Shawbrook’s Broker Barometer reveals optimism about post COVID-19 lending environment

Shawbrook, the specialist UK savings, development finance, bridging finance bank, has recently revealed broker confidence in business growth and the post COVID-19 lending environment following their latest Broker Barometer.

Nearly two thirds of commercial brokers (63%) and second charge brokers (66%) revealed that they are optimistic about the lending environment following the UK’s ease of lockdown restrictions.

When commenting on their businesses, more than two in five commercial brokers (42%) and second charge brokers (45%) added that they were confident about the growth of their businesses in the post-lockdown environment.

Shawbrook also revealed that brokers expressed some concern about lending restrictions, valuation issues, and lead generation challenges in the current climate.

It was reported that 45 per cent of commercial brokers believe that investors and landlords will be aiming to increase their portfolio in response to the pandemic; dropping to 34 per cent with second charge brokers.

When asked about business volumes, a quarter of respondents stated that they had seen business volumes increase or remain stagnant when compared to pre-coronavirus levels.

Emma Cox, sales director of property finance at Shawbrook Bank, said: “It’s difficult to predict the outlook for the property market as we emerge from COVID, there are so many variables.

“However, in spite of future uncertainty, it is positive to see that many brokers are optimistic when it comes to business growth and the lending environment.

“Of course, we understand that the current landscape presents a number of challenges, and some brokers will be feeling that more than others.

“This means that as we look ahead, and as we move further out of lockdown, it is more important than ever that lenders continue to work closely with the broker community to help navigate the inevitable challenges of the next six months.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/shawbrook/shawbrooks-broker-barometer-reveals-optimism-about-post-covid-19-lending-environment/

United Trust Bank expands development team with new director and manager

United Trust Bank has expanded its development finance division with the appointment of a new director and manager.

Hardeep Thandi from Aldermore has joined UTB as director of property development, alongside the recruitment of industry experienced Martin Nield as a manager.

Thandi has over 14 years of experience in a number of industry sectors; including property development and commercial and corporate banking.

His responsibilities will include promoting the development finance offering to SME housebuilders, developers, property investors and specialist introducers. Relevant parties will be those across the Midlands, Yorkshire, Humber and the North East.

Thandi will also work alongside Huw Jenkins to cover the North of England.

Martin Nield will be based in London with the responsibility of supporting senior managers Phil Bird and Rob Syrett in serving its extensive client base and expanding the development finance portfolio.

Nield comes from a background in the asset finance sector for both lenders and brokers, as well as property finance which he moved into with Secure Trust Bank.

“With Hardeep and Martin joining the team, we have strengthened our presence in the north of England and London, where we see considerable potential for further growth,” said Adam Bovingdon, senior director of property development at United Trust Bank.

“By increasing our customer and broker support around the country and building greater awareness of UTB and our development finance offering, we aim to make the bank a first pick for SME housebuilders and developers looking for competitive products and the backing of a reliable, knowledgeable and supportive finance partner.

“Hardeep and Martin bring experience and enthusiasm to the team and they share our commitment to supporting SME housebuilders and developers.”

Adam explained that while the Covid-19 pandemic had changed the UK’s economic landscape, the demand for housing remained a key issue.

“SME housebuilders can have a significant part to play in the delivery of those new homes and we are keen to provide the funding to enable them to seize opportunities and keep building.”

Original article featured here…

The news follows UTB’s approval for accreditation by the British Business Bank as a lender for the Coronavirus Business Interruption Loan Scheme (CBILS) in June 2020.

The bank’s CBILS offering is aimed exclusively for SME housebuilders, developers and investors whose businesses have been impacted by the COVID-19 pandemic.

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source https://commercial-mortgages-broker.co.uk/utb/united-trust-bank-expands-development-team-with-new-director-and-manager/

Avamore Capital completes sixth loan with same borrower this year

Avamore Capital, the London based short term and bridging finance lender, has supplied six deals for the same borrower since January 2020 – totalling circa £8.2m.

The specialist lender has secured a total of six deals for the borrower, Miheer Mehta (Sterling Rose), with the latest deal being a residential bridging loan worth around £1.3m at 43.9% loan-to-value.

This particular project had an estimated GDV of £4.22m, and throughout the beginning lockdown stages Avamore maintained regular contact with Miheer to utilise a valuation that was greater than three months old.

Miheer was represented by Harold Benjamin Solicitors and had a strong background in similar schemes, allowing Avamore to take comfort in the security of their deal.

The lender was represented by Underwood & Co and also had a background of similar deals; completing over 10 transactions in the area and examining sales data on a daily basis as part of its credit process.

Since the beginning of this year, Avamore has worked on five other deals with Sterling Rose, including two finish and exit projects, one heavy refurb, and two ground-up developments.

“I have had the pleasure of working with Avamore on a range of schemes this year; this was my sixth deal with them and they have worked tirelessly to meet my expectations every time,” said Miheer.

“Dealing with decision makers who have a real understanding of my requirements is the reason I choose to work with Avamore repeatedly.”

Original article featured here…

Avamore’s finish and exit deal with Miheer in Croydon was their first completion in 2020, totalling at £1m.

