Roma Finance launches holiday let product

Roma Finance the Bridging Finance, short term lending and buy to let finance specialist has launched a new holiday let product.

The product criteria is outlined below:

LTV 70%

Arrangement Fee 1.95%

Rates start at 4.89% plus base rate, with rates at 70% LTV at 5.39% plus base rate.

Roma’s solicitors work on a dual representative basis providing a prompt service.

Scott Marshall, managing director at Roma Finance, said: “Holiday lets can provide property investors with another income option rather than the buy to let route which has seen a lot of changes in recent years.

“Monthly rental income and yields can be higher than many other forms of property investment as renters are looking at the location of the property and using it to visit local beauty spots and landmarks.

“We’ve seen an increase in enquiries about this type of finance on well-located houses and apartments and the ‘staycation’ is also proving to be a popular choice for many.“

Matt Lenzie from Commercial Mortgages Broker said: “this is a great addition to Roma’s product range, and demonstrates their growing appetite for a series of niche products. Many of our clients struggle to borrow against holiday lets, particularly in their early stages of ownership, therefore this product should certainly help.”

Book a free consultation with our team today to discuss your funding requirements.

The post Roma Finance launches holiday let product appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/roma-finance/roma-finance-launches-holiday-let-product/

LendInvest Launches Summer “Specials”

LendInvest the London based buy to let finance and bridging finance platform has launched a range of summer specials rates for their buy to let customers.

LendInvest is offering its 2-year fixed 75% loan-to-value (LTV) product at a rate of 3.49%, with a maximum loan size of £750,000.

The offer extends to the lender’s 5-year fixed mortgages, with its 70% LTV product available at a rate of 3.69% and 75% LTV product available at 3.59%, or 3.69% with a 4% ICR.

The lender has also reintroduced its 75% LTV products for standard HMO cases up to six bedrooms, with rates available across two and 5-year fixed products.

The minimum property value for HMO cases has been reduced, now starting at £250,000 for Greater London and £100,000 for the rest of the country. Large HMOs and MUFB cases with properties up to 10 bedrooms are now also being accepted.

Andy Virgo (pictured), director for buy-to-let at LendInvest, said: “At this time two of the most important things a lender can do is; observe the market and listen to your customers.

“Doing this ensures you are not only delivering the products they need, but products that are right for them – this is something we continuously strive for at LendInvest.

“As we all settle into the new normal, portfolio landlords are increasingly seeking leverage to aid the growth of their BTL portfolios. These product changes are key to supporting them, and allowing them access to the funding they require.”

Originally reported via: https://www.mortgageintroducer.com/lendinvest-launches-buy-to-let-summer-specials/

Matt Lenzie from Commercial Mortgages Broker said: it’s great to see LendInvest offering incentives for transactions, hopefully this continues to accelerate activity in the buy to let marketplace.”

The post LendInvest Launches Summer “Specials” appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-launches-summer-specials/

Shawbrook Issues Terms On Second Charge Mortgage In 24 Hours

Shawbrook the challenger bank has reported that it has issued terms on a second charge mortgage in 24 hours.

The second charge mortgage was offered to provide a consolidation for other debt and also to raise some capital for renovations.

Gavin Seaholme (pictured), head of sales at Shawbrook Bank, added: “This case has demonstrated how we are navigating the current obstacles in the lending market to ensure we continue to be the safe pair of hands that our brokers need us to be.  

“This one-day offer is a testament to both the hard work from the Shawbrook team, and the excellent packaging by Fluent Money.” 

The loan terms were issued in April during the lockdown for COVID-19.

Matt Lenzie from Commercial Mortgages Broker said: “Shawbrook continue to offer a prompt and efficient process for borrowers, which inevitably is required at an extremely uncertain economic time. Getting terms issued in 24 hours is clearly a speedy process, hopefully the team will continue to be able to deliver at this speed. Shawbrook offer a number of innovative processes and products for property investors, particularly for second charges, HMO Finance and development finance.”

 

The post Shawbrook Issues Terms On Second Charge Mortgage In 24 Hours appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/news/shawbrook-issues-terms-on-second-charge-mortgage-in-24-hours/

Government Extends Planning Permissions Terms

The Government has indicated that it will extend planning permissions which otherwise may have lapsed due to developers unable to commence their project due to the COVID-19 pandemic.

Normally when planning is granted the parties have 3 years to commence the project from the date that the consent is received. However, the government have now indicated that they will offer an extension to projects which have been disrupted by the lockdown.

Knight Frank partner and head of town planning, Stuart Baillie, said the time extension is “not very generous”. He added: “I would prefer to have seen greater flexibility with a full 12 months or even 24 months added to the expiry date of the original consent. Clearly the government is intent on pushing industry to deliver construction and in particular new homes but we are yet to understand the full economic impact of Covid-19 on businesses, market demand, labour supply, and construction costs, which is unlikely to be understood until we are well into 2021.”

Additionally, the government is preparing to introduce new measures to speed up the pace of planning appeals. The government plans to bring in new laws to permanently grant the Planning Inspectorate the ability to use more than one procedure – written representations, hearings and inquiries – at the same time when handling a planning appeal, allowing appeals to happen much faster.

