Your guide to Principality for intermediaries

As consumer lending in the United Kingdom continue to rise, commercial banks and other loan providers compete by marketing their loan products through their representatives. In most cases, partnering with mortgage brokers is a good idea to showcase their property loan services to potential borrowers. These brokers, also known as intermediaries, serve as the bridge between property buyers and mortgage lenders.

Apart from traditional lenders and commercial banks, intermediaries can also connect with building societies as they search for the best home loans for their clients. A great example of this is Principality Building Society. This mortgage lender is bent on helping mortgage brokers through their intermediary-only platform where the latter can access all of their tools and guides.

Would you like to know more about Principality for intermediaries? In this article, Mortgage Introducer will share all you need to know about this mortgage provider. We will explore the property loan solutions that Principality offers, along with their eligibility criteria. Read on if you are curious to find out if this is the right lender for you and your clients.

Introduction to Principality for intermediaries

Principality for intermediaries is the intermediary-only platform of the Principality Building Society. They provide a broad range of property loan services which are exclusively offered to mortgage brokers in the UK and their clients.

Background of Principality Building Society

The Principality Building Society is a building society that offers banking, mortgage, and other financial services. This mutual organisation is based in Cardiff, Wales.

In 2022, Principality Building Society held more than £11 billion in total assets. They are the biggest building society in Wales and the sixth largest in the country. Like most UK building societies, Principality Building Society is a member of the Building Societies Association (BSA).

This lending giant is authorised by the Prudential Regulation Authority (PRA). It is also regulated by both the Financial Conduct Authority (FCA) and the PRA. Aside from mortgage products, Principality Building Society offers prepaid funeral plans and insurance services such as home insurance and life insurance.

Principality Building Society also offers savings including:

• Everyday Savings
• Fixed Term Savings and Bonds
• Individual Savings Accounts (ISAs)
• Regular Saver Accounts
• Children's Savings Accounts
• Maturing Savings Accounts

How does Principality help intermediaries?

Like home loan providers that are mortgage broker-centric, Principality for intermediaries has an online portal which is designed to cater to their potential intermediary partners.

On this website, you have access to all that you need to find the most suitable mortgage for your clients. You can also browse Principality for intermediaries’ mortgage products and eligibility criteria with ease and use helpful tools such as their Wales house price index page and broker support.

Principality for intermediaries has an affordability calculator where you can assess vital information pertaining to your clients’ background including:

• gross income
• credit commitments
• remortgage balances
• composition of mortgaged property
• region of mortgaged property
• basic essential expenditure
• quality of living costs

Learn how to use online mortgage affordability calculators when you watch this clip:

With these helpful tools, Principality for intermediaries is a good choice not only for you but also for the top mortgage intermediaries in the UK.

They also provide useful documents that you can download for free. Principality has listed their downloadable documents into categories that you can use to process client mortgage applications:

• forms for use in the mortgage application process
• forms to give to the customer during the application process
• forms for use in Joint Borrower Sole Proprietor mortgage applications only
• repayment strategy, evidence, and assessment guide
• consumer duty fair value assessments
• competition terms and conditions

Mortgage products offered by Principality for intermediaries

Now that you have an idea about how Principality for intermediaries can help you succeed in your career as a mortgage broker, we will now highlight their mortgage products. Here is a quick glance at the type of home loans that Principality offers:

1. Buy to Let and Holiday Let mortgages
2. First Time Buyers’ mortgages
3. New Build Properties mortgages
4. Joint Borrower Sole Proprietor mortgages

Let us explore each mortgage product below:

1. Buy to Let and Holiday Let mortgages

Principality for intermediaries’ Buy to Let and Holiday Let mortgages both offer up to 75% loan-to-value (LTV) ratio. These mortgage products do not have a minimum income requirement. Your clients do not need to be owner-occupiers to apply for these two property loans.

Up to four mortgage applicants will be accepted by Principality for intermediaries. They also boast simplified online product transfers as well as experienced business development manager (BDM) support. You can apply online for Buy to Let and Holiday Let mortgages on behalf of your clients.

2. First Time Buyers’ mortgages

First time home buyers can choose from any of these three home loan boosts offered by Principality for intermediaries:

Limited Edition: Income boosts

Principality for intermediaries would like to help first time buyers by increasing their mortgages’ affordability using their first time buyer loan to income (LTI) multiplier. The same is also true for their variable income criteria.

Family boosts

With Principality’s Family boosts, your clients can ask for help from their family by adding the income of four individuals to increase loan affordability. They can also use gifted deposits or gifted equity.

