Shawbrook completes BTL mortgage offer in 48 hours using new platform

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has provided a formal mortgage offer to a customer within just 48 hours from submission.  Using its new buy-to-let platform, ahead of the official launch, the entire application process was streamlined for the broker using the latest technology.

Through API technology and advanced decisioning techniques, this new system will aim to deliver a faster, more intuitive route to property valuations and credit decisions, where suitable.

During this test of the new platform, a broker submitted a case for consideration following which all third-party checks were conducted automatically as part of the AIP process.  An instant IMO was generated along with a successful automated property valuation.  This significantly reduced the overall time from submission to the offer being issued.

Emma Cox, sales director at Shawbrook Property Finance, said: “Over the last twelve months we have been investing heavily in the technology we rely on behind the scenes to help deliver the best possible service to our customers. The launch to our Strategic Partners has already demonstrated the benefits these improvements will have. This is just the start of a series of digital enhancements that we will be announcing in 2021 to improve broker experience and ensure a more efficient application journey for our customers.”

Original article featured here…

Last year, the bank launched MyShawbrook, to streamline the switching process for existing buy-to-let customers; allowing them and their brokers to make applications at the end of their mortgage term.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/shawbrook-completes-btl-mortgage-offer-in-48-hours-using-new-platform/

Paragon Bank introduces 80% LTV BTL products for energy efficient properties

Paragon Bank, the specialist lender, has introduced a range of 80% LTV buy-to-let mortgages, for properties with an energy performance certificate rating of A to C.  The lender has extended its standard 75% LTV as an incentive for landlords to invest in energy efficient properties.

The new five-year fixed rates are offered for portfolio landlords for purchase and remortgage, at 3.99% for single self-contained properties and 4.19% for HMOs.  Both products include free valuations with no product fees and £350 cashback.

Whilst the number of properties in the private rental sector with an energy rating of A-C has increased by 272% to 1.8 million over the last ten years, approximately six out of 10 homes are still rated at grade D or below.

Richard Rowntree, managing director of Mortgages at Paragon Bank, said: “Landlords have made great strides in adding more energy efficient homes to the PRS – or upgrading properties to C or above standard – over the past decade. However, more needs to be done as the Government moves towards its net zero carbon target by 2050 and landlords have a key role to play in that.

“Our new range of products at 80% LTV for homes with an energy rating of C or above will be an incentive for landlords to add energy efficient homes to the sector, benefitting tenants through lower energy bills and the environment through reduced consumption.”

“If landlords are to improve the energy efficiency of PRS stock, they need the finance to enable them to do so. Making sure there are attractive options to add new stock, whilst recognising the efforts to upgrade existing properties, is an important element of this.”

Original article featured here…

At the start of this year, Paragon 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.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/paragon-bank-introduces-80-ltv-btl-products-for-energy-efficient-properties/

Octane Capital joins forces with Twenty7Tec

Octane Capital, the multi-award winning specialist finance house offering bridging finance and refurbishment finance, has joined forces with Twenty7Tec, the mortgage platform provider.

Under this new partnership, the lender’s products will all be available via Twenty7Tec’s SOURCE platform.  This will give Intermediaries access to Octane’s medium-term buy-to-let products and short-term bridging solutions, via the SOURCE module.

Nathan Reilly, head of lender relationships at Twenty7Tec, said: “The specialist lending market is growing by the day so we’re delighted to welcome one of the real innovators in it onto our platform.

“Being able to access a lender of the quality and experience of Octane Capital will be a real value-add for our users during 2021 and beyond.”

Mark Posniak, managing director at Octane Capital, added: “Our appetite to lend has never been as strong and so featuring on an established and cutting-edge platform like SOURCE will enable us to get even more money into the market.

“As a lender with no products for our short-term lending proposition, creating products specifically for this sourcing system was a fun challenge.

“We do, however, feel that our buy-to-let products will be a real bonus for the many mortgage brokers out there looking for a home for their foreign national, first-time landlord and more challenging buy-to-let clients.”

