Optimistic outlook for buy to let market – except for one location

The latest house price index, released and produced by the website Home, gives a broadly optimistic outlook for landlords and other buy to let investors in the UK – except for London.

Doug Shephard, Home’s director, says that the capital is in short term lettings difficulties because of a glut in supply – up an astonishing 30 per cent on this time last year, mostly as a result of the return of many properties from the short-let Airbnb and related sector.

“Rents are on the decline overall in Greater London – down 5.2 per cent annually – whilst rising across the rest of the regions” he says.

Across most of the rest of the UK, however, there are “soaring rents and falling supply.”

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Home revealed that in the North and West, the majority of annualised rises are around the 10 per cent mark and this, coupled with the capital gains due in these sales markets, means there is likely to be further BTL investments.

Shephard also makes the point that with Sterling still relatively low and the stamp duty holiday now a significant draw to investors, the “UK property sector has become particularly attractive for expats and non-British investors.”

“Moreover, the looming stamp duty surcharge of two per cent for non-UK residents will hit in April 2021, and therefore we expect a surge of such purchases over the coming months in order to beat the deadline.”

Original article featured here…

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UK housing market boom continues into August as demand keeps rising

The snowball effect of the UK housing market reopening in May is still gathering pace, with demand continuing to rise throughout August.

Encouraged by the government’s stamp duty cut, low interest rates, and a surge of new sellers, buyers are increasingly eager to make their move in the sector.

Despite challenges throughout the Covid-19 crisis, the UK housing market has shown great resilience. The latest index from Nationwide reflects this, indicating an annual house price increase of 1.5% in July, with a steep month-on-month increase of 1.7%.

HMRC data also reveals that transactions surged by 14.5% between June and July this year.

Now, Knight Frank’s Residential Market Outlook analyses the strong and fast recovery of the sector, including the behavioural shifts which have had a significant part to play.

According to Knight Frank, Prime property could be leading recovery of the sector. According to data from the agency and Rightmove, this market segment has seen the largest boom in deals since the end of lockdown.

Knight Frank revealed that in the week ending 16th August, the number of homes sold above £1m was double figures recorded in 2019. The annual jump for properties valued at £750,000-£1m was even higher, with 119% more deals than last year in this bracket.

However, another reason behind the rise is the behavioural shift among buyers. Many people living in smaller homes in more urban areas are now seeking greener locations and properties with more space, such as home offices.

As these properties tend to come at a premium, this could partly explain why higher end homes are seeing such an increased demand.

Despite the prime market gathering pace over recent months, there is still uncertainty on the future of other market segments. Property portals have definitely noticed a significant surge in buyer interest since the stamp duty cut, however, the actual effects of this will not become apparent straight away, as sold statistics are revealed with a slight delay.

Therefore, we should prepare to see a further surge in sub-£500,000 deals down the line as sales begin to register.

The report concludes: “A stronger recovery at the top-end reflects the fact that such buyers financial position means they tend to be able to transact more quickly, whilst more affluent households are also less reliant on lending.”

“For now, pent-up demand, the stamp duty holiday and extension of the furlough scheme all continue to support a strong recovery in the market.”

Original article featured here…

The mini boom was first recorded in July, after Rightmove released figures indicating a significant rise in sales following stamp duty changes.

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Banks avoid ‘high risk’ customers with tighter buy to let mortgage restrictions

Landlords striving to take advantage of the stamp duty changes announced by finance minister Rishi Sunak have been blocked from mortgages as banks restrict buy-to-let loans to those with large deposits only.

Property investors, e.g. residential buyers, have noticed the market for small-deposit mortgages shrinking in recent months as the future of the property market causes uncertainty for lenders. These loans are believed to be higher risk than those made to customers with larger deposits.

According to Aaron Strutt of mortgage broker Trinity Financial, Viva Homeloans is currently the only lender offering buy-to-let loans to customers with a 15pc deposit.

As one of the most popular locations for property investment, London will be exempt from these loans.

Strutt warned that the cost of taking these loans was much higher than large-deposit deals. Vida charges an interest rate of 4.79pc to customers with a 15pc deposit for its two-year fixed deal. Rival lender Birmingham Midshires, however, has a rate of 1.22pc for landlords who are able to raise a 40pc deposit.

“Some lenders have started offering lower deposit buy-to-let mortgages but they are charging a premium for the rates,” Mr Strutt said.

“The banks and building societies do not want to go through the hassle of lending to landlords when there is the chance they will need to repossess the property later down the line, so they have strict acceptance policies especially for those with smaller deposits.”

Original article featured here…

The rental market is also facing other issues, such as the Government extension of the rental eviction ban until September 2020. Landlords are now required to give six months’ notice if they wish to reclaim possession of their property.

After being extended on two occasions, there is uncertainty as to whether the Government will extend the deadline for a third time.

Mortgage broker Chris Sykes of Private Finance said this uncertainty was discouraging new landlords from entering the sector. He warned that as restrictions are lifted, there is a possibility of a wave of evictions occurring.

“The upcoming eviction of tenants en masse in the midst of global pandemic will see a great deal of negative publicity,” he said. “Ultimately we believe this will put off new investors to the market, even with the potential savings from the stamp duty holiday.”

Mr Sykes said another hurdle was that lenders offering small-deposit loans have often withdrawn deals with little notice after being overwhelmed with applications. In other cases rates have been increased to a level that makes them unattractive to customers, he said.

“As with the 90pc residential lending market we expect lenders will offer [buy-to-let] mortgages for a short time and be inundated with applications and withdraw them relatively quickly,” he said.

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Shawbrook completes second charge in just three weeks

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, completed a second charge mortgage for a couple looking to renovate their home, moving the case to offer within three weeks despite criteria challenges.

The second charge mortgage enquiry was introduced to Shawbrook Bank by broker partner Fluent Money, whereby the applicants were looking to raise £400,000 to carry out home improvements, including a rear extension, to a property purchased at the beginning of the year.

The couple – who were living in rented accommodation at the time – decided upon purchasing the security valued at £4m that as they could comfortably afford the rent plus the mortgage, they would prefer the renovation works were complete prior to moving in with their new born baby.

However, Shawbrook’s criteria requires that the applicant must reside in the security for a minimum period of three months.

As the property was habitable and that Shawbrook was not lending for heavy refurbishment, the bank made the exception on the grounds that they had full listings of the works to ensure the funds would be sufficient, along with the required planning consent, a full rent reference from the letting agent and previous mortgage history. They also factored the rental income into the affordability as the applicants were yet to move out.

