Octane Capital creates waiting list for BTL offering following high demand

Octane Capital, the multi-award winning specialist finance house offering bridging finance and refurbishment finance, has announced that it has created a waiting list for its new buy-to-let offering following strong demand from brokers.

As recently revealed in the latest issue of Bridging & Commercial Magazine, Octane’s buy-to-let product requires zero stress-testing — which is a significant challenge for brokers and landlords in an increasingly conservative lending environment.

“When we initially launched, we restricted the product to a select group of partners who have supported our bridging, refurbishment, and developer exit loans, in order to iron out any creases,” said Mark Posniak, managing director at Octane Capital.

“But, in recent weeks, we’ve had so many brokers approaching us that we’ve had to create a waiting list to start getting the product into the wider market — while at the same time maintaining the service levels we value so highly.”

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The product has a pay rate from 3.99% and no ERCs payable in the final two years of the term.

It is also available to first-time buyers, foreign nationals and limited companies.

“What we now know for sure is that this product is pressing all the right buttons in the current climate and we’re as keen as anyone to make it available to all,” Mark added.

Brokers can join the waiting list here.

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The news comes after Octane Capital recently condensed the application process for its buy-to-let loans to just two pages, significantly reducing time to completion by half.

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.

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

source https://commercial-mortgages-broker.co.uk/octane-capital/octane-capital-creates-waiting-list-for-btl-offering-following-high-demand/

Aldermore appoints 2 new property development managers

Aldermore, the specialist finance lender, has appointed David Whitehouse and Colin Ness to its development finance team as property development managers covering the North of England and South West England and Wales.

The news follows the appointment of Iain Bryson as head of development and specialist property in June 2020.

Both Whitehouse and Ness will focus on supporting experienced developers and intermediaries by supplying loan facilities for new build, conversion, or refurbishment developments of residential, mixed-use and purpose-built student accommodation schemes.

Bryson said: “I’m delighted to welcome David and Colin to the development finance team. They both have extensive experience in supporting small to medium-sized businesses in the commercial and real estate sector, and I am certain both will complement Aldermore’s established development offering.”

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Whitehouse has over 34 years of banking experience in both the commercial and real estate arena, spending the majority of this time with the Co-operative Bank.

He joins Aldermore from Hampshire Trust Bank, where he held the position of regional lending manager in the North.

He said: “It’s exciting to begin my new role as property development manager at Aldermore. I’m committed to supporting our developers and intermediaries in realising their finance needs and seek to further strengthen Aldermore’s development finance offering.”

Ness has over 23 years’ experience in the commercial and real estate sector – supporting developers and investors. He has previously held roles at Nationwide, HSBC, Santander and NatWest.

Ness joins Aldermore from Invest and Fund, where he held the position of business development manager covering the South West, South East and South Wales.

Ness said: “It’s great to join the Aldermore team. I look forward to settling into my new role, utilising my years of experience of the commercial and residential sectors to support the development finance team in the South West and Wales.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-appoints-2-new-property-development-managers/

Increasing number of first-time buyers entering buy-to-let sector

According to data from Legal & General Mortgage Club, there is an increasing demand among first-time buyers seeking to step into the buy-to-let market.

Its SmartrCriteria tool revealed that an 18 per cent increase in searches for applicants who are first-time buyers, first-time landlords and non-owner occupiers pushed demand for these criteria from fourth place to first during September 2020.

Additional data also showed that holiday lets were the second most searched term among advisers after dropping from the top spot in August, indicating a response to the increase in staycations as a result of the Covid-19 pandemic.

SmartrCriteria figures also revealed a significant rise in the numbers of advisers searching for products on behalf of expatriated clients who are likely making use of the stamp duty holiday.

Search criteria for ‘expat not in UK’ increased by 50 per cent since the start of September, with the majority of searches seeking buy-to-let mortgages.  

Kevin Roberts, director at Legal & General Mortgage Club, said: “Despite the impact of coronavirus, we are seeing rising demand across the housing market with buy-to-let in particular enjoying a mini-boom. 

“Our latest findings from SmartrCriteria suggest a growing number of first-time buyers are searching for mortgages for buy-to-let ventures, including those engaging with the growing trend towards staycations this year.”

He added: “Amid this continued high demand we are seeing in the mortgage market, thousands of borrowers are clearly turning to independent advisers to help them with their plans and these experts are playing a vital role for consumers. 

“There have been thousands of criteria changes since the lockdown and mortgage advisers are supporting seasoned property investors, first-time landlords and other buyers to find lenders and products that meet their needs.”  

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The news comes after recent research released by online broker forum cherry and Click2Check revealed a significant increase in buy-to-let purchase activity.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/increasing-number-of-first-time-buyers-entering-buy-to-let-sector/

British Business Investments announces £30m investment in Shawbrook Bank

British Business Investments Ltd, a commercial subsidiary of the British Business Bank, has announced a £30m subscription in specialist lender Shawbrook Group plc’s £75 million Tier 2 note issuance.

The subscription has been provided through BBI’s Investment Programme — which launched in 2013 – and will enable Shawbrook Bank to maintain an optimised capital structure to support growth in its chosen specialist SME markets.

The programme has been developed to increase the supply and diversity of finance for smaller businesses by expanding the lending capacity of challenger banks and non-bank lenders.

Since its launch in 2013, the Investment Programme has committed over £1.2bn to providers of finance to UK smaller businesses.

Judith Hartley, CEO at British Business Bank Investments, said: “Our second investment in Shawbrook Bank will continue to help support its growth trajectory, to the benefit of smaller businesses across the UK.

“This investment also demonstrates British Business Investments continued commitment to increase the diversity of supply of business finance.”

Dylan Minto, CFO at Shawbrook Bank, commented: “Establishing long-term relationships with investors is a priority for Shawbrook, and the strong and continued support shown by British Business Investments in our Tier 2 issue is testament to the bank’s track record as we shape our strategic intent to become the UK’s specialist SME lender of choice.

“I hope our relationship with the British Business Bank continues to strengthen as we grow our business and help more SMEs across the UK,” he added.

Original article featured here…

The investment follows an original £30m subscription in 2015 to Shawbrook Bank’s previous Tier 2 note issuance, which has since been repaid.

The news comes after Shawbrook Bank recently released its 2020 half year report earlier last month.

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.

source https://commercial-mortgages-broker.co.uk/shawbrook/british-business-investments-announces-30m-investment-in-shawbrook-bank/

LendInvest report Midlands South West and Wales set for post-Covid property surge

LendInvest, the London based buy to let finance and bridging finance platform, has stated that for property developers looking across the Midlands, South West and Wales, Covid-19 will add to their many opportunities.

Nigel Robbins, the lender’s business development manager for the region, noted that the implications of the Covid-19 pandemic could result in more people seeking properties with open spaces in these areas.

