Aldermore helps buyers beat stamp duty deadline

Aldermore, the specialist finance lender, has announced temporary changes to its underwriting guidance.  The changes have been made to aid buyers using bridging finance who wish to take advantage of the stamp duty holiday, before it ends on 31st March 2021.

The lender will now accept refinance from bridging for owner-occupied properties of less than six months. No additional borrowing (except fees) will be allowed and the the property must have been owned for one month or more.

This will help those buyers who are part of a chain to break it with short-term finance, and complete before the end of the stamp duty holiday.

Jon Cooper, head of mortgage distribution at Aldermore, said: “The stamp duty scheme has provided a welcome boost to the housing market but we know it’s also created challenges given the hard deadline.

“The demand for March completions has caused delays across the home buying process and we wanted to let our brokers know if they have customers wanting to use bridging finance to help secure a property before 31 March, then we’re here to help.”

Original article featured here…

Aldermore recently published their research on fifty cities across the UK to establish the best places for buy-to-let landlords to invest in.

source https://commercial-mortgages-broker.co.uk/aldermore/57585/

LendInvest is buy-to-let Lender of the Year

LendInvest, the London based buy to let finance and bridging finance platform, has been recognised by the National Association of Commercial Finance Brokers (NACFB) as the BTL Lender of the Year in the 2020 awards.  This is the second year running the lender has been awarded top place in this category.

The NACFB is the UK’s largest independent trade body for commercial finance brokers.  Due to the coronavirus, the awards were held virtually first for the first time, and the NACFB elected to merge both the NACFB Patron Awards and the Commercial Broker Awards. The ceremony took place on Thursday, 26th November.

Landbay, Shawbrook Bank, and Paragon Bank were among the nominees in the BTL Lender of the Year category.  All award categories were based on NACFB Members’ votes and the feedback of a broker judging panel.

LendInvest remained open for business during both national lockdowns and launched desktop valuations for short term loans.

Andy Virgo, Sales Director for Buy-to-Let at LendInvest, said “It’s been my first year in charge of this product, and I’ve witnessed first hand how the hard work of the whole team coupled with this infrastructure allowed us to remain open for business throughout lockdown, meet growing demand, and best serve our landlords by consistently tailoring our product suite to their needs during this difficult time,” said Virgo. “I’m delighted to see the progress we’ve made so far, and this award is a testament to that. There’s still so much to do, and we’re excited to meet the challenge.”

Original article featured here…

See the full list of winners at the NACFB awards 2020 here…

LendInvest announced a record quarter for signed bridging applications in Q3 of 2020, having recently launched their new BTL product range, broadening lending criteria to include first-time landlords and student let HMOs.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-is-buy-to-let-lender-of-the-year/

Hampshire Trust Bank announce lowest ever 5 year rate

Hampshire Trust Bank has launched a new product exclusively for buy-to-let loans, a 60% LTV five-year fix at 3.25%.

The minimum loan amount is £1m, with a maximum set at £15m.

The new offering will fall under the same standard criteria as other BTL lending.

Marcus Dussard, Sales Director, said: “This announcement today is a testament to HTB’s confidence in the buy-to-let market. I’m genuinely thrilled to be able to offer our lowest-ever five year rate. This will be welcome news to our broker partners as they continue to make the most of the opportunities and strong demand from borrowers. It will also give a further boost to help stimulate activity and support our brokers in finding the best solutions for borrowers.”

Alex Upton, Commercial Director, added: “This proposition fills an obvious gap in our offering and provides brokers with even greater choice and flexibility. It would be an easy win to open the floodgates and offer this on all lending. We have decided to focus on deals over £1m to ensure we continue to service all new and existing business to the same high standard and turnaround times our brokers are used to.

“I’ve said it before – this is about knuckling down and supporting the return to normality. We continue to be in constant dialogue with all our stakeholders to monitor what they need from their lending partner. Our experience and knowledge combined with being a specialist bank lender means we are able to be agile in uncertain times and deliver innovative products where there is market demand.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/57575/

Aldermore research on best UK cities for BTL landlords

Aldermore, the specialist finance lender, has researched fifty cities across the UK to establish the best places for buy-to-let landlords to invest in.  The lender utilised its ‘Buy to Let City Tracker’ to obtain the results.

Five key indicators were used in the research; average total rent, the best short-term returns through yield, long-term return through house price growth over the past decade, the lowest number of vacancies as a proportion of total housing stock, and percentage of the city population in the rental market.

Despite strict lockdown measures this year, Manchester won the top spot in the City Tracker, due to pre-Covid rapid economic growth and significant investments over the past five years in both commercial and residential developments.  With 31% of Manchester’s population being private renters, it has one of the UK’s largest rental markets and some of the lowest vacancy rates.  The average rental per room per month is £428, giving Manchester a rental ability that is above average.  The city performs well on rental returns and long-term house price growth, making it attractive for private landlords.

Overall, southern England was found to dominate for long-term BTL investments, with 7 out of the top 10 cities in the south.  London came in 3rd place with the highest rental price per room at £627, though this was balanced out by some of the lowest yields at 2.9%. Oxford was in 4th place and Brighton 5th, showing good long term returns with property prices increasing on average over the past decade by 5.3%.  Milton Keynes had an average yield of 5.2% for landlords, but with only 17% of people privately renting it is one of the smaller markets.

