that customers are aware of the downside of a rate rise should they choose a discounted or variable rate option today.

FR: Dudley recently removed all upper age restrictions across its entire product range - do you think more lenders will follow suit? How will lending into retirement evolve in the future?

We have seen a number of lenders follow our lead. We believe this market will continue to evolve as people increasingly live longer, and their financial circumstances become ever more complex. We do not see lending into old age as simply as a solution to financial needs, as it also provides the ability for borrowers to materially increase their quality of life.

FR: What will be the most significant changes in the industry over the next 12 months?

Changes in the Buy to Let sector have already been felt with the increase in SDLT and the tapering of tax relief. On top of that we are now looking at changes to affordability and a greater emphasis on stress testing. Never a dull moment!

Know Your BDM: Angie Taylor, Dudley Building Society

This week Mortgage Solutions quizzes Dudley Building Society's business development manager, Angie Taylor, on working with brokers and the biggest challenges she faces.

Click here to read the full interview.

Dudley BS launches discounted rates with ERC free option

Tuesday 02 February

Dudley Building Society, which lends exclusively through the intermediary market, has announced the launch of eight new discount for term rate products, four of which have no Early Redemption Charge (ERC) and start at 3.29%. The products with ERC’s start from 2.99%.

The Society, has totally revamped its products during January and has already launched new interest only, BTL and fixed rate products as well as removing upper age limits across the whole range.

Discount for Term - Purchase
Discount for Term - Remortgage
LTV
<60%
<60%
Rate
2.99% (2.00% discount from SVR)
2.99% (2.00% discount from SVR)
ERC
3% of advance amount in first three years
3% of advance amount in first three years
LTV
<60%
<60%
Rate
3.29% (1.70% discount from SVR)
3.29% (1.70% discount from SVR)
ERC
None
None
LTV

<80%

<80%

Rate
3.49% (1.50% discount from SVR)
3.49% (1.50% discount from SVR)
ERC
3% of advance amount in first three years
3% of advance amount in first three years
LTV

<80%

<80%

Rate
3.69% (1.30% discount from SVR)
3.69% (1.30% discount from SVR)
ERC
None
None
Fee
0.80%
1.00%%
Min/Max Loan size
£25k/£1M
£25k/£1M
Term
5 – 35 Years
5 – 35 Years
Repayment Type
Capital and Interest
Capital and Interest
OC
Can repay 10% of advanced amount in each of first three years without penalty
Can repay 10% of advanced amount in each of first three years without penalty
Other Features
None
None

Jonathan Moore, Head of Credit at Dudley Building Society commented, “We have already launched 15 new products since New Year and with these new discounted products, we are offering even more choice by including non ERC alternatives, which gives a degree of flexibility to clients which is still quite rare in the market. Societies like the Dudley continue to provide the narrative of innovation and forward thinking which is vital to a modern lending market.”

Dudley Strengthens BTL Offering

Monday 25 January

The Dudley Building Society, the intermediary only lender, has launched new BTL products with four discounted rate and four fixed rate options covering purchase and remortgage.

The Dudley has already started 2016 strongly with a raft of new products and improved criteria with the stand out feature of scrapping upper age limits across its whole range.

Product features include:-

Discounted Rate
• Up to 70% LTV – 3.99% (1.5% discount from BTL SVR) purchase and remortgage
• Rental coverage 125% for houses / 140% for flats

• Up to 75% LTV – 4.24% (1.25% discount form BTL SVR) purchase and remortgage
• Rental coverage 130% for houses / 140% for flats

Fixed Rate
• Up to 70% LTV – 4.24% (3 year fixed rate) purchase and remortgage
• Rental coverage 125% for houses / 140% for flats

• Up to 75% LTV – 4.49% (3 year fixed rate)) purchase and remortgage
• Rental coverage 130% for houses / 140% for flats

General Features
• £25,000 to £500,000 Loan size

• 5-35 year term

• C+I or Interest only

• Free valuation and fee assisted legals for remortgages

Jonathan Moore, Head of Credit said, “These new products provide important funding options for landlords with fixed and discounted rate options. Our maximum loan size on BTL has been increased to £500,000 and with no upper age limits on any of our mortgage range, we believe that we have a range of BTL products which will be very popular with our introducers.”