Matt Lenzie from Commercial Mortgages Broker said: “this is a positive move by the government, although the extension period does seem a bit short. Knowing how long these transactions can take, this probably doesn’t make a huge amount of difference. From our conversations with builders and developers there is a huge amount of uncertainty regarding exit values and funding, therefore an extension of a couple of months probably doesn’t make that much difference. A 12 to 24 month extension would probably help more.”

Commercial Mortgages Broker offer a wide range of funding solutions for developers and investors, get in touch with our team today.

The post Government Extends Planning Permissions Terms appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/development-news/government-extends-planning-permissions-term/

Buy To Let Yields Remain Flat

A recent report from Sourced Capital which is a peer to peer lending platform has uncovered that buy to let yields have only increased by 0.1% year on year.

Mortgage and Introducer reported: “In England, rental yields fell by 0.1%, while London specifically has seen a decline of 0.2%.

However, the North East has seen an annual increase of 0.12% and on a local level, Corby has seen an uplift of 0.7%.

Charnwood, Newcastle and Exeter saw a jump of 0.5%. Harlow in Essex and the Orkney Islands showed a 0.4% increase, along with Ealing which saw the largest increase of all London boroughs.

While Glasgow has seen a marginal decline on an annual basis, its current average rental yield of 7.87% remains the strongest in the UK BTL sector. Inverclyde, West Dunbartonshire, Midlothian and East Ayrshire also remain some of the most profitable pockets, while outside of Scotland, Burnley, Belfast and Blackpool also rank well.

Matt Lenzie from Commercial Mortgages Broker, the specialist Buy To Let Finance platform said: “it is unsurpirsing that rental yields have not increased, particularly given the difficulties which have been encoutered during the COVID pandemic. Hopefully as the restrictions release the rental markets should continue to return back to normal, potentially increasing yields.”

“It is interesting that in England the yields have dropped, with London being hardest hit. Many landlords are considering exiting the sector due to the increased regulation which has been introduced, this has certainly impacted the sector.”

Stephen Moss, managing director of Sourced Capital, said: “Turning a profit in the buy-to-let sector remains a tough ask with a number of government changes denting profitability and yields remaining largely flat.

“With COVID-19 presenting additional hurdles such as rental arrears and longer void periods, many are now turning to alternative options such as the peer to peer sector for a safer, more hands-off investment.

“However, that’s not to say that a buy-to-let property won’t make a great investment should you place your money in the right pockets of the market.

“Buy-to-let returns are based on fine margins and so an annual increase of 0.7% isn’t as insignificant as it may seem.”

Commercial Mortgages Broker provide a wide variety of specialist finance, including HMO Finance, Buy To Let Mortgages and much more.

The post Buy To Let Yields Remain Flat appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/buy-to-let-yields-remain-flat/

Castle Trust Secures Banking Licence

Castle Trust, the short term, bridging finance and specialist finance provider has secured their full banking licence.

After being authorised with restrictions in March 2020 the conversion will take place later this month.

Martin Bischoff, CEO of Castle Trust said: “Being granted a full banking licence signals the start of the next phase of Castle Trust’s growth. Our first priority is to convert our 30,000 existing investment accounts into savings accounts, after which we look forward to launching our exciting new range of savings products in late July. The full banking licence opens up many new opportunities for the business, which we expect to benefit our specialist property finance and retail finance offerings. We already have 200,000 customers and look forward to helping even more in the future. We’ll be revealing details of our enhanced specialist property lending proposition shortly, which will build upon our existing offering to meet the needs of buy-to-let landlords and High Net Worth individuals. Our new status enables us to work with a wider range of property brokers. The banking licence also offers great potential for growth within Omni Capital Retail Finance, which will help more retailers and small & medium sized businesses to provide their products and services to more consumers.”

Tim Hanford, managing director of J.C. Flowers & Co., Castle Trust’s majority shareholder, added “Castle Trust’s achievement of a full banking licence is the culmination of a great deal of work over an extended period of time. The licence is the endorsement of the quality of this business at many levels. We have a terrific board and an exceptional team of people who deliver innovative products to our customers supported by a technologically advanced infrastructure with robust processes and controls. We look forward to continuing to be part of Castle Trust’s development and success, and remain excited by the opportunities for a nimble competitor in the UK banking market.”

Matt Lenzie from Commercial Mortgages Broker said: “this is a major step for Castle Trust, and takes them into a different sphere, congratulations to the team and all involved.”

The post Castle Trust Secures Banking Licence appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/castle-trust/castle-trust-secures-banking-licence/

Paragon grows specialist buy-to-let book

Paragon Bank the specialist lender has revealed that it has grown its specialist buy-to-let mortgages business by 1.5% over the first half of its financial year.

The numbers:

Business written: £694.6m specialist BTL finance.

End date: 31 March 2020.

Increase of 1.5% on 2019’s figure.

Pre tax profits: £57.1m.

Other mortgage business: £98.2m

Down: £42.6m

Reason: Focus on professional landlords, losing amateur and first time landlords.