Avamore stepped in when the project was yet to be finished, where they were able to refinance the scheme from another lender and provide the necessary funding to complete the remaining tasks for the development.

A monitoring surveyor was only used to confirm practical completion towards the end of the development.

At the beginning of March 2020, Avamore completed its second ground-up scheme with Miheer, just before the COVID-19 lockdown restrictions were finalised. The lender issued a £1.8m loan for 12 months against a former meat market and parking allotment.

“At Avamore, we are dedicated to supporting our borrowers and completing our sixth scheme with Miheer amid current circumstances is testament to our relationship-driven lending,” added Philip Gould, head of underwriting at Avamore Capital.

“We have closed deals with Miheer both prior to the outbreak of coronavirus and now, which has illustrated our ability to navigate around the market’s changing state.

“…We look forward to working with Sterling Rose again in the near future.”

Original text featured here…

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source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-capital-completes-sixth-loan-with-same-borrower-this-year/

“Solid rebound” in buy to let expected to stay on track according to a Paragon Bank survey

According to a Paragon Bank survey, 4 out of 10 mortgage brokers expect to see increased levels of buy-to-let business in the upcoming 12 months.

The survey involved over 200 intermediaries, with 41 per cent of respondents stating they expect more buy to let business.

This figure is a slight decrease from the 43 per cent recorded in the first quarter of 2020, however well up from the 38 per cent recorded during the final quarter of 2019.

It was also noted that just over another quarter of intermediaries expect buy to let mortgage levels to remain stable in the near future, indicating a steady level of confidence in the industry.

Richard Rowntee, Paragon’s managing director of mortgages, commented:

“Despite the buffeting that Coronavirus has caused to the mortgage market, and housing sector more broadly, there is clearly still strong and stable demand for buy to let via intermediaries”

“We have seen a solid rebound in buy to let business since the housing market reopened in mid-May and landlords have been unlocking capital to invest and grow their portfolios further.

“We expect to see increased demand for rented property underpinning growth in the coming months as people delay house purchase or cannot obtain a mortgage with the removal of higher loan to value products in the residential market.”

Rowntree adds: “Coronavirus has had a clear and damaging impact on the economy and the UK as a whole, but the long-term fundamentals underpinning demand for buy to let remain unchanged. The UK has a growing population with increasing numbers of households and the private rented sector will provide a good quality home for many of them.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/solid-rebound-in-buy-to-let-expected-to-stay-on-track-according-to-a-paragon-bank-survey/

Landlords with government bounce back loans refused new mortgage finance

Landlords who took out a government bounce back loan have been reporting issues when applying for new buy to let finance on rental properties.

Property investors expressed their difficulties on the landlord forum Property Tribes, reporting rejected mortgage applications by TMW and Paragon due to a bounce back loan being taken out.

One landlord in particular expressed his concerns of whether the loan will affect his ability to obtain a future mortgage, so much so that he is considering paying the entire sum back after originally taking it as a precautionary measure.

Banks say that landlords applying for the government loan is direct evidence that their business is struggling. As a result, the response from most lenders is that they will make decisions on a case-by-case basis when deciding whether to lend.

In cases where there is evidence of a bounce back loan, underwriters will investigate into the borrowers circumstances to ensure they are financially stable enough to take on an increased amount of finance.

A bounce back loan is a state backed loan of between £2,000 and £50,000, but it is capped at 25 per cent of the business’s total turnover.

Repayments do not need to be made for the first year, and there is no interest charged. The loans are issued for up to six years with no penalty to repay it early.

Over 860,000 bounce back loans have been issued since May.

Andrew Montlake from broker Coreco said: “Given the nature of the bounce back loan and its ready accessibility, it seems natural for many businesses and landlords to take advantage of this so they have it as a ‘just in case’ provision. It does not necessarily mean that that they are in any kind of trouble at all. You could argue that it would be remiss of them not to take up the offer.

“Whilst I understand that lenders are approaching the current environment with some caution, the whole point of the assistance is to help people to carry on as normal. Not lending to people just because they have taken a bounce back loan seems against the spirit of the government assistance.”

Speaking at The Buy to Let Online Forum, Matt McCullough, national sales manager, intermediary mortgage distribution, Aldermore, said: “Bounce back loans form part of many businesses contingency plans at this challenging time and so long as a loan taken isn’t being used to fund a mortgage it would be suitable for us. Lenders really want to ensure that companies are not facing ongoing challenges that could in practice put the mortgage at risk. So long as that is also mitigated then there isn’t a real overall issue.”

A spokesperson for TMW said: “We don’t decline applications just because someone took a bounce back loan. However, if someone had a loan that was still to be repaid, it would be considered as part of the holistic assessment of the mortgage application.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/property-finance-news/landlords-with-government-bounce-back-loans-refused-new-mortgage-finance/

Roma Finance broadens bridging range

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has added multiple new bridging products to its range.

New products added to the range include an AVM Auction Product where no physical valuation is required, and a standard bridging product at 70% LVT with rates from 0.95% and no exit fee.

With the introduction of the new AVM product, investors will be able to obtain an AVM valuation before an auction; supplying them with an accurate ceiling price for bidding which aims to provide them with confidence that finance has been secured ahead of time.