He said that this would only add to the many opportunities already prevalent in the Midlands, South West and South Wales.

Robbins added that these areas tend to have high rental yields, a strong focus on community, and a need for low-cost, high quality affordable housing for first-time buyers.

“The community ties may grow post-Covid-19, as the areas could see the benefit of a changed landscape with working from home more normal and a desire for open space from first-time buyers who spent months locked down in an inner city saving for their deposit,” Robbins said in a blog on LendInvest’s website.

“One thing we’ve seen recently in the South West and South Wales is an increase in rental demand and opportunities for buyers with the demise of the Severn Bridge tolls. With commuting cheaper, more are willing to rent and live further afield, increasing yields for landlords.

“The abundance of university cities like Cardiff, Exeter, Bristol, Bath, Plymouth and Birmingham also means a high demand for rental properties and for new projects to expand the pool of student housing.”

Robbins said that he has also seen activity with regeneration projects for old mining and industrial towns across the regions, but in particular in Wales.

“This desire to reinvigorate communities and the relatively low-cost of auction purchases here is a great opportunity for property professionals to get their feet under the table, purchase and improve property to contribute to the community’s future,” he said in the blog.

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Robbins’ comments support data revealing that the UK housing market is on the up.

The latest Halifax house price index revealed that on a monthly basis house prices increased by 1.6 per cent from July to August.

Additional data published by the Bank of England has also revealed that mortgage approvals returned to pre-lockdown levels, increasing by 66 per cent between the period of June 2020 to July 2020.

source https://commercial-mortgages-broker.co.uk/lendinvest/lendinvest-report-midlands-south-west-and-wales-set-for-post-covid-property-surge/

Hope Capital registers record summer despite COVID-19

Hope Capital the short term lending and bridging finance house has noted a record surge in demand this summer as the market emerges from lockdown, despite the complications brought on by coronavirus.

Between June 2020 and August 2020, the lender saw its number of loans drawn treble compared to the same period last year.

It has also been revealed that new cases have more than doubled, rising by 128% on 2019, and there has been a 40% increase in residential completions.

In response to the surge, Hope Capital recently launched its Capital Custom Collection and the Seventies Collection.

According to the lender, the new products are aimed at giving borrowers maximum flexibility and control.

Gary Bailey, managing director of Hope Capital, said: “This is an exciting time for Hope Capital. As soon as lockdown restrictions were lifted, we began to see unprecedented levels of demand.

“Our innovative products are putting borrowers in a position to realise their ambitions, and with our well-earned reputation for fast, flexible service, Hope Capital is the first port of call for many brokers.

“We have got ambitious plans to build on that success further, and we are always looking for experienced and enthusiastic people to join us on that journey.”

Original article featured here…

The news comes after Hope Capital recently appointed Mike Watson as senior underwriter.

Gary Bailey, managing director of Hope Capital, said his door was always open to talented new applicants.

“Mike is a very welcome addition to the Hope Capital family.

“He brings with him a strong track-record and in-depth knowledge of the bridging sector.

“Strong underwriting and relationship skills are essential to bridging, so to be able to continue on our current growth path, we were particularly keen to strengthen further this key part of the business.

“Mike has demonstrated very clearly to us that he has the dynamic attitude we look for at Hope Capital, and that we know will drive success for himself and the business.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/hope-capital/hope-capital-registers-record-summer-despite-covid-19/

Avamore completes site purchase bridging loan in just two days

Avamore Capital, the London based short term and bridging finance lender, has closed a £271,471 bridging loan in just two days after formal terms were accepted.

The borrower had originally bid for a development site at auction and was under pressure to exchange on his purchase.

The site has prior planning to be demolished and replaced with a two-storey building of three self-contained flats.

Avamore had originally issued terms for a development loan, however with additional reports and documentations needed to complete this, it was decided to re-issue bridging terms in order for the borrower to be able to receive the funds within the necessary timeframe.

The lender felt confident in the strength of the scheme, the borrower’s previous experience on similar projects, and the predicted value of the completed property.

The deal was underwritten and completed in just two days after formal terms were accepted.

The transaction has been issued with a loan-to-value (LVT) of 64.6% for a six-month term, and will then be refinanced onto a pre-agreed development facility with Avamore.

“Avamore [was] extremely helpful from the outset,” said broker Ying Tan, founder and chief executive at Dynamo.

“We’ve been impressed by [its] willingness to adapt to changing circumstances and ability to move quickly to meet our client’s timescale.

“These are certainly qualities that, as a broker, we value highly and we look forward to working with Avamore on future projects.”

Adam Butler, relationship manager at Avamore Capital, commented: “It’s the first time we have worked with the borrower and broker and so it was more important than ever that we maintained clear lines of communication.

“They were transparent about the borrower’s situation throughout, which meant that we were ready to react to whatever he needed to ensure that the deal didn’t fall through.

“It was great teamwork and I am really looking forward to refinancing the project onto a development facility as we had originally planned.

“Things are rarely straightforward and so I’m pleased that we were able to get the best outcome for the customer, despite some unexpected challenges.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-completes-site-purchase-bridging-loan-in-just-two-days/

Paragon Bank provides £5.9m funding to support new housing development in Truro

Paragon Bank, the specialist lender, has facilitated property developer Stephens and Stephens Developers Ltd with a £5.9m development finance funding package to fund the development of The Boundary, 32 new homes in Truro, Cornwall.

The new development will consist of 32 two, three and four-bedroom new homes, each built to Stephens and Stephens’ signature high quality specification.

The funding was provided by Paragon’s specialist Development Finance team, and has enabled Stephens and Stephens to deliver The Boundary scheme under their own brand, as both the developer and main contractor.

Around 65% of the units are already sold, with the site currently on track to be completed by the end of Autumn 2020.

This scheme is the first scheme that Stephens and Stephens have worked with Paragon on. Paragon has since drawn down on two further deals with the developer, including a £5m funding package for Breakwater Pentire, five terraced town houses in Newquay and a £11.3m funding package for Cliff Edge, 39 luxury apartments, which is also in Newquay.

Paul Stephens, Director of Stephens and Stephens Developers Ltd, said: “Paragon’s Development Finance team is approachable, forward thinking and proactive. They have been a great support from day one and are considered part of our team. Their communication style is clear and they make themselves available to openly discuss progress at all stages.

“We now look at Paragon as part of our business structure, a lender that is willing to support multiple sites.”

Oliver Thompson, Relationship Director at Paragon, said: “It is great to be able to support with funding for this scheme and to help bring much-needed housing to the South West. Over the past few months, it’s been our priority to continue supporting the needs of both our current and new-to-bank clients and we are glad that we have been able to further our relationship with Stephens and Stephens through the support of two additional schemes.”

