Paragon provides £8 million for 64 home project

Paragon Bank, the specialist lender, has provided £8 million for the second phase of a development for Horsnall Holdings.  The development, named The Gate, will will be comprised of 64 homes, both one and two-bedroom apartments, in Loughborough.

Paragon’s Development Finance division are funding this second phase and also provided finance for the initial phase.  It is the sixth development the lender has assisted Horsnall Holdings with.

Mark Horsnall, Director at Horsnall Holdings, said:“The support from Paragon has enabled more much-needed housing to be developed in the Loughborough area. The Gate offers high-quality housing in a convenient location, in the heart of Loughborough’s desirable Waterside Village.

“We have worked closely with Paragon for a number of years now on projects of varying sizes. The whole team has a great understanding of the industry and has always been keen to assist us with funding. Paragon’s continued support has helped us to grow our business significantly over the last few years. Monthly valuations and draw down are simple, hassle free and always paid within a few days of submission.”

Simon Dekker, Relationship Director at Paragon, said: “It is great to be able to continue our relationship with Horsnall and support the business with yet another scheme.

“Over the past few months, it has been our priority to support both new-to-bank and existing clients, so we are pleased that we are able to continue our relationship with the business through assisting with this development and those prior.”

Original article featured here…

Earlier this week, Paragon revealed the results of its latest survey, which found that the buy-to-let market will focus on five-year remortgaging deals once the stamp duty holiday ends this March.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/paragon-provides-8-million-for-64-home-project/

Roma Finance is newest addition to the Mortgage Market Alliance

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has become the latest founder member of the Mortgage Market Alliance (MMA).

The MMA was founded to provide a ‘collaborative voice’ for the mortgage industry.  It is focused on promoting the availability of secured lending for an increasingly varied range of customers and needs.

Roma Finance is a specialist lender offering a range of short-term finance solutions; bridging, refurbishment, conversions, auctions and developments, and also medium-term products for buy-to-lets, HMOs, holiday lets and serviced accommodation.

Nick Jones, commercial director of Roma Finance, said: “We are customer centric and believe knowledge is power. Education is an essential factor in the finance industry and short-term finance is a growing area with considerable potential for intermediaries and borrowers alike.

“Partnering with the Mortgage Market Alliance will allow us to increase our reach and ensure the benefits of intermediaries and their professional advice are projected to as many people as possible. Making an informed decision is critical when it comes to making the most of a property investment.”

Alex Hammond, director of the MMA, said: “The MMA is a collaborative voice for the mortgage industry, promoting the availability of secured lending for an increasingly diverse range of customers and purposes.

“Short-term finance is an area of lending where there is a real opportunity to raise understanding amongst customers in a way that will open up new opportunities for property investors, intermediaries and lenders, and we look forward to working with Roma finance on PR and education campaigns in the future.”

Original article featured here…

Last week, Roma Finance announced that it has expanded its sales team for the new year, with two new administrators appointed along with new senior hires.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/57750/

Puma Property Finance completes £8.5m development loan for care home

Puma Property Finance, part of Puma Investments, the development finance specialists, has completed an £8.5m development loan on a 27-month term.  The purpose of the loan is to fund the construction of a care home in Wilmslow, Cheshire.

Completion of the project is expected in July 2022.

The new, purpose-built care home will have 60 beds with en-suite wet rooms for each resident, alongside communal lounges, dining areas and restaurants.

The development is expected to be completed in July 2022.

Tony Throp, director at Puma Property Finance, said: “We have a long-standing relationship with this care operator, and are pleased to support them in building another exceptional care facility in the North West.

“Residents will benefit from the high standard to which these care homes are developed which, as we have seen last year, is more important than ever to ensure residents can receive safe and effective care services.