Roma also offers a popular bridge-to-term option, and has recently introduced new solutions in the holiday let and serviced accommodation market.

According to managing director Scott Marshall, the firm has seen a recent steady rise in enquiries for short-term let products.

Scott Marshall, managing director at Roma Finance, said: “With strong and sustainable funding lines in place to help us keep pace with the growing demand for our products, now is the right time to launch these new products and improve LTVs for our priority business lines.

“To cope with higher business levels we are continuing to expand the Roma team and we are seeing tremendous growth in our lending for property acquisition and refurbishment. The new products and lower rates will further stimulate our business in a focused and strategic way and we will continue to deliver excellent service to our introducers and customers.”

Original article featured here…

Matt Lenzie from Commercial Mortgages Broker, the bridging finance specialists said: “this is positive news from Scott and the team at Roma, they have clearly identified demand in certain areas of the marketplace and are seeking to provide unique products for these areas.”

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source https://commercial-mortgages-broker.co.uk/buy-to-let-finance-2/roma-finance-broadens-bridging-range/

Landbay secures new funding partnership with UK bank

Landbay, the buy-to-let lender, has launched a new funding collaboration with a deposit taking UK bank to help broaden its product range.

The bank will also fund mortgages originated by Landbay and hold them on its balance sheet.

The collaboration complements Landbay’s current institutional funding arrangements, and will allow a wider product range available for buy-to-let investors via mortgage intermediaries.

It will also make Landbay one of the most diversely funded buy-to-let providers in the UK.

To concur with the new funding partnership, Landbay has also released a collection of special edition products; including 2-year fixed rates from 3.09% and 5-year fixed rates from 3.35%. All of which rates come with a 1.5% product fee.

John Goodall, CEO at Landbay, commented:

“This new funding partnership and our contribution to the  successful Canada Square securitisation earlier this month, together with the measures that we have put in place over the past three months, means that Landbay is one of the few lenders emerging from the pandemic stronger than we went in.

“We have continued to lend throughout the year, including throughout the lockdown.

“At the end of March we became the only, purely buy to let mortgage lender to make it into Tech Nation’s Future Fifty index of the UK’s most successful tech companies, placing Landbay as one of the leading FinTech companies in the country.

“We are continuing to strengthen our already robust lending model and innovative platform from which we lend.”

Ying Tan, founder and chief executive of Dynamo, added: “Landbay is rapidly becoming one of the leading specialist buy-to-let lenders in the market.

“This new funding line and successful recent securitisation shows the faith that the financial markets have in Landbay and its origination model.

“It is a very positive sign for the future of buy-to-let.”

Doug Hall, director of 3MC, also commented on the partnership and latest developments. He stated:

“Landbay has been known, since day one, as one of those lenders who will always go the extra mile for intermediaries and for their clients.

“A new funding line and even lower rates will make them still more competitive and offer even better deals for landlord borrowers.”

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source https://commercial-mortgages-broker.co.uk/buy-to-let-finance-2/landbay-secures-new-funding-partnership-with-uk-bank/

LendInvest launches new structured property finance team

LendInvest, the London based buy to let finance and bridging finance platform, has recently launched a structured property finance team to supply tailored solutions to large and complex property deals.

The new team will have the capacity to offer larger bridging loans including land and commercial security, as well as development exit and development finance.

The team will be led by experienced sales director Tom Madden and senior business development managers Michael Minnie and Gary Clark. The trio combined have over 55 years of specialist property finance experience, offering an impressive outlook for the new team.

“The creation of the new structured finance team is a natural step for the business, and a formalisation of a lot of the work the team have been delivering to date,” Madden said in a blog on LendInvest’s website.

“This launch builds on the team’s successful track record of understanding our borrower’s businesses, helping our brokers add significant value and providing a tailored experience for professional property investors and small- and medium-sized enterprise developers.”

Original article featured here…

During the COVID-19 lockdown, LendInvest published some vital articles on the benefits of development finance for borrowers. This included long loan terms and cheaper rates which prove helpful for developers seeking to sell units in difficult and uncertain market conditions.

At the beginning of the COVID-19 UK lockdown, LendInvest froze recruitment and tightened its lending, including decreasing its maximum loan-to-values (LVT’s) across all of its product offerings.

However, last month, the lender increased its maximum LVT’s, indicating that recovery in the property market is beginning to take place as lockdown restrictions ease and confidence returns.

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source https://commercial-mortgages-broker.co.uk/lendinvest/lendinvest-launches-new-structured-property-finance-team/

Hope Capital Completes Its First Automated Valuation Model Deal

Hope Capital the short term lending and bridging finance house has completed its first ever loan based on an automated valuation model (AVM), after first introducing it a matter of weeks ago.

After purchasing the property at auction, the borrower needed prompt access to the funds without delay.

Within seven working days from the initial enquiry, Hope Capital were able use an automated valuation model to issue the loan for £163,350 at 55% loan-to-value (LVT).

Hope Capital introduced AVMs as part of its Customer Collection, including desktop and drive-by valuations in order to ensure that the property is consistent with its surrounding properties.

For cases where funds are needed on an urgent basis, AVMs enable rapid valuations on a much faster timescale than physical valuations, making it favourable in such scenarios.