Original article featured here…

The Boundary is a high-end development of two to four-bedroom homes in Truro, Cornwall.

Surrounded by trees, the site has its own private tree-lined drive with each home benefitting from a sizeable garden.

source https://commercial-mortgages-broker.co.uk/paragon/paragon-bank-provides-5-9m-funding-to-support-new-housing-development-in-truro/

West One updates second charge residential and buy-to-let ranges

West One, the specialist bridging finance and buy to let finance lender, has announced a number of updates to its residential and buy-to-let second charge product ranges.

This news comes after the lender’s expansion of their product range last month which included the reintroduction of its ‘Prime Plan’ with rates starting from 3.99%.

The latest changes aim to target undeserved areas of the market, which will in turn benefit borrowers exiting payment holidays, employees who have recently returned from furlough, as well as non-key workers and landlords.

Across its residential second charge range, West One has enhanced its AVM criteria, increased its loan sizes on prime products, and increased LTVs up to 75%.

The lender will also take into consideration regular overtime and commission for non-key workers, where this is sustainable and in line with earnings from previous years.

Workers returning from furlough must be on full pay and pre-furlough hours, whilst not being on notice of redundancy or similar. For borrowers exiting payment holidays, they are required to have made at least one full contractual mortgage payment. Where applicable, affordability will be assessed on the restructured payment.

Loan sizes have also increased to a maximum of £250,000, and LTVs have increased to 75% for second charge buy-to-lets.

West One has also returned to its pre-Covid criteria, including consideration of applications from expats and loans secured on licensed HMOs. They will now also accept up to three loans per borrower up to a maximum gross loan of £500,000.

Marie Grundy, sales director at West One Loans, commented: “I am proud that West One has been able to play a significant role in ensuring that a wider range of borrowers can continue to access second charge finance throughout these uncertain times. At a time when mortgage intermediaries are working in more challenging circumstances, with particular regard to service and product availability, it is more important than ever that specialist finance products, such as second charges, are considered as part of the standard advice process to ensure borrowers needs are being met by the most appropriate product.”

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The news comes after West One announced the launch of two new limited edition buy-to-let products last month.

source https://commercial-mortgages-broker.co.uk/west-one-loans/west-one-updates-second-charge-residential-and-buy-to-let-ranges/

Shawbrook supplies heavy refurb bridging loan to transform run-down house into HMO

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has recently completed a £261,000 interest-only heavy refurb bridging loan for the conversion of a single-family house into a six-bed HMO.

The run-down property was built in 1910 and was noted as “significantly dated throughout”.

General maintenance and repairs throughout the property had been neglected for multiple years, resulting in a significant amount of work being required to modernise the property.

Necessary work to be undertaken included damp, external joinery repairs, potential ceiling asbestos, leak damage and an old boiler.

Upgrades were also required in order to address a poor EPC rating.

Due to the potential of the property once converted into a high-yielding HMO and the customer’s experience on similar projects in the past, the loan was agreed on a nine-month term at 75% LTV.

Shawbrook was also able to add the arrangement fee on top of the max LTV instead of deduct it from the gross loan, therefore resulting in a higher net loan amount for the client.

The client quickly secured the funds necessary for the purchase to undertake the heavy refurbishment needed to begin the property’s transformation.

The borrower has also acquired the exit route — a term mortgage — which enables him to recover his deposit and the refurbishment funds spent, with the value increasing by almost 40% from the purchase price.

Brokerage Go Finance introduced the case to Shawbrook.

Gavin Seaholme, head of sales property at Shawbrook, said: “Working with expert broker partners and delivering a good customer journey and outcome are key to providing bridging solutions.

“At Shawbrook, we have an award-winning product offering with products that are aligned to our customers’ needs.”

Neil Moorhouse, managing director at Go Finance, commented: “The process with Shawbrook from quotation to completion is extremely straightforward with market leading pricing, which enables Go Finance to offer best-in-market products.

“Shawbrook are an extremely helpful bank on all levels and offer great support to the intermediary marketplace.”

Original article featured here…

The news comes after Shawbrook recently opened up its product switch platform to commercial investment customers to provide instant offers as part of its latest updates to the portal.

source https://commercial-mortgages-broker.co.uk/shawbrook/shawbrook-supplies-heavy-refurb-bridging-loan-to-transform-run-down-house-into-hmo/

Puma Property Finance appoints new manager to team

Puma Property Finance the London based specialist development finance lender has appointed Rahul Malde (pictured above) to its team as a manager accountable for the innovation, execution and ongoing management of new transactions.

Rahul is a CFA charterholder and previously worked at Hermes Investment Management as an investment manager.

His responsibilities as investment manager at Hermes focused on the origination, structuring, execution, and management of UK and European real estate debt facilities and CMBS investments.

Prior to this, Rahul worked for Nationwide’s commercial real estate finance division across distressed debt restructures and workouts, credit risk, and innovation of new UK real estate debt facilities.

“We are delighted that Rahul has joined us,” said David Kaye, CEO at Puma Property Finance.

“We are continuing to increase both our team and our lending activity after a number of strong years, and Rahul will be a key part in achieving further growth.”

Original article featured here…

During the course of 2019, Puma Property Finance completed over £200m in loans.

Puma Property Finance is part of Puma Investments – the provider of award-winning investments across property finance, private equity and quoted equities, which support professional property developers and growing SMEs across the UK.

Puma Property Finance deliver development loans from £5 million to £35 million to finance residential, commercial and specialist sector projects such as hotels, student accommodation and healthcare, including care homes and retirement living.

Puma offer three core loan products: stretch senior development loans; pre-development bridge finance for site acquisition; and post-development exit finance.

The news comes after Puma Property Finance made a number of new recruitments earlier this year following their record lending year in 2019.

The specialist lender reached a £500m lending milestone in October 2019. David Kaye, CEO at Puma Property Finance, stated at the time:

“I am delighted we have crossed this £500m milestone, which reflects our sustained growth and ability to fund developers in different sectors and regions across the country,”

“With our experienced team, we are perfectly placed as a reliable lender of choice for professional developers throughout the UK.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/puma-property-finance/puma-property-finance-appoints-new-manager-to-team/

Hope Capital recruits Together’s Mike Watson as senior bridging underwriter

Hope Capital the short term lending and bridging finance house has appointed Mike Watson as a senior underwriter.

Mike joins Hope Capital from Together, where he held the position of senior bridging underwriter.

His previous roles include working as an underwriter for Evolution Finance, and he is CeMAP-qualified from the London Institute of Banking & Finance (LIBF).

His appointment forms part of a wider post-lockdown growth strategy from Hope Capital, which commenced in the summer has continued into autumn.

Watson said: “It’s a great time to be joining a forward-looking lender like Hope Capital.

