Paragon cuts BTL rates and introduces extra-large loan products

Paragon Bank, the specialist lender, has cut rates in its buy-to-let range, on two and five-year fixed rate mortgages.  These products are designed for purchasing or remortgaging single self-contained (SSC) properties, for portfolio landlords who manage lettings business in their personal names or through limited companies.

These SSC mortgages are available at 70% and 75% LTV, they come with free mortgage valuations and some have the added advantage of £750 cashback.

Rates start from 2.95% on the two-year fixed rate at 70% LTV and 3.34% on the five-year fixed rate.  At 75% LTV, rates start at 3.20% on the two-year fixed rate increasing to between 3.30% and 3.65% for the five-year fixed rate.

The lender has also introduced extra-large loan products which are available at 70% LTV on maximum loans of £1m, or 65% LTV for £2m, with initial rates of 3.25% fixed for five years.  These include a flat product fee, free valuations, £750 cashback and are subject to £299 application fees.  They are available for SSC, HMO and MUB properties.

ERCs are set at 2% on loans borrowed over two years for both the revised SSC mortgages and the extra-large loan products.

For the five-year products, ERCs are at 5% for years one and two, followed by 4% in years three and four and then 3% in year five.

Moray Hulme, director for mortgage sales at Paragon Bank, said: “We’re excited to announce reductions across our core product offering because we feel they offer fantastic value for purchasing or remortgaging SSCs, which we know are key investments for many portfolio landlords.

“After engaging with brokers, we know that a flat fee is attractive for these particularly high value purchases and remortgaging.

“While the product fee may seem high at first glance, it actually presents fantastic value for portfolio landlords who are financing properties up to a value of £2m.”

Original article featured here…

Paragon recently released its latest survey results, showing the percentage of mortgage brokers anticipating higher levels of buy-to-let business over the coming year is at a high not seen since 2014.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/paragon-cuts-btl-rates-and-introduces-extra-large-loan-products/

Aldermore enhances residential mortgage range

Aldermore, the specialist finance lender, has enhanced its residential owner occupied mortgage range with reduced rates and a reintroduction of remortgage products.  These offerings are to support borrowers with less than perfect credit and also those who have complex needs.

There are four new remortgage deals, all of which have no product fee and include free standard legal and valuation fees. Two and five-year fixed rates are available at 75% LTV from 3.48% and 3.78% respectively.  At 80% LTV, the two-year fixed rate is 3.68% and 3.98% for the five-year fixed rate.

Purchase and remortgage rates with a fee of £999 start at 3.18% for a two-year fix at 75% LTV, and 3.48% at 80% LTV.

Jon Cooper, head of mortgage distribution, Aldermore said: “The pandemic has accelerated the increasingly broad set of financial cricumstances that borrowers have, so we want to be inclusive and responsive to this long-term trend.

“It is important to give opportunity to the widening number of people that may have complex income streams or credit issues in the past so that they can find a product that suits their individual circumstances.

“At Aldermore, we continually review our mortgage propositon and the rates we offer to ensure we best serve our customers and aspiring homeowners.

“With the reintroduction of these remortgage products, we’re delighted to be providing a greater amount of choice to homeowners looking to secure a better deal or reduce monthly payments to release funds to be put towards other large expenses on the horizon such as home renovations.”

Original article featured here…

Aldermore recently published research showing that half of all first time buyers (FTBs) who began the process of buying a property had the purchase fall through.

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-enhances-residential-mortgage-range/

West One makes product enhancements to Apex 1 range

West One, the specialist bridging finance and buy to let finance lender, has made product and criteria enhancements to its Apex 1 second charge mortgage range.  This range is designed for customers who have a lower credit score and those who have had credit issues in the past.

The LTV has been raised to 85% from 80% on the range and variable rate products without early repayment charges (ERCs) have been reduced from 5.55% to 5.15%.  The two-year fixed rate has been lowered from 5.85% to 5.25% and no longer carries ERCs.  The five-year fixed rate with ERCs now starts at 5.35%, previously 6.19%, and without ERCs starts at 5.85%, down from 6.49%.