“We very much pride ourselves as being a relationship lender, so it is particularly pleasing to work again with this operator on another excellent scheme.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/development-finance-news/57738/

Paragon: BTL market will focus on five-year remortgaging deals

Paragon Bank, the specialist lender, has conducted a survey which found that the buy-to-let market will focus on five-year remortgaging deals once the stamp duty holiday ends this March.  Of the 200 intermediaries surveyed, 50% are planning to focus on this type of deal from April onwards.

There was a significant increase in the amount of five-year fixed rate buy-to-let mortgages before the BTL Stamp Duty surcharge was introduced in April 2016.  Industry data shows completions were 121% higher in March 2016 than the same month in 2015.  Demand for this length of deal grew following the 2017 introduction of new buy-to-let underwriting rules.

Paragon’s survey also showed that 16% of brokers intend to focus on short-term finance, whilst 13% will be concentrating on customers diversifying into holiday lets.

Additionally, four in ten brokers have no plans in place to handle any decline in business after the Stamp Duty holiday in April, although nearly six in ten felt case volumes would be affected negatively after the deadline.

Nearly half of the intermediaries, 47%, expect that business will ‘significantly decrease’, with 12% holding the opinion it will ‘slightly decrease’.  Those expecting case volumes to rise in Q2 of this year accounted for just one in ten.

Moray Hulme, Paragon Director for Mortgage Sales, said: “There was a significant increase in five-year fixed rate business written in the run-up to the introduction of a 3% buy-to-let Stamp Duty surcharge in April 2016 and those deals are due to expire in the coming months.

“Brokers are extremely busy getting deals over the line ahead of the end of the Stamp Duty holiday, but the prospect of remortgage business will give them some hope that they won’t face a complete cliff edge of business as we head into April.”

“The Stamp Duty break has provided welcome stimulus to business and has helped the buy-to-let market bounce back.  Once the scheme ends we expect the landscape to be quite different when compared to the one we have seen over the past few months, with many expecting cases to reduce significantly.

“While we recognise that this does result in some uncertainty for the industry, we should be reassured when we remember how mortgage application numbers recovered after taking a dip in 2016 when new rules meant landlords were required to pay an additional 3% Stamp Duty on property purchased to rent over and above standard rates.”

Original article featured here…

In December, Paragon launched a new five-year fixed rate as part of its BTL range, aimed at landlords considering higher value properties.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/57731/

Optimism from bridging industry in third lockdown

The third national lockdown has been in place since the 4th January 2021 and is set to last until at least February if not longer.  Yet the property market is remaining open and hopeful.

Government guidance allows for moving home, estate agents and removal firms are allowed to operate, and people are allowed to go to property viewings.  There seems to be a more optimistic, albeit cautious, feeling among lenders than during the first lockdown, when the appetite for risk decreased.

Amit Majithia, principal at Avamore Capital, said: “The government’s latest announcement is far from welcome, albeit understandable given the worrying infection and hospitalisation figures,”

“With news of a vaccine at the end of last year, it is disappointing that we are now faced with our third cycle of lockdown measures, but hopefully we really are in the last stages of disruption.

“The industry is in a relatively fortunate position in that in this lockdown, unlike the uncertain situation in early March, onsite construction is permitted to continue.

“This is similar to the rules of lockdown 2.0 and will mean that we are able to maintain momentum and continue to complete on transactions.”

“The other issue that we will keep a keen eye on is the delivery of materials which is going to be affected not only by the lockdown, but of course increased border friction [after] the UK’s exit from the EU”

“A theme which is likely to remain consistent is the increased interest in our product for part-complete schemes (finish and exit) which is specifically designed for developers that have faced unexpected delays and cost overruns during their project.

“With further challenges presented through the stop-start nature of the past nine months and the end of CBILS on the horizon, we expect that developers will become increasingly dependent on the specialist finance market to provide them with support for their schemes and their cashflow.”

Nick Jones, commercial director at Roma Finance, said: “The government won’t look to undo the hard work they’ve put in place for the past 12 months, however, the recovering of the spending during this time will need to start at some point, which is more likely in the Autumn or Spring of 2022.

