Link lending

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Link lending

• Secured Loans
• Training Presentation

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Secured Loans ?
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What is a Secured Loan ?

• Any loan that requires the borrower to provide a
  lender with some form of Security
• The Security taken is the Borrowers property
• Registered behind a 1st Charge know as a Second
  Charge
• The lender will have the right to reclaim the
  Property if the terms of the loan are not met

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Loan Uses
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When would a Secured Loan be Used?

• Wedding
• School or University Fees
• Purchasing a New Car
• Taking a once in a lifetime holiday
• Cosmetic Surgery
• Part Funding a Property Abroad
• Building an Extension
• Fitting a New Kitchen or Bathroom
• Debt Consolidation
• Most other Legal Purposes

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When would it be most suitable?
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When would a Secured Loan be more suitable?

• Client is tied into a discounted or Fixed Rate
  Product
• Speed of completion is paramount
• Re-Mortgage is not suitable or available
• Further Advance is not suitable or available
• Client has had Credit difficulties in the past

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FAQS
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Frequently Asked Questions

• How much can I borrow ?
• Between 10,000 and 50,000 subject to
  Individuals Circumstances Generic Risk
  Navigator score model
• What is the Minimum Maximum Age ?
• Minimum Age is 21 and Max age is 80 at the end
  of the loan term( applicants over 70 must be
  referred to link )
• If lending into retirement 1/3rd of loan
  remaining at 65 evidence of pension to be
  provided Income must cover mrtg loan
• How Long can I have the secured loan over?
• Minimum Term 5 Years Maximum Term 30 Years
  subject to loan plan
• Do you accept Self Employed Applicants for a
  Loan?
• Yes Subject to Income supporting documentation
  Must be SE for minimum of 3 years if LTV over
  55
• Property is jointly owned do both parties need to
  be on mortgage deed?
• Yes ( Applicants who are related , Mother Son
  both parties must own the property )
• If Married both Parties need to be on Loan
• Cohabiting not related does not need to be
  joint application Waivers will apply
• Do you accept Local Authority Council
  Properties?
• Yes but the LTV will be restricted by 10 if
  purchased from council 5 bought on Open Market
  ( Any outstanding Pre emption element will also
  be factored into the LTV calculation
• Current Year of Pre Emption Period is ignored
• Ex Council Flats are ok subject to LTV
  restrictions
• How is remaining Years calculated
• When calculating the LTV Link Lending will
  ignore the current years pre-emption together
  with any expired years therefore if a client
  received 24,000 discount and they bought the
  house 3 years ago we would take 9,600 into the
  LTV calculation. 

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Continued

• Are there any restrictions applied depending on
  the Area in which the applicant lives?
• Yes, there is a restriction applied to applicants
  living in London, please see Map enclosed for
  postcodes affected
• 5 restriction Link 1 and 10 restriction 2-5
• On average how long will the Process take from
  start to Finish ?
• Anywhere between 2 weeks and a Month depending on
  how the case is Packaged
• Will you accept Applicants that have been
  bankrupt or in an IVA ?
• Yes, providing the applicant has been discharged
  for 5 years only allowed Plans 3-5
• Is a Valuation required on every deal ?
• No, AVMS are accepted on deals where there is a
  confidence level of 4 LTV is not greater than
  70 a score of 3 can have a Drive by anything
  below a 3 will require a Full Valuation ( must be
  FISA Panel ) If there is no House Number /Flat or
  property is ex authority Full Val required.
  Please note no more than 5 tolerance allowed
  between AVM and Drive by Figure.
• Is there any cap on the Max Min Property
  valuation you will accept?
• Yes, Max Valuation is 550,000 Min is 75,000
• Is there a minimum requirement for the length of
  a Lease?
• Yes, 40 years must be remaining at the end of the
  Loan Term
• Will you accept BTL Properties ?
• No, we only accept owner occupied properties
• Will you lend behind a Open Planned first
  Mortgage Account
• Yes, providing we receive a Maximum Liabilities
  letter
• Is there a Minimum requirement for how long the
  Applicant must have held 1st Mortgage for?
• Yes, Applicant must have held current Mortgage
  for 6 months have been in current security for
  12 months