Synergy Commercial Finance was the broker for the loan.

Jo Malyon, of Blue Badger Financial, part of the Synergy network, said: “Dealing with Hope Capital has been a breath of fresh air and the team there will be my first port of call on every case.

Piotr Twaits, sales director for Synergy Commercial Finance, added: “We have had a series of good experiences of working with the team at Hope Capital.

“They always take the time and trouble to work with brokers and borrowers to get them the deal they need, and deliver to very fast timescales when necessary.”

Jonathan Sealey, CEO of Hope Capital, said: “At Hope Capital, we are all about finding a solution for every borrower that meets their needs and timescales.

“In this case, an AVM was a vital part of that process.

“Embracing this technology means we are able to complete loans much more quickly where necessary, without waiting for a full valuation.

“With Synergy, we also knew we were working with a trusted partner, and were able to progress the loan rapidly as a result.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/hope-capital/hope-capital-completes-its-first-automated-valuation-model-deal/

Aldermore welcomes new parliamentary report on improving the UK planning system

Aldermore Bank has recently welcomed a new parliamentary report on methods to improve the UK planning system.

The All Party Parliamentary Group (APPG) asked its members for their views on the issues they face during planning processes, and their opinions on how this could be improved.

After gathering the results, The All Party Parliamentary Group for SME Housebuilders report – supported by Aldermore – was published earlier this week.

The APPG is chaired by MP Andrew Lewer, and the report is due to be submitted to Christopher Pincher, the minister of housing, ahead of the government’s planning whitepaper launch later this year.

The aims of the whitepaper are to update and modernise the UK planning system, guaranteeing it “supports the delivery of homes that local people need.”

The APPG report noted a number of different findings and barriers to success for SME housebuilders due to the planning system; noting that they are at a disadvantage due to their size which restricts ability to absorb delays and added costs as easily as larger companies.

The report also highlighted that in certain cases it is more cost effective to promote larger development sites, as smaller sites are not necessarily easier to get through the system or require less expertise.

The report contains 17 recommendations, including:

• more certainty and consistency in the planning system
• a 26-week planning guarantee
• strategic sites to be earmarked for a percentage of SME housebuilders
• the need for an efficient and well-funded planning system (especially at local authority level)
• design reviews to take place early on in the process
• small site register to assist SME housebuilders in delivery and meet local housing needs.

Original article featured here…

A full copy of the APPG report is available online and accessible here.

“SME housebuilders are the front-line troops in our national ambition to both increase housebuilding, quality of build, and enhance [the] reputation of construction as an optimal career choice,” said Andrew Lewer.

“The quality and the quantity of the responses we have received underlines the constructive approach in which the APPG operates.

“People who really know what they are talking about have given their time and their effort towards the stimulating responses to be found in our report.

“We will try our best to ensure that the views our members help reform the planning system fit for the future and thank Aldermore for their support.”

Tim Boag, group managing director of business finance at Aldermore bank, added: “Aldermore is backing a number of SME housebuilders to develop sites across the UK and they tell us of the planning issues they are experiencing, many of which are described by the APPG in this timely report.

“These cause delays and prevent new homes from being developed for young people, families, and for older members of our society.

“Up until the 1990s, SME housebuilders were responsible for many of the new homes and housing estates that were built across the UK.

“We now need them more than ever if the UK is to achieve the government target of building 300,000 new homes a year.

“Aldermore supports the report’s findings and hope they help change the planning system for the good of both SME housebuilders and the delivery of much needed homes.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-welcomes-new-parliamentary-report-on-improving-the-uk-planning-system/

Masthaven completes bridging loan for £3.5m in five days

Masthaven, the UK bridging loans and development finance bank, has recently completed a £3.5m bridging loan in just five working days.

The funding was required for a London-based customer to repay their existing mortgage and carry out refurbishment work on an £8m property.

The case was introduced to Masthaven by Enness, a specialist and luxury property brokerage, because of the banks track record of completing loans promptly with competitive rates.

Using the bank’s online broker portal, credit-backed terms were issued and solicitors instructed on the same day.

Despite challenges facing the market due to COVID-19, the valuation was able to be carried out the next working day, with the report delivered that same afternoon.

Masthaven underwrote the case and worked alongside Enness to close the deal in just five working days of receiving the initial case application, lending a total of £3.5m.

Chris Lloyd, vice president at Enness said: “This case was all about speed, which meant communication was key.”

Chris worked with Jim Baker, head of business development for short-term lending at Masthaven, to ensure the customer received a credit-backed DIP quickly, which outlined the terms and requirements needed to proceed.

“The customer is incredibly pleased with the product and the quick turnaround.”

Alan Margolis, director of bridging at Masthaven Bank, added: “Bridging loans are about people, so I visited the customers at the property to establish a personal relationship from the outset.

“Given the challenges facing the market as a result of the coronavirus crisis, we were really pleased to have been able to turn the loan around so quickly, delivering a great outcome for our customers.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/masthaven/masthaven-completes-bridging-loan-for-3-5m-in-five-days/

UK housing market sees post-lockdown ‘mini-boom’ after stamp duty cut

According to figures released from property website Rightmove, a mini UK housing market boom has been gathering pace since finance minister Rishi Sunak announced the stamp duty tax cut earlier this month.