Feature Article; Dudley Building Society Scraps Upper Age Limit

Thursady 07 January

Dudley Building Society recently received national press attention as they scrapped upper age limits across their whole product range.

Over the last decade there has been an increasing shift towards a flexible approach to retirement ages (especially following the removal of the statutory retirement age), and it is believed that this shift will continue to gather pace. Many now work beyond 65 (either through necessity or through choice), and are therefore as capable of servicing a mortgage beyond that age as they were before. A large proportion of these individuals will also see the benefits of paying in to their investments and pensions for a longer period of time.

Perhaps more significantly, there are also a number of demographic and societal changes taking place which increasingly mean that people need mortgages into later life. First Time Buyers are buying at a later age for a variety of reasons (e.g. the reduction in availability of higher LTV mortgages following the Credit Crunch resulting in a need to save much larger deposits than was previously the case; the impact of tuition fees; the effect on affordability arising from the Mortgage Market Review changes of 2014; ‘generation rent’ having to deal with juggling finances to pay rent as well as save a deposit). At the same time, mortgage terms are also increasing due to the difficulties for many to deal with increased affordability requirements coupled with house price growth which has outstripped wage inflation. If mortgages start later and then run for longer, it is clear that more people will need mortgages which extend into later life.

There are a wide range of other reasons for the need for later life mortgages. For some, divorce will result in a need to ‘start again’ and mortgage finance will be required. For interest only borrowers, there may be a shortfall to accommodate from their repayment strategy, and mortgage finance is needed to allow this shortfall to be overcome. For others, lifestyle factors may come into play, and they may simply not wish to repay debt earlier in life as this allows them to do other things with the money (such as say having a holiday home).

A recent report by the BSA (Lending into Retirement: Interim Report November 2015) provided a breakdown of the maximum age provisions for the Building Society sector; it found that the majority of the sector would only lend up to the age of 75 irrelevant of circumstance or ability to pay.

Whilst borrowing into later life will be a necessity for some, the extensive experience of the Black Country lender demonstrates that for many, borrowing into later life is an active choice as this allows them to run their lives in a way which most suits their needs and circumstances. Borrowing in later life does not have to be seen as something which only happens as a result of something having gone wrong – it can be a positive choice.
For too long, older borrowers have struggled with mortgage accessibility, and those options which did exist generally treated these borrowers as second class citizens by forcing them to borrow from a limited range. Dudley Building Society promotes all borrowers to be equally worthy of consideration, and by making their entire range available; boldly demonstrates they do not discriminate by age.

Cases from older borrowers although occasionally offering additional complexity, offer no more risk than younger ones, providing that underwriting is carried out by professional human underwriters. However sophisticated credit scoring becomes, when dealing with more complex cases, there really is no substitute for human consideration. The Society has started 2016 with enthusiasm along with a strong proposition for those wishing to have a mortgage in to later life.

Dudley Building Society scraps upper age limits across its whole product range

Thursday 07 January

Dudley Building Society, the only society to deal exclusively through the intermediary market, has announced that it has removed all upper age restrictions across its entire product range.

In a move designed to help older clients, who might not have qualified to buy, downsize or remortgage, Dudley Building Society is providing much needed assistance to borrowers who are being ignored by the mainstream lending community.

Other New Year criteria changes include: -

• Property above 4 storeys now accepted

• 2nd home LTV increases from 70% to 80%

• Clarity upon family members that can be used as guarantors

• Interest only repayment vehicles now include – sale of business, cash savings and sale of other assets

Jonathan Moore, Head of Credit at Dudley Building Society, said, “For too long, older borrowers have struggled with mortgage availability, and those options which did exist generally treated these borrowers as second class citizens by forcing them to borrow from a limited range. We consider all borrowers to be equally worthy of consideration, and by making our entire range available, we are demonstrating that we do not discriminate by age.

In our opinion, cases from older borrowers offer no more risk than younger ones, providing that underwriting is carried out by professional human underwriters. However sophisticated credit scoring becomes, when dealing with more complex cases, there really is no substitute for human consideration. We are confident that we can provide a strong proposition for brokers with older clients.”