“I am a firm believer in going above and beyond to get the deal done for brokers and borrowers, and Hope Capital’s determination to do just that is one of the things that attracted me to the firm.

“I am looking forward to focusing on the unique role that bridging finance plays in helping people achieve their aspirations, and to putting my broader financial services experience to good use for Hope Capital and its customers.”

Gary Bailey, managing director of Hope Capital, added: “Our doors are always open to new talent.

“Mike is a very welcome addition to the Hope Capital family.

“He brings with him a strong track-record and in-depth knowledge of the bridging sector.

“Strong underwriting and relationship skills are essential to bridging, so to be able to continue on our current growth path, we were particularly keen to strengthen further this key part of the business.

“Mike has demonstrated very clearly to us that he has the dynamic attitude we look for at Hope Capital, and that we know will drive success for himself and the business.”

Original article featured here…

With reports of a surge in enquiries and loans for the lender, its strong post-lockdown performance and ambitious plans for the future has seen multiple new appointments across all levels of the business.

The news comes after Hope Capital recently announced the launch of its new apprenticeship programme as part of its wider growth strategy.

source https://commercial-mortgages-broker.co.uk/hope-capital/hope-capital-recruits-togethers-mike-watson-as-senior-bridging-underwriter/

Roma Finance introduces new development finance and commercial solutions

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has launched a new ‘ground up’ development finance product and a commercial finance solution.

The new development finance product offers loans from £100,000 to £750,000 at a LTGDV of 60%. It is understood that both ground up and part-built sites will be considered.

The new commercial bridging range is offered on a vast range of property types, at an LTV of 60% with rates from 1.25% and no exit fee.

In addition to the new launches, Roma Finance has also withdrawn the requirement for additional security from its light, medium, and heavy refurbishment range. This change will provide more borrowers with options for their property projects.

Formed in 2008, Roma Finance provides bridging and development finance for a variety of circumstances such as buying at auction, conversions, refurbishments, HMOs and ground up development.

The business also offers buy-to-let and holiday let products and a simplified legal process with manual underwriting, to ensure a tailored approach with fast completions – with bridges completed within just 14 days of issuing terms.

Nick Jones, commercial director at Roma Finance, said: “The growth in business at Roma Finance has been staggering and we have scaled up to ensure our service levels are maintained in line with demand. We are delighted to be able to offer these new products which have been created in response to customer and intermediary feedback.

“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 widen the opportunity in the market.”

Original article featured here…

The news comes after Roma Finance recently announced the end of furlough for the entirety of its operational team last month.

Following record figures recorded in 2020, the specialist lender has been actively expanding its team over recent months in order to continue to deliver its services at high standard.

source https://commercial-mortgages-broker.co.uk/roma-finance/roma-finance-introduces-new-development-finance-and-commercial-solutions/

Aldermore partners with technology firms Iress and Twenty7Tec

Aldermore, the specialist finance lender, has partnered with technology firms Iress and Twenty7Tec to streamline electronic application submissions.

The lender has consolidated the systems via the DPR Distribution Hub, which connects directly to the bank’s broker portal.

The partnership aims to benefit brokers with faster application submissions and increased adviser efficiency by the hub’s ability to produce accurate European Standard Information Sheet documents, automatic creation and population of customer data, and by receiving a DIP through the adviser’s system.

Iress’s Lender Connect gathers all relevant customer application data in the software, and transfers it straight to Aldermore’s broker portal through the use of an API.

The software automatically populates up to 80% of a DIP cutting down on rekeying, errors and unnecessary work.

Aldermore and CloudTwenty7’s partnership will allow brokers to upload cases via the platform and instantly transfer them to the Distribution Hub to Aldermore’s broker portal via API.

Brokers are able to quickly submit the DIP applications to Aldermore via the system, avoiding duplication with the streamline of cases. DIP decisions will then be sent back to the CloudTwenty7 platform where they are accessible to the user.

The broker portal will also display case information post-DIP, to assist in the completion of the full application.

Jon Cooper, head of mortgage distribution at Aldermore, said: “Technology is what will drive our industry in the future and this is a milestone in Aldermore’s digitalisation journey to deliver a streamlined end-to-end broker experience. The specialist lending space deals often with complex cases, so it is important that we focus on ways to improve and speed up the process so brokers can get the best outcomes for customers.

“We have partnered with DPR, Twenty7Tec and Iress as all are leading the way in achieving a more connected mortgage market for everyone. They provide streamlined solutions that quicken and simplify the journey allowing for more accurate information between brokers and lenders. We are delighted with the collaborative approach both sourcing system providers and DPR brought to this project, and we will continue to work closely with them in the future to improve our processes for our brokers.”

James Tucker, CEO of Twenty7Tec, commented: “The integration of our CloudTwenty7 platform with Aldermore and DPR perfectly exemplifies the determination of these three businesses to lead the way in delivering innovative technology to the mortgage market. I have no doubt that our intermediary users will embrace the opportunity to significantly reduce the time it takes to both submit and receive a decision on a specialist lending case with this integration.”

Andrew Simon, executive general manager of products at Iress, added: “Our vision is to bring the industry together, regardless of what technology platform is being used, and this collaboration is a prime example. Aldermore’s integration of Lender Connect – and the collaborative approach – makes the mortgage journey far more efficient, speeding up and simplifying the process for both the customer and the broker. We look forward to continuing our work with Aldermore in support of a more connected mortgage market.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-partners-with-technology-firms-iress-and-twenty7tec/

Paragon Bank provides £10m funding for office-to-residential redevelopment in Hounslow

Paragon Bank, the specialist lender, has facilitated property developer Harbright with a £10m funding package to fund the redevelopment of a former office building in Hounslow into homes.

The funding will be used to support the conversion of Whitlocke House in Hounslow’s town centre into a high-specification residential development. The development will consist of 26 one-bedroom and six studio apartments, under permitted development rights.

The re-development is next to the borough’s new civic centre and in close proximity to Hounslow Central underground and overground stations and retail shopping centre, currently undergoing a multi-million-pound transformation.

Harbright acquired the 0.34-acre site in 2019. The site has a total GDV of £24m.

It is understood that prices for the homes will start from £260,000.

Jacques Bingham, director at Harbright, said: “The team at Paragon were professional, knowledgeable and very understanding of the difficult circumstances we were all working through under Covid-19.

“They were quick to grasp that, despite these conditions, Whitelocke House will be a high quality build, at an attractive price point for both first-time buyers and investors.”

Adrian Reeves, relationship director at Paragon, added:  “It’s great to support an existing client to provide homes at this price level in Hounslow.

“This deal further strengthens our relationship with the client as we continue to support them throughout this challenging time in the market.”

Original article featured here…

Hounslow is one of the Mayor of London’s housing zones due to its strategic location and impressive transport links.