Rightmove revealed that in the five days after Sunak’s announcement on July 8, the number of sales agreed in England rose by an annual 35% when compared with the same period last year.

This contributed to a large increase in the recovery that was already taking place, which saw agreed sales grow by 15% in June.

In a bid to help boost the UK economy, Sunak temporarily raised the tax threshold, meaning UK buyers now pay no stamp duty on properties worth £500,000 or less. These new rates are set to be in place until 31 March 2021, with the change said to save each home-buyer an average of £4,500.

According to Rightmove, prices sought by home sellers hit a record high between June 7 and June 11; rising by an annual 3.7% to hit an average of 312,625. This was an increase of 2.4% when compared to prices before the COVID-19 lockdown commenced in March.

“These figures are the earliest indicator of house price trends,” Rightmove Director Miles Shipside said. “They show on average prices gently rising not falling, and this will be reflected in the coming months in other house price reports.”

Original article featured here…

Mortgage lenders Nationwide and Halifax have reported major decreases in mortgage approvals and house prices, according to Bank of England data.

As a whole, Rightmove figures indicate a strong recovery in interest from potential buyers as a result of the stamp duty cut, with recent buyer enquiries across Britain increasing by 75% when compared to last years statistics.

Jon Cooper, Head of Distribution at specialist bank, Aldermore commented:

“It is encouraging to see the Government be proactive in backing homebuyers in a time when there is an urgent need to stimulate the market. The initial costs of getting on the ladder can be a real barrier to many, so anything that helps reduce that entry fee is welcome for the housing market.

“The wider economic recovery through job retention after the furlough scheme ends and the continual protection of businesses will be the real determining factor for how the housing market performs throughout the rest of this year. Homeowners and first time buyers need job security if they are to feel confident in realising their homeowner plans.”

John Goodall, CEO of Landbay, added:

“There is clearly pent up demand for housing following three months of lockdown and the Chancellor’s stamp duty cut is effectively giving people the extra cash to inspire them to make the move. The good news is that this also applies to landlords buying properties with a buy-to-let mortgage.”

“The demand for private rental property is higher than ever.  There are a lot of people who, due to being furloughed or made redundant, may not now be able to get on the housing ladder and for whom good quality rental will be essential. As the cut in stamp duty may well encourage landlords to invest in further housing as well as helping other people to move house it should help both house purchasers and renters.”

Last week, Bank of England Governor Andrew Bailey said there were promising signs of activity returning “quite strongly” in the housing market.

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source https://commercial-mortgages-broker.co.uk/housing-market/uk-housing-market-sees-post-lockdown-mini-boom-after-stamp-duty-cut/

Landbay increases maximum loan size to accommodate ‘buy-to-let’ bounce

Landbay has increased its maximum loan sizes from £1m to £1.5m as it looks to take advantage of recent stamp duty cuts and the resumption of the property market.

The loan size increase will be effective for all standard properties, houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).

It will also include new build properties from £500,000 to £750,000 across its whole range.

The alternative buy-to-let lender has also increased its maximum loan-to-value (LTV) to 75 per cent on small HMOs and MUFBs, up from 70 per cent LTV previously.

Rates on standard properties including new builds were reduced earlier this week, on 21 July, as follows:

• Its two-year at 75 per cent LTV reduced from 3.64 to 3.54 per cent.
• Its five-year fixed rate at 60 per cent LTV reduced from 3.75 to 3.54 per cent.
• Its five-year fixed at 75 per cent LTV reduced from 3.85 to 3.74 per cent.

Product fees for all three products remain at 1.5 per cent

Original article featured here…

Paul Brett, managing director of intermediaries at Landbay, commented:

“The buy-to-let market has experienced a strong bounce back since the easing of lockdown restrictions and the combination of these new lower rates, together with competitive loan sizes and LTVs will help landlords to expand their portfolios, or remortgage their existing properties,”

“With a combination of low interest rates and the temporary reduction of stamp duty, I believe that savvy landlords will exploit this opportunity to the full, which will only be a good thing for the buy-to-let market and everybody in need of private rental accommodation.”

Original article featured here…

Matt Lenzie from Commercial Mortgages Broker said: “it’s great to see that Landbay has increased LTV’s back to “normal”. This is a further demonstration of the confidence returning to the market post lockdown.”

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-increases-maximum-loan-size-to-accommodate-buy-to-let-bounce/

Shawbrook provides £9m commercial loan and £13m short-term loan to borrower

Shawbrook, the specialist UK savings and lending bank, has recently provided a £9m commercial loan and a £13m short-term loan for the funding of two separate properties by the same borrower.

Westrock Capital approached the bank with a client looking for funding for two different properties; a vacant office building in Watford, Hertfordshire, and a PRS apartment scheme in Kent.

The deals came to the lender 3 months ago, in late April, during a period of market uncertainty due to the Coronavirus pandemic.

After working tirelessly to complete the case, the commercial and short-term lending teams were able to release the funds just two months after the initial contract.

With a large amount of investment potential, the borrower was able to successfully secure both properties.