The bank acquired written confirmation on the expected duration of the works and a formal notice from the applicant to the landlord confirming they would end their tenancy by November, at which point they would be ready and comfortable to officially move in.

A full valuation was carried out and the surveyor confirmed the security was both habitable and mortgageable.

Simon Moore, group director at Fluent Money, said: “This case was a great example that there will always be scenarios in the market place where standard criteria simply doesn’t cover or was not designed to capture this particular instance.

“Affordability was not an issue and the rationale behind the clients not living there was clear, could be evidenced with schedules of work and timescales making this a temporary problem.

“The case needed a quick response and once the salient points were presented to the lender, and if they were to accept, then full commitment to hitting the deadlines would be needed.

“I am delighted to say that Shawbrook’s quick referral process and appetite to understand the nuances of the case meant that we could fulfil this client’s wishes ahead of schedule.

“In the current climate where we are seeing fresh challenges and an ever evolving landscape it is great to have the support of lenders who are willing to consider excellent cases, albeit they have aspects to them that previous criteria may not have taken into account.”

Gavin Seaholme, head of sales property at Shawbrook Bank, said: “Working with our partner, Fluent Money, we have succeeded in providing a great solution for the applicants.

“Our continued support for our Brokers in the current climate shows that we are a safe pair of hands as we move forward with more positive news and an appetite for larger applications that we will deliver on.”

Original article featured here…

The news comes after Shawbrook recently amended their Covid-19 lending criteria earlier this month.

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Bridging lenders optimistic despite market uncertainty

Latest data reveals that almost two-thirds of bridging finance lenders are feeling optimistic about the long-term prospects of the UK economy, compared to just 50 per cent when the survey was previously carried out by the Association of Short Term Lenders last June.

The sentiment poll revealed that lenders are split on the immediate prospects for their own businesses, with 41 per cent revealing that they expect the turnover of their business to expand during the next six months against the same percentage who predict that their turnover will decrease.

Additionally, 41 per cent of lenders predict that the turnover of the bridging sector as a whole will grow within the upcoming six months, compared to 36 per cent of respondents who predict it will shrink.

However, 57 per cent of lenders expect a reduction in the amount of competition in the sector, whilst only 5 per cent believe there will be an increase.

43 per cent of bridging lenders also predicted a fall in house prices within the next six months, with just 24 per cent expecting a slight increase.

ASTL chief executive Vic Jannels says: “2020 has been a year like no other, but short-term mortgage lenders have demonstrated their resilience and ability to adapt in challenging circumstances.

“It is particularly encouraging that so many of our members are confident about the long-term prospects for the UK economy.

“And while we face much uncertainty and many challenges in the immediate future, those businesses that continue to maintain high standards of underwriting and customer focus will be well-positioned to benefit from economic recovery in the future.”

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HMO investors flock to auctions chasing high yields

Investors chasing double digit yields are flocking to auctions in a bid to secure properties to let out to multiple tenants, according to short-term lender MT Finance.

Houses of multiple occupation (HMO) are in increasing demand as a result of the cancellor’s introduction of a stamp duty holiday which means no tax is paid on the first £500,000 of a residential property purchase.

Despite landlords still having to pay the three per cent stamp duty charge, the temporary tax break can save investors thousands of pounds.

Recent government changes to planning laws has also provided the HMO market with an additional boost, as commercial and retail premises are now allowed to be converted into housing without full planning permission, extending the permitted developments that currently allow offices to be converted in the same way.

Tomer Aboody, director of property lender MT Finance, said auctions were “extremely busy” right now.

He added that increased stock is coming into the auction houses from investors looking to cash out of the market as it recovers, while experienced landlords were looking for HMOs to add to their portfolios.

The latest national report of auction activity from EIG revealed that auctions were beginning to return to health after being stalled due to the halt on valuations.

Despite the number of lots offered across the 43 auctions nationwide dropping in June by close to 30 per cent, the percentage of those selling increased 13.5 per cent to 81 per cent.

HMO landlords can achieve yields upwards of eight to 10 per cent compared to a UK average of around five per cent for single tenant buy-to-let properties.

“Many investors looking to maximise yields are opting for HMOs,” says Abody. “It is an attractive asset class because the housing market is such that people will be renting for longer and there will be a steady supply of tenants.”

Ying Tan, chief executive of Dynamo, said: “We have definitely seen a rise in HMO enquiries from experienced investors. They are the ones seizing the opportunity right now. The stamp duty holiday has raised interest and investors are looking for the best return.”

Original article featured here…

Tan noted that HMOs are popular choices for tenants because renting an individual room in a house is a cheaper alternative to paying for the whole house.

However there are risks that come with HMO letting, that investors must take into consideration.

Tan added: “A lot of tenants who live in house shares may work in the hospitality trade, which has suffered job losses. The good thing about HMOs, however, is that there you can have five to six renters in your property and only need two or three of their payments to cover your mortgage.”

But the high yields should not trick investors into thinking HMOs are easy money.

Aboody said: “HMOs are only suitable for sophisticated investors who understand the market and what they are getting into. I would not advise first-time investors to go down this route.”

He added: “It is an extremely specialist regarding management and costings, where your perceived income yield is impacted by the managing expenses.”

Original article featured here…

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United Trust Bank launches new communication hub

United Trust Bank (UTB) the buy to let, bridging finance and development finance lender has launched their new communication hub ‘UTB Secure Chat Hub’ to allow brokers and customers to communicate securely with the bank during mortgage applications.

The new App is available to download from usual App stores, and will allow customers to communicate with the Bank, upload files such as bank statements and payslips, e-sign documents and scan documents for facial recognition ID verification as well as complete security checks to save them both time and inconvenience.

A new update due to be released shortly will also enable introducers to register, refer cases and forward documentation, features central to the Bank’s digital strategy.

The system also delivers a higher degree of data security than email communications.

Buster Tolfree (pictured), commercial director – mortgages at United Trust Bank, said: “This latest fintech development from UTB makes application processing quicker, simpler and more secure for customers, introducers and the Bank and will revolutionise the way we communicate with our mortgage applicants and the way we manage our workflow within the team.

“The system is fast, flexible and very user friendly. Our suite of innovative FinTech features makes several previously onerous tasks quick and simple for customers to complete safely and securely in their own homes.

“Many brokers and lenders have had to change the way they work to overcome the challenges presented by the Covid-19 pandemic. UTB continued to lend throughout the lockdown, sometimes using manual workarounds when digital solutions would have been better.

“Introducing the Secure Chat Hub enables more elements of our application process and communications to become digital. Importantly, this means that we can offer a better, slicker and more efficient application process even before all of the team are working back in the office.