For customers with good credit profiles, the Apex 0 range still has rates starting from 3.99%.

West One is now permitting applications from borrowers from all employment sectors provided they are not on furlough currently. In additionk, annual bonuses will now be considered for employed borrowers, including non-key workers.  The lender has also reduced the minimum property value for borrowers living in ex council houses from £150,000 to £100,000 up to 75% LTV.

Marie Grundy, Managing Director, Second Charges at West One Loans, said: “Since the start of 2021 we have seen strong demand for our second charge mortgage products with borrowers taking advantage of record low interest rates.

“Increasingly, we are seeing greater diversity both in terms of loan purpose and the profile of borrowers benefitting from second charge finance. For example, more higher value loans are being taken out for home improvements by people with property valued above £1 million.

“At West One we are constantly looking at ways to improve our product offering to ensure we are reaching a broad range of borrowing needs. This latest set of changes support that ethos.”

Original article featured here…

In January, West One expanded its buy-to-let team, with new senior hires to help capitalise on specialist sector opportunities throughout the year.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/west-one-makes-product-enhancements-to-apex-1-range/

HMRC data shows property transactions declined in April

UK monthly property transactions this April were 35.7% lower than in March, the latest HMRC data shows.  April saw a decline in the number of transactions after the rush to complete before the first Stamp Duty deadline.

The figures also illustrated that despite the recent decrease, transaction levels this April were 179.5% higher than in April of 2020 (during the first lockdown), at 117,860.

Simon Furnell, Chief Operating Officer at Masthaven Bank, said: “Today’s figures demonstrate just how far the UK has come in its fight against the coronavirus and how well the property industry has adapted to what is probably the biggest operational challenge it has ever faced. At this point last year, activity in the housing market was almost totally suspended and the whole of the UK was in lockdown. Since then, a combination of government support and industry innovation has allowed the property market to flourish, even through the restrictions imposed by the pandemic.

“Despite this, it’s important to recognise that this government support won’t last forever. When initiatives such as the Stamp Duty tax holiday and the furlough scheme come to an end later this year, it’s vital that borrowers aren’t left in the lurch. With the end of many pandemic restrictions in sight, lenders must now turn their attention to dealing with the challenges of the post-pandemic recovery. Specialist lenders in particular will have a key role to play, ensuring that customers who have been affected financially by the last year are still able to access the advice and products which are suitable for them.”

Richard Pike, Phoebus Software sales and marketing director, added: “The numbers today tell quite a story, firstly of shifting stamp duty deadlines and, secondly, the emergence from Covid restrictions. The initial rush to get transactions over the line before 31st March had a huge impact driving transaction numbers up. Whereas, compared to April last year, when the first lockdown had a massive dampening effect, the numbers year on year show the market is thriving.

“Despite the rise in property prices reported by the Office for National Statistics (ONS) this week, the appetite in the housing market continues unabated. With just over a month to go until the end of the stamp duty holiday the push to beat another deadline is definitely under way. However, as the deadline approaches and conveyancers are put under pressure, to finalise transactions, the numbers for May and June are likely to mirror those in March. The fear was that the market would take a nose-dive at the end of the holiday, but with so many transactions already in the pipeline, that fear could be unfounded. Many people are looking to move away from major towns and cities since the pandemic and the stamp duty holiday may not be the only driver for the current increased demand.”

Original article featured here…

At the end of 2020, Masthaven published its survey findings in Broker Beat, which showed confidence among brokers for the new year; of the 256 intermediaries surveyed,  71% were optimistic about the market in 2021, only a 6% fall from January of 2020.

source https://commercial-mortgages-broker.co.uk/masthaven/hmrc-data-shows-property-transactions-declined-in-april/

Landbay upgrades broker portal and cuts rates

Landbay, the buy-to-let lender, has upgraded its broker portal and reduced rates and fees across its core BTL product range.