Sailing Away - Recent Case Study

Monday 30 November

We wanted to share an interesting case that we were happy to consider for one of our partners; read on to find out more....

Here at the Dudley we were able to find a way to help an ex pat solicitor working as a contractor and her UK based self employed architect partner, looking to raise money to commission a bespoke cruising yacht.

The couple own a one and a half acre plot on which stand two properties with a single title. The original house is let out and the second property, converted from a garage by the architect, was to be used as security.

There were two challenges. The first revolved round the solicitor client being on a 12 month contract, where her billing was variable and meant that she was in different European countries. The second one was that the two properties were on the same title.

The Dudley was able to offer 60% LTV- £390,000 as an Ex Pat mortgage on a repayment basis over a 20 year term, without having to take into account the architect partner’s income. The offer was conditional on the titles of the properties being separated.

Rob Killeen at Capital Fortune commented, “Dudley offer the flexibility to consider capital raising for all legal purposes and they will always look to offer a structured deal. Their holistic approach provides a no nonsense, common sense approach to lending”

If you have a case that doesn't fit the mould, call us today on 01384 489195 or email newbusiness@dudleybuildingsociety.co.uk

Overcoming a Rental Mismatch - Recent Case Study

Monday 16 November

Sharing the details of an interesting case where we overcame a rental shortfall...

We were presented with an expat looking for £402,000 to purchase a BTL residential property valued at £670,000 who had faced problems obtaining a mortgage before coming to the Dudley through partner, 3mc.

The existing owner of two other BTL properties with good payment history, Mr X was a high net worth self employed company director with a one third share in a company based in Africa. He has an unencumbered property in which he lives in Africa as well as having liquid assets in foreign banks of c. £2.5 million.

While the client’s personal income and assets were satisfactory, the rental income assessment on the target property was well below what was required to satisfy normal lending criteria.

As the client’s realisable assets were held abroad, in order to get round the mismatch, we asked for a deposit of £15,000 to be lodged with the Society, which would only be accessed by the Dudley in the event of a payment shortfall.

The client agreed and the Dudley was able to advance the full amount.

If you have a case that doesn't fit the mould, call us today on 01384 489195 or email newbusiness@dudleybuildingsociety.co.uk

Update - Lending into Retirement

Thursday 12 November

We are proud of being a supportive lender and are acutely aware of the importance of the changes in borrowers needs both locally and nationally, which has meant our common sense approach to lending into retirement continues to be very well received by all of our Partners.

The interim report that has been released by the BSA today sets out some of the measures they believe are needed by the mortgage market to properly serve consumers into the future, which we are fully supportive of. The building society sector has committed to review its maximum age policies for mortgage lending, as one way to better support those who need to borrow into and in retirement.

The remaining recommendations include:

1. Making suitable housing options available for older home-owners who want to move to a property that meets their changing needs – making it an aspiration, not a chore.
2. Ensuring better cross-departmental co-ordination to rationalise Government policy on the treatment of older borrower’s housing wealth. Delivering regulation that encourages innovation and protects consumers.
3. Providing clear information that empowers older consumers.
4. Working with insurers to develop policies that enable lenders to mitigate the different risks involved in lending to older borrowers.
5. Improving the availability of holistic financial planning in retirement.
6. Forming of a cross-industry alliance with other bodies focused on the needs of older consumers
7. Working towards a mortgage which adapts to the different stages of a person’s life.

We wanted to share this report with you as we thought it might be of interest. Please click here to download.

If you would like any further information about our lending criteria please call a member of our team today on: 01384 489195.

Have BTL landlords begun to recognise the threat to their
profitability that the changes to interest tax relief will bring? Will they cope, and could rising interest rates at the same time create a ‘perfect storm’?

Monday 2 November

Under the Government’s proposed taxation changes, higher rate tax payers will, for the first time, face a situation where they could be liable for tax on their BTL income even though they have not made a profit. It will be possible to experience negative cash-flow just through the combined costs of mortgage interest and taxation: an impossibility under the previous arrangements.