New Build boosts

If your clients use Principality for intermediaries’ New Build boost, they will be eligible for Principality’s Shared Ownership mortgage. You can also take advantage of unlimited building incentives and benefit from an extended offer period of up to 16 months.

3. New Build Properties mortgages

Do you have clients who are looking to purchase a newly constructed home? Principality for intermediaries offers their New Build Properties mortgage line. They accept home loan applications for properties that:

• have not been built yet
• are purchased off-plan
• are currently being built
• have been built but have not been lived in

Check out this comparative table on Principality’s New Build Properties mortgages and their LTV ratios:

As the housing crisis continues in the country, experts are looking into the new build housing market to meet the demand of home buyers and provide additional properties.

4. Joint Borrower Sole Proprietor mortgages

Principality for intermediaries’ Joint Borrower Sole Proprietor (JBSP) mortgage is a temporary affordability boost to get your client on the homeownership ladder. When you apply for a JBSP mortgage on your client’s behalf, you can add up to four of their family members.

Principality for intermediaries will allow you to combine the income of all the applicants. Then, they will consider all these incomes when working out how much your client can borrow.

Staying updated on Principality’s mortgage products and rates, along with those of other lenders, is a great strategy to build your brand. Keep in mind that well-informed intermediaries attract prospects.

A smart way to stay ahead of mortgage news in the UK is to monitor mortgage rates regularly. You can easily do this by bookmarking our mortgage rates guide, with figures updated weekly.

Principality for intermediaries’ eligibility criteria

Do you wish to know if your clients can qualify for Principality for intermediaries’ eligibility criteria? Let us look at these requirements:

1. minimum loan
2. income
3. mortgage term
4. age limit
5. residency

To help you further understand each of these criteria set by Principality for intermediaries, let us discuss them at length:

1. Minimum loan

Principality for intermediaries requires a minimum loan amount of £5,000 for a new residential mortgage advance. They require £25,000 as the minimum loan amount for these three mortgage products:

• Buy to Let mortgages
• Holiday Let mortgages
• New Build Properties mortgages

2. Income

Mortgage applicants must be employed permanently for the last three months if they want to secure a property loan with Principality. This lender will only consider income paid in sterling and subject to UK taxation.

Principality for intermediaries have varying criteria for the following types of professionals:

• bank nurses
• day rate contractors
• foster carers
• medical professionals
• self-employed applicants
• supply teachers

Do you want to know how many years of income an average home costs in the UK? Find out in this article.

3. Mortgage term

A maximum mortgage term of 40 years is set by Principality for intermediaries and the minimum repayment term is five years.

4. Age limit

Principality for intermediaries will accept residential applications from mortgage applicants who are 18 years old and above. All residential mortgages should be repaid before the eldest applicant’s 76th birthday.

5. Residency

All mortgage applicants must be UK residents at the time of application. Principality for intermediaries also requires that they have at least two years residential address history in the UK. For joint mortgage applications, only one applicant is required to meet Principality’s visa criteria.

They allow property loan applications for these two:

• a European Economic Area (EEA) national who is a resident in the UK and has permanent legal right of residence in the country at the time of application
• a non-EEA national resident in the UK who has obtained indefinite leave to remain or has more than 12 months on their visa at the time of application

For the EEA national resident, their status can be pre-settled or settled.

Why choose Principality for intermediaries

Whether you are a mortgage broker or an aspiring one, you will find it helpful to work with Principality for intermediaries since they have easy access to their mortgage products. If you want hassle-free but guaranteed solutions for your clients, Principality might be the right home loan provider to partner with. With competitive mortgage rates for borrowers and numerous tools for mortgage brokers, Principality is definitely a great choice.

Principality for intermediaries can cater to your clients’ complex situations and suggest customised mortgage solutions to address their property loan needs. But if you wish to check out what other mortgage lenders can offer and see if they suit your clients’ needs, no worries!

Feel free to look at these guides on UK lenders with intermediary-only platforms:

• Your guide to Accord for intermediaries
• Your guide to Aldermore for intermediaries
• Your guide to Barclays for intermediaries
• Your guide to Coventry for intermediaries
• Your guide to HSBC for intermediaries
• Your guide to Kent Reliance for intermediaries
• Your guide to Leeds for intermediaries
• Your guide to Nationwide for intermediaries
• Your guide to NatWest for intermediaries
• Your guide to Virgin for intermediaries
• Your guide to The Mortgage Works for intermediaries
• Your guide to the West Brom for intermediaries

Would you consider partnering with Principality for intermediaries? Comment your insights in the space provided below.