HFBS CORONAVIRUS BUSINESS UPDATE

During these extraordinary times we appreciate the difficulties being experienced by the intermediary market and the urgent need for clear and transparent communication. There is NO more important a relationship than that between ourselves and our expert intermediaries so we hope that this guidance will prove helpful.

As our existing intermediaries will be aware we made the difficult decision to temporarily suspend lending at close of business on the 25^th March 2020 until the 20^th April 2020. Following recent government advice this suspension will be extended until Monday 4^th May 2020. This decision was based solely on the fact that we would, under ‘lock down’ provisions, be unable to offer the exceptional service we are renowned for.

Moving forward we are confident of a swift return and, on this understanding, we wish to make certain guarantees to both you and your clients.

NEW BUSINESS

We are aware that the current situation brings considerable uncertainty however we believe that certainty is required. We are not funded by corporate / bank monies and make all our own decisions so we can assure you, on our return :

• We will NOT be reducing our LTV’s or increasing our rates.
• We WILL , wherever possible, be utilising AVM’s , drive buys and existing valuations previously obtained for third parties ( where these are less than 12 months old ).
• We will analyse the regular government provided coronavirus figures and IF it is clear that ‘lock down’ restrictions are likely to be eased we will return to work shortly prior to this on   the 4^th May 2020 to enable new applications to be instigated ahead of our ability to see the client later that week. We would, on this basis, anticipate the first completions early w/c 11^th May 2020.

EXISTING CLIENTS

We are aware that our intermediaries may receive enquiries and have concerns regarding existing clients with short term facilities who may possibly, through no fault of their own, have difficulty meeting their contractual obligation to repay On this basis we are happy to offer the following assurances :

• We previously confirmed that clients with a contract becoming term expired between 25^th March 2020 and 1^st July 2020 would automatically be provided with 1 additional months forbearance. This is now extended to 2 months. Our usual fee for agreeing such an arrangement of £400 will be waived.
• Unlike many bridging facilities we have NEVER applied nor will we ever apply a ‘default rate’ where a contract runs beyond the contractual term. Interest will continue to accrue at the initial contractual rate.
• Irrespective of the ability to do so we will NOT be instigating new litigation for possession earlier than 1^st July 2020.
• We do NOT share information regarding an accounts status with any third party credit reference agencies and therefore your client’s credit status will not be affected in the event an account is in default.
• We are happy to accept ANY sum should a client wish to reduce their indebtedness and will apply such sums as are received without any penalty. As our interest is calculated daily this will have an immediate effect in reducing the overall interest charged.
• On our return we will be prioritising clients with the shortest remaining term and contacting them to discuss their personal circumstances, subject to which, we will attempt to put in place a mutually satisfactory plan for exit.

We hope that our assurances will enable intermediaries to proceed with some certainty for themselves and their clients. In the meantime all our staff, on a voluntary basis, have agreed to be available on mobiles during normal office hours. There will be a limit on the assistance we are able to provide however, if you have any questions, we will attempt to assist in so far as we are able to do so. The numbers are as follows :

IAN BROADBENT , Director (Lives in a remote location so calls/texts may not connect immediately but are generally received and will always be returned) 07903 588394

DANIEL COLLINGS , Senior Underwriter (new enquiries) 07903 652115

CAROLINE BURGESS , Senior Administrator (existing application updates) 07403 304346

DEBORAH BEE , Accounts Manager (Management of existing outstanding accounts) 07804 871294

Vicki Wright , Accounts ( payment enquiries )07340 115766

ABOVE ALL THE TEAM AT HFBS WISHE ALL OUR INTRODUCERS, CLIENTS AND SERVICE SUPPLIERS GOOD HEALTH IN DIFFICULT TIMES. STAY SAFE AND WE WILL RESUME NORMAL WORKING PRACTICES AS SOON AS POSSIBLE.