New features and services have been added as part of the portal upgrade, including more detailed case status reporting and progress updates.  European Standardised Information Sheet documentation can now be downloaded at any time in the application process.  Also, applicants no longer have to sign the offer document and solicitors are instructed as soon as the offer is made.

Landbay has also cut rates by up to 0.10% as part of its streamlining of the product range, and fees have been decreased by 0.25%.

Paul Brett, managing director of intermediaries at Landbay, said: “As a technology-led lender, we are constantly looking at ways in which we can streamline the customer journey, for mortgage intermediaries and our landlord applicants.

“Intermediaries will now gain much more visibility in respect of the status of their cases and applicants will enjoy an even faster process.

“We’re constantly looking for ways to improve our products and this latest batch of rate and fee reductions keeps our core range attractive and competitive.”

Original article featured here…

Landbay recently enhanced its product range to suit landlords looking to invest in the north of the UK; the minimum property value has been lowered on its core products from £75,000 to £65,000.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-upgrades-broker-portal-and-cuts-rates/

Avamore offers new planning flexibility feature

Avamore Capital, the London based short term and bridging finance lender, has launched a new product feature to provide an additional build facility for enhanced or modified planning, within an existing development loan for proposed planning amendments.

The new Planning Flexibility feature is intended to provide certainty of funding to developers, with Avamore approving funding for potential planning scenarios for the future.

There are three scenarios in which this feature can be applied;

1. The developer has finalised plans for adding an extra storey and submitted the amended planning application.  Avamore can then add an extra discretionary facility to the loan agreement, meaning further funds can be drawn, subject to planning being granted for the enhanced planning scheme.
2. The developer is converting a building and intends to submit planning to add an additional storey – they have not finalised the plans but have estimated a build cost.  Avamore is able to include an estimated discretionary facility in the offer for the expected works.  In order to draw this, finalised plans have to be approved by the lender and final planning must be granted.
3. The developer has been granted planning, subject to a S106 agreement being signed and provided by the borrower.  In this scenario, the formal planning consent may not have yet been issued and may take some time.  Avamore can accept that planning has been granted in principle and thus provide the loan for the full works, with the build facility to be released at the time planning is gained is full.

If the developer does not end up using the additional facility, there are no additional fees charged.  Pricing is to reflect Avamore’s standard offering.  The feature is intended to maximise developer profitability by saving them the time and costs associated with amending the development facility after planning enhancement or confirmation.

Adam Butler, relationship manager at Avamore, commented: “We have lent on a number of projects that fall into the Planning Flexibility bracket and it’s great that we are now able to formalise the feature. This is another element for brokers to add to their toolbox which speaks exactly to what developers need right now. The market is keen to build and Avamore’s feature mitigates the ‘stop start’ nature of the process. If the enhanced planning is packaged in the initial deal, once planning is approved, we really facilitate the developer’s ability to move at pace. Our ethos, approach and products have always been customer centric and we hope that this Planning Flexibility feature demonstrates just that.”

Original article featured here…

Avamore has recently grown its team in the Midlands with the addition of new originators;  Tirath Singh joined the company to work alongside Andreas Yianni and Adam Butler as the first of two new hires.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-offers-new-planning-flexibility-feature/

Aldermore research shows big losses for FTBs due to fall throughs

Aldermore, the specialist finance lender, have released new research showing that half of all first time buyers (FTBs) who began the process of buying a property had the purchase fall through.  This cost £2,912 on average, with a total loss from April 2020 to March 2021 of £406,641,036.  50% said it was due to lockdown.

On average, FTBs have delayed their plans to purchase a home by 8.4 months due to the current pandemic.  The delays during the process were two months on average for FTBs that bought between March 2020 and March 2021.  Extra costs associated with buying during this time were £5,870, and 70% spent more on their house purchase than they had planned to.  In total, additional costs for FTBs were £1.67bn from 2020-March 2021.

Covid-19 has changed priorities for many house buyers, with 67% reconsidering the type of property they wish to buy.  66% felt that having an outdoor space such as a garden or balcony was a priority, 62% wanted to be close to family, and 63% more put more importance on having a home office.