The news comes after Paragon recently announced strategic plans to expand their growth and presence in the North West.

Founded in 1985, Paragon Bank have a wide range of competitive and flexible products that are perfect for experienced developers. These range from loans for residential development and student accommodation, right through to marketing period loans which allow you time to promote your project following its completion.​

Paragon Bank PLC say that they are proud to be a specialist lender and savings bank offering a range of products and services in the UK.

source https://commercial-mortgages-broker.co.uk/paragon/paragon-bank-provides-10m-funding-for-office-to-residential-redevelopment-in-hounslow/

Hope Capital strengthens post-lockdown growth strategy with new apprenticeship programme

Hope Capital the short term lending and bridging finance house has launched an apprenticeship scheme and taken on apprentices as part of its post-lockdown growth strategy.

The two new recruits – Elle Hazlett (18) and Jade Thompson (23) – will initially be working across multiple areas of the business to gain experience in a broad range of skills.

Areas they will be working on include finance and marketing to underwriting, admin and sales. The aim is that with this initial grounding, they will be able to eventually progress to more specialised roles in the future.

The apprenticeship scheme is part of Hope Capital’s wider growth strategy and in response to an extraordinary post-lockdown performance. Hope Capital remain open to speculative applications and is looking to recruit new talent across various areas of the business – whilst continuing its strong track record of promoting internally.

Thompson said: “I am excited to be completing my business administration apprenticeship at Hope Capital. I was a manager in a very different industry before, so moving into the financial sector has been a big step change. But I love new challenges and am finding the specialist finance sector very interesting. I cannot wait to complete my apprenticeship and further my career and knowledge at Hope Capital.”

Hazlett added: “I achieved an A* in ICT at school and I wanted to put my software skills to good use. I didn’t know much about finance to begin with, but at Hope Capital I’m learning new things every day. I feel I’m starting to get a good understanding of what all the different departments do and how the business fits together.

“I know that Hope Capital will be a great help with my career development. The environment here is so welcoming, and the people who work here are all really supportive and helpful. My ambition would be to lead a department here one day.”

Gary Bailey, managing director of Hope Capital, said: “Our doors are always open to new talent – at all levels.

“Firms have an important responsibility to provide opportunities for young people, and a strong interest in nurturing the talent that will help the industry to succeed in the future.

“I am particularly pleased to welcome Jade and Elle to Hope Capital. It is deeply rewarding to be able to give them the opportunity to start what I hope will be a long and successful career with us.”

Original article featured here…

The news comes after Hope Capital recently reported a huge increase in applications for loans of over £1 million and a surge in enquiries.

source https://commercial-mortgages-broker.co.uk/news/hope-capital-strengthens-post-lockdown-growth-strategy-with-new-apprenticeship-programme/

Appeal for tougher regulation of HMO landlords – MP

Tory MP Ian Levy (Blyth Valley) has said that said councils need the power to tackle issues with houses in multiple occupation.

He believes that the current rules do not do enough to protect tenants or local communities against ‘unscrupulous’ landlords who provide sub-standard shared houses to the vulnerable.

Introducing his Houses in Multiple Occupation Bill, he told the Commons: “The very nature of the accommodation provided by houses in multiple occupations (HMOs) often means that those who have fallen upon hard times or are suffering from mental health issues, drug or alcohol abuse or, in a lot of cases, as reported to me by the police, domestic abuse.

“These are vulnerable people who we have a duty to safeguard. Allowing HMOs to exist by disguising them as hostels, hotels and bed and breakfasts not only denies the tenant the security of tenure but also means that the accommodation doesn’t face the true scrutiny that it should.”

He added: “I believe it is vital that a stricter regime of checks and measures is imposed upon landlords to make sure the safeguarding of clients is kept at the forefront.”

Houses of multiple occupation (HMOs) are homes where residents share common areas under one roof in the same property. Common areas can include rooms such as kitchens and bathrooms.

Mr Levy said he would like to see ‘greater powers for councils to deal with the development and governance of HMOs’.

He added this would require large HMOs “to provide a nominated person to be responsible for the residents living there on a 24/7 basis”.

“This would allow a point of contact for the authorities and for the local community to highlight the issues and where possible address them in a way that safeguards both the individuals and the local community,” he added.

Mr Levy said neighbours of HMOs can also suffer when lots of people share houses which typically cater for fewer residents.

He added: “I also want to ensure that someone being able to buy a house in a sub-prime area and dividing that house into multiple bedrooms, while showing absolutely no care for the individual or the local residents, becomes a thing of the past.

“What I would like to see is a balance given to the community so the clients feel safe and part of that community and that the public living in and around the vicinities of HMOs feel that they can live and integrate with the clients and that respect and safeguarding is shown to all.”

The Bill was introduced without a vote, with a second reading scheduled for February 5 2021.

It has little chance of making further progress in its current form without Government backing.

Original article featured here…

The news comes after Westminster council recently launched a HMO checker to help combat rogue landlords.

source https://commercial-mortgages-broker.co.uk/hmo/landlords-of-hmos-need-tougher-regulation-mp/

Avamore lends £2.1m against part-complete scheme in Reading

Avamore Capital, the London based short term and bridging finance lender, has provided a £2.1m finish and exit loan for a part-complete scheme in Reading.

The property is a part-complete former office building with two-storeys and a GDV of just over £3.9m.

It is understood that prior to the loan, the borrower had completed two similar refurbishment projects and required the additional funds for the remaining build of 21 one-bedroom apartments.

Earlier in the year the client had acquired a bridging loan to purchase the property and arranged to refinance onto a straightforward development finance facility.

However, due to implications caused by the Covid-19 pandemic, the original development lender pulled out of the transaction, leaving the borrower to self-fund the initial project works.

In order to fund the rest of the project, Avamore, the borrower and the broker from Vincent Burch were required to work closely and communicate frequently to ensure the transaction ran as smoothly as possible.

Successful completion was dependant on the organisation of the borrower, his ability to demonstrate costs incurred so far, and his transparentness about all aspects of the project to date.

Avamore supplied terms quickly and organised the survey within just one week.

The borrower was represented by Notary Express, Avamore was represented by Fieldfisher, and the valuation was undertaken by Kempton Carr Croft. The monitoring surveyor was Pride Consulting IMS.

Completed within just four weeks (including underwriting), the £2.1m loan was provided on a 12-month term.

“Dealing with Avamore from start to finish has been a great journey,” a spokesperson from Vincent Burch commented.

“While other development lenders were holding back, Avamore stepped up and expressed an appetite to lend which was a godsend for my client who had been stuck on a bridge through the pandemic.”

“I was supported throughout the application in obtaining the necessary documents to advance.

“The legals were prompt and the case completed in good time.”