Removal of interest relief was always a theoretical possibility, but for most landlords, probably very low on their list of worries, with all the usual suspects (interest rate increases; poor-paying tenants; sudden repairs etc) probably being perceived to be far greater threats. It seems improbable that many of them would have even considered this risk when they chose to buy their BTL properties, and will not therefore have modelled this change into their calculations (if indeed they got as far as modelling in the first place).


For those who bought at the wrong time, or in the wrong place, or who have been unlucky with tenants, or for those who are simply over-geared (which probably includes most who borrowed at the market norm of 75% LTV), the changes are potentially more than a nuisance: they pose an existential threat.


And it is not true that being a higher rate tax payer provides a cushion of wealth which makes it possible to ride out a sudden change to the viability of investments. Whilst being a higher rate tax payer might once have meant enjoying a significant level of income relative to the majority, this is no longer the case. Many higher tax payers will not consider themselves remotely wealthy, but will be higher rate tax payers by virtue of day jobs which may be quite ordinary. For many of these borrowers, a sudden and unavoidable increase in tax of £100 or so a month will be more than a nuisance – it will be the difference between profit and loss, between a bank account in the black or in the red, between being in mortgage arrears or not being in arrears, between peace of mind and acute stress.


If borrowers and would-be borrowers are struggling to really comprehend the impact on their finances that the changes will bring, it is not clear to me that lenders are yet any better placed. The commentary already released (largely from BTL lenders with a strong vested interest in talking up the market) seems to run along the lines of ‘landlords will pass on the costs to their tenants’ (some will, however London with its unbalanced supply and demand aside, in many areas of the country where tenant affordability is tight and supply is strong that may not be a viable tactic); ‘landlords are savvy business folk who will adapt their strategy’ (property is an illiquid asset, and not easily adapted); ‘landlords will switch to borrowing through entities’ (maybe, but that brings its own complexities that not every pensioner with a single property bought with their newly liberated pension is going to relish).


The changes will take time to bed down and show up any areas where a different stance is needed, but it seems clear to me that lenders will need to demonstrate responsible lending through a change to their underwriting processes, and that this will need to focus much more closely on affordability. Whether this is through differing rental coverage calculations for lower and higher rate tax payers, or whether it goes beyond this and asks for evidence of detailed business plans, or evidence of receipt of financial advice which looks at more than just suitability of the mortgage product (and is therefore beyond the scope of most mortgage advisors), remains to be seen. Nevertheless, just simply applying a rental coverage calculation and obtaining some bank statements and a budget planner seems underwhelming.


BTL is a mature part of the market, and there is no reason to imagine it will not continue to be so. However, it is unrealistic to imagine that such a significant change as reduction of tax relief will not have consequences. After all, reduction now could easily progress to removal later, now that the principle of varying it has been established, leading to a requirement for a much sharper adjustment.


The lending industry will have a key part to play in helping consumers adjust to a new norm, and they will not do this by insisting that all borrowers and would be borrowers are business-savvy experienced landlords with high levels of background income with which they can ride out the storm. They are not, and if BTL is to continue to prosper, we need to tailor our overall approach to the more ordinary landlord, who has good intentions and some acumen, but who has not the experience to deal with the complexities of operating in an increasingly difficult and regulated environment.

Connect Mortgage Club joins Dudley BS panel

Monday 21 September

Dudley Building Society has announced that Connect Mortgage Club is the latest packager/distributor to join its panel of introducers.

Connect Mortgage Club, which was responsible for over £400 million of lending last year, supports brokers through its specialist AR network and the wider intermediary community through its packaging services and placement help desk. The packaging side of Connect will now be able to provide a service to its introducers, which will include Dudley Building Society.

Jonathan Moore, Head of Credit at Dudley Building Society, said, “Connect has a strong introducer base in the broker market. We are confident that with the obvious expertise they employ, their packaging arm will be a persuasive advocate of the Dudley’s service as a provider of borrowing solutions requiring individual underwriting, for which the Society has built up a strong reputation.”