Jon Cooper, head of mortgage distribution at Aldermore, said: “There has been a high level of uncertainty for landlords since the Covid-19 outbreak and they have had to continuously adapt to a raft of challenges but, with so many working from home right now, it reinforces the importance of a robust and diverse private rented sector. The changing needs of renters, whether to move to a new location or a different type of property to fit flexible working demands, has created investment opportunities for landlords.

“Aldermore’s Buy to Let City Tracker shows that across the UK there is still great short and long-term returns to be had for landlords, with a number of cities providing excellent rental yields with room for capital growth. The private rented sector is vital to the economy right now and its recovery from the pandemic so landlords should seek portfolio advice from their lenders to see how they can look at new ways to support the sector.”

Original article featured here…

Aldermore recently announced Steven Cooper as its new Chief Executive Officer, effective from May 2021.

source https://commercial-mortgages-broker.co.uk/aldermore/57569/

Landbay achieves huge growth in revenue

Landbay, the buy-to-let lender, has achieved a 5,520% growth in revenue from 2016 to 2020.  During the same timeframe, £600m was lent by the company.

The lender announced that it is now ranked at number 6 on the Deloitte UK Fast 50 and is the top ranked mortgage lender.  This is the third year running that Landbay has featured on the Deloitte UK Fast 50, one of the UK’s foremost technology awards programmes.

Julian Cork, COO of Landbay, says: “The huge growth we’ve achieved is a testament to how hard our team has worked over the past four years and the excellent intermediaries we work with. We set out to become the leading customer services company designing better ways to buy-to-let and this recognition from Deloitte shows we are well on the way to achieving this.

“The key to our success is our scalable, technology enabled and service-focused lending platform. We designed process and systems that means we can do things faster and more efficiently and crucially, provide a better experience for intermediaries and their clients.

“While the growth of Landbay is incredibly important, we also want to help change the shape of the whole buy-to-let industry providing intermediaries with a vision of what lending could and should look like.”

Original article featured here…

Landbay has just agreed a new funding deal with an undisclosed asset manager, which aims to fund over £300m per year of the lender’s originated mortgages.  Another recent announcement from the firm was the addition of two new BTL products in response to sharply rising demand, following a recent product refresh.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-achieves-huge-growth-in-revenue/

Portfolio refinance mortgage completed

Commercial Mortgages Broker the property finance specialist is pleased to confirm that it has recently completed a property portfolio refinance transaction for one of our clients. The transaction involved the refinance of 18 properties, with a gross value of £3.4m. The net loan was just above 73% LTV.

The loan was the culmination of a complicated transaction due to an incorporation process and also various refinances which enabled the cash flow from the portfolio to improve, with some underperforming assets being sold, therefore improving the debt service cover ratio.

The loan was rejected by a number of challenge banks and non-high street lenders, and ultimately was transacted with Castle Trust.

Matt Lenzie founder of CMB said: “we are extremely please to have concluded this transaction with Castle Trust, the transaction was complicated, with ownership being transferred from an LLP into a Ltd company, and the volume of the properties involved meant that the standard due diligence process was extremely lengthy. This transaction was taken down to the wire, but we concluded late on Friday afternoon.”

“Portfolio mortgages for borrowers are extremely complex, as they involve a number of different factors, including conveyancing multiple properties, business plans, cash flow forecasts and valuations of all properties involved.”

Commercial Mortgages Broker specialise in complex funding solutions for our clients and we have a track record of closing transactions which may have been rejected elsewhere. For enquiries regarding property portfolio refinancing, please get in touch with our team today.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/portfolio-refinance-mortgage-completed/

LendInvest reduce BTL rates

LendInvest, the London based buy to let finance and bridging finance platform, has made a range of reductions to rates for its buy-to-let range, and launched a new 5-year fixed rate product.

The lender is now offering the 70% LTV two-year fixed rate at 3.19%, and the 75% LTV product at 3.29%.

A new 5-year fixed rate has also been introduced up to 75% LTV at 3.54%.

Another reduction has been made, for individual and corporate landlords, with rates at 3.64% for both 75% LTV products at 4% and 3.64% ICR, the latter coming at a reduced fee.

Andy Virgo, Sales Director at LendInvest, said: “A close working relationship with our brokers and professional partners has allowed the team to ensure the product suite we have on offer reflects what our landlords need right now, and our risk appetite is positioned correctly.

“We are heading into the new year with a huge capacity to lend, and we have coupled these product updates with further adjustments to our criteria to reflect that.”

Original article featured here…

LendInvest announced a record quarter for signed bridging applications in Q3 of 2020, having recently launched their new BTL product range, broadening lending criteria to include first-time landlords and student let HMOs.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/57553/

Landbay close new funding deal with asset manager

Landbay, the buy-to-let lender, has agreed a new funding deal with an undisclosed asset manager.

The lender now has three different streams of funding for its BTL mortgages. These are an investment bank-sponsored securitisation programme, deposit-taking banks and the asset manager.

The asset manager aims to fund over £300m per year of Landbay originated mortgages.

The entire funding deal, including due diligence, was conducted remotely and the performance of Landbay originated assets over the course of the pandemic crisis was thoroughly examined.