Original article featured here…

Octane Capital recently highlighted its ability with non-mainstream BTL cases; by completing a £420,000 loan to an Indian national, who is currently residing in the UAE, which is secured on an unencumbered flat in London.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/octane-capital-joins-forces-with-twenty7tec/

LendInvest completes £3.8m development loan for residential scheme

LendInvest, the London based buy to let finance and bridging finance platform, has provided a £3.8m development loan for a residential scheme.

The borrower, Sundial Properties Limited, wished to refinance a bridging loan to purchase a site in Edinburgh city centre.  They also required funding for a conversion to turn the building on site into apartments.

With a quick turnaround, a 24-month term was agreed for a £3.8m loan  at 83% LTC and 65% LTGDV.

William Gray Muir, managing director at Sundial Properties Limited,  said “The funding request was complex because of the structure of the acquisition, but LendInvest was always proactive in finding practical solutions to the unusual features of the purchase.”

“I think a notable feature of LendInvest is the experience and approachability of all of their staff, which has made completing the acquisition during such a difficult time remarkably stress free.

“Staff made the effort to understand our business and track record and were prepared to structure the transaction to suit our specific needs and experience.”

James Russell, relationship director at LendInvest, commented: “Sundial approached us with this funding proposal which required a quick turnaround to secure the purchase prior to planning being granted, and then the ability to leverage off the value of the property with planning when it came time to transition to development funding.

“Peter McDermid, our Scotland-based BDM, was able to step up and provide the bridging [facility] in a quick turnaround and from there, I commenced work on the development funding by using all the same professional reports provided for the bridging loan.

“We recognised Sundial Properties as a high-calibre developer in the Edinburgh market and, given their borrowing history, it was a chance for us to fund another quality developer; we are hoping this will lead to a long, successful relationship.”

Original article featured here…

LendInvest recently announced that they have partnered with Jumio to make applying for a loan quicker and easier, using their biometric-based technology.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-completes-3-8m-development-loan-for-residential-scheme/

Aldermore brings back 95% LTV mortgages range

Aldermore, the specialist finance lender, has revived its 95% LTV mortgage products and made a series of rate reductions.

The lender is now offering a 95% LTV 2-year fix available at 5.08%, and also a 95% LTV 5-year fix at 5.28%.  These are for purchase only and both include a fee of £999.

The products are on offer now, for an initially limited time period and could become a permanent fixture in the future.

The reintroduced range is suitable for first-time buyers and those looking to move home, for both new build and existing properties.

In addition, rate reductions have been made to four products.  The 90% LTV 2-year fix is now available at 4.78%, down from 5.28%, whilst the 90% LTV 5-year fix has fallen to 4.98% from 5.38%.

The 85% LTV 2-year fix is now offered at 4.08%, previously 4.38%, and the 85% LTV 5-year fix is at 4.28%, reduced from 4.58%.  These are all for purchase or remortgage and include a fee of £999.

Jon Cooper, head of mortgage distribution at Aldermore, said: “We’re delighted to be one of the first lenders to reintroduce our 95% LTV proposition to meet the strong demand from first time buyers right now.

“Lockdown has given many people the chance to focus on their long term goals and, with three fifths (63%) of first-time buyers saying they are now more motivated to buy, we want to provide greater choice and opportunity to help new buyers realise their dreams of becoming home owners.

“While initially introduced for a limited time period, we look forward to permanently introducing our 95% LTV proposition in the near future.

“Aldermore has been a big supporter of the Help to Buy scheme since 2013 and continue to support the equity loan and ISA products.

“But as the market has evolved rapidly the past few years, we believe we can serve low-deposit first time buyers better going forward, in particular those that are self-employed or that have had credit issues in their past, with our own products and services independent of the scheme.”

Original article featured here…

Aldermore enhanced its commercial mortgages teams with two new hires at the end of last year; Joanna Winterton was appointed as Head of Commercial Mortgages South and Graham Ritchie as Head of Commercial Mortgages North.