“I’m sure this newest service enhancement will be another welcome addition to our successful #BrokerSummerSupportPackage.”

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Annual house price growth drops to 2.6%, reports Office for National Statistics

According to the Office for National Statistics, house prices grew at a rate of 2.6% over the year to April, down from 3.5% in the year to March.

The report is the first UK House Price Index published by the ONS since the Covid-19 pandemic caused it to suspend back in May.

As a result, the average property in the UK was valued at £234,612, £6,000 higher than in the same period last year. On a non-seasonally adjusted basis, average house prices fell 0.2% between March and April 2020, compared to a rise of 0.7% in the same period in 2019.

Significant differences on a regional basis were also reported, with the North East recorded as the only region in England to see house price falls over the last 12 months. The index revealed that prices decreased by 2.3% in the region, in comparison to a 4.7% increase seen in the East Midland.

Joshua Elash, director of lender MT Finance, said the year-on-year increase tells us what is now an historic tale of a market getting back on its feet after the “Brexit debacle”.

He added: “’This positive data reflects the tail end of the Boris Bounce but it’s not until we get the data in relation to activity in July that we will get a really clear picture of the subsequent impact the Covid-19 pandemic and the Government’s response thereto has had on property values. Today’s data is as positive as it is irrelevant. Expect this to change.”

Mark Harris, chief executive of broker SPF Private Clients, said that the numbers show a housing market that was functioning well before measures like lockdown were introduced.

He continued: “There was evidence of plenty of pent-up demand in the market as Brexit seemed to be on its way to a conclusion and those who had put their decision to move on hold were finally getting on with it. Of course we know what happened next and how Covid changed everything but as we emerge from lockdown and life starts to get back to something resembling normal, the market is thriving once more.

“Lenders have plenty of money to lend but are being naturally more cautious about incomes as a result of the pandemic and recession. It is taking longer to get a mortgage approved as lenders take a closer look at income but there are still some exceptionally cheap deals out there for those who meet the criteria.”

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Buy-to-let purchase activity bounces back

Over 50% of brokers have seen an increase in buy-to-let purchase business in recent weeks, according to the latest research released by online broker forum cherry and Click2Check.

More than 30% of brokers reported an increase in individual purchases and nearly 27% recorded a rise in limited company purchases.

The poll revealed that purchase activity is currently dominating buy-to-let enquiries, with 57% of brokers reporting an increase in purchase business compared to just under 12% who have reported an increase in demand for capital raising on a remortgage.

Additional data also showed an increase in the number of clients with more specialist buy-to-let requirements, with nearly 8% of brokers seeing a significant increase in demand for HMOs and 4% seeing more enquiries for lending on both multi-unit blocks of flats and holiday lets.

Nearly 8% of brokers also revealed they are working with more clients on sourcing bridging for refurbishment products, indicating a significant growth in short-term lending popularity.

Donna Hopton, director at cherry, commented: “The cherry forum is a great way to understand exactly what is going on at the coalface in the everyday lives of mortgage advisers, and it’s clear that there has been a spike in buy-to-let activity in recent weeks. Whereas the buy-to-let market has been dominated by remortgage business in recent years, it is purchase enquiries that are currently keeping brokers busy. The window of opportunity for reduced Stamp Duty Land Tax will certainly be helping to drive this demand, but we are seeing that the market is generally buoyant, which is a positive sign for advisers, and the economy.”

Jeff Knight, director of marketing at Foundation Home Loans, added: “Buy-to-let is proving again to be resilient and research has shown landlord confidence is actually higher now than in the last few years. This presents a great opportunity for landlords and it’s no surprise that many have seen this period of reduced stamp duty as an opportunity to grow their portfolios.”

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source https://commercial-mortgages-broker.co.uk/news/buy-to-let-purchase-activity-bounces-back/

LendInvest to launch ‘appetite statements’ for landlords

LendInvest, the London based buy to let finance and bridging finance platform, has introduced ‘Appetite Statements’ for professional landlord clients seeking a pre-agreed financing offer for their future projects.

The Appetite Statement is a pre-agreed limit, based on specific parameters, of what LendInvest would be willing to lend to the borrower.

It will allow landlords to source investment opportunities with the advantage of having a shorter underwriting process upon application.

As part of a standard mortgage application, if an Appetite Statement is requested an interview will be conducted to ascertain the borrower’s business plan. It will also consider their financial and credit standing.

The borrower will be required to provide the underwriter with a fully completed portfolio schedule and full business accounts, all of which will be reviewed.

When the landlord’s next purchase or remortgage case arises, they are then able to select the mortgage product best suited to their needs in the knowledge that LendInvest’s support has already been secured as a financier.

Andy Virgo, director for buy-to-let at LendInvest (pictured above), said: “Our aim has always been to give our borrowers the confidence to secure their next property with a solid financing offer on the table, we believe our new Appetite Statements will deliver on that aim in a whole new way.

“With buy-to-let landlords included in the recent SDLT reduction changes, there has been no better time to provide an investor with a sign of our commitment to them.”

Original article featured here…

The news comes after LendInvest recently updated its buy-to-let product range and welcomed changes in planning permissions and stamp duty.

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Paragon provides £3.3m for new Surrey housing development

Paragon Bank, the specialist lender, has facilitated property developer Antler Homes with a £3.3m funding package to fund the development of 13 new-build homes in West End, Surrey.

The funding, provided by Paragon’s specialist development finance team, has enabled the buildout of the site (pictured above), assisted the business with the site acquisition, and supported cash flow to invest in future site purchases.

The site is due to be completed in spring 2021, after construction began last month.

The new development of three-bedroom semi-detached new homes is located within a short distance of Woking centre, which has direct links to London, and is within walking distance of the West End village.

Andrew Rinaldi, managing director of Antler Homes, said: “We were very pleased with the service received from the team at Paragon.

“We worked with Andrew Fairley and Joshua Mann from the team at Paragon and they were both extremely proactive, facilitating a very smooth funding process.”

Andrew Fairley, relationship director at Paragon, added: “It is great to be able to support with funding for this scheme.

“During the recent difficult times, it’s been our priority to continue supporting the needs of both our current and new-to-bank clients and we hope to continue our relationship with the Antler for future projects.”

Original article featured here…

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Shawbrook lends £9.1m to convert former MOT garage into new homes and commercial units

Shawbrook, the specialist UK savings, development finance, bridging finance bank, has provided a £9.1m funding facility to Featherstone Homes to transform a former MOT garage and bus depot into modern residential homes and commercial units.

The scheme on Streatham Road, Merton, includes 30 new residential homes with commercial space at ground-floor level.