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Continued

• If the Applicant has missed a Payment on their
  1st Mrtg 2nd Mrtg in the same month does this
  count as one or Two arrears?
• This would count as two arrears
• What if the client has missed the last Mortgage
  payment ?
• Decline
• Will you lend as a Third Charge behind an
  existing 2nd Charge?
• No, we would have to take the Existing 2nd charge
  out
• On Self Employed cases, does the Accountant have
  to be qualified in certain Areas?
• No, but we will check the accountant on the
  Internet to ensure that they are qualified
• If the Existing 1st Mortgagee declines the
  request for a 2nd charge from Link Lending, will
  you take an Equitable charge?
• No, this is not something Link lending are able
  to do
• Do you accept conditional Consents
• Yes
• If someone Owns an Ex Local Authority house are
  there LTV restrictions applicable?
• Yes, If the Applicant was previously a Tenant and
  then Purchased the Property If the Applicant
  purchased the property from the Open Market
• If the applicants purchased the property of
  council within last 10 years there is a 10
  restriction of LTV.
• If the applicants purchased over 10 years ago or
  of the Open Market there is a 5 restriction of
  LTV.
• Will Link Ignore the Monthly repayments on a loan
  if there is less than 6 months to run?
• No
• Do you carry out speak with calls ?

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Criteria
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DTIR Calculation
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Combined Income based on Gross Monthly Salary
Total Monthly repayments of Existing 1st mortgage
Secured Loans plus Unsecured Credit not being
repaid from the advance must not exceed below

• Income Under 25,000
• Max 40
• Income Over 25,001
• Max 45

• NB
• If BTL Mortgages show on Credit search these
  will be factored into DTIR regardless of AST
  being in place
• If there are current Mortgage Arrears these must
  be cleared with the advance monies applicants
  signed authority is required

Unsecured Credit

• 3 of Mail Order and Communication balances
  factored into DTIR however they are ignored when
  calculating the Adverse Units
• All other Unsecured Credit 3 is taken into
  account - this includes Current Accounts eg Over
  Drafts if they are not being cleared from advance
• Any Unsecured CCJ Default in last 3 years 3 of
  balance is factored into DTIR

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Income requirements
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Acceptable
Not Acceptable

• DSS
• Child Benefit
• Foster Care
• Income from Other Properties
• Agency Employed
• Statutory Maternity Pay
• Paternity Pay
• Income support
• Carers Allowance
• Benefits from anyone other than applicant
• Bursaries
• Attendance Allowance

• Pensions Private State
• Part Time Income ( if held job for min 2 Years )
  Including Regular O/T and Bonus
• Long term Disability Living Allowance
• Working families Child Tax Credit backed up by
  latest entitlement booklet
• Maintenance court order docs
• 2 most recent bank statement required
• CSA Income 2 most recent bank statements
  showing payment recieved
• Incapacity Benefit

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Employed Criteria
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Requirements

• Minimum Annual Income for main applicant is
  12,500
• No Minimum income requirement for a Joint
  Borrower
• Where Main Applicant income is Pension (s) the
  total must The Min Income Req
• 2 Monthly - Must be dated within 6 weeks at
  completions
• 3 Weekly Must be dated within 3 weeks at
  completions
• NB Must be Original
• Applicant must be Employed for a Minimum of 3
  months
• Job Contract required where applicant has been
  employed less than 6 months Must confirm that
  applicant is not in Probation period position
  is permanent

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Self Employed Criteria
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Requirements

• Self Declaration on All Cases
• LTV Under 55
• Link lending Require
• 2 months most recent business bank statements
  showing payments going in.
• LTV Over 55
• Link Lending Require
• 2 months recent business bank statements AND
  Accountants Certificate confirming Net, Gross and
  Turnover
• Mixed Employed/Self Employed
• If Employed an Element of the applicants income
  being used is from Self Employed Applicant will
  be classed as Self Employed

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Adverse Criteria
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Requirements

• Adverse considered on Link Plans 2-5
• Each Plan has a different Max Adverse allowed
• Mortgage arrears are defined as highest missed
  in last 12 months
• Written explanation required on all adverse
• If last mortgage payments missed Decline
  instantly
• No Payment holidays allowed in previous 6
  months, Max 3 Months in last 12 months each
  month will be classed as a Unit
• 1 Unit A CCJ, A Mortgage Arrear or A Default
• A CCJ/Default is counted as a unit if within the
  last 2 years over 300
• ( Whether its Satisfied or Not )
• Explanations required on CCJS Defaults with a
  Value of 300 plus
• CCJS or Defaults registered within last 2
  Years over 5000 must be cleared will be done
  directly by Link lending to Supplier on
  completion

All Arrears must be noted on Application form,
cleared from advance and explanation received
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First Mortgage Criteria
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Requirements

• 12 Months Mortgage History mandatory as well as
  other secured borrowing
• Must have held Mortgage for minimum of 6 months
• Payment holidays not allowed within 6 months
  Max 3 months in last 12 months will be classed
  a 1 adverse Unit per month even where this is
  within the terms conditions of their Mortgage
• Client must be on the Voters roll for current
  year In addition 2 years previous VR history is
  required if not available we require a Council
  Tax Bill, Bank Statement or Utility bill will be
  required for EACH MISSING YEAR with a written
  explanation from the client as to why they are
  not showing.
• Reference bypass allowed up to Max 70 LTV
  where mortgage info not available
• If client has missed payments a BSQ is required
  day one regardless of LTV.
• Reference Bypass to include Current Mortgage
  Statement showing balance proof of payments
  made to date.
• BSQ is required on ALL Scottish Cases
• If Flexible Mortgage/Open Plan Max Liabilities
  required Limit of Lending