Shawbrook provided the vacant office building with £13m via a 12 month short-term loan, released on an interest-only basis. They also provided the full £9m for the PRS apartment scheme on interest only and fixed for five years.

Westley Richards, director at Westrock Capital, said: “I was very impressed with the bank’s ability and resolve to get these transactions completed in such difficult market conditions.

“Each loan had its challenges, but our team worked hard to ensure each transaction completed despite the complications posed by the Covid-19 lockdown.

“It was a pleasure working with Shawbrook and I look forward to working together again in the future.”

Emma Cox, sales director at Shawbrook Bank (pictured above), commented: “We are delighted that we have successfully enabled the client to secure two great investment opportunities.

“The current circumstances created hurdles that [we] both had to navigate, but the two teams worked brilliantly together to ensure the client received the funding required within the deadline.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/shawbrook/shawbrook-provides-9m-commercial-loan-and-13m-short-term-loan-to-borrower/

Octopus Real Estate supplies £18.3m loan for major York development

Leading specialist investor Octopus Real Estate has granted Heworth Green Developments with an £18.3m development finance facility for a major development site in York, under the North Star banner.

The site has planning permission for 607 homes, as well as retail or community-use floorspace on the 8.95-acre former National Grid site. As part of a brownfield development close to amenities, it will also offer additional communal and privatised open spaces for residents located on the site.

The facility provided by Octopus Real Estate will be used for refinancing purposes, funding the ground works, and obtaining remaining areas of the site for completion.

Plans are in place for work to commence on the development later this month with remediation and infrastructure work, which will enable the construction of the new homes and facilities to follow.

The £18.3m facility is another huge funding milestone in the £85m GDV development journey. It has since been revealed that Moda Living has exchanged contracts for the Private Rented Sector (PRS) elements of the site, whilst North Star will recommence developing 215 open-market sale units.

“The Heworth site … has taken many years to get to a position where works can commence, and we are proud to be involved,” said Ludo Mackenzie, head of commercial property at Octopus Real Estate.

Tom Frank, managing director at Ice Cubed Commercial Finance — who acted as the adviser — commented that arranging the finance on this development had been complex, especially in the current challenging conditions.

“Successful closing of the deal is testament to our close relationship with Octopus Real Estate and the client.

“We are very proud to play our part in delivering this fantastic high quality development so close to our York office.”

A spokesperson for North Star added: “The journey to transform this large, brownfield site into a vibrant new community has taken over 18 months so far, and we are very excited to see it now coming to fruition.

“This will now enable us to start construction works on the site, and the first step will be to remediate the site, which will start very shortly.

“Our aim is to create a high quality sustainable development that York can be proud of and we are committed to delivering the development, even in these challenging times.”

Original article featured here…

Matt Lenzie from Commercial Mortgages Broker said: “it’s great to see Octopus continuing to perform at this level. This is a significant facility and one which will transfer this part of York!”

The post Octopus Real Estate supplies £18.3m loan for major York development appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/octopus-property/octopus-real-estate-supplies-18-3m-loan-for-major-york-development/

LendInvest provides refinance on commercial land in Southend

LendInvest has provided a £348,000 refinance on a commercial land sale in Southend, which was undergoing delays due to Coronavirus.

The owners purchased the commercial property in 2017, and after obtaining planning permission for demolition and the construction of 12 apartments, the sale was met with many delays due to COVID-19.

The owners required the finance imminently due to their current lenders threats to appoint receivers and the need to refinance the property before lockdown restrictions eased.

After reviewing the application, LendInvest used the existing valuation report and search indemnity to provide the borrower with the money in just eight days.

Stefan Canavan, chief executive officer at Willow Isle Capital, the brokerage working on the deal, said: “With such a short deadline to meet, I knew we needed a lender who we trusted to move quickly.

“Having worked with LendInvest many times before on similar cases, I had faith that they were the right choice.

“This faith was not mis-placed, and the team worked exceptionally well to complete the transaction on time.”

Original article featured here…

The refinance loan was for £348,000 at 60% LTV, allowing the borrower to continue with the project after previous delays.

Justin Trowse, director for bridging finance at LendInvest, commented: “The last couple of months have illustrated just how important it is to be available to deliver quality, reliable finance to borrowers that need it.

“The team has worked tirelessly to ensure cases such as this move along quickly and seamlessly to prevent delays to a project.”

Original article featured here…

The post LendInvest provides refinance on commercial land in Southend appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/lendinvest/lendinvest-provides-refinance-on-commercial-land-in-southend/

Buy-to-let products remain below early 2020 figures

According to Moneyfacts, the level of buy-to-let products remains at two thirds of what was available at the start of the year, despite the increase of buy-to-let mortgages in the market since May.

The data gathered revealed that the number of buy-to-let mortgages had jumped from 1,455 in May to 1,738 at the start of the month – an increase of 283.

However, the statistics proved that the overall market remains far below the buy-to-let product levels which were recorded in January and March (2,583 and 2,897), with product availability falling month-on-month.

The buy-to-let market analysis also revealed that there has been an increase in the product choice available within the 80 per cent loan-to-value bracket, as well as an increase in the number of two- and five-year fixed rate deals.