The deal was Adam Butler’s (relationship manager at Avamore, pictured above) first at the lender.

“It was great to work with the team at Vincent Burch on my first transaction at Avamore; they were highly organised, efficient and were clearly acting in the interest of the customer.

“Our part-complete funding product is crucial right now given the unexpected circumstances many developers have had to face as a result of the UK lockdown.

“We look forward to helping many more borrowers and brokers that are tackling problems driven by the pandemic.”

Original article featured here…

The news comes after Avamore recently revealed it had secured a total of six deals for the same borrower since the beginning of this year – totalling circa £8.2m.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-lends-2-1m-against-part-complete-scheme-in-reading/

Bank of England reveals Q2 lending a third lower than last year

According to the Bank of England’s Mortgage Lenders and Administrators Return (MLAR) data, the value of gross mortgage advances was 33.3% lower in Q2 2020 than in the same period last year.

It has been revealed that April to June this year saw mortgage advances of £44.1 billion, a third lower than data recorded during the same three months of 2019.

The value of new mortgage commitments was also revealed as 53.2% less at £34.3 billion.

Meanwhile, buy to let mortgage lending rose 1.2% from Q2 2019, whilst lending over 90% LVT decreased by 0.6% to 4.9% of mortgages advanced.

The Mortgage Lenders and Administrators Return is a quarterly statistical release aggregated from data provided by around 340 regulated mortgage lenders and administrators on a range of mortgage lending activities.

Rob Barnard, Director of Intermediaries at  Masthaven, the development finance lender commented:

“The second quarter of the year saw a dramatic downturn in lending activities as a result of the COVID-19 pandemic, subsequent lockdown and closure of the housing market. The good news, however, is that the mortgage market is already showing early signs of the green shoots of recovery. Government initiatives such as the Stamp Duty holiday and extension of the Help to Buy equity loan scheme certainly helped to bolster demand amongst potential borrowers, and brokers also seem to be optimistic about the sector’s recovery. In fact, 71% of intermediaries said they feel confident about the market’s longer-term prospects, according to our recent broker survey.

The mortgage and short-term lending sectors have proven to be remarkably resilient over the past few months, adapting the new circumstances and ensuring they remain open for business. The release of pent-up demand post-lockdown should help to bring activity levels back on track over the coming months, with a surge in non-traditional borrowers giving brokers new opportunities to work with specialist lenders to serve this expanding market.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/news/bank-of-england-reveals-q2-lending-a-third-lower-than-last-year/

Aldermore reports profits amid Covid-19 as mortgage lending increases

Aldermore the specialist finance lender has recently released its full year results, revealing growth in its mortgage lending sector despite the current economic crisis resulting from Covid-19.

The report revealed that total net lending totalled £12.4bn in the year to 30th June 2020, a significant increase from the £10.6bn recorded in the previous 12 months.

Aldermore believe that the £0.5bn growth in retail mortgages to £7.3bn has been driven by strong retention activity due to improved customer loyalty propositions.

The Group’s results also revealed that 45,000 repayment holidays were arranged during the Covid-19 crisis, however CEO Phillip Monks confirmed that most borrowers are now repaying as normal as lockdown restrictions ease.

Monks, who is due to retire during 2021, warned that “there is significant uncertainty ahead” as a result of the ongoing COVID-19 pandemic.

Monks said: “Aldermore was born out of a previous economic crisis and backing our customers to fulfil life’s hopes and dreams is in our DNA.

“The COVID-19 crisis has been massively challenging for many of our customers and we know how many difficulties they’ve experienced.

“I’m hugely proud of our dedicated colleagues who’ve worked hard to help nearly 45,000 of our customers through the effects of the crisis and the ongoing issues they face.

“From mortgage payment breaks and forbearance support; to providing businesses with guidance on the government support available and business topics such as safeguarding and protecting their employees; we’ve been there for our customers.

“I’m pleased that our results show a robust performance and the delivery of a profit for the year, despite a global health pandemic and continued Brexit uncertainty. Our business model and approach has again been proven to provide customers with award-winning financial services and the support they need when it matters most.

“Aldermore continues to have the financial strength and focus of purpose to support our customers in the future, but there remains significant uncertainty ahead.

“Therefore, as the country continues to deal with the effects of the pandemic, the UK government must do what it can to support a distressed economy, ensure an orderly Brexit at the end of the year, and mitigate any further shocks to help protect jobs and businesses in the future.”

Other highlights of the results include total customer deposits growing 21% to £10.9bn (30 June 2019: £9.0bn) whilst net lending to customers increased to £12.4bn (30 June 2019: £10.6bn).

Original article featured here…

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-reports-profits-amid-covid-19-as-mortgage-lending-increases/

Paragon’s development division strengthens North West presence

Paragon Bank’s development finance division has appointed a new relationship director to continue the strengthening of its presence in the North West.

Dave Rowlinson, who was previously a property director at OakNorth Bank and a senior manager at Investec for 11 years, will be based in Manchester for the new role.

Rowlinson has exenstive knowledge of the North West real estate and commercial property market, which he developed during his 30-year-plus career in banking and financial services.

His recruitment is part of Paragon’s development finance team’s strategic plan to expand and strengthen its presence in regional markets.

“Paragon has ambitious plans to grow in the North West, helping to support small-to-medium-sized developers provide much needed new homes across the region,” said Dave.

“What attracted me to Paragon is the experience and pedigree of the development finance team, its commitment to the sector and its financial strength — being part of a well-established, well-funded, successful FTSE-250 financial services company.

“It’s a serious player in this sector, which is demonstrated by its continued support of developers throughout the coronavirus pandemic.”

Robert Orr, managing director of development finance at Paragon Bank, added: “The North West is a market we know has great opportunity.

“It benefits from a strong economy, with traditional industries being complemented by high-tech sectors, world-class universities and diverse geography — its football teams aren’t bad either!

“People want to live in this region and Paragon is keen to support developers [to] provide the housing to meet this demand.”

Original article featured here…

Paragon Bank’s development finance division increased lending to residential housebuilders by almost £200m during the first half of the company’s financial year, rising its net loan book to over £500m.

The news comes after Paragon recently announced the expanding of its development finance team with the appointment of Jason Wilmot as relationship director.

Wilmot was recruited to work with clients across England and help the business achieve its strategic growth objectives.

source https://commercial-mortgages-broker.co.uk/paragon/paragons-development-division-strengthens-north-west-presence/

Castle Trust launches new buy to let range with instant terms

Castle Trust, the short term, bridging finance and specialist finance provider, has launched a new range of buy to let products up to 75% LTV, with instant terms available from the lender’s BDMs.

The range of products are available as 2-, 3- and 5-year fixed rates, with an automatic switch to a variable rate for an overall term of 10 years.