The space was previously home to numerous single-storey light industrial buildings, and most recently used as an MOT and repair garage.

The site has now been redeveloped by Featherstone Homes to comprise of new homes designed for modern day living and a single residential block over two-, three- and four-storeys.

There is also a ramp to a ground-floor car park for accessibility, and landscaped podium gardens located to the rear.

Rowan Stewart, director at Featherstone Homes (pictured above), said: “We aim to develop not only modern but striking homes that demonstrate attention to detail and high-end specification.

“By fully understanding what our buyers are looking for, our developments exceed modern living demands using the latest design, quality materials and new technologies.

“[This] is our flagship development and a strong representation of what Featherstone Homes represents.”

Shawbrook was introduced to this project by Adrian Dadds of Mulgrave Finance.

Rowan added: “As a specialist lender, Shawbrook provided us with a funding facility to assist with the redevelopment of the site.

“They were an extremely flexible, responsive and knowledgeable lender, particularly as we attempted to overcome barriers to complete a redevelopment project in the midst of the Covid-19 pandemic.”

Terry Woodley, managing director of development finance at Shawbrook, commented: “We are delighted to have supported this ambitious and technically-challenging scheme, and to have worked so closely and successfully with such an innovative and creative property developer in the form of Featherstone.

“From the very beginning, our close relationship with the client ensured that we understood their specific requirements and could provide the funding to complete the development successfully despite market uncertainty, initially in relation to Brexit and then, more recently, Covid-19.

“As a specialist development finance provider, our understanding of the market and also of the challenges that SME property developers are facing in this climate allowed us to adopt good sense and judgement to help Featherstone complete an outstanding redevelopment project in the area.

“With over 70% of unit sales now completed, this development demonstrates that Featherstone Homes is providing modern, well designed new-build apartments in the right locations and with strong demand from buyers and we are delighted to be supporting them.”

See original article here…

Shawbrook supports the UK’s SME’s and individuals with a range of lending and savings products.

Since the establishment of Shawbrook’s development finance team, it has successfully provided more than £650m in finance for projects across the UK.

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Shawbrook releases second podcast episode on current state of bridging market

Shawbrook, the specialist UK savings, development finance, bridging finance bank, has released its second episode of ‘A Conversation with Shawbrook’, discussing the current state of the bridging market and the recent stamp duty changes.

The episode is hosted by Gavin Seaholme, head of sales at Shawbrook, and includes the group sales and marketing director at Crystal Specialist Finance, Jason Berry.

The podcast was launched to create an opportunity for Shawbrook’s broker partners to express their opinions and experiences of the key challenges facing their business and the industry as a whole.

In the latest episode, Gavin and Jason explore the updated rules on permitted development, the impact of tax changes on the BTL market, and the future role of technology within the commercial finance market.

The first episode — hosted by Emma Cox, sales director of property finance at Shawbrook, in discussion with Phil Gray, managing director at Watts Commercial Finance — explained how the Watts family dealt with the coronavirus crisis and the challenges they faced.

The news comes after Shawbrook recently made a number of amendments to its lending criteria to be implemented with immediate effect.

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Buy-to-let sentiment steadily on the rise

According to a survey of chartered surveyors, there has been a steady increase in rental property instructions during recent months – an indication that the buy-to-let market is rebounding.

The July 2020 RICS UK Residential Survey was published last week, and saw that 6 per cent more respondents report an increase in new buy-to-let property arising in the market during the past three months than did not.

The findings mean that surveyors are beginning to see landlords come back, or existing ones purchasing more properties.

Despite the professional body describing the figures as only “marginally positive”, it has been noted that this was the first time that the flow of landlord instructions had reportedly improved since 2016.

The buy-to-let market expanded swiftly after the financial crisis, but has since faced challenges as a number of tax and regulatory changes have hit landlords’ pockets.

Many believed the changes may lead to a shrinking of the buy-to-let market leaving only ‘professional landlords’ able to make viable returns, resulting in many buy-to-let investors leaving the market earlier this year.

According to additional findings published by the survey, rents are also predicted to rise by around 1 per cent at national level during the next 12 months. However, London was the only region where projections remained negative, at -1 per cent.

The sentiment survey also found significant evidence to suggest the chancellor’s recent announcement of a stamp duty cut was playing a “significant role” in lifting demand for house purchases, however respondents did not expect this to continue at the end of the year when wider government support measures are phased out.

Simon Rubinsohn, chief economist at RICS, said: “The strong impetus provided to the housing market is evident both in the results of the RICS survey and many of the anecdotal comments from respondents.

“However, it is interesting that there remains rather more caution about the medium term outlook with the macro environment, job losses and the ending or tapering of government support measures for the sector expected to take their toll. Significantly, some contributors are now even referencing the possibility of a boom followed by a bust.”

Original article featured here…

Coronavirus support schemes launched by the government for furloughed employees, the self-employed and mortgage borrowers are due to end in October.

In the survey 57 per cent more respondents saw an increase in agreed sales in July than did not, suggesting a strong increase in transaction levels after the significant declines reported over earlier stages in the crisis.

However, 10 per cent more respondents predicted a decrease in sales throughout the year ahead.

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Buy-to-let product numbers fall as rates increase

The number of buy-to-let finance products on the market has seen a significant drop month-on-month, according to the latest data released by Moneyfacts.

The report found that on 17th August, a total of 1,660 buy-to-let products were available. This figure is down from the 1,738 products recorded in July, and a significant drop from the 2,897 landlord mortgage deals which were available in March 2020 before Covid-19 restrictions were implemented.

Additional data revealed that the number of two-year fixed rate buy-to-let products fell from 625 in July to 596 in mid-August, while on five-year fixed rates the numbers have dropped over the same period from 644 to 612.

According to Moneyfacts, as product numbers have decreased, interest rates have recently began to steadily increase.

The average rate charged on a two-year fixed rate buy-to-let mortgage has increased from 2.61% in July to 2.72% in mid-August, while on five-year products average rate has jumped from 2.97% to 3.11%.

Eleanor Williams, finance expert at Moneyfacts, noted that over the last six months the buy-to-let sector has been “a little more resilient” than the residential market when it comes to product choice, and pointed out that while rates have crept up since July, they remain lower than what was being charged back in March before the pandemic struck.

She continued: “Landlords looking to invest in the buy-to-let sector could see this as an opportune time to explore their options, especially if they think that average rates may continue the upward trajectory we have witnessed over the last two months.