Richard Rowntree, Paragon managing director of mortgages, said: “We continued our focus on specialist buy-to-let business during the period, which is reflected in today’s results.

“We believe that larger-scale, professional landlords will fuel the future growth of the private rented sector and we are well-positioned to serve that market.

“We have remained active during the lockdown period, supporting our customers and quickly adapting to the challenging conditions. We have recommenced physical property valuations and received an upsurge in visits to our Intermediary Portal in the period after the housing market reopened in May, suggesting pent-up demands from landlords.”

Matt Lenzie founder of Comercial Mortgages Broker said: “Paragon has clearly realigned itself with the professional mortgage market, reducing the risks involved with inexperienced investors. This should help their balance sheet as we move through a more tricky trading environment, so they appear to have made the right move for the environment. Its good to see the numbers are strong!”

The post Paragon grows specialist buy-to-let book appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/paragon/paragon-grows-specialist-buy-to-let-book/

InterBay Commercial relaunches HMO and MUFB product range

Interbay Commercial the specialist finance lender has relaunched their HMO and Mortgage Finance for Multi Unit Freehold Block products.

Properties in England between seven and 20 bedrooms/units can be considered, with loans from £100,000 to a maximum of £1.5m, and up to 70% LTV.

Student lets will also be considered, in addition to larger loans, on a referral basis, and intermediaries are urged to contact their senior BDM to discuss specific cases.

As part of OneSavings Bank, InterBay is able to leverage its expertise in this particular market and will be utilising physical long-form valuations (described as a specialist, much more detailed report, commonly used on bigger HMOs and more complex properties) through its valuer colleagues to support this move.”

Matt Lenzie, Founder of Commercial Mortgages Broker said: “its great to see Interbay Commercial returning into the marketplace, with the return of these products, and is a clear demonstration that there is some element of confidence returning to the markets following the interruption by the COVID-19 pandemic.”

The post InterBay Commercial relaunches HMO and MUFB product range appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/interbay/interbay-commercial-relaunches-hmo-and-mufb-product-range/

Hampshire Trust Bank launches new 5:2 fixed rate product

Hampshire Trust Bank has launched a 5:2 fixed rate buy to let mortgage product, providing additional flexibility for brokers and their clients.

Matt Lenzie, Founder of Commercial Mortgages Broker, the specialist finance brokerage, said: “the introduction of the 5:2 product provide investors and landlords with the confidence that they have a 5 year fixed term locked in, with the flexibility of a 2 year term if that may be required. We find ourselves in unprecedented waters, with no clear visibility of when the markets will completely return to normal, therefore flexibility in this economic environment is very sensible.”

Alex Upton, Commercial Director of Hampshire Trust Bank, said: “I’m really excited to announce this new solution – it allows brokers to offer the best of both worlds to their clients. The borrower can get the certainty and leverage provided by a five-year fix with the flexibility of a two. This enables more control in managing their portfolio as plans change and opportunities arise.”

“This is also about getting back to normality. Yes, this is a difficult time with unusual challenges, but we need to stop navel gazing, start looking forward and continue to innovate. We are in constant dialogue with all stakeholders. Decisive innovation, together with continued investment in our people and process, is what makes us an agile and genuinely specialist lender.”

The post Hampshire Trust Bank launches new 5:2 fixed rate product appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/hampshire-trust-bank-launches-new-52-fixed-rate-product/

Landlords on payment holidays declined on new buy to let mortgages

Landlords who have requested payment holidays due to the COVID-19 pandemic are finding that they are being declined when applying for new buy to let financing facilities.

Landlords are therefore urged to think extremely carefully about taking payment holidays, as these will potentially jeopardise future financing, either for new acquisitions or alternatively for refinancing existing assets.

The FCA has recently extended the potential for payment holidays, and there is also some discussion around whether the payment holidays could last until October this year.

It is important to note that payment breaks do not negatively impact an individuals credit score, however, a lender can incorporate payment holidays as one of their criteria, as LendInvest have recently implemented.

Matt Lenzie from Commercial Mortgages Broker said: “unfortunately some landlords did not consider the potential implications that taking a payment holiday may have. Some of our clients are in a tight financial position, so had no choice, but it is fair to say that some other clients saw this as an opportunity to reduce their outgoings for a period of time. We have had several instances where clients have made applications and have either been declined, or alternatively have had to repay the payment holidays which they had taken, and furthermore cancel the payment holiday going forwards as a condition of a new financing application.”

“Landlords need to think carefully about using these types of schemes unless they are absolutely necessary. Also, borrowers need to think about the potential impact of taking a Bounceback loan, as this will be factored into the cashflow position, particularly for portfolio landlords, again landlords need to ensure that drawing down the money, albeit at a cheap rate of interest, with no capital repayments for 12 months, will bring sufficient benefits.”

To discuss your funding requirements, and for a no obligation review of the facilities in place, please get in touch with our team.

The post Landlords on payment holidays declined on new buy to let mortgages appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landlords-on-payment-holidays-declined-on-new-buy-to-let-mortgages/

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We specialise in commercial finance, development finance, bridging loans and other specialist mortgage solutions from a variety of funding sources.

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