Rates begin at 4.19% for 2-year fixed rate, 4.39% for 3-year fixed rate and 4.59% for 5-year fixed rate periods.

Across the range, the maximum LTV is 75%, and brokers can acquire instant terms from Castle Trust Bank BDMs.

Castle Trust Bank specialise in Buy To Let Financing, and currently offer a wide range of different buy to let options, including buy to let mortgages to UK residents, ex-pats, foreign nationals, SPVs and trading companies.

The loans are available for multiple BTL investments, including HMOs, property refurbishment, holiday lets, and portfolio loans.

Barry Searle, Managing Director of Mortgages at Castle Trust Bank, says:

“In today’s uncertain environment, certainty is more important than ever before, which is why we have worked hard to launch this range of products that provide brokers with the certainty they need, as our BDM will be able to provide instant terms. With our field sales team now all back, working at full capacity, we will be able to help even more brokers find the right solution for their investor clients.

“There is added certainty in that these products are available for a fixed rate period, with an automatic switch onto a longer term product, giving investors the flexibility and lending appetite of traditional bridging, but with 10-year terms that can provide them with additional peace of mind. We have already seen how popular this combined approach is from the demand for our Bridge to Let proposition and we expect similar demand for this new range.”

Original article featured here…

The news comes after Castle Trust recently announced plans to focus on expanding its business, with the appointment of Jason Neale.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/castle-trust-launches-new-buy-to-let-range-with-instant-terms/

United Trust Bank (UTB) appoints Mark Stokes as chief commercial officer

United Trust Bank (UTB) the buy to let, bridging finance and development finance lender, has recruited Mark Stokes into the new role of chief commercial officer.

Stokes has over 20 years’ experience at executive committee level – including work with Lloyds Bank, RBS, Black Horse and Chartered Trust – and joins UTB from his previous role as managing director at Metro Bank – commercial banking.

During his time at Metro Bank, the commercial business balance sheet rose from £1.2bn to £3.5bn between 2016 and 2020.

In his new role as chief commercial officer, Stokes will report directly to United Trust Bank group managing director, Harley Kagan. Key responsibilities of the role will include developing and managing UTB’s lending teams, its commercial strategy and proposition. Stokes will also be responsible for exploring opportunities for UTB to enter and develop new markets.

Stokes said: “United Trust Bank is at an exciting stage of its development. It is a progressive and successful specialist bank with a demonstrated history of developing new markets and products, a vibrant culture and a focus on effective delivery and profitability.

“I’ve been really impressed by the people I have met and look forward to joining the team and helping to take the business to the next stage.”

Kagan added: “Mark has an excellent track record of developing and delivering successful growth strategies in the SME and specialist finance sectors.

“We are very pleased that he has joined the bank and his many years of experience in commercial banking, including property and asset finance lending, will further strengthen UTB’s executive team in the bank’s next exciting phase of growth.”

Original article featured here…

The news comes after United Trust Bank recently expanded its development finance division with the appointment of a new director and manager in a bid to strengthen its presence and potential for future growth.

source https://commercial-mortgages-broker.co.uk/news/united-trust-bank-utb-appoints-mark-stokes-as-chief-commercial-officer/

Shawbrook lends £3.3m for hotel redevelopment in Devon

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, is financing a £3.3m redevelopment project on the South Devon coast.

The £3.3m loan was agreed in May and drawn in August, completed on a 24-month loan term.

The re-development by developer Trinity Square Developments will see the Lantern Lodge Hotel in Hope Cove replaced with 14 new apartments.

Trinity Square Developments – set-up by school friends Robert Graham and Simon Bird in 2017 – is a specialist property developer that identifies re-development projects to unlock land potential and maximise returns for its clients.

It is understood that nine of the new homes will be holiday lets for the staycation market.

Shawbrook agreed to step in and support Trinity after their initial funder pulled out due to Covid-19 concerns.

Simon Knowles, director of development finance at Shawbrook, said that the bank was delighted to be supporting the project and was eager to see the final result on completion.

“At Shawbrook, we took a view that while the location was off patch for this client, the proposed units would be well received in the market and so offered outstanding potential in the current UK holiday market,” he commented.

Stewart Budge, relationship manager at Shawbrook’s development finance team, added: “In line with our specialist foundations and our commitment to assessing each project on its own merits using good sense and judgement, we had faith in both the developer and the potential for this project and so were only too glad to help.”

He believes the project will revitalise the area and offer outstanding holiday lets, as well as give the surrounding economy a boost through the use of skilled, local labour and expertise.

Robert Graham, co-owner of Trinity Square Developments, stated: “This is an exciting project and one that we believe will spark outstanding demand in this particular area from holidaymakers looking for a stunning UK staycation in Devon.

“With buyer patterns shifting and high demand for holiday homes and staycations in the UK, we believe these units will be popular with potential owner occupiers and holiday-let investors.”

Original article featured here…

The news comes after Shawbrook recently opened up its product switch platform to commercial investment customers to provide instant offers as part of its latest updates to the portal.

source https://commercial-mortgages-broker.co.uk/shawbrook/shawbrook-lends-3-3m-for-hotel-redevelopment-in-devon/

United Trust Bank launches interest only residential mortgage range

United Trust Bank (UTB) the buy to let, bridging finance and development finance lender, has launched a range of interest only residential mortgages, available up to 75% LTV or 70% for downsizing.

Available for purchase and remortgage, the new interest only range allows for multiple repayment vehicles including pension lump sums and sale of investment property.

Affordability is assessed on the interest only monthly repayment, with no minimum credit score. For borrowers seeking flexibility there is also an ERC-free option.

The new range is part of United Trust Bank’s #BrokerSummerSupportPackage campaign introduced in July. As part of the campaign, the lender has increased max LTVs for self-employed borrowers, increased the amount of regular income included in affordability calculations, enhanced criteria for contractors, and added a new range of limited edition second charge products for borrowers with inconsistent credit history.

Buster Tolfree, Commercial Director – Mortgages, United Trust Bank, commented:

“Within this interest only residential mortgage product range, we believe we’ve created a compelling offer for those borrowers who may not fit the strict tick-box approach of many mainstream lenders.

“Our common sense underwriting approach, pragmatic and rounded way of assessing borrower profiles and their security properties has made UTB an increasingly popular choice amongst specialist mortgage intermediaries and given additional options to those who may have found their choice of lenders somewhat restricted of late.

“During the last three months we have made a lot of effort to promote our #BrokerSummerSupportPackage and we have continued to improve, enhance and innovate, despite the challenging environment. As a result, more and more brokers are finding out why UTB is becoming a key consideration for their specialist mortgage customers who need a bit more care and flexibility than the High Street is prepared to give.”