Jon Cooper, head of mortgage distribution at Aldermore said: “The Covid-19 pandemic has motivated a great number of people to buy their first home. It is important, alongside raising a deposit, to identify and factor in any additional costs, such as solicitor, valuation and estate agent fees, as well as moving costs, all of which can add up.

“Seeking advice from a financial adviser or broker will help greatly in making the process less confusing. Although buying a house has its challenges, the reward can be great, illustrated by a large number of first-time buyers (84%) who said the stress was worth it and that becoming a homeowner has been extremely rewarding.

“Successive lockdowns over the past year have made us all re-evaluate how we live our lives, and what we need from our homes. It is no longer just a place to live, but a place of work, and where we exercise, educate our kids and socialise. As a result, the data shows a dramatic change in preference in the types of properties new buyers are looking for.”

Original article featured here…

Steven Cooper recently took over the role of CEO at Aldermore, following the retirement of Phillip Monks OBE, who founded the bank back in 2009.

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-research-shows-big-losses-for-ftbs-due-to-fall-throughs/

Roma Finance brings Michael Allison on board

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has appointed Michael Allison as head of transformational change.  In this role, he will be responsible for enhancing processes and upgrading customer and intermediary experiences.

Michael has a wealth of finance experience after 21 years in the industry, including 13 years at Together, where his most recent role was head of business growth and commercial processing.

Michael Allison said: “I am proud to be joining Roma Finance in what is an extremely exciting time for the business,”

“The recent rebrand clearly demonstrates that Roma has a desire to continue its recent growth trajectory by embracing change and transformation.”

Scott Marshall, managing director at Roma Finance, added: “Michael’s background in the industry and drive to create and enhance the extraordinary makes him the ideal choice for the new role.

“Enhancing the dynamics and fluency of Roma Finance by focusing on further improving both the customer and introducer journey will improve the lending experience for everyone connected with us, and so I am enormously excited for Michael’s arrival and this next step.”

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In April, Roma Finance announced that their Commercial Director, Nick Jones had left the company, after achieving a 60% rise in new business year on year.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/roma-finance-brings-michael-allison-on-board/

Octane Capital boosts BTL team

Octane Capital, the multi-award winning specialist finance house offering bridging finance and refurbishment finance, has boosted its buy-to-let team with two new hires.

Dylan Bleasdale and Emma Kelman have both been appointed as specialist BTL business development managers.

Emma was previously a BDM for Kensington Mortgage Group and will be based in London for her new role, covering the South of England.

Dylan will be covering the North of England from his base in the North East.  His experience includes roles with Zephyr Homeloans and Computershare Loan Services.

Liam Lawlor, sales director at Octane Capital, said: “We’ve been bowled over by the level of demand from brokers for our buy-to-let product and have brought Emma and Dylan onboard to specifically accommodate it.

“They’re both highly experienced operators and know the market inside out so will hit the ground running.

“Our buy-to-let loans are targeting a demographic that the vast majority of lenders actively avoid, with many of our borrowers to date having multiple non-standard circumstances.

“But this is where we excel as a lender and we look forward to helping as many brokers as we can during 2021.”

Kelman added: “Working at Octane is like being part of a family. It’s a relaxed and friendly atmosphere where everyone trusts everyone else and has got your back.

“Our buy-to-let product is proving a massive hit with brokers and I’m really looking forward to building on that.

“Best of all, deals I would previously have had to say no to I can now give the green light, and that puts a real spring in your step.”

Original article featured here…

Octane announced a record first quarter for completions this year;  during Q1 it completed £92m of new lending, a 121% increase on Q4 of 2020 and the highest seen since the lender was established in 2017.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/octane-capital-boosts-btl-team/

Rightmove figures show increase in asking prices

The latest Rightmove figures have been released, showing asking prices for homes have risen yet again across Britain.  The new average asking price is £333,564, an increase of 1.8% in only one month.