“However, economically, we remain in unchartered waters, with many providers exercising caution in their underwriting, so landlords or potential investors should ensure they thoroughly research and plan ahead in order to protect their investments.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/buy-to-let-product-numbers-fall-as-rates-increase/

Redwood Bank reaches £250m lending milestone

Redwood Bank the buy to let lender has reached a new milestone after lending over £250m to its customers in just under three years since its launch.

Since the start of the year, the challenger bank has lent nearly £100m, around £60m of which has been since Covid-19 lockdown restrictions began on 23rd March.

Gary Wilkinson, CEO and co-founder of Redwood Bank, said: “We’re completely committed to, wherever possible, helping businesses grow, refinance and diversify, particularly as many are now having to deal with the consequences of Covid-19 — and our figures speak for themselves.

“Reaching this momentous milestone in just under three years shows that we have had, and still have, a strong appetite to lend.

“Being such a dynamic and flexible bank meant we could easily adapt our ways of working throughout the lockdown and it’s clearly worked, as customers are still putting their trust and faith in us.

“As lockdown measures continue to ease, now is the time for SMEs to start getting back on their feet, and we’re here, ready and waiting to support them.”

Original article featured here…

Since Redwood Bank launched in 2017, its business customers have collectively saved £300m with them.

The bank confirmed that no employee was furloughed during lockdown, and has continued to actively recruit during recent months. During the Covid-19 period 10 new employees joined Redwood, with one due to start shortly and 14 new roles currently being recruited.

Redwood offer British businesses simple, transparent loans and savings accounts backed up with tailored service and efficient systems.

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source https://commercial-mortgages-broker.co.uk/redwood-bank/redwood-bank-reaches-250m-lending-milestone/

UK housing market sees busiest month for home buying in 10 years

The UK housing market saw the busiest month for home buying in July since data was first tracked by Rightmove, with £37bn worth of property sales agreed.

It has also been reported that Rightmove’s weekly sales agreed figure was up by 60% to the same period in 2019, as buyers recommence their home-moving plans.

Unseasonal all-time highs were also recorded for new seller asking prices in seven regions, with the rising demand for countryside locations driving price increases in areas such as Devon and Cornwall.

Miles Shipside, property expert at Rightmove, said: “More property is coming to market than a year ago in all regions, and at a national level the new supply and heightened demand seem relatively balanced. However, those expressing most desire to move on are unsurprisingly in London and its commuter belt.

“London has 69% more properties coming to market, with the South East at 60% and the East at 56%. With work and transport patterns potentially changing most around the capital, commuter-belt properties need to have more appeal  to prospective buyers than just proximity to a station.

“Many buyers do appear to be satisfying their new needs in these regions, as the number of sales agreed in each is also at a record level. The out-of-city exodus has helped push prices to record levels in Devon and Cornwall, for example, where working from home means a different lifestyle much closer to your new doorstep.”

Tomer Aboody, director of bridging finance property lender MT Finance, added: “The shift from quiet summer for the housing market to a manic one isn’t surprising due to quarantine rules imposed on travelling abroad so the vast majority are staying in the UK and getting on with buying and selling. This buoyant surge in sales and properties coming to market underlines the shift in priorities in terms of buyers’ attitude to moving and their requirements.

“Outside London, the housing market has been busy with workers looking for commuter belt homes which are cheaper than the capital but also bigger for working from home and with outside space for the children.

“The market is set to be busy for a while, due to the stamp duty holiday and with possible further stimulus to come in the autumn Budget, which could make Risihi Sunak more popular than Santa come Christmas.

“While the suburbs and country are proving popular, there are those who need to stay in London for schooling and family commitments. For them, the stamp duty changes don’t go far enough as £500,000 sadly doesn’t buy much within these areas.

“Mortgage lenders have probably never been busier, and with liquidity still good, mortgage products are still competitively-priced.”

Jeremy Leaf, former RICS residential chairman, said: “The housing market is receiving added impetus not just from buyer and seller post-lockdown pent-up demand but from others bringing forward moving decisions prompted by the stamp duty holiday. Despite some suggestions the momentum may fizzle out, there is not yet any sign of bad economic news raining on the parade.

“On the contrary, a more broad-based sustainable recovery may be underway with increased activity in most price ranges. If anything, the market is more likely to be restrained by lender delays in mortgage underwriting than a drop in buyer enthusiasm. Prices are not rising significantly as the increase in listings is helping to balance the market and in any event most buyers seem aware of the risks of overpaying in generally uncertain times.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/property-news/uk-housing-market-sees-busiest-month-for-home-buying-in-10-years/

LendInvest welcomes changes in stamp duty and planning permissions

LendInvest, the London based buy to let finance and bridging finance platform, has welcomed changes in planning permissions and stamp duty after reporting it has boosted the property market outside the M25.

The lender has seen a significant increase in client appetite in this area in relation to planning changes which have meant old commercial buildings can be converted to residential. It will also allow vacant buildings to be knocked down and replaced with more energy-saving new builds.

LendInvest has also reported an effect in the market outside of the greater London area following the stamp duty threshold being increased to £500,000 last month.

“This could grow even further in a post-Covid-19 world where commercial space might be in less demand and the government wants to focus on building homes, creating opportunities for investors who find the right property,” LendInvest said in a blog on its website.

“I have also noticed that the recent changes in stamp duty has helped boost the appetite even further.”

The lender stated that the Covid-19 lockdown restrictions have led to an increased demand to work from home and live outside of the commuter belt, resulting in greater yield for buy-to-let landlords and interest from developers outer suburbs which are increasingly in-demand.

Despite yield in London being less strong than in the North, LendInvest noted that there is still a significant number of excellent opportunities in the capital, such as to extend a property or add value by splitting a property up into several different ones.

“If you research hard enough you are still able to find excellent opportunities within the London market where you can gain both good yielding properties as well as excellent capital growth,” LendInvest said in the blog.

“As with anything, I feel knowing your market and sufficient research is key when investing and I continue to see good demand for both bridging and BTL within the London market.

“As previously mentioned I have already seen demand grow in the home counties as a result of lockdown and new remote working practices.

“Investors able to support this demand in The Home Counties will potentially reap the benefits, whilst the London market will maintain its familiar resilience.”

Original article featured here…

The news comes after LendInvest increased its loan-to-values within its buy-to-let and bridging finance ranges as confidence returned to the housing market.

It has also launched a structured property finance team to provide tailored solutions to more complex property deals.

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source https://commercial-mortgages-broker.co.uk/bridging-finance-news/lendinvest-welcomes-changes-in-stamp-duty-and-planning-permissions/

Increase in buy-to-let mortgage arrears blamed on Covid-19 and damaged economy

A small annual rise in the amount of buy-to-let mortgages in arrears has been blamed on the Covid-19 pandemic and worsening economy.