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-brings-back-95-ltv-mortgages-range/

Landbay announce new BTL range

Landbay, the buy-to-let lender, has announced a new range of BTL products.  This is designed to cater for trading limited companies that are purchasing or remortgaging HMOs, MUFBs and standard properties.

The LTVs on large HMOs and MUFBs (up to 12 units or beds) has been increased to 75%.  The lender has also withdrawn limits on the number on floors in a property that it lends on.

Paul Brett, managing director of intermediaries at Landbay, said: “As one of the few lenders catering for trading limited companies, brokers now have more choice when advising company directors, who do not specialise in property.

“If small companies have surplus profits, buying property to let can be a tax efficient investment.

“Our appetite for lending has been boosted by our new £1bn funding source over five years from our new friends and partners, Allica Bank, which we announced last week.

“We are having a tremendous year across the business and I believe there are even more exciting times ahead for us.”

Original article featured here…

Landbay’s partnership with Allica Bank, the challenger bank, will fund BTL mortgages for the next five years.

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

Octane highlights capability with non-mainsteam BTL cases

Octane Capital, the multi-award winning specialist finance house offering bridging finance and refurbishment finance, has shown its ability with non-mainstream BTL cases.  The lender has completed a £420,000 loan to an Indian national, who is currently residing in the UAE, which is secured on an unencumbered flat in London.

As Ocatane’s BTL product does not include stress testing, it had the ability to offer the loan at 70% LTV on a five-year term, despite the property’s low rental yied.

Mark Posniak (pictured), managing director of Octane Capital, added: “This deal highlights why our buy-to-let product has proven so popular and how it differs from the mainstream. Our product is designed to help brokers with cases that do not fit with the majority of buy-to-let lenders.

“In this case, for example, we were lending to a foreign national borrower on a low yielding property at a high LTV – something that most lenders simply would not be able to do.”

Original article featured here…

In January of this year, Octane expanded its sales team to help achieve their ambitious 2021 targets.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/octane-highlights-capability-with-non-mainsteam-btl-cases/

Avamore expanding team following funding boost

Avamore Capital, the London based short term and bridging finance lender, will be expanding its team this year after securing additional funding, with aims to lend over £400m over the coming 24 months.

In order to achieve this target, Avamore will be adding another four regional Relationship Managers and doubling its sales team.  The lender will also be recruiting for roles including a Sales Director, Underwriter, Case Manager and Asset Manager.

In addition, the Head of Underwriting at Avamore Capital, Philip Gould, has been made a Principal.  He is the first outside of the existing four founders at the specialist lender to be given this title.

Amit Majithia, Principal at Avamore, said: “Our increased lending firepower means that we are very keen to complete deals with as many brokers and developers as possible.

“We’ve grown an amazing team and we’re seeking to build on that growth by adding more relationship managers who can deliver Avamore’s signature brand of quality, reliability and service.

“There are still a lot of brokers and developers who, for example, have never heard of our finish and exit product and that could be benefiting from it, so we need more people to spread that message for us.”

Original article featured here…

Earlier this year, Avamore internally promoted Sabinder Sandhu to Head of Operations and Marketing. Previously Marketing Manager, she is now leading a team of three that work across both functions.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-expanding-team-following-funding-boost/

Shawbrook completes large investment loan in just two days

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has completed a £5m refinance and £2m capital raise, just two working days after the offer was made,

The funding was required by the client for the refinance of a sizeable commercial property of 83 self-contained units, all let on short-term leases.  The customer also wished to finance an additional large commercial multi-let project.

The total £7m loan was agreed at 75% LTV on a ten-year term, offered on Friday and completed by the Monday afternoon.

Gavin Seaholme, head of sales at Shawbrook’s property finance division (pictured above), said: “A complex case like this calls for an experienced team of specialists.

“Working seamlessly with our expert strategic partner, we were able to gain a deep understanding of the client’s needs and end goals, which was crucial to the success of this case.

“This existing Shawbrook customer has a proven operating model which has been successful throughout the pandemic, so we are happy to support them on their continued investment journey.