Kevin Thomson, Sales Director of Connect Mortgage Club commented, “We are delighted to be joining Dudley’s panel of approved introducers. Their diverse range of competitive buy to let and expat products in particular are very much in line with our broker audience and the needs of their clients. The Society’s personal approach to underwriting will mean each case will be reviewed in a complete and fair light and avoid the potential pitfalls often associated with technology based underwriting. We are therefore confident that these products will prove extremely popular with our introducing brokers and we look forward to developing a mutually beneficial relationship with Dudley.”

The Dudley launches niche remortgage products

Thursday 10 September

The Dudley Building Society has announced the launch of three new remortgage products aimed at the self employed and clients with large loans looking to refinance.

Product details include:-

Self employed with 1 year’s accounts
3.99% rate - 3 year discount of 1.00% from SVR

Self employed with 2 years’ accounts
3.55% rate - 3 year discount of 1.44% from SVR

- Free valuation
- Assistance with legals
- Max 75% LTV
- £25000 - £350000
- 5-35 year term
- Capital & interest only
- Overpayments of 10% pa can be made without penalty

Large Loan product
3.49% rate – 3 year discount 1.50% from SVR

- Free valuation
- Assistance with legals
- Max 75% LTV
- From £500000 to £1 million maximum loan
- 5-35 year term
- Capital & Interest only
- Overpayments of 10% pa can be made without penalty

Jeremy Wood, Chief Executive of Dudley Building Society said, “With these new products we have aimed to provide choices for clients with large loans between £500000 and £1million seeking to remortgage, as well as cater for the self employed client, who, in my opinion has been largely sidelined by the market. Our belief is that the self employed provide a valuable service to the economy of the country and deserve to be supported by the industry. We are going to see a lot of remortgaging still this year and want to ensure our introducers have access to the best borrowing options we can.”

Bring us your rejects!!

Tuesday 01 September

Dudley Building Society is challenging mortgage brokers to send in their most challenging residential mortgage enquiries, particularly those that have been turned away by mainstream lenders.

With a champagne prize on offer for the best entry, Dudley’s Head of Credit, Jonathan Moore, wants to encourage more intermediaries not to give up when faced with a difficult case or one where they have been knocked back by another lender.

He said, “ We want to try and highlight that there are lenders in the market who will look beyond the credit score. This is not a shortcut to agree poor cases or ones which are not in the client’s best interest, but to show brokers that common sense lending is still alive.”

“ I shall be looking at every case which comes in and we will be using these cases to help train our underwriters to look for what is good and not so good about a case. If we can lend on, what on the face of it, was a wooden hut in a forest, then we can help more brokers find a positive result for their clients and their individual circumstances.”

Dudley BS joins Promise Solutions lending panel

Wednesday 19 August

Specialist packager Promise Solutions has announced the addition of Dudley Building Society to its panel of lenders.

Dudley BS, with a 150 year record of service to the people of the West Midlands, is a national lender, which only lends through the intermediary sector. The Society has built a reputation for taking a common sense approach to its lending which is proving popular with brokers who have clients being turned down by mainstream lenders relying on pre-programmed credit scoring systems.

Steve Walker, Managing Director at Promise Solutions said, “Dudley is a well respected lender with some fantastic products and a great reputation for friendly customer service. Our experience in handling complex cases and extensive broker relationships mean we can help more customers to benefit from Dudley's offering. The ability to build a close relationship with a local society should also bring additional benefits.”

Jeremy Wood, Chief Executive of The Dudley commented, “ We are delighted to increase our geographical coverage through our new relationship with Promise Solutions. They are a well recognised packager throughout the UK, which means we will be able to help more brokers and their clients across a wider area.”

Dudley BS launches 3 year discount products

Monday 10 August

Dudley Building Society has announced the launch of two new products to cover both purchase and remortgage requirements for clients of introducers offering an initial rate of 3.89%.

Both products offer a 1.10% discount off the Society’s variable rate to a current rate of 3.89% for three years and the remortgage option attracts both free legals and free valuation.

Features include: -

• Free legals and valuation on remortgage option
• Min/max advance - £25000 to £500000
• Max LTV to 90%
• ERC – 3% in first 3 years
• Term – 5-35 years
• Capital & Interest only
• Overpayments of 10% pa allowed without charge.