Statistics released from trade body UK finance revealed there were 5,000 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2020. This is an increase of six per cent from the second quarter last year.

There were 1,270 buy-to-let mortgages with more significant arrears, those that represent 10 per cent or more of the outstanding balance, between the period of April to June. This was five per cent more than the same period in 2019.

The relatively small increase in buy-to-let arrears was attributed to the early effects of Covid-19 by UK Finance, however they added that the increase was notably minor and from a low base.

Filip Karadaghi, managing director of buy-to-let peer-to-peer lender LandlordInvest, blamed the worsening economy for the increase but said his platform has operated without any arrears during the pandemic.

“It is likely that the buy-to-let arrears have increased due to the worsening economy and rent arrears,” he said.

“All of our buy-to-let borrowers have continued to service their loans as usual.”

See original article here…

Meanwhile, it was noted that the number of homeowner mortgages in arrears decreased from the previous year.

There were 73,580 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance during the second quarter of 2020, down three per cent year-on-year.

During April, May, and June, 130 buy-to-let mortgage properties were taken into possession; 80 per cent less than the same period of 2019. Additionally, 90 homeowner mortgaged properties were repossessed in the second quarter, 93 per cent fewer annually.

UK Finance reported that following the industry moratorium on involuntary possessions, the low possessions numbers reflect cases where the property was vacant or where the customer solicited for the possession to go ahead.

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/increase-in-buy-to-let-mortgage-arrears-blamed-on-covid-19-and-damaged-economy/

West One launch two new limited edition buy-to-let products

West One, the specialist bridging finance and buy to let finance lender, has announced the launch of two new limited edition buy-to-let products this morning.

The first is a 5-year fixed-rate loan with a maximum 75% LVT and 3-year ERC. Rates begin at 4.04% on loan sizes from £50k to £1,000,000 with terms from five to thirty years.

This loan is available for houses, leasehold flats and maisonettes, new -builds, HMOs, MUFBs, and holiday lets.

The second is a £250k maximum loan product, with a fixed rate of 3.59% in the standard range and 3.79% for specialist properties – both fixed for a total of five years.

Maximum LTV is 70% with a minimum loan size of £50k, and terms will also run from five to thirty years.

Both loans are reported to entail faster completions and reduced legal fees for qualifying remortgages, up to a maximum of £750k where applicable.

Andrew Ferguson, Managing Director at West One Buy-to-Let, says: “Following the refresh of our product range at the beginning of the month, we promised further enhancements to support our broker partners.

“These limited-edition products fill certain criteria for both standard and specialist landlords looking to expand their portfolios. The range covers individual and limited company applications, across standard and specialist cases, including HMO/MUFB, Ex-Pat, and Holiday Lets, which have seen a resurgence since the Covid lockdown was lifted.

“The added flexibility within the 5-year fixed-rate with 3-year ERC product is something our broker partners have been asking for, so I anticipate strong demand for this.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/west-one-launch-two-new-limited-edition-buy-to-let-products/

Bridging loan volumes decrease by 45% in H1

According to the latest Bridging Trends report, there has been a 45% reduction in bridging loan volumes in the first half of 2020, as a result of Covid-19 lockdown restrictions.

It has been reported that over the six month period, bridging loan volumes declined by £167.88m to £202.26m, in comparison to £370.14m of transactions in the same period of 2019.

The loan volumes of contributors to the Bridging Trends data was £122.86m in the first quarter of 2020, declining significantly from £180.94m in the final quarter of 2019. It has also been recorded that activity further decreased in the second quarter to £79.4m.

Second charge lending culminated to the highest level since 2015 when Bridging Trends launched, accounting for an average of 26.1% of total market volume in Q2 2020. This data is up from 24.4% in Q1 2020 and 23% in Q4 2019.

In Q2 2020, regulated bridging lending hit a record high and elevated its market share to an average of 55.6% of all lending, in comparison to the 37.5% recorded in the same period of 2019. Since Bridging Trends launched, this is the first time that regulated transactions outperformed unregulated transactions.

It was also reported that in Q2 2020, the average weighted monthly interest rate increased to 0.85%. This figure is up from 0.8% recorded in Q1 and 0.75% in Q4 2019. Bridging Trends revealed that this is the highest monthly interest rate recorded since Q3 2016.

Average LTV levels decreased to 48.8% in Q2, from 51% in Q1 2020 and 54.1% in Q4 2019. It has been suggested that this could be a result of the number of bridging lenders removing high LTV products from their product ranges throughout the Covid-19 lockdown period.

Despite unexpected challenges, Bridging Trends also recorded that the average completion time on a bridging loan application has remained consistent throughout the last four quarters – reporting an average completion time of 50 days in Q2 2020, 49 days in Q1 2020 and 51 days in both Q4 and Q3 of 2019.

For the sixth consecutive quarter, purchasing investment property was the most frequent use of a bridging loan – accounting for 25% of all lending transacted by the report’s contributors in Q2 2020.

Gareth Lewis, commercial director at MT Finance, commented: “We are presently living through unprecedented levels of uncertainty and the drop in bridging transactions is not wholly unexpected, given the restrictions on conducting physical valuations until May, servicing challenges, and significant uncertainty around any possible economic downturn.

“MT Finance has seen a definite increase in second charge loans as business owners continue to invest to help support their business.”

Stephen Burns from Adapt Finance, said: “Gross lending showing a decrease was inevitable. However, the amount of change is staggering despite lockdown.

“Regarding the rise in re-bridging – this is due no doubt to certain existing lenders acting disappointingly as if lockdown didn’t happen and refusing to support any additional term. These are some very interesting results, but I am particularly surprised to see regulated transactions take over unregulated.”

Sirius Finance’s Craig Booth added: “We cannot be surprised at decreased lending and a higher rate average, the first inevitable and the second due to changes in risk. What is surprising is the re-bridging of a bridging loan increase. Supporting existing clients should be just as important as new business in challenging markets.”

Dale Jannels, manging director at Impact Specialist Finance, concluded: “We have all seen the huge impact on the markets from the last five months. But since restrictions started to ease, we’ve seen a large influx of enquiries for short term lending, especially relating to refurbishment, development and upsizing/downsizing (where the client needs to secure their next property, but have not sold the current one).

“There have been some fantastic deals engineered and the bridging lenders really do appear to have a huge appetite to assist all different types of clients and scenarios.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/bridging-finance-news/bridging-loan-volumes-decrease-by-45-in-h1/

Octane Capital significantly reduces loan application times by half

Octane Capital, the multi-award winning specialist finance house, offering bridging finance, and refurbishment finance has significantly reduced its application process times for brokers and borrowers – in some instances halving the length of loan applications.