“While much of the commercial property sector faces challenges, this is a clear example of how there are still opportunities out there in the market.”

Original article featured here…

At the end of last year, Shawbrook acquired RateSetter’s development finance business.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/shawbrook-completes-large-investment-loan-in-just-two-days/

Landbay partners with Allica Bank for £1bn BTL funding

Landbay, the buy-to-let lender, has partnered with a challenger bank, Allica Bank, to fund BTL mortgages for the next five years.  Allica Bank, for established SMEs, was granted a UK banking license in September 2019 and has experienced rapid growth since.

Under the new deal with Landbay, Allica Bank will provide £200m per annum for residential BTL mortgages.  This comes after Landbay secured a number of funding deals including £300m from an unnamed asset manager at the close of last year.

Earlier this month, Landbay were listed at number 12 in the FT 1000, the annual list of Europe’s fastest growing companies.  This ranking recognises companies that have achieved the highest compound annual growth in revenue from 2016 to 2019.

John Goodall, CEO at Landbay, said, “This partnership with Allica Bank reinforces the growing reputation that Landbay has for originating high quality buy-to-let mortgages for our institutional partners via our platform.

“It will also ensure that we can continue to provide some of the most competitively priced, buy-to-let mortgages in the market. We are really pleased to be working with Allica who have similar values to Landbay and also have a real customer focus.”

Richard Davies, CEO at Allica Bank, said, “We are delighted to partner with Landbay, extending our strong commercial lending expertise into the residential sector, enabling us to support even more people who are seeking access to finance.

“The Landbay team share our ambition to support and encourage customers through the combination and optimisation of great customer service and modern technology.

“This partnership is an important step forward in accelerating Allica’s impressive growth potential, leveraging our unique skills and expertise in lending underpinned by the robust and solid foundations we have built.“

Original article featured here…

Landbay also recently announced the addition of a new 5-year fixed rate buy-to-let mortgage offered at 2.99%.

source https://commercial-mortgages-broker.co.uk/buy-to-let-finance-news/landbay-partners-with-allica-bank-in/

LendInvest using Jumio technology for quicker loan applications

LendInvest, the London based buy to let finance and bridging finance platform, has partnered with Jumio to make applying for a loan quicker and easier.

Jumio’s biometric-based technology is integrated into LendInvest’s digital application system, which means that customers are able to confirm their identity online.

Using a smartphone, applications can simply upload a photo of their ID document and take a selfie.  A residency check is also included to further speed up the process, thus saving time and effort for customers and brokers as well.

Arman Tahmessabi, Chief Operating Officer at LendInvest, said: “We’re very excited to announce this partnership with Jumio as we seek to consistently streamline our application processes.

“The last year has highlighted even more clearly how paper-based processes are no longer fit for purpose, and a digitisation of the mortgage process is the most efficient move for our brokers and borrowers.”

Dean Hickman-Smith, Chief Revenue Officer at Jumio, added: “We are delighted to be working with LendInvest to help them confidently onboard new users remotely and to reduce friction from the mortgage application process while meeting onerous KYC requirements.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/lendinvest/lendinvest-using-jumio-technology-for-quicker-loan-applications/

Landbay launches BTL 5 year fix at 2.99%

Landbay, the buy-to-let lender, has announced the addition of a new BTL product.  This 5-year fixed rate buy-to-let mortgage is offered at 2.99%, available at up to 50% LTV with a product fee of 1.5%.

Set to be a market leader, it is available on standard properties with loan sizes of up to £1million.  The interest coverage ratio is calculated at payrate.

Paul Brett, Managing Director of Intermediaries at Landbay, said: “This is the only 5-year fixed rate buy-to-let mortgage for limited companies that is under 3%.

“This should be positive news for brokers and landlords as Landbay is at the forefront of driving down rates and making buy-to-let ever-more affordable at a time when landlords most need it to be.”

Original article featured here…

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-launches-btl-5-year-fix-at-2-99/