John Goodall, Chief Executive at Landbay, said: “The addition of an asset manager as one of our funding partners is a major step to further diversify the funding of our mortgage platform and makes us probably the most diversely funded buy-to-let lender in the UK.

“This reinforces our ability to provide mortgages to a broad range of buy-to-let investors and their advisers. This is particularly important as we are only four months away from the end of the stamp duty holiday and demand for our buy-to-let mortgages is higher than we have ever seen it.

“Despite COVID-19 related restrictions getting tighter, we have had almost no disruption to working practices all year and we consistently stay within our service levels.

“This is due to the significant investment in technology that we have made over the last few years.”

Original article featured here…

This news comes after Landbay announced the addition of two new BTL products in response to sharply rising demand, following the lender’s recent product refresh.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/57550/

LendInvest completes buy-to-let purchase in just 4 days

LendInvest, the London based buy to let finance and bridging finance platform, have completed a BTL purchase in just four days.

The borrower was an experienced West London landlord seeking a tenanted HMO, a 10 bedroom house.  LendInvest offered their two-year fixed rate product with a loan size of £451,500 on an LTV of 70%.

The loan was needed by the borrower within a short timeframe, so LendInvest facilitated the purchase within four days.

This marks the first completion for Birketts solicitors with the lender after its recent addition to the LendInvest buy-to-let panel.

Lauren Eaton, head of loan operations at LendInvest, said: “The speed at which this case was delivered is a true testament to the perfect combination of the relationship we have with our professional partners, the deep expertise of the LendInvest team and the technology enabled processes that allow us to move quickly, while maintaining quality of funding and service.

“I’m delighted to be announcing this deal delivered in record time as our first completion with Birketts, a confident sign of a team that holds the same approach to fast, flexible lending as we do.“

Shlomo Fink, head of specialist mortgages at DAS Finance, added: “We have had an amazing experience with LendInvest in general and especially with this case. The full team from underwriting, case manager and bank manager were all working to reach the goal and help the client complete on time.”

Original article featured here…

LendInvest also recently launched desktop valuations for short term loans.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-completes-buy-to-let-purchase-in-just-4-days/

Bridging activity remains strong

Demand for bridging finance is rising, with activity increasing by 46% in Q3 of this year, according to data from MT Finance, the award winning property finance lender.

Though the stamp duty holiday has kept the mortgage market buoyant, there is a significant backlog which is affecting many in the mortgage market.  It has been widely reported that the demand for mortgages is rising, yet extra underwriting measures have been put in place and many companies are working at a reduced capacity due to the pandemic.   Borrowers are facing hurdles trying to obtain the necessary finance and many major banks and building societies have drawn back from the mainstream mortgage market.  In this environment, first-time buyers and buy-to-let landlords have found their options dwindling.

The bridging sector has provided an alternative way to obtain funds for property purchases.  Many lenders in this sector have added to their product ranges recently, increasing loan sizes and maximum LTV ratios.  Borrowers have found it easier to use these products if they have been rejected by traditional lenders or had difficulty obtaining approval.  MT Finance’s industry data found that interest rates in the bridging sector had fallen to 0.78% after a peak of 0.85% earlier in the year.

Hope Capital Chief Executive Jonathan Sealey says: “In the current climate whereby the mainstream market has tightened criteria and is starting to experience backlogs in conveyancing and valuations, bridging loans are now very much a product of first choice.”

MT Finance Director Joshua Elash says the growth in residential users makes it even more important for lenders to ensure that customers have a viable strategy for repayment.

“We need to be ever aware of the world around us,” he says. “A significant percentage of the exit strategies for our loans will be directly and/or indirectly reliant on mainstream funding in due course.”

See original article here…

Bridge-to-let has been found to be an efficient and flexible option in a market currently under strain.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/bridging-activity-remains-strong/

LendInvest launch desktop valuations for short term loans

LendInvest, the London based buy to let finance and bridging finance platform, are now offering desktop valuations for short term loans.  This will be utilised via Connells to ascertain the security value, in situations where physical valuations are not possible.

These desktop valuations are available for borrowers looking for residential bridging and auction products, on loan sizes up to £250,000 with a maximum LTV of 65%.

These valuations will be available for properties in England, Wales and Scotland, up to a value of £1 million.

Justin Trowse, Director for Bridging at LendInvest, said: “As we continue to operate through unpredictable times, it is imperative to be prepared for any sudden changes to the way we are able to work.

“While at this time physical valuations are permitted to go ahead, we realise we must be equipped for any eventuality should that change in the future.

“Adding the capability to utilise desktop valuations for more of our product suite allows us to stay one step ahead, and ensure we can deliver the finance our borrowers need with the same speed and flexibility we always have.”

Original article featured here…

LendInvest announced a record quarter for signed bridging applications in Q3 of 2020, having recently launched their new BTL product range, broadening lending criteria to include first-time landlords and student let HMOs.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-launch-desktop-valuations-for-short-term-loans/

RICS data shows housing market remains buoyant

According to the the latest RICS UK Residential Market Survey, the housing market continued to grow during October.  Positive figures were recorded by surveyors on buyer enquiries, agreed sales and new instructions and prices.

With the stamp duty deadline looming and the housing market remaining open during the second lockdown, many potential buyers are trying to complete before March 2021.