According to Chief Executive, Jeremy Wood, the discounted rate strategy has been very effective and in the face of potential base rate rises remains an attractive option for clients.

He said, “These are good products for the market we are working in. Not only do they have a high LTV threshold, which will benefit first time or returning buyers, rates below 4% are particularly to be welcomed. For those clients wishing to remortgage, we have aimed to offer attractive terms but with the added value of free legals and a free valuation to keep costs down to the minimum.”

“It is worth intermediaries bearing in mind that with a term of up to 35 years and our stance on older lives, these products could provide a crucial lifeline to customers with a sustainable repayment plan who wish to borrow into retirement.”

TFC partners with Dudley Building Society

Tuesday 14 July

TFC Homeloans has added Dudley Building Society to its lender panel, meaning that brokers can now access all of the intermediary-focused society’s mortgage products through the specialist distributor.

Dudley Building Society’s range of products is available exclusively via intermediaries and tailored towards non-standard clients who are not currently well served by the mainstream lending community.

TFC Homeloans MD, Nigel Payne, said: “Dudley Building Society puts the broker at the heart of its distribution and product design, and understands that excellent service is a key part of the mortgage mix. For this reason they are a natural partner for TFC and we are thrilled to have them on board as a lender partner.”

Jeremy Wood, Chief Executive of Dudley Building Society, commented, “We have been impressed with TFC’s service ethic and commitment to the intermediary community we both serve. Having a distributor of TFC’s calibre brings extra depth to our panel. Being headquartered in Cheshire, TFC’s geographical position also gives Northern based intermediaries a more local alternative point of contact to make use of the Dudley proposition.”

Listed Buildings Lending With Permanent Discount Products

Monday 29 June

The Dudley Building Society has announced a new range of discounted rate products aimed at providing funding for buyers and owners of listed buildings with the rate discount lasting for the life of the loan.

The Dudley, which has seen its profits soar in 2014/5, having moved to concentrate mortgage distribution exclusively through the intermediary channel, is now developing a new area of lending to meet the needs of its intermediary clients.

The listed building product range includes three products aimed at Grade 1, Grade 2* and Grade 2 property.

Product details include : -

Grade 1, Grade 2* and Grade 2 properties

• Up to 70% LTV
• 3.99% variable (1% discount off SVR for life of loan)
• 5-25 years (Grade 1 to max 20 years)
• Overpay up to 10% of advance for first three years
• Capital & Interest

Grade 2* and Grade 2 properties

• Up to 75% LTV
• 4.24% variable (0.75% discount of SVR for life of loan)
• 5-25 years
• Overpay up to 10% of advance for first three years
• Capital & Interest

Grade 2 properties

• Up to 80% LTV
• 4.24% variable (0.75% discount of SVR for life of loan)
• 5-25 years
• Overpay up to 10% of advance for first three years
• Capital & Interest

Jeremy Wood, Chief Executive of the Dudley Building Society, commented, “The Dudley is nothing if not innovative in its approach to lending and this is an area which our research told us was under represented. We believe it is important to support customers who, by occupying these culturally important properties, are helping to keep alive vital parts of our shared heritage. The products we have designed are made more attractive as the discount on the rate we offer extends to the end of the mortgage. ”

Dudley BS picks LMS as Conveyancing Panel Management Partner

Monday 18 May

Dudley Building Society has appointed LMS as its conveyancing panel partner and will take responsibility from 16th May 2016.

The move will see LMS, who have over 20 years' experience in the field, offering a single point of contact for clients allocated to one of the specially vetted panel of law firms that make up LMS’s panel.

The new service will also allow clients, brokers and packaging partners to track their cases in progress.
Jonathan Moore, Head of Credit at the Society, said “Having met with LMS and discussed their impressive proposition in detail, I am confident that this new relationship will allow the Society to improve its own service and result in further improvements to turnaround times, whilst also assisting with its control of risk.”

He added “The partnership with LMS will also enable the Society to develop products which it has not previously provided, the first of which will be released shortly, thereby providing exciting new opportunities for our packager partners to work with the Society”.