The lender reported that it will only take borrowers applying through the new mobile app just five minutes to navigate through the electronic ID verification, KYC submission and the electronic authority provision to ensure the required credit checks are completed.

The lender also announced a condensing of the application process to just two pages for its currently soft-launched buy-to-let loans.

Octane reported that this would allow brokers to complete this effortlessly on their client’s behalf — notably decreasing the time to completion.

Jonathan Samuels, CEO, Octane Capital (pictured above), said: “The feedback we’ve received on our new application process has been phenomenal and on the back of that we’ve embedded it in every loan we write.

“In the current climate, property investors are proving more active than ever, especially landlords due to the current stamp duty holiday, so radically streamlining our application process couldn’t have been more timely.”

Mark Posniak, managing director, Octane Capital, added: “Our sector is evolving at a rate of knots and we are investing heavily in technology and automation to ensure our brokers and their clients are always on the front foot.

“Since the lockdown has been eased, we’ve seen unprecedented demand from brokers and our new application process, which collapses the time to completion, is what everyone wants to see.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/octane-capital/octane-capital-significantly-reduces-loan-application-times-by-half/

Roma Finance expands team after record 2020 business levels

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has announced the end of furlough for the entirety of its operational team and is actively recruiting following record figures in 2020.

Nick Jones, (pictured), has joined Roma Finance as commercial director following a 20-year career at Together.

Jones’ new responsibilities include overseeing the overall commercial strategy, identifying opportunities, developing new products, and overseeing sales and marketing.

This latest recruitment comes after Roma’s final team members on furlough returned, with the office premises reopening in accordance to local lockdown restrictions and social distancing regulations.

Scott Marshall, managing director at Roma Finance, said: “It continues to be a very exciting time here at Roma and I am absolutely delighted to welcome Nick to the family and the remaining members of the team back from furlough. It has become clear with the recent growth that we need to upscale the team numbers to ensure we can still provide outstanding service and we will have multiple new announcements in the coming weeks.”

Nick commented: “I am delighted to be with Roma Finance and have received a very warm welcome. I’m extremely passionate about the intermediary market and I’m very excited to be a part of shaping the direction of the business. I am grateful to Together for the support and opportunities they gave me, and I am proud to have played a part in its development and I want to wish the Together team every success for the future.”

Marc Goldberg, commercial CEO at Together, added: “Nick is a talented individual who is highly experienced and diligent. He made a significant impact for the business and was a strong positive influence on those around him. We will miss Nick and wish him every success for the future.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/roma-finance/roma-finance-expands-team-after-record-2020-business-levels/

Shawbrook Bank Publishes 2020 Half Year Report

Shawbrook Bank, the specialist UK savings and lending bank specialising in Bridging Finance, Development Finance and Buy To Let Finance, has released its half year financial results for the period ending 30 June 2020.

The bank announced it has set aside £45.8 million of provisions in preparation for potential future loan impairments as a result of COVID-19.

It also reported it had granted £15.9k payment holidays to support its customers through the COVID-19 crisis, of which 10.8k remained in force at 30 July 2020.

In consequence, Shawbrook’s profitability was impacted with a significant reduction in PBT by 89% to £5.9 million.

Despite the uncertain and challenging market conditions resulting from the pandemic, the bank retained its active position in the UK savings market, increasing its retail savings deposit base by 25% to £7.6 billion.

Shawbrook also reported a successful completion of a £75 million Tier 2 re-financing to further optimise its capital structure during the period.

Shawbrook Bank’s Chief Executive Officer, Ian Cowie, said that COVID-19 has had a clear impact on the bank’s financial performance, however Shawbrook remained in a steady position of strength.

He commented: “Prior to COVID-19, the Group had continued to make good financial progress, starting 2020 with a strong balance sheet and prudently positioned capital and liquidity base.

“To further optimise the Group’s capital structure, during H1 2020 we initiated a Tier 2 refinancing and, despite the challenging market conditions, successfully completed the £75 million issuance in July.

“We have also maintained our active position in the UK savings market. However, the longer-term economic impacts of the pandemic remain hard to predict and as a result we have recognised expected credit loss charges in the period on loans and advances to customers of £45.8 million and on loan commitments of £1.5 million.

“While this has clearly had an impact on profitability, our capital strength positions us well to support our customers and grow our business in line with appetite as we enter the second half of the year.”

Original article featured here…

Throughout the COVID-19 crisis, Shawbrook maintained full operational functionality with 98% of employees transferred to remote working and no staff furloughed.

The bank implemented a series of concession opportunities across its product range to help reduce the financial impacts of COVID-19 on its customers.

Over this period, Shawbrook also successfully achieved accreditation to the UK Government’s Coronavirus Business Interruption Loan Scheme (CBILS) to provide additional funding assistance and support to its SME clients.

Mr Cowie added: “Since the outbreak of COVID-19, our focus has remained on supporting our staff, customers and partners while at the same time safeguarding the long-term sustainability of our business.

“When the UK lockdown was announced in March 2020, we acted with speed and agility, moving to an almost entirely remote operation within days. Led by a stable and experienced management team and with the support of new and existing technology, we have continued to operate effectively throughout this period.”

Throughout the first half of the year, the bank also continued to identify investment opportunities to further digitalise its proposition, with a core focus on its SME offering.

Mr. Cowie added: “Notwithstanding the pandemic, we have continued to invest in our business to help drive our strategic ambition to become the UK’s Specialist SME Lender of Choice. As well as the ongoing deployment of targeted digital solutions across the Property, Consumer lending and Savings businesses, our investment in the development of a new growth platform in our Business Finance franchise will serve to further modernise our offering, delivering an enhanced customer journey as well as significant operational efficiencies.”

Looking to the future he continued: “Although significant uncertainties regarding the broader macroeconomic impact and pace of recovery remain, we are cautiously optimistic in our outlook as we start to see signs of momentum returning to certain of our specialist sectors.

“Our management expertise and prudent approach to credit decisioning, combined with investment in our digital propositions, means we are well positioned to adapt and respond to opportunities as they arise throughout the second half of the year.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/news/shawbrook-bank-publishes-2020-half-year-report/

Mini house-buying boom results in highest ever monthly price

House prices hit their highest ever monthly price in July as the property market steadily reopened after the coronavirus lockdown restrictions put it on pause.

According to the latest Halifax House Price Index the average price of a home was £241,604 throughout July, 1.7% higher than June’s £237,834.