In the north of England, demand has risen sharply and overtaken supply, as larger homes become more sought after. There was a 13% increase in asking prices in Wales since March of 2020, followed by 11% in the North West and 10% in Yorkshire & the Humber.

Although average prices remain higher in London, they have only risen by 0.2% since the start of the pandemic according to Rightmove.

Tim Bannister, Rightmove’s director of property data, said: ‘Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions,’

And added: ‘It is the regions of Britain further north that are leading the way, with some degree of catching up between average prices in London and the north.

‘The pandemic has given a greater focus on the home, and in 2020 we saw a surge in southern coastal and rural areas.

‘So far 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so also narrowing some of the huge price gap with London.’

Tomer Aboody, director of property lender MT Finance, added: ‘Londoners who have always craved city life are now less fussy about being at the centre of things and are willing to compromise on location in order to find that elusive space.

‘This, in turn, is pushing asking prices up in other regions at the fastest pace in years, exceeding London in terms of percentage increase in values.

‘Although prices are still much lower in the regions than in London, those averages are rising as demand shifts outwards.’

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: ‘These figures confirm what we’ve seen ‘at the sharp end’. Some sellers have taken the opportunity to raise asking prices, making home buying less accessible even for those able to purchase the dwindling stock of properties.

‘On the other hand, we’re finding faster rollout of the second jab, in particular, is helping to encourage older homeowners to put their homes on the market but not fast enough yet to keep prices in check.

‘We expect the imminent tapering of the stamp duty concession to prompt a reduction in activity and softening rather than a correction in prices as longer-term market sustainability is driven by economic recovery and availability of competitively-priced finance.’

Original article featured here…

Last month, Rightmove released its house price index, showing the average price of a house going on the market was at £327,797, which was £4,000 over the record set in October of 2020.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/rightmove-figures-show-increase-in-asking-prices/

LendInvest makes changes to bridging suite

LendInvest, the London based buy to let finance and bridging finance platform, has made a series of changes to its bridging range, with rate reductions and higher LTVs for both land and commercial products now available.

The residential bridging range now has the 75% LTV product available at 0.75% and the 70% LTV product at 0.70%.

Rates have also been reduced in the auction and bridge-to-let suite, with its 75% LTV auction product and 75% LTV bridge-to-let product now both available at 0.75%.

Additionally, LendInvest has introduced new 65% LTV products for land and commercial deals, with or without planning consent.

Justin Trowse, sales director at LendInvest, said: “To be in the position to implement such significant changes to our bridging suite is a great way for us to kick off the quarter.

“The team stays close to what’s going on in the market, and ensures we are listening to what our brokers and borrowers need as we ramp up business towards the Summer – these are no fire sales or limited specials, our rate cuts are here to stay across all of our bridging products.”

Original article featured here…

LendInvest is financing the development of affordably priced homes in Kent, alongside Homes England; the £90m-plus GDV scheme will be developed by Kings Crescent Homes, to build 400 apartments in Ashford.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/lendinvest-makes-changes-to-bridging-suite/

Avamore expands team in the Midlands

Avamore Capital, the London based short term and bridging finance lender, has grown its team in the Midlands with the addition of new originators.  Tirath Singh joins the company to work alongside Andreas Yianni and Adam Butler as the first of two new hires.

Tirath will be responsible for leveraging relationships in the vicinity, and capitalising on his local knowledge as part of the expansion of Avamore’s coverage in the area.  Previously, he was senior relationship manager at Assetz Capital.

Avamore will be announcing new hires across all departments shortly.

Tirath Singh said: “I am joining Avamore at an incredibly interesting time,”

“The market has renewed energy but, it’s really important to acknowledge that we aren’t in the same place we were pre-Covid.

“That means we need to be responsive to what the market actually needs and remain solution driven in our output.

“That’s the key point that stands out about Avamore, and I am really looking forward to bringing interesting products and dynamic options to my broker partners.”

Nikolay Petkov, principal at Avamore Capital, commented: “Avamore has had a strong start to the year, and we are really excited to see the value Tirath is going to add to the business.