Huw Lewis, Sales and Marketing Director at LMS, commented, “We are delighted to announce that we will be providing a full range of conveyancing services for the Dudley Building Society and its members. The Dudley is committed to offering clients the highest possible level of service whilst also offering attractive products, and we look forward to building a long term and growing relationship with them supporting them in the provision of conveyance services for mortgage applicants in both the fees assisted and fee paying markets. We are also pleased to be expanding further into the building society sector.”


New Head of Credit at The Dudley

Friday 27 March

Jonathan Moore has joined the Dudley Building Society in the newly created role of Head of Credit. Tasked with a wide brief, Jonathan’s responsibilities include leading the development of mortgage and savings products, and overseeing the mortgage lending process. He is also looking after post completion client outcomes.

Having spent over a decade at the Manchester Building Society in relevant operational roles, Jonathan is looking forward to the challenge of bringing his experience to bear at The Dudley.

He said, “The Dudley took a very different path to mortgage origination to every other lender in the sector by concentrating solely on the intermediary market as its path to market. It has been a success in so many ways, but my aim is to bring in a level of consistency and sustainability to the processes, underpinned by a reputation for outstanding service, that matches our stated aims and better meet the needs of our packager partners.

While we have got a lot right, there are areas we can improve particularly in the way we communicate. At the same time, we are launching regular training sessions to ensure that our criteria and our partners’ understanding of our requirements are understood and up to speed. What I am most excited about is helping to build a portfolio of products relevant to our market and to the introducers who support our packager partners. We recently launched a self employed product, which is the first in a line of new concepts where innovation will be a key ingredient.”

Jeremy Wood, Chief Executive at the Dudley commented, “We are delighted to have Jonathan on board. He brings great experience to bear as well as a strong desire to help the Dudley build on its strong traditional strengths of mutuality and customer service. Jonathan will be working to help foster product innovation, along with bringing a greater degree of commerciality to our business. With his input, the Society will be actively looking to find solutions to the issues that currently act as a barrier to homeownership and help to reestablish building societies as leaders in the funding of residential property.”

Dudley BS launches Self-E mortgage range

Monday 16 March

The Dudley Building Society has launched a range of three year self employed specific mortgage deals (Self-E) aimed at meeting the needs of the ever growing numbers of self employed borrowers currently being neglected by the larger lending community.

The pricing of the range reflects how many years’ accounts individual clients hold, with lending decisions made by an experienced in house underwriting team.

Headline rates across the Self-E range are:

3.29% (1.7% SVR discount) with three years accounts
3.99% (1% SVR discount) with two years accounts
4.49% (0.5% SVR discount) with one years accounts

These are available at 90% LTV for those with three years accounts and 75% for those with one to two years accounts. The minimum loan amount is £25,000 with a maximum of £350,000 and a fee of £1,450.

This product launch signifies an important component in the Society’s developing strategy to provide support for applicants who are being turned away from other sources because they do not fit the current box ticking, one size fits all underwriting model.

Jeremy Wood, Chief Executive at the Dudley said, "The new product is designed to show our introducers that the Society’s support for the self employed is more than just a sound bite. Many lenders pay lip service to their concern for the self employed applicant but our product is in place for brokers to offer self employed clients a real alternative designed specifically with them in mind.

He added, “Along with our strong standard product range, our aim this year is to give advisers lending options for clients whose circumstances are being ignored and over the next few months we will be making new announcements as we seek to provide innovative and sensible solutions to the more common lending issues.”

MFG Conference Roundup

Friday 13 March

Mortgage Finance Gazette held its first conference on Wednesday 11 March, with representatives of lenders, brokers and regulators in attendance.

Held in the heart of the City at Gibson Hall, the conference revolved around the evolution of the mortgage market with speakers representing all corners of the industry including Dudley Building Society Chief Executive, Jeremy Wood.

For more information you can view the article here.

Dudley appoints 3mc to Lender Panel

Monday 16 February

Dudley Building Society, which lends exclusively through the intermediary channel, has made the first appointment of 2015 to its panel of lending partners.