It has been reported that prices are 3.8% higher than July 2019.

Russell Galley, Halifax’s managing director, said pent-up demand and a lack of available houses had contributed together to push up prices.

He also reported that the government’s cut in stamp duty has boosted buyers’ enthusiasm after Chancellor Rishi Sunak announced a temporary stamp duty on property sales up to £500,000 in England and Northern Ireland.

These latest figures released by Halifax mirror the recent figures released by the Nationwide Building Society which reported house prices bouncing back in July, increasing 1.7% throughout the month.

“The latest data adds to the emerging view that the market is experiencing a surprising spike post lockdown,” said Mr Galley.

But he warned that while the prospects for the housing market were brighter than might have been expected three months ago, the effects of the pandemic were still creating a great deal of long-term uncertainty.

“As government support measures come to an end, the resulting impact on the macroeconomic environment, and in turn the housing market, will start to become more apparent,” he added.

This view was echoed by Anna Clare Harper, author of Strategic Property Review, who said that the Halifax findings reflected current confidence in the economy:

“What we can’t forecast is what happens next: economically, and in policy.

“What we can predict accurately is that these two factors will prove fundamental to the future of the UK housing market.”, she said.

Another property specialist, Tomer Aboody, director of MT Finance the Bridging Finance Lender, called on the government to consider further stamp duty relief on properties selling for more than £500,000 as he stressed the importance of the sector to the UK economy.

“Now more than ever the housing industry should be looked upon as the foundation upon which to keep the UK working.”

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source https://commercial-mortgages-broker.co.uk/news/mini-house-buying-boom-results-in-highest-ever-monthly-price/

LendInvest increases loan sizes and reduces ICR in latest buy-to-let product range update

LendInvest, the London based buy to let finance and bridging finance platform, has updated its buy-to-let product range this week.

The lender has made a series of changes including an increase of its maximum loan size for MUFB properties up to £1 million for 70% LTV and £1.5 million up to 65% LTV. It will also now accept up to £3 million up to 60% LTV.

Among the changes was a reduction of LendInvest’s ICR to 125% at 4% for basic rate taxpayers on their five year pay rate product enabling landlords greater leverage for lower yielding properties.

LendInvest has also reduced its ICR to 125% at 4% for basic rate taxpayers on their five year pay rate product allowing landlords greater leverage for lower yielding properties.

The lender currently offers a two-year fixed rate at 3.49% up to 75% LTV with a maximum loan size of £750,000. Its five-year fixed rates include a 70% LTV product at 3.69% and a 75% LTV product from 3.59% or 3.69% with a 4% ICR.

Andy Virgo, director of buy-to-let at LendInvest, said: “We are consistently listening to our broker partners and monitoring the market post lockdown to ensure we are responding effectively to what landlords need to keep their business moving forward in a somewhat unique environment. The time is right to make these changes, and is the start of further enhancements to our proposition through the rest of the year.”

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-increases-loan-sizes-and-reduces-icr-in-latest-buy-to-let-product-range-update/

United Trust Bank launches WebChat

United Trust Bank (UTB) has released a new set of mortgage products, criteria, and technology enhancements as part of its #BrokerSummerSupportPackage campaign.

The bank launched its first elements of the package in July, by increasing the maximum LVT from 65% to 75% for self employed borrowers for buy to let finance and including 50% of regular additional income in calculations to help brokers write more business.

The bank’s latest addition to its enhancements is its new WebChat that is being launched through its broker portal. The launch and additional criteria is designed to advance and benefit the process for brokers assisting professional contractors, with a limited edition second charge product aimed at helping customers with historic missed payments on unsecured credit items.

The introduction of the new WebChat will allow any registered mortgage broker to submit new enquiries to the bank online, as well as discuss existing cases/supply content to UTB which would usually be transferred via telephone or email.

In addition to the WebChat launch, the bank has also introduced specific mortgage lending criteria for professional contractors working in sectors where 6, 12, and 18-month contracts are common. This is likely to include industries such as healthcare, business management, and IT.

Prior to the changes, UTB classed these roles within their ‘self-employed’ criteria. The bank therefore anticipates that this move will provide brokers with more clarity when assisting professional contractors who fall under these categories.

As well as these amendments, UTB has also launched a ‘limited edition’ near prime second charge product for customers with historic unsecured payment ‘blips’ on condition that the debts concerned are integrated in the new loan provided.

Mike Walters, sales director- property intermediaries, United Trust Bank, said: “We’ve had a tremendously positive response from brokers to our #BrokerSummerSupportPackage. The increase of our maximum LTV for self-employed applicants certainly caused a stir in the marketplace and we’re hoping that these latest criteria and technology enhancements will be equally well received.

“Our aim is to help our broker partners write more business and make it easier for them to process applications with UTB. We know how important choice, speed and simplicity can be when placing specialist mortgage cases so we’re constantly reviewing our lending criteria and pushing boundaries with our implementation of smart FinTech solutions.

“Brokers are vital to the growth and success of the specialist mortgage market and we will do all we can to support them as they try to turn around a very challenging year.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/utb/united-trust-bank-launches-webchat/

LendInvest maintains top rating for sixth consecutive year

LendInvest, the London based buy to let finance and bridging finance platform, has been granted the highest possible rating from a European ratings agency for the sixth consecutive year.

ARC Ratings is a European credit rating agency that is regulated and registered with the European Securities and Markets Authority (ESMA). Its rating is dependant on factors such as corporate governance, due diligence, internal controls, data disaster mitigation, and the overall financial health of the company assessed.

Following a review of the company, the agency granted LendInvest its top SQ1 Servicer Quality Rating for the sixth year in a row. One particular focus of the agency’s assessment and rating was the processes used by LendInvest to underwrite and service property loans.

In ARC’s latest review they acknowledged LendInvest’s second successful securitisation of £285m of buy-to-let loans that was oversubscribed and closed nine months after the lender’s initial issue.

The rating agency also recognised and commended LendInvest’s handling of the pandemic crisis with specific focus on its forbearance procedures, outlining it’s satisfaction with the processes in place in preparation for the possibility of a second wave.

Rod Lockhart, CEO of LendInvest, added: “After an unprecedented couple of months for the industry as a whole, it’s fantastic to see LendInvest recognised for its ability to weather a crisis and receive the highest possible rating for the sixth year running from such a respected rating agency.

“The business invests heavily in the development of its proprietary technology and continuous improvement of its internal processes, putting us in a perfect position to remain open for business, while offering the same seamless experience that our borrowers and brokers expect.”

Original article featured here…

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source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-maintains-top-rating-for-sixth-consecutive-year/