“The difficulty which customers will feel will be the exiting and finishing of property projects during lockdown.

“Project costs are likely to increase and timescales elongate, resulting in customers potentially overrunning, which will brings its own issues.

“However, if intermediaries and lenders work with customers for mutually satisfactory results then this will give the property market a much needed boost and protect everyone’s interests.”

Tomer Aboody, director at MT Finance, added: “It is now down to the comfort level of sellers in terms of allowing potential buyers in to view their homes and buyers feeling comfortable attending viewings,” he cautioned.

“Our appetite to lend has not changed whatsoever,” he added.

“We feel the market won’t be disrupted as it was last year because there is an end in sight, thanks to the roll out of the vaccine programme.

“This, along with the fact that valuers and solicitors can still work and there is still access to properties, should provide further confidence for the housing market as a whole.”

However, he believes that the stamp duty holiday will need to be extended, if not made permanent.

“The chancellor must look at the deadline again, in light of this unexpected lockdown.”

Original article featured here…

The latest Nationwide house price index showed that annual house price growth in the UK reached a 6-year high in December of 2020, of 7.3%.

source https://commercial-mortgages-broker.co.uk/avamore-capital/optimism-from-bridging-industry-in-third-lockdown/

West One expands buy-to-let team

West One, the specialist bridging finance and buy to let finance lender, has expanded its buy-to-let team.  These new senior hires will help the lender to capitalise on specialist sector opportunities throughout the year.  More support roles will also be added to the team.

Jason James, previously with Bluestone Mortgages, has joined West One as a National Account Manager.  Kitt Makwana will be a new Key Account Manager and Paul Huxter will be supporting the lender’s distribution extension strategy.  All three new roles will be part of the BTL team, managing relationships with both mortgage clubs and networks.

Andrew Ferguson, managing director of BTL at West One Loans, said: “The BTL division has strong growth ambitions for 2021, and these additions to the team are a key part of that strategy.

“We are keen to make our proposition more widely available to the intermediary market and expand our distribution through networks and mortgage clubs in order to take full advantage of the opportunities for the specialist sector in 2021.

“Brokers will now be able to transact with us in the manner they choose, either directly through our new channels or through one of our master broker partners.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/west-one-expands-buy-to-let-team/

Roma Finance bolsters sales team

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has bolstered its sales team for the new year with new hires.  Two new administrators have been appointed along with new senior hires.

Laleta Buctkuar has joined the lender, after fifteen years with Together, as a key account manager.  In her new position, she will be supporting the company’s growth by developing customer relationships and supporting intermediaries.

Two new underwriting relationship manager have also been added to the sales team, Emma Barker and Daniel Hill, who have both been promoted internally.

Nick Jones, commercial director at Roma Finance, said: “2021 is upon us and, as a business, we are determined to make it a great one. I am excited to welcome Laleta to the team.

She is a fantastic person who creates strong relationships and will bring a great deal of skill and knowledge to the business.

“I am also delighted to welcome Christina and Rebekah, and see Daniel and Emma thrive in their new roles.

“The changes to the sales team will allow improved efficiency, communication and capacity within Roma, which is essential for the increased demand we are continuing to experience.”

Original article featured here…

In the last quarter of 2020, Roma Finance announced a reduction in rates and increase in LTVs across its product range.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/roma-finance-bolsters-sales-team/

Octane Capital’s new hires for sales team

Octane Capital, the multi-award winning specialist finance house offering bridging finance and refurbishment finance, has expanded its sales team for the new year with two new hires.

Hattie Hall, previously a senior case manager for MT Finance, joins as an internal Business Development Manager.  Mark Stephenson, formerly with Castle Trust, joins as an external Business Development Manager.

Mark Stephenson commented: “The opportunity to work with some of the most respected individuals in the specialist property finance market was one of the main reasons I was drawn to Octane. I am also excited by the product-less approach, which allows us to structure deals with unrivalled flexibility. I’m looking forward to helping Octane achieve a £1bn loan book in 2021 and doubtless much more beyond.”