“Ensuring broader regional coverage has been on our agenda for a while now and so we’re delighted to have brought someone into the business that has strong local knowledge and relationships, as well as a prior understanding of how to match projects with high potential to a lender’s credit appetite and parameters.”

Original article featured here…

Avamore recently provided new loans in Wales and England, after expanding last year.  The team was grown after receiving additional funding and the former Head of Underwriting at Avamore Capital, Philip Gould, was made a Principal.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-expands-team-in-the-midlands/

LendInvest helping to fund 400 affordable homes

LendInvest, the London based buy to let finance and bridging finance platform, is financing the development of affordably priced homes in Kent, alongside Homes England.  The £90m-plus GDV scheme will be developed by Kings Crescent Homes, to build 400 apartments in Ashford.

The homes will range from one to three bedrooms and are a short walk from the train station, with London just a thirty minute ride away.

Construction is expected to start imminently, as the site is ready and planning has already been secured.  Completion is due in 2023.  The development will take place over two phases, with 143 units and some commercial amenity in the first stage and an additional 257 flats in the second stage.

Rod Lockhart, CEO at LendInvest, said: “We’re very pleased to see a development on this site moving forward and to kick off a new partnership with Homes England and Kings Crescent Homes,”

“The project will deliver much needed new homes in a key strategic South East location.”

Stuart Dawkins, head of development finance at Homes England, added: “Homes England are delighted to be supporting a burgeoning SME developer delivering their first scheme to the Ashford market.

“Although a challenging project, it will deliver 400 high quality homes in an area of high growth but low affordability and will allow Kings Crescent Homes to establish their platform.”

Nick Harvey Jones, Co-CEO at Kings Crescent Homes, commented: “We’re extremely excited to develop this well-located and attractively designed scheme, with phase one to be named The Triangle, in Central Ashford, alongside our funding partners LendInvest and Homes England.

“For a very affordable price point, this development will offer premium spec units with views of the neighbouring Victoria Park and River Stour, in one of the UK’s fastest growing towns which benefits from high speed rail connections which can get you to Central London in circa 30 minutes.”

Original article featured here…

Lendinvest recently promoted Jan Gallagher, previously business development manager, to key account manager.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-helping-to-fund-400-affordable-homes/

Shawbrook takes just 4 days to complete £27m BTL deal

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has completed a a £27m buy-to-let refinance and capital raising deal.  This was achieved within four working days of the offer being issued.

The bank used its new E-signature technology, now available to buy-to-let, bridging and commercial customers, to send offer documents securely to the customer who could e-sign and return immediately.

The loan, eligible for a desktop valuation, was agreed at 75% LTV on a 10 year fixed rate.

Emma Cox, sales director at Shawbrook Property Finance, said: “A fast turnaround such as this is always a great achievement, but for a case of this size and complexity is extraordinary and a testament to the expert team on the case.

“We launched eSignature technology last month and it is great to see the positive impact it’s already having on the customer journey. The client was overseas when the offer was made, so having to print and post documentation would have significantly prolonged the case. I’m delighted we could turn this around so quickly for them.”

Original article featured here…

Last month, Shawbrook was announced as the Official Banking Partner of Saracens Rugby Club, starting a multi-year partnership with the Championship rugby union side

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/shawbrook-takes-just-4-days-to-complete-27m-btl-deal/

Aldermore has new CEO

Aldermore, the specialist finance lender, has a new CEO.  Steven Cooper has stepped into the role following the retirement of Phillip Monks OBE, who founded the bank back in 2009,

Cooper graduated from Harvard Business School and has a wealth of experience in the banking sector, having previously held roles such as CEO of UK private bank C.Hoare & Co, CEO of the Personal Banking Business across the UK and Europe and CEO of Barclaycard Business Solutions.

Currently, Cooper sits on several advisory boards; he is joint chair of the Cabinet Office-sponsored Social Mobility Commission, chairman of Experian UK, and a non-executive director at Robert Walters PLC.