Whilst these figures saw an increase, the number of two- and five-year fixed rate deals saw a slight decrease in the 60 per cent LVT bracket.

Eleanor Williams, finance expert at Moneyfacts, said: “The small drop in the number of deals at 60 per cent LTV for two and five-year fixed rate products could be explained by the fact that lenders may have increased any maximum LTV caps that they put in place earlier this year, as the number of products live in the next LTV categories (65 per cent, 70 per cent and 75 per cent) have all increased.

“This is a further indication of an appetite to lend from providers in this sector”.

Original article featured here…

However, the expansion of overall product choice and the continued competitiveness of average rates could be seen as early indicators that the sector is beginning to recover.

Tony Si, director of The Buy to Let Specialist, said: “It’s a welcome sign of some confidence returning to the buy-to-let market, after the initial uncertainty due to the pandemic. A lot of which was due to the fact that surveyors were unable to carry out their duties due to lockdown restrictions.

“Now that Scotland and Wales have also recently opened their housing market up, I think we will see more products and lenders coming back into the market over the coming months. Hopefully with more rate reductions on the cards as we get back to some normality.”

Original article featured here…

The post Buy-to-let products remain below early 2020 figures appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/buy-to-let-products-remain-below-early-2020-figures/

Stamp duty cuts impact on buy-to-let

Chancellor Rishi Sunak has recently cut the stamp duty tax to zero for almost 90% of home buyers, in a bid to help boost the UK economy and property market in the wake of coronavirus.

As of 8 July 2020, the tax threshold has been temporarily raised, meaning UK buyers will now pay no stamp duty on properties worth £500,000 or less. The new rates are set to be in place until 31 March 2021, with the change said to save each home-buyer an average of £4,500.

The news is welcomed by many industry professionals, who had been calling for a change in stamp duty rates over recent months to encourage new buyers. It now expected that those buying between £400k to £500k will save an impressive average of £15,000 on their transaction.

However, as well as first-time buyers and homeowners benefitting from the cut, the recent changes apply to everyone:

For many people who were holding off purchases due to uncertainty, this is likely to boost confidence to buy. But this does not just apply to homeowners.

Those purchasing second homes or buy-to-let properties also benefit from the stamp duty holiday. Property investors who purchase through limited companies will also be exempt up to £500,000. However, the pre-existing 3% surcharge on such purchases will still apply.

So property investors spending less than £500,000 will only need to pay 3% tax on top of the purchase, as opposed to the previous 5%. For the portion between £500,001 and £925,000, the charge will be 8%. Between £925,001 and £1.5m, the fee is 13%. The rate for the final portion above that is 15%.

The cut will certainly bring a swathe of previously hesitant buyers to the fore. While some investors have been waiting to see what happens with property prices, tax savings could prompt them to take action sooner.

Original article featured here.

Matt Lenzie from Commercial Mortgages Broker said: “this is a positive news for the property market in general, and hopefully should see transactions to continue at the levels which we have been experiencing post COVID lockdown, the government has made lots of changes with stamp duty over the past few years, and there is a clear correlation between stamp duty costs and transaction levels, hopefully this continues.”

The post Stamp duty cuts impact on buy-to-let appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/stamp-duty-cuts-impact-on-buy-to-let/

283 more products have been added to lenders’ buy-to-let ranges

Moneyfacts the independent finance research company, have reported that 283 more products have been added to lenders’ buy-to-let ranges.

There are now 134 more 2-year fixed products available in the BTL sector than there were at the start of May 2020, and 164 more 5-year fixed rate products.

Unsurprisingly, the overall buy-to-let finance market is still far below the levels seen in January, when 2,583 products available, and March (2,897).

Average rates remain competitive, especially when compared to January.

The average rate for 2-year fixed rate mortgages on 1 July was 0.21% less than at the start of this year, while the 5-year fixed rate has fallen by 0.22% over the same time period.

Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “The shock of the coronavirus pandemic and its resultant effects has been the latest event to impact the beleaguered buy-to-let mortgage market, following on from a number of changes over recent years that affected stamp duty, interest relief and capital gains tax.

Original article featured here.

Matt Lenzie from Commercial Mortgages Broker said: “it’s great to see the volume of buy to let finance products continuing to increase, hopefully this demonstrates the continued confidence of lenders in this marketplace. Here at CMB, we have seen significant volumes of enquiries since lockdown has been lifted, and we expect this trend to continue in the short to medium term.”

A recent demonstration of buy to let products coming back into the marketplace is where Accord have re-launched their 80% LTV buy-to-let range.

The intermediary lender reintroduced products up to 90 per cent LTV last month.

It is now returning to offering its full range of buy-to-let LTV products for brokers with landlords wanting to remortgage or purchase.

New products will be launched at 8am on Friday 5 June to support the changes.

Remortgage products include:

• Two-year fixed rate at 2.76% at 80% LTV with £950 product fee, free standard valuation and either £250 cashback or Accord’s re-mortgage  legal service included
• Five-year fixed rate at 3.20% at 80% LTV with £950 product fee, free standard valuation and either £250 cashback or Accord’s  remortgage legal service included

Purchase products include:

• Two-year fixed rate at 2.89% at 80% LTV with £950 product fee, free standard valuation and £500 cashback
• Five-year fixed rate at 3.25% at 80% LTV with £950 product fee, free standard valuation and £500 cashback

Accord Mortgages director of intermediary distribution Jeremy Duncombe says: “Not only have we been able to re-launch our 80 per cent LTV range, but we’re offering a very competitive choice of products to landlords with smaller deposits.”