Hattie Hall said: “The flexibility offered by Octane’s unique #3rdGen approach has been on my radar for some time and that definitely played a role in my decision to join. Getting to work alongside the likes of Mark, Jonathan and Matt, who are on the cutting edge of specialist lending, was another big reason why I made the move. I can’t wait to get stuck in and play my part in Octane’s future success.”

Mark Posniak, managing director at Octane Capital, added: “We have set ambitious targets for 2021 and Hattie and Mark will play an important role in helping us to achieve them. Both have exceptional track records and have already hit the ground running, adding value to the team from day one. Though 2021 could be an eventful year as the economic impact of the pandemic starts to feed through, it will bring no end of opportunities for property investors and we are expecting to be very busy as a result. The team we now have means we can put the pedal to the floor and at the same time maintain the very highest service levels that our introducers are used to.”

Original article featured here…

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

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/octane-capitals-new-hires-for-sales-team/

Hope Capital announces new range

Hope Capital, the short term lending and bridging finance house, has announced a new range of bridging loans.  This latest offering is designed for customers looking to undertake property refurbishments.

Three new products make up the range; Refresh for small upgrades, Renew for refurbishment and repairs and Renovate for larger projects.

For unregulated residential property, LTVs of up to 75% are available and 100% funding for 6-18 month loan terms.  Borrowers in both England and Wales can access rates from 0.69% on residential property loans, up to a maximum of £3m.

Gary Bailey, managing director at Hope Capital, commented: “There is definitely a strong demand for refurbishment bridging loans, even more so in the current climate, when investors are increasingly looking at refurbishment and development opportunities, to either improve the property, increase yield or for capital gain.

“Property refurbishment finance can be used for a wide range of requirements, from light internal redecoration, through to large extensive projects or change-of-use projects, and are ideal for those who do not have the additional funds needed, however are looking to improve their property and therefore add value.

“We are looking forward to supporting our partners and clients with these options and continuing to deliver the same exceptional service.”

Original article featured here…

This follows last year’s extension of Hope Capital’s Seventies Collection.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/hope-capital-announces-new-range/

Avamore promotes Sabinder Sandhu to Head of Operations and Marketing

Avamore Capital, the London based short term and bridging finance lender, has internally promoted Sabinder Sandhu to Head of Operations and Marketing. Previously Marketing Manager, she will now be leading a team of three that work across both functions. The team will ensure a seamless service for clients and promote the Avamore brand.  Sabinder has also been made Vice President.

Sabinder has been with the lender since 2018, when she joined as a marketing coordinator.  Over the last few years, she has been involved in expanding and developing the lender’s brand and worked on their sales approach.  This work has contributed to a growth of 197% in both inquiries and leads year-on-year.

Sabinder Sandhu, Head of Operations and Marketing at Avamore Capital, said: “Having grown with the business, this is an exciting next step, as I have always considered the two functions to go hand in hand.

“I believe it’s important to consistently review and improve our internal practices, as well as find ways to enhance the Avamore brand in the market.

“Furthermore, in my capacity as a vice-president at the company, I am looking forward to working closely with the principals and being more involved in strategic planning for future business growth.”

Nikolay Petkov, principal at Avamore, added: “Sabinder has been an integral part of Avamore since the early years of us starting out, and has progressed her way up the team, proving she has the key knowledge and attributes to execute this role effectively.

“Every decision she makes she does with careful consideration, and has not only Avamore’s best interests in mind as a business, but she also cares deeply about the company’s culture and, most importantly, for the whole team.

“She has driven a lot of positive changes at Avamore and has always led by example with her hard work, integrity and dedication.”

Original article featured here…

In recent news, Avamore completed a £3.8m loan for a part-complete development scheme, and also integrated Nivo’s ID verification and messaging technology.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-promotes-sabinder-sandhu-to-head-of-operations-and-marketing/