For the fifth consecutive report, the number of new properties being listed for sale has risen, with 32% of respondents reporting an increase in new instructions in this report. This is the most prolonged period of growth noted in the RICS UK Residential Market Survey since 2013.

There has also been an increase in the number of agreed sales, with 41% of respondents noting an increase in transaction volumes, which remains substantially higher than the average reading of 9% over the past year.

It is expected that this positive trend will continue for the remainder of 2020, but that it will be more subdued from the second quarter of 2021 once government assistance is withdrawn.

Rics chief economist Simon Rubinsohn says: “The housing market remains very busy and despite the second national lockdown, the sense is that this will persist over the coming months and into the new year. 

“However, there is understandably more caution about activity looking beyond the first quarter of 2021. Aside from the withdrawal of governments incentives, the market may also find the more challenging employment picture a significant obstacle even with interest rates set to remain close to zero for some time to come.

“That said, medium term expectations for house prices and private rents have barely been dented by Covid according to the latest survey. Indeed, the projections still point to increases likely to exceed wage growth highlighting the ongoing issue around affordability.”

Original article featured here…

Tomer Aboody, director of MT Finance, said: “The bubble we have been seeing over the past three months is proving to be stronger than many could have predicted.

“Indeed, it is the strongest performance for the housing market in well over a decade, with prices, house sales and instructions at high levels.

“This confidence in the market derives from a combination of stamp duty relief, cheap mortgage rates and buyers’ change in working conditions which has been brought about from lockdown.

“With more space needed, borrowers are taking advantage of the highly liquid financial markets, giving them the ability to borrow where they might not be able to in a few months once the economic ramifications of lockdown really come into play.”

North London estate agent and a former Rics residential chairman, Jeremy Leaf added: ’The Rics figures are interesting but don’t give the full picture as the market quietened down a little towards the end of October/early November.

“However, it has picked up again quite noticeably in the past few days as the prospect of a vaccine has improved. This has brought more buyers to the market than has been the case for several weeks and is stiffening the resolve of some sellers not to accept low-ball offers.

“On the ground, we are seeing more buyer and seller determination to get deals done in order for both to take advantage of the stamp duty holiday.”

Original article featured here…

See the full RICS UK Residential Market Survey here…

This news come after data from Knight Frank, the Global Real Estate Consultants, also showed the property market continues to thrive despite the second lockdown in the UK.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/rics-data-shows-housing-market-remains-buoyant/

Interbay announces new semi-commercial range of mortgages

Interbay Commercial, the bridging finance,commercial mortgages and buy-to-let specialist finance provider, part of OneSavings Bank, has launched a new range of semi-commercial mortgages.

The products are available on two, three and five-year terms up to 70% LTV.  Rates start from 4.79% on a two-year fixed rate at 60% LTV.  A five-year fixed rate of 5.79% at 70% LTV has also been added.

The minimum loan size is £150,000 and all products in the range include a 1.5% fee which is reduced to 1.25% for existing customers.  Interest-only or owner-occupier will also be considered.

A notable feature of the range is that commercial income can be considered alongside residential income.

Adrian Moloney, group sales director at OneSavings Bank, said: “This is an exciting range for InterBay Commercial and something I know our broker partners have been asking for.

“It was really important that we followed a structured approach to ensure we could fulfil market requirements and be transparent on the parameters around which we can confidently do business.

“Let’s be clear, these are still testing times, however with the experience and knowledge that InterBay Commercial brings to its intermediary broker partners, we’re absolutely confident that now is the right time to bring this semi-commercial offering to the market,” he added.

Original article featured here…

Earlier this year, Interbay Commercial relaunched their HMO and Mortgage Finance for Multi Unit Freehold Block products.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/interbay-announces-new-semi-commercial-range-of-mortgages/

Avamore Capital expands relationship managers team

Avamore Capital, the London based short term and bridging finance lender, has hired Danielle Evans as its fourth relationship manager.

She has 11 years of experience in lending, having held Business Development Manager roles previously at Precise Mortgages, Aldermore Bank, and Coventry Building Society.  Evans won Specialist Lender of the Year on behalf of Precise Mortgages at the 2019 Create Finance Awards.

The focus of this role, based in Leicestershire, will be to develop the Avamore brand among intermediaries in the east Midlands, promoting the core products in refurbishment, finish and exit, and residential bridging.

Avamore noted that the role is to develop dedicated and enhanced service levels for brokers outside of southern England.

Despite a challenging market, the lender has already hired a pair of originators and two new underwriters in 2020 and is on track to match lending volumes from last year.  2019 was Avamore’s most successful year to date.

Avamore principal Amit Majithia said: “We are excited to have Danielle on board. The strength and depth of her relationships – particularly in areas where Avamore has not historically had a strong presence – will be invaluable to the company.

“We have ambitious lending targets and Danielle will play a crucial role in helping us to meet them.

“Danielle truly has a people focused approach and her personal ethos and attitude reflects exactly what we want to portray in the market, being customer-focused and solution driven in whatever we do.”

Evans added: “I am most looking forward to making an impact on the growth of the business and adding value to the team through my previous experience and relationships.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/avamore-capital/57517/

Aldermore announces new CEO

Aldermore, the specialist finance lender, has announced Steven Cooper as its new Chief Executive Officer.  This appointment will be effective from May 2021, subject to regulatory approval.