This was reported here: https://www.mortgagestrategy.co.uk/news/accord-brings-back-80-ltv-buy-to-let-products/

 

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/283-more-products-have-been-added-to-lenders-buy-to-let-ranges/

Aldermore appoint a new head of development finance and specialist finance

Aldermore the specialist finance lender has recently appointed a new head of development finance and specialist finance.

Iain Bryon who has joined Aldermore from the highly respected Europe Arab Bank — part of the Arab Bank group, has over 35 years of experience in the commercial real estate sector.

In his new role, Iain will help strengthen Aldermore’s specialist real estate offering across sectors including hotels, healthcare and student accommodation.

“Having specialised in property finance for most of my career I am delighted to have joined Aldermore,” he commented.

“I’m looking forward to expanding the bank’s lending proposition in the development space and supporting businesses right across the UK.”

John Carter, commercial director for commercial real estate at Aldermore, added: “It’s great to have someone of Iain’s experience join our real estate team.

“Iain is well known in the industry for his expertise in emerging sectors and he will help further strengthen our offering to clients.

“I look forward to working with Iain in supporting our existing customers and growing our franchise.”

Matt Lenzie from Commercial Mortgages Broker said: “it’s great to see Ian’s appointment, we wish him all the best in his new role, undoubtedly there will be some challenges in the current environment, however, Aldermore have a great brand and reputation, and hopefully this appointment will help to continue to increase their market share in the specialist finance, development finance and short term property markets.”

The post Aldermore appoint a new head of development finance and specialist finance appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-appoint-a-new-head-of-development-finance-and-specialist-finance/

Shawbrook Switches To Shawbrook Base Rate

Shawbrook Bank has confirmed that from July it will move its rates off the three-month LIBOR and on to the Shawbrook Base Rate.

Shawbrook says that will be “no financial detriment to your clients as a result of the immediate change…we are clearly unable to predict future fluctuations that may well have a financial impact.”

It adds that it aims to make the transition to the new base rate, “as seamless as possible”.

Shawbrook explains that its new rate will “typically” be the same as the Bank of England’s base rate, but that this is not guaranteed.

It offers two examples of scenarios that could cause a difference: first, where the official base rate does not reflect the cost of funds, and second, where the nature of the BoE’s rate is made.

“We do not directly link our products to [the BoE base rate], but intend to pass on changes that occur in [it] as long as it is representative of changes in banks’ market funding costs,” says Shawbrook.

Regarding pipeline cases, the bank says that the SBR will not apply to cases where a formal mortgage offer has been provided and is valid.

At the time of writing, the SBR stands at 0.10 per cent, the same as the official bank rate.

However, the SBR is subject to a minimum floor of 0.75 per cent, meaning borrowers actually pay 0.75 per cent.”

Matt Lenzie from Commercial Mortgages Broker said: “this is an interesting move, the risk associated with this switch is that in the long term borrowers may be impacted as the Shawbrook internal cost of funds may be higher than LIBOR.”

The post Shawbrook Switches To Shawbrook Base Rate appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/news/shawbrook-switches-to-shawbrook-base-rate/

Hope Capital Sees Surge in Enquiries In June

Hope Capital the short term lending and bridging finance house has reported a surge in property finance enquiries.

Hope Capital has reported an increase of 189% in enquiries.

The number of formal loan offers also increased by 20% compared to June 2019.

Hope Capital has also reported that application and underwriting has been three times faster than in the first quarter of 2020.

Over the first six months of 2020, the firm has seen a 14% increase in loans accepted by underwriting and a 31% increase in loans accepted by clients.

Nearly 90% of the new enquiries Hope Capital received in June were for residential property, up from just 50% the previous year.

While 25% of residential enquiries came from the North West of England, 31% of were from borrowers in the South East – the highest proportion for any region.

Jonathan Sealey (pictured), CEO of Hope Capital, said: “These figures are evidence that demand for short-term finance is strong, and growing.

“With lockdown easing, there is a pent-up demand for borrowing as projects that were put on hold in spring are put back in motion.

The strong demand we have seen also reflects the range of products we have made available to meet borrowers’ diverse needs in the post-lockdown world.

Our new Hope Capital Custom Collection gives borrowers all the flexibility they need to cope with the new circumstances in which they find themselves as a result of COVID-19.

“Hope Capital is putting borrowers and brokers in control. Combined with our well-earned reputation for fast, flexible service, this should make Hope Capital their first port of call when looking for short-term finance.”

Matt Lenzie from Commercial Mortgages Broker said: “Hope Capital’s experience appears to be reflected by the wider marketplace, with enquiry levels up by a significant level, particularly for bridging finance and also for development finance facilities.”

The post Hope Capital Sees Surge in Enquiries In June appeared first on CMB.

source https://commercial-mortgages-broker.co.uk/hope-capital/hope-capital-sees-surge-in-enquiries-in-june/