Original article featured here…

The news comes after the lender recently launched its new WebChat to 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.

source https://commercial-mortgages-broker.co.uk/united-trust-bank/united-trust-bank-launches-interest-only-residential-mortgage-range/

Aldermore chief executive Phillip Monks announces plans to retire

Aldermore has announced that Phillip Monks (pictured above) plans to retire as chief executive during 2021.

Phillip founded Aldermore during the financial crisis over 11 years ago. Since then he has led the bank as CEO to today’s success where its lending to back UK customers exceeds £12bn.

Pat Butler, Aldermore Group chairman, has begun the task to find Phillip’s replacement.

“I am extremely proud to have led Aldermore for these past 11 years and of everything we have achieved together,” said Phillip.

“This bank emerged from my dismay at the withdrawal of financial support to small- and medium-sized businesses during the financial crash of 2008, just at the time they needed it most.

“I was determined to help SMEs get the access to lending they so desperately required. Now, over a decade on, we are backing the UK economy through the billions of pounds we lend every year to help a diverse range of businesses, homeowners and vehicle owners around the country, while also enabling customers to achieve their long-term savings goals.

“Announcing my intention to retire next year brings mixed emotions as Aldermore has been such an important part of my life, yet I know I will be leaving the organisation in a resilient position for its next stage of growth.

“Meanwhile, I remain focused on the task in hand, putting our strategy into action and above all backing our customers through the significant challenges they face in what is a volatile and uncertain environment.”

Pat added: “On behalf of the board and all my colleagues at Aldermore, I want to thank Phillip for his outstanding leadership of our organisation for over a decade, and for creating and building a healthy and resilient bank.

“The board wants to ensure a smooth transition, so Phillip’s early signal to retire and his flexibility has enabled us to get the search for his successor underway.

“Once this is complete, we will announce a specific date for transition.”

Original article featured here…

Alan Pullinger, CEO at FirstRand Limited (the South African financial services group that acquired Aldermore in 2018) said that Philip’s decision was not unforeseen, given that the operational and strategic integration of Aldermore was now complete.

“We knew that at some point Phillip would be retiring to spend more time with his family and pursue his other interests, and he has given the Aldermore board plenty of time to appoint a replacement and manage the transition,” Alan commented.

“Phillip has led the integration of Aldermore into FirstRand over the past three years and that process is now complete.

“I thank Phillip for his valuable contribution to FirstRand and for shaping our strategy to build an impressive banking business in the UK.

Original article featured here…

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-chief-exec-phillip-monks-announces-plans-to-retire/

Paragon appoints Jason Wilmot from ABC to its development finance team

Paragon Bank, the specialist lender, has expanded its development finance team with the appointment of Jason Wilmot as relationship director.

Wilmot will work with clients across England and will be based at the team’s Gracechurch Street head office in London.

Previously, Wilmot worked as relationship director at Alternative Bridging Corporation. Prior to that, he worked within the Royal Bank of Scotland’s commercial real estate finance teams as senior relationship manager for 17 years.

Wilmont (pictured) said: “I am delighted to be joining Paragon’s development finance team. I am looking forward to working in such a highly regarded team and using my experience to help the business achieve its strategic growth objectives.”

Paragon Bank’s development finance division increased lending to residential housebuilders by nearly £200m during the first half of the company’s financial year, taking its net loan book to over £500m.

Robert Orr, Paragon Bank development finance managing director, added: “We are keen to grow our loan book and support current and new to bank clients and bringing somebody in with Jason’s experience and connections will help us do that.

“We had a strong first half of the financial year and that has continued into the second half, despite the challenges coronavirus presented to the sector.”

“We have remained active and, looking forward, we are confident in the prospects for the market,” he said, adding that the demand for new housing looks like it will remain strong into the future.

Original article featured here…

The news comes after paragon 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 was provided by Paragon’s development finance team, who offer development finance solutions to clients in England and Wales.

Paragon offer a range of options and can help support developers on a range of different projects, such as multi-unit residential properties, new builds, conversions or refurbishment schemes.

source https://commercial-mortgages-broker.co.uk/news/paragon-appoints-jason-wilmot-from-abc-to-its-development-finance-team/

Post-lockdown mini-boom drives house prices to historic high

According to the latest Nationwide house price index, house prices experienced their biggest monthly increase in 16 years, rising by 2% in August.

It meant annual house price growth went up 3.7%, increasing the average house price in the UK to £224,123.

Robert Gardner, Nationwide’s Chief Economist, said: “UK house prices rose by 2.0% in August, after taking account of seasonal effects, following a 1.8% rise in July. This is the highest monthly rise since February 2004 (2.7%). As a result, annual house price growth accelerated to 3.7%, from 1.5% last month.

“House prices have now reversed the losses recorded in May and June and are at a new all-time high.

“The bounce back in prices reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions. This rebound reflects a number of factors. Pent up demand is coming through, where decisions taken to move before lockdown are progressing. Behavioural shifts may also be boosting activity, as people reassess their housing needs and preferences as a result of life in lockdown.

“Our own research conducted in May indicated that around 15% of people surveyed were considering moving as a result of lockdown. Moreover, social distancing does not appear to be having as much of a chilling effect as we might have feared, at least at this point. These trends look set to continue in the near term, further boosted by the recently announced stamp duty holiday, which will serve to bring some activity forward.

“However, most forecasters expect labour market conditions to weaken significantly in the quarters ahead as a result of the aftereffects of the pandemic and as government support schemes wind down. If this comes to pass, it would likely dampen housing activity once again in the quarters ahead.”

Original article featured here…

Joshua Elash, director of property lender MT Finance, commented that one of the factors driving the boom was the unusual level of liquidity which had been pumped into the economy by the government during recent months.

Whilst the figures may appear encouraging, Elash warned of over-optimism and the rising unemployment levels causing further implications.

“The long-term impact of the Covid-19 pandemic and resulting lockdown will not begin to be borne out in these figures until the furlough scheme has truly ended,” he said.

“Only then will we have visibility on the resulting unemployment numbers and the impact this will have on the nation’s finances and indeed the property market.”

The rise in prices has also raised concerns that additional challenges for first-time buyers could arise.

Miles Robinson, head of mortgages at Trussle, said: “For some, the home ownership journey is already challenging. First-time buyers, for example, are facing stricter criteria, with some lenders capping financial support from ‘the Bank of Mum and Dad.’

“This, in addition to the shrinking range of high loan-to-value products, is leaving many people locked out of the market.”

And Andrew Montlake, managing director at the UK-wide mortgage broker, Coreco, said: “For first-time buyers, sadly, the stamp duty holiday is largely academic as lenders are struggling to provide the mortgage finance.

“If lenders can improve in this area, that will provide additional support to the market.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/housing-market/post-lockdown-mini-boom-drives-house-prices-to-historic-high/