Current CEO, Phillip Monks OBE, founded the bank in 2009 and announced his decision to retire earlier this year.

Steven Cooper is presently Chief Executive Officer of C.Hoare & Co.  He has over three decades worth of experience in international banking, having previously worked at Barclays as Chief Executive of the Personal Banking business across the UK and Europe and also as Chief Executive of Barclaycard Business Solutions.

Pat Butler, group chairman of Aldermore, said: “I am delighted that Cooper has decided to join us at Aldermore. His pedigree speaks for itself and our board is confident that he will build upon Monks’ legacy and grow our business successfully, while embracing and strengthening our culture and values.

With Cooper’s leadership we will continue to champion those values, to pursue our purpose of backing people to fulfil life’s hopes and dreams, and to support our customers, colleagues and communities in these difficult times.”

Steven Cooper added: “Under the leadership of Phillip Monks, Aldermore has gone from a vision to a substantial business in just a short period of time.

“The board and shareholders are committed to achieving a similar growth trajectory over the next few years, whilst maintaining the business purpose and its strong values. I am delighted to be leading this exciting new chapter in the evolution of Aldermore.”

Original article featured here…

Aldermore also recently announced that its 120-day notice product has been reintroduced.

source https://commercial-mortgages-broker.co.uk/aldermore/new-ceo-at-aldermore/

Property exchanges continue to rise during second lockdown

The property market continues to thrive despite the second lockdown in the UK, according to date from Knight Frank, the Global Real Estate Consultants. Between Monday and Thursday of last week, exchanges grew by 11%.

During the same period, the number of viewings that took place was down 15% from the week before, but the number of valuation appraisals rose by 38% over the same time-span.

Knight Frank noted some initial confusion on whether the property market was to remain open which may account for a number of agents with quieter diaries after the announcement on lockdown.  Other agents did not notice any changes and have seen continued interest in the most in-demand properties.

Tom Bill, head of UK residential research at Knight Frank, said: “The timing of the lockdown is somewhat ironic because it comes as many are warning that parts of the conveyancing system are struggling to cope with the current volume of transactions. That fact is unlikely to change and some parts of the system may come under more strain during this second lockdown.

“The chief executive of NAEA Propertymark, a professional body that represents estate agents, was one of a number of industry figures to call for an extension of the stamp duty holiday last week for this reason.

“Indeed, the number of exchanges in prime London markets reached its highest level in five years last month as more deals began coming to fruition. It is also true that most exchanges still relate to deals that pre-date the first lockdown.

“If the second lockdown is not extended, it therefore feels like it will put a small dent in the performance of a resurgent property market, but little more.

“Whether that dent becomes bigger or disappears in coming months depends on two events outside the control of the property market – the arrival of a treatment or vaccine for Covid-19 and the avoidance of a no-deal cliff-edge Brexit.”

Original article featured here…

The current reduction in stamp duty and new product ranges from lenders are set to keep the market on track amidst several signs indicating that now is a good time to become a buy-to-let landlord.

source https://commercial-mortgages-broker.co.uk/covid-19/57510/

Castle Trust reduces bridge-to-let rates

Castle Trust, the short term, bridging finance and specialist finance provider, has reduced all rates on its term products by 0.25% until the end of November.

This limited period offer applies to all DIPs on term products issued by the lender during the month of November.  This includes Castle Trust’s Bridge to Let product, where a term plan is used for the exit route.

Castle Trust currently offers buy-to-let mortgages to UK residents, ex-pats, foreign nationals, SPVs and trading companies.  Loans are available for a variety of investments such as HMOs, portfolio loans, holiday lets and property refurbishment.

Barry Searle, Managing Director of Mortgages at Castle Trust Bank, said: “One of the many advantages of becoming a bank is that it gives us greater flexibility to make changes to products and pricing where we identify demand in the market. A second lockdown is something that nobody wanted, but the property market remains open for business and there will continue to be opportunities for investors.

“This limited period discount will help investors to make the most of those opportunities and continue to stimulate activity in the market. The discount applies to our term products across a range of uses and can include property refurbishment as part of a term product or, where an investor would rather consider the value uplift in the term finance arrangement, on our Bridge to Let proposition.”

Original article featured here…

This news come after Castle Trust recently launched a new range of buy-to-products up to 75% LTV, with instant terms available from the lender’s BDMs.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/castle-trust-reduces-bridge-to-let-rates/

Aldermore’s 120-day notice product returns

Aldermore, the specialist finance lender, has announced that its 120-day notice product has been reintroduced.

This reinstated account is for customers looking for a competitive rate for their short-term savings goals.

The lender is offering the personal savings product at 0.7%.

Ewan Edwards, director of savings at Aldermore, said: “During the current period of uncertainty and a further national lockdown it is important that savers get their money working for them for the future.

“The 120-day notice accounts are particularly useful for people who might have had their plans disrupted over the summer due to the pandemic, enabling them to save money for next year when they are able to use it.

“Aldermore offers a variety of straightforward and competitive products that provide choice to complement whatever the goals of savers are, big or small.”

