At Bank of Scotland mortgages, we consider the large loan market to be a niche sector that requires a tailored approach compared to that of the conventional mortgage market.
The proposition we offer isn't just about how much we are willing to lend but, crucially, it is about the service we provide to intermediaries, which is essential in the current economic climate. This is what differentiates us from our competitors, as service is key to any lender on which intermediaries rely to deliver for their clients.
Figures from the Council of Mortgage Lenders demonstrated that the number of mortgage advances over £500,000 increased by 32% in 2007, which illustrates that there is an increase in demand for products in the large loan sector. Intermediaries who operate in this corner of the market recognise that a lender cannot deliver only on rates - it must deliver an all round great proposition. Service, flexibility and underwriting expertise are paramount in this sector as many of these cases have complex circumstances that don't always conform to standard underwriting practices.
As one of the leaders in the large loan sector, Bank of Scotland mortgages offers an exceptional service to its clients. With market data showing an increase in demand for large loans, the bank offers this sector a dedicated and fully comprehensive proposition through their Premier Team for loans over £500,000.
Bank of Scotland mortgages offer a number of unique and flexible benefits to intermediaries and their clients;
- Intermediaries allocated a dedicated case manager
- Personal phone number and email address of their case manager
- Flexible underwriting
- 'In house' approval of loans up to £5million
- Specific products available for loans over £500,000 in the Self-cert, Buy-to-let and Mainstream arenas
The Premier Team provides a tailored and personalised service for intermediaries and is a vital part of the Bank of Scotland mortgage proposition. As large loan cases can often have unconventional requirements, this service provides direct access to the team which ensures that intermediaries receive an efficient service to rely on. Additionally, there are a number of different product types available, including Self cert and Buy to Let which ensure that clients have access to a comprehensive product range to meet their needs and demands.
Traditionally, large loans are associated with high net worth customers, many of whom have significant deposits giving them access to the most competitive products. In fact, research from Bank of Scotland mortgages has shown that 61% of brokers believe clients have to earn over £100,000 per year to be deemed 'high net worth'. In addition, 10% of brokers have said that loans for those clients account for around 25% of their business. The research also revealed that over one third of the intermediaries surveyed have seen an increase in the number of loans in excess of £500,000 in the last three years.
In today's market, and with the increase in demand for the large loan arena, it is understandable that there is an increased scrutiny in the underwriting element of a business. The emphasis is now firmly on quality business rather than volume when assessing a borrower's application. A client's circumstances, affordability and credit record are all important factors in determining the suitability for credit, but as not all cases are black and white, the role of the underwriter should not be underestimated.
It is also vital that as an industry we ensure that common sense is still applied to underwriting to ensure the business is quality business. Whilst online and automated underwriting facilities are a great way to improve processing efficiency, they cannot be used as a total replacement for traditional underwriting where an intermediary can talk directly to the lender about a particular case. For an intermediary, partnering with a lender which has an underwriting team who understands the needs of complex clients with multiple income streams or unusual financial circumstances has never been more vital.
At Bank of Scotland mortgages our team of underwriters and relationship managers work closely to combine case management and flexible underwriting skills to provide clients with a personalised service. Intermediaries are kept up-to-date with the progress of their case and a team of experienced underwriters are available to discuss any new business cases and assist with any queries – making the bank an ideal solution for the large loan market.
Bank of Scotland mortgages has been providing mortgages for clients with unusual or complex circumstances for over 25 years. A wide range of products in the Self-cert, Mainstream, Buy to Let and large loan sectors are supported by five star service and a dedicated premier team for brokers' most valuable clients. Visit www.bankofscotland.co.uk/intermediary for more information.
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