3mc, the mortgage distributor and specialist lending packager, recently reported a record year for enquiries and completions in 2014. The company has been a fixture of the lending market since 1996 and was one of the few distributors to successfully trade through the credit crunch.

The Dudley BS has been particularly successful in building its distribution strategy exclusively round the intermediary channel and launched with an initial seven distribution partners in late 2013. The panel now numbers 10.

Jeremy Wood, Chief Executive at the Dudley Building Society, said,

“The appointment of 3mc is another step in our strategy of appointing distributors to our panel, who share the same philosophy in terms of customer care as well as helping us build our mortgage book. I have known Doug Hall and his team for more years than I care to mention and know that we shall receive only the best quality business, packaged in a way which enables us to continue to offer some of the best service times in the industry.”

Doug Hall, Managing Director at 3mc commented,

“We are delighted to support a lender which has so completely embraced the intermediary sector as its distribution source. The Dudley has a deserved reputation for service and the kind of common sense approach to underwriting, which has sadly been abandoned by main mainstream lenders. Building Societies have an important role to play in a 21st century lending market and The Dudley is an excellent example of how a small lender can provide advisers with a resource that can make all the difference to a wide range of clients.”

Dudley Building Society appoints Brilliant Solutions to Lending Panel

Tuesday 15 July

Dudley Building Society, which lends exclusively through the intermediary channel, has made the first new appointment to its panel of lending partners since it launched its new service in September last year.

Brilliant Solutions, part of the Brilliant Group, which was founded in 1994, was a pioneer in the mortgage packaging and distribution market and provides a wide range of support for brokers across the lending spectrum.

Having studied the ramifications of the MMR, the Dudley had decided last year that the best way it could serve its customers was to withdraw giving advice on its own products and only accept business from fully regulated whole of market intermediary sources. A panel of seven partner firms were invited to make up the initial panel through which UK advisers could send their business.

Gordon Rae, Intermediary Relationships Manager, said,

“ We have been delighted with the business we have received so far from our existing partners and now we have bedded in our systems, it is time to expand our panel and increase our market share. Brilliant Solutions has a deserved reputation as a supporter of the intermediary market and I am sure their introducers will help us towards our new business goals.”

Matthew Arena, Managing Director of Brilliant Group, commented,

“The building society sector has proved time and again its commitment to common sense lending and support of the intermediary community. The Dudley Building Society’s stance of exclusively dealing with the broker market is a statement of how much they believe in the primacy of independent advice and we are delighted to be the newest member of their lending partner panel.”

Dudley Building Society in ExPat Launch

Thursday 12 June

Dudley Building Society, which generates its mortgage business exclusively through the intermediary market, has launched two expat mortgages aimed at the residential purchase and BTL overseas buyer.

Common features include:-

• 4.24% discounted rate for 3 years ( 0.75% discount from SVR)
• Max 60% LTV
• Applicant must have a UK property in own name
• Employed only
• Min income £50,000
• Payments made by Direct Debit from a UK bank account

According to the Dudley’s Head of Lending, Steve Sandiford, the Society has always supported specialist lending and has targeted the growing expat market for both purchase and remortgage of UK properties.

He said,

“Our research has shown a growing need for this kind of borrowing and with an expat community keen to retain an interest in the UK property market this new initiative will provide our intermediary partners with valuable options.”

Vic Jannels, Executive Chairman of ATOM, one of the Dudley’s seven intermediary partners commented,

“There is no doubt that members of the expat community are looking in more volume to secure property in UK, normally on a Buy to Let basis. We are delighted that Dudley Building Society recognises the value of this sector and that, in the main; they are likely to be high net worth applicants. This is not a sector to be ignored.”


 

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7 Harbour Buildings, The Waterfront
Brierley Hill, West Midlands, DY5 1LN
Tel: 01384 231414
Fax: 01384 233250
Email: enquiries@dudleybuildingsociety.co.uk

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The Society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the Building Societies Association. Financial services complaints we cannot settle may be referred to the Financial Ombudsman Service. This site is intended for UK residents only. Our Financial Services Register number is 161294. You can check this number by visiting the FCA Website or by contacting the FCA on 0800 111 6768