Original article featured here…

This news follows Aldermore’s recent announcement that they have partnered with technology firms Iress and Twenty7Tec to streamline electronic application submissions.

source https://commercial-mortgages-broker.co.uk/aldermore/aldermores-120-day-notice-product-returns/

Paragon Bank resumes BTL products for student let HMOs

Paragon Bank, the specialist lender, is once again accepting applications on buy-to-let properties that are, or will be, let to students.

A range of two-year and five-year fixed rate options are now available on HMOs and multi-unit blocks.

The 70% LTV range has a two-year fixed rate starting at 3.05% and five-year rates from 3.44%.

Paragon is also offering 75% LTV loans, on a two-year fixed rate at 3.35%, and two five-year fixed-rate products at 3.74% and 4.2% respectively, both with £350 cashback.

Two-year mortgages will incur a 1% fee whilst 2% is charged on five-year deals.

These products include a free valuation.

Moray Hulme, director of mortgage sales at Paragon, said: “We are pleased to have re-entered the student market, offering intermediaries some strong products that we feel are well suited to meet the robust demand we are currently experiencing.

“We wanted clarity on whether students would return for the 2020-2021 academic year, which they have done, even if lectures are being held remotely.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/news/paragon-bank-resumes-btl-products-for-student-let-hmos/

Landbay announce 2 new BTL products

Landbay, the buy-to-let lender, has announced the addition of two new BTL products, after its recent product refresh in response to sharply rising demand.

The two new BTL mortgages are both available at 75% LTV, fixed for five years with a rate of 3.55%.  The first has free valuation and a maximum loan size of £525,000, available on properties up to £700,000.  The second has a higher maximum loan size of £1million.

These BTL products have been added to the range to help landlords expand their portfolios before the end of the current stamp duty reductions.

Although slow lender times have been noted across the market, Landbay have recently reported that most of their offers are being issued within 72 hours.

Landbay’s application process is now just nine steps and is completely paperless. All new applications will also benefit from their instant Decision in Principle (DiP). Using intuitive technology, DiP only takes two minutes from start to finish, combining cutting edge technology with the human touch.

Paul Brett, Managing Director of Intermediaries at Landbay, said: “It is a testament to Landbay’s confidence in the buy-to-let market that we can continue to lower our interest rates once again.

“This will be very welcome news to intermediaries as it will help their clients to make the most of the burgeoning buy-to-let market. There is still strong demand from professional landlords who are taking advantage of the savings from the stamp duty holiday to increase their portfolios.

“The recent Bank of England statistics showed the housing market is hitting heights not seen since 2007 and buy-to-let properties are amongst some of the most solid investments available at the moment.

“Therefore, these new products, combined with our recent complete product refresh, two-minute DiP, free valuations and free title insurance, we expect to be a real help to intermediaries and their clients who are rushing to buy before the end of the stamp duty holiday.”

Original article featured here…

This news comes after Landbay’s recent announcement of free title indemnity insurance for BTL landlords in order to speed up the legal process.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-announce-2-new-btl-products/

Shawbrook Bank becomes Race at Work Charter signatory

Shawbrook, the specialist UK savings, development finance and bridging finance bank, has signed up to the Race at Work Charter.

They have joined more than 200 public, private and charitable organisations in this initiative designed to improve outcomes for black, Asian and minority ethnic (BAME) employees in the UK.

Building on the work of the 2017 2017 McGregor-Smith Review, ‘Race in the workplace’, which found that people from BAME backgrounds were still underemployed, under-promoted and under-represented at senior levels, this Charter is to foster a public commitment to improving outcomes of BAME employees in the workplace.

The Race at Work Charter aims to address the barriers to BAME recruitment and progression and consists of five principles:

• Appointing an Executive Sponsor for race.
• Capturing data and publicising progress.
• Ensuring zero tolerance of harassment and bullying.
• Making equality in the workplace the responsibility of all leaders and managers.
• Taking action that supports ethnic minority career progression.

Organisations such as Shawbrook that have signed up to the Charter are publicly committing to these principles.

Julian Hynd, Shawbrook’s chief operating officer, said: “I am extremely pleased that Shawbrook is now an official signatory of the Business in the Community Race at Work Charter.

“As an organisation, we’ve always firmly stood against any form of discrimination, victimisation and harassment but we want to go further and ensure we are positively tackling barriers and making sure our organisation is representative of our community.

“We believe each and every one of our colleagues brings unique talents and perspectives, and we want to ensure they feel supported, respected, have a voice and are able to develop skills and talents in line with our culture and values.

“Our aim is to foster a culture where Shawbrook employees can feel confident in bringing their whole self to work, feel included and see their talents nurtured so they can fully contribute when at work.

“As a Race at Work Charter signatory, we believe that this further shows our commitment to achieving that goal.”

Sandra Kerr, race equality director at Business in the Community, added: “We would like to thank Shawbrook Bank for setting out their commitment to being an inclusive and responsible employer. By signing up to the charter they are showing that they aspire to have one of the most inclusive workplaces in the country. Together we can break down barriers in the workplace, raise the aspirations and achievements of talented individuals, and deliver an enormous boost to the long-term economic position of the UK.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/news/shawbrook-bank-becomes-race-at-work-charter-signatory/

LendInvest expands BTL range for limited companies

LendInvest, the London based buy to let finance and bridging finance platform, has announced the addition of a new pay rate product to its BTL range for limited companies and special purpose vehicles.