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Valuation Criteria
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Requirements

• AVM
• Acceptable up to an LTV of 70 where there is a
  confidence level of 4 or more
• Not acceptable if No house Number/Flat or Ex
  Local Authority property
• Drive By Valuations
• Acceptable when confirmed with an AVM confidence
  score of 3
• Not acceptable if No house Number/Flat or Ex
  Local Authority property
• No More than a 5 tolerance accepted within AVM
  and Drive BY
• Full Valuation
• Acceptable on all Plans
• Mandatory on Ex local Authority Flats
• Valuation photos required with every valuation

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Valuation Restrictions
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Valuation
Max LTV

• 75,000 - 250,000
• 251,000 - 350,000
• 351,000 450,000
• 451,000 - 550,000

• 80
• 75
• 70
• 65

The Maximum Underwriting value is
550,000 Minimum Property Value is 75,000
NB if Valuation states amended will need written
confirmation as to the amendment
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Security Types
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Link Lending will not Secure against....

• Shared Ownership
• Freehold Flats or Flying Freehold
• Possessory Title ( Allowed at Max 70 with
  Indemnity Policy )
• Agricultural restrictions
• Commercial or Semi Commercial Property

All Properties of Non Standard construction to be
Referred prior to
application
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Terms
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Terms
Broker Fee Up to 12.5 of Advance subject to
Max 3000 LTV Calculated on Open Market
Valuation Min/Max Advance 10, 000 to
50,000 Min Term 5 Years Max Term 30
years ( Loan plan permitting ) Exit Fee/ERC
One months Interest and One months
Notice Payment Options Capital and Interest
only Adverse credit CCJs, Defaults Mortgage
arrears cases are considered depending on Loan
Plans Self Employed Rates disclosed on
Matrix Completion Fee 595.00 Legal Fees
None
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Where will you lend?
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Currently ..

• Mainland
• England
• Wales
• Scotland

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The Process
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The Process

• Stage 1
• Enquiry submitted by Application form to Link
  Loans team via email Securedloans_at_linklending.co.u
  k
• accompanied with a Land Registry search Credit
  Search with a Score
• Stage 2
• Enquiry underwritten and Accepted/Declined
  Broker Advised
• Stage 3
• Broker completes Credit Agreement Submits Fully
  Packaged case with ORIGINALS of All Documentation
• Stage 4
• Case Completes

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Link Loans Needs
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Supporting documentation required?

• Signed Application Form, Commission Disclosure
  letter
• Credit Agreement
• Standard Security for (Scottish Cases ) Searches
  tmgsadmin_at_optimalegal.co.uk ( 01415728951
  Sandra Mackenzie )
• Pension provision form ( Only if lending into
  retirement )
• BSQ ( LTV Greater than 70 ) or if Payments
  missed
• FISA Valuation ( If AVM Score less than a
  confidence score of 4 Drive by not acceptable )
• Buildings Insurance
• Redemption Figure ( If clearing an existing 2nd
  Charge )
• Payslips ( Employed Only )
• Job Contract ( Applicant in Employment less than
  6 months )
• Self Declaration ( Self Employed Only plus back
  up )
• Accounts Certificate 2 Bank Statements ( Self
  Employed cases only )
• Debt Consolidation Form
• Waiver ( Other individuals living in property
  over age of 17 )
• 2 Years POR required if not available Council Tax
  Bill, Bank statement or Utility required for each
  year missing with explanation as to why from the
  client
• Current Proof of residency dated within last 2
  months either Utility Bill or Bank Statement
• Proof of ID in the form of Either Passport,
  Driving License, or Fire Arms Certificate
• DD

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Why Link Lending?
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Why Link Lending?

• Transparency on product and fees
• No hidden fees, Fixed for Term,
• Highest Arrears in last 12 months
• Sit behind any CML 1st Mortgage Lender
• No Loading for Non Conforming 1st Mortgagees
• Award winning service delivery
• 95 employee base by referral
• Deliver on commitments promises
• Market leading broker relationships
• Increase conversions
• Speed through technology legals
• In House solicitors and technology, sector
  leading offer and completion times
• Minimal Paperwork Fast completion
• Appetite to lend, capacity on lines
• Backed by established industry players with
  strong UK banking lines

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Any Questions?
Any Questions?
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