The latest in LendInvest’s series of updates to their BTL product suite is an exclusive 5-year fixed pay rate product at 3.69% for limited company landlords.

The lender is now offering 80% LTV products on standard properties, with a maximum loan size of £500,000 and has also increased the maximum loan size for standard properties to £1.5 million.  Where Open Banking is used, customers are also eligible for £200 cashback on all applications.

Andy Virgo, director of buy-to-let at LendInvest, said: “Professional landlords are speaking with their feet right now and the demand we have seen for our buy-to-let proposition of late is illustrating exactly that. Incentivised by the SDLT freeze, it’s clear that we can still do more to support our borrowers. The changes released today mark our commitment to assisting the UK’s professional landlords grow or incorporate their portfolios at this crucial juncture in time.”

Original article featured here…

LendInvest recently announced another expansion of their BTL range which now includes funding offers for first-time landlords and also caters for student let HMOs.

source https://commercial-mortgages-broker.co.uk/news/lendinvest-expands-btl-range-for-limited-companies/

New buy-to-let calculator from Octane Capital

Octane Capital, the multi-award winning specialist finance house offering bridging finance and refurbishment finance, has launched a powerful new calculator to reduce application times for its buy-to-let product range.

After recently condensing their application process for the the buy-to-let range to only two pages, Octane Capital can now identify the correct product for prospective borrowers in less than 60 seconds using the new calculator.

Once the calculation is complete, introducers are able to download the proposed product and loan structure with key information such as nominal (pay) rate, monthly payment, maximum LTV and ERC structure.

Mark Posniak, managing director of Octane Capital, said: “We’ve invested heavily in tech during 2020 and our new B2L calculator, spearheaded by Oli Greenspan, our head of marketing and internal sales, has further collapsed time to completion.

“It’s ultra-intuitive, quick to use and gives introducers a huge amount of downloadable information that they can subsequently refer to when completing their formal application.

“It ties in perfectly with our strategy of making the sales process frictionless and getting deals across the line faster than ever, often in half the time it traditionally takes.”

Original article featured here…

Following high demand, Octane Capital recently announced they had created a waiting list for their new buy-to-let offering.

source https://commercial-mortgages-broker.co.uk/news/new-buy-to-let-calculator-from-octane-capital/

Lower income areas produce higher yields for BTL landlords

Higher income areas rarely generate higher rental yields for buy-to-let properties, according to new research from lettings management platform Howsy.

Their recent findings show that areas with the lowest annual net income of up to £25,000, have the lowest average rental cost, at £453 per month.  Average rent rises in accordance with a rise in annual income; in areas with renters earning £45,000 or more per year, the average rent per month was £1,606, 255% higher than the lowest income areas.

This does not mean higher yields however, as the best BTL investments are not to be found in the highest average income areas.  In those neighbourhoods, the average rental yield currently is just 3.4%.  This percentage increases as the average income starts to decrease.  The highest average yield is to be found in areas where monthly earnings are an average of £20,000 to £25,000, at 5.1%.

Howsy founder and CEO Calum Brannan said: “Areas with higher earners are always going to require a much larger investment cost upfront. We’ve also seen the huge problems posed in the most affluent areas of London, in particular, whereby professional crooks take over a property to sub-let for months on end to the financial detriment of the landlord.”

He noted that this type of behaviour is less common in more affordable locations: “The bonus for landlords investing in this segment of the market is that investment costs are lower and as a result, yields are much more favourable. Should any problems arise, the cost to return a property back to its original standard is also far lower and so all in all, a less affluent area is actually the best place to invest”

Original article featured here…

This research comes as an increasing amount of first-time buyers are entering the BTL sector.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lower-income-areas-produce-higher-yields-for-btl-landlords/

Bridging Finance industry revitalised with Q3 rise

Bridging loan volumes have rebounded by 46% in Q3 of 2020, as the market recovers from lockdown restrictions.  This is according to the latest Bridging Trends data from MT Finance.

Contributor lending transactions have risen from the £79.4 million of bridging loans in Q2 of 2020, totalling £115.52 million in the third quarter of the year.

Dominating the sector in Q3 was regulated bridging lending, accounting for an average of 53% of all lending.

The average monthly interest rate in Q3 decreased to 0.78%, from 0.85% in Q2 – back in line with rates available before the current pandemic (0.75%).

Average LTV levels in Q3 increased to 51.7%, from 48.8% in the second quarter. This can most likely be attributed to borrowers turning to bridging finance as maximum LTV restrictions are tightened even more by mainstream lenders.

Gareth Lewis, Commercial Director at MT Finance, said “The stamp duty holiday and rising house prices has ensured that the market remains busy and it has been well publicised that the mortgage market is currently feeling the strain when it comes to delivering acceptable processing turnaround times, which can add to an already stressful experience.

Luckily, bridging finance is a useful tool for brokers to help unlock a transaction for a client allowing them to meet deadlines.

“Given the stress on a chain, presented by the slow processing times, it is unsurprising to see more clients turning to regulated bridging finance to support their purchases.” Original article featured here…

The Bridging Trends infographic showing the general trends that shaped the bridging finance market in Q3 2020 can be found here…

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/bridging-industry-revitalised-with-q3-rise/

Landbay updates BTL product range

Landbay, the buy-to-let lender, has refreshed its core product range in order to speed up the completion process amid sharply rising demand.

Slow lender times have been noted across the market but Landbay reported that most of their offers are being issued within 72 hours.

Free valuation has been introduced on Landbay’s 5-year fixed rate mortgage to 75% LTV and the rate has fallen from 3.69% to 3.65%.

Rates on other 5-year fixes have also been reduced, now starting at 3.49% down from 3.54% whilst its standard 2-year fixes now start at 3.19%, previously 3.39%.

The range has been expanded further with the introduction of new 70% LTV products, with rates kept at the same level as they were at 60% LTV.

More reductions have been put in place for HMOs and multi-unit freehold block products.

Paul Brett, Managing Director of Intermediaries at Landbay, said: “Over the past month we’ve seen unprecedented demand from brokers and their clients.

“We are always listening to what the market is telling us and as a result we have relaunched our whole product range with lower rates.

“These enhancements, together with free Title Indemnity insurance and free valuations across qualifying cases means that more cases will complete, more quickly, with a significant cost reduction to the borrower.”

“Our application process is completely paperless and online, therefore we don’t have any delays in the reviewing of post, because we don’t have any.”

Original article featured here…

This news comes after Landbay’s recent announcement of free title indemnity insurance for BTL landlords in order to speed up the legal process.

source https://commercial-mortgages-broker.co.uk/buy-to-let-finance-2/landbay/

Halloween treats from Hope Capital

Hope Capital, the short term lending and bridging finance house, has announced two revamped bridging loan products as a special version of its Seventies Collection just for Halloween.

HOPE 725 and HOPE 75 are available for new enquiries made before the end of November.

HOPE 725 provides Hope Capital’s lowest non-discounted rate of 0.725% per month and up to 72.5% LTV on unregulated residential property for loans up to £725,000.

HOPE 75 is a bridging loan with the lender’s highest LTV at 75% with a reduced monthly rate of 0.74% for residential properties and loans up to £575,000.

Both these new products are available for a loan period of up to one year, to individuals and companies throughout England and Wales, on a first charge basis.

These loans can be used by borrowers in a variety of situations from a straightforward purchase, an auction buy, with or without light refurbishment or to chain-break a mortgage.  Another use is to give the borrower additional time to find a longer-term finance solution, by refinancing existing debt.

The Seventies Collections can be used alongside the Custom Collection which was recently launched, featuring six different products, features and options.  Brokers can pick the options and features best suited to their client’s needs to create a customised loan.

Hope Capital managing director Gary Bailey said: “We have experienced huge demand for the Seventies Collection and have improved the products as a Halloween treat for brokers.

“We anticipate these updated products will meet this market demand. They will be particularly useful for securing immediate funding whilst mainstream lenders are unable to meet the needs of borrowers, in the time frames they require to seize the opportunities.

“All our new products are designed to provide innovative solutions which offer flexibility and affordability for the borrower.”

Original article featured here…

Hope Capital also recently announced an upgrade to its service with the addition of Nivo ID verification and messaging to speed up the underwriting process and enhance customer experience.

source https://commercial-mortgages-broker.co.uk/hope-capital/halloween-treats-from-hope-capital/

13 year high for mortgage approvals in September

Mortgage approvals for house purchases increased sharply in September, according to data from the Bank of England.  In August, 85,500 approvals were recorded which rose to 91,500 in September. This was the highest number since September 2007 and 24% higher than in February 2020.

This September rate of approvals was around 10 times higher than that of May this year, when 9,300 approvals were recorded.  Analysts are now warning that the peak may have passed in light of criteria tightening from mainstream lenders.

Jonathan Sealey CEO of Hope Capital, the short term lending and bridging finance house, said: “The Chancellor has clearly achieved his goal of bringing mortgage borrowing back to pre-Covid levels, with the introduction of the SDLT holiday. And, with mortgage approvals at the highest level for 13 years, house buyers have responded.

“But the danger is that this rush is becoming a stampede and with only so much bandwidth in the system, it’s likely that buyers will already be losing out due to the delays building up across the house purchasing process.

“That’s why it’s crucial for brokers and borrowers to consider alternative finance or specialist lending in order to get the deal over the line more quickly. The fact is right now mainstream lenders are unable to meet the needs of borrowers in the time frames they require to seize the opportunities in the market.”

Original article featured here…

Hope Capital recorded a sharp rise in demand during the summer as the country emerged from lockdown and in response launched its Capital Custom Collection and the Seventies Collection.

Tomer Aboody, director of MT Finance, the award winning property finance lender, added: “Looking at the mortgage approvals, which are the highest since the 2007 peak, it’s not surprising that there has been a corresponding rise in property prices. The feeling and concern is that buyers are feeding into an artificially strong market, which has been driven by historically low mortgage rates and a rush to complete transactions before the end of the stamp duty holiday in March.

“Credit repayments are holding well with consumer spending still limited due to continuous restrictions on eating out, shopping and trips abroad. Hopefully, the one positive to come out of this is that many will be in a stronger financial position and therefore better able to cope with the likely impending economic downturn.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/hope-capital/13-year-high-for-mortgage-approvals-in-september/