Steven Cooper said: “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 recently published results from a survey of prospective homeowners, show only 19% of first-time buyers were successful on their first attempt to get a mortgage in the last year, with 43% experiencing multiple rejections.

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

Avamore promotes internally for head of asset management

Avamore Capital, the London based short term and bridging finance lender, has promoted Toran Selim to fill the role of head of asset management.  He will be responsible for growing the department, enabling it to contribute fully to the 2021 completion targets for the lender.

Toran will play a major role in reviewing operational processes post-completion and maintaining relationships with key service provider partners.

He previously has worked on implementing Shieldpay, Avamore’s new payment platform, and contributed to the firm’s recent achievement of total loan redemptions of £150m, with no losses incurred.

Toran Selim, head of asset management, said: “I am incredibly excited to take on the role as head of asset management,”

“As the Avamore loan book grows, it is my number one priority to ensure prudent loan monitoring for our borrowers and that we always remain flexible and willing to work on a case-by-case basis.”

Nikolay Petkov, principal at Avamore Capital, commented: “Toran has been a huge asset to the business since he joined.

“He’s been instrumental in shaping how the department operates and will no doubt continue to make a positive impact on the wider team and the experience our borrowers have.”

Original article featured here…

Avamore has recently provided new loans in Wales and England, after expanding last year.  The team was grown after receiving additional funding and the former Head of Underwriting at Avamore Capital, Philip Gould, was made a Principal.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-promotes-internally-for-head-of-asset-management/

Avamore growing in new regions

Avamore Capital, the London based short term and bridging finance lender, has provided new loans in Wales and England, after expanding last year.  The team was grown after receiving additional funding and the former Head of Underwriting at Avamore Capital, Philip Gould, was made a Principal.

These new loans show Avamore is taking advantage of its wider geographical reach and working with different brokers.  A £1m residential bridging loan was completed covering two properties in Wales, located in both Cardiff and Newport.  In addition, the lender provided £775,000 for a pre-wind and watertight finish and exit in Leicestershire.  In Manchester, a loan was provided for two light refurbishments.

Philip Gould, principal at Avamore, said: “Avamore’s growth into new regions comes at a particularly interesting time,”

“2021 has been a positive year so far and it has allowed us to build new relationships and explore new opportunities.

“What these transactions have highlighted is the level of work we do internally as a team to understand the true story behind a deal.

“While we will increasingly need to rely on service providers to help us understand new areas and regional pockets, we will always work with our broker partners and ensure that we, as a lender, understand the strength of the scheme in order to get the deal done for the borrower.

“We are looking forward to completing many more transactions in new regions over the coming months.”

Original article featured here…

Last month, Avamore announced total loan redemptions of £150m, with no losses incurred.

source https://commercial-mortgages-broker.co.uk/avamore-capital/avamore-growing-in-new-regions/

Stamp duty transactions rise by 48% year on year

The HMRC has published its most recent Stamp Duty Land Tax (SDLT) figures, showing a total rise in stamp duty transactions of 48% compared to Q1 of 2020.

Residential property transactions were 2% higher in Q1 2021 than in Q4 2020 and 53% higher than in Q1 2020.

The stamp duty holiday for residential properties has no doubt had an impact on these figures, as it has played an important part in boosting the market during the pandemic.

Lisa Martin, development director at TMA, said: “The first quarter of 2021 signalled a busy start to the year for the mortgage market – a fact which is reflected in today’s Stamp Duty Land Tax transactions statistics. We saw many more homebuyers and movers making their purchases and subsequently benefitting from the Chancellor’s stamp duty holiday than during the previous quarter, which led to a further uptick in transaction figures compared to the end of 2020.

“While this demand is likely to continue over the coming months, it will also be interesting to see whether there is greater appetite from buyers to make the most of the stamp duty cut in certain regions, ahead of the initial deadline in June. For example, we may see a greater number of borrowers making house purchases in specific areas of the country where there’s the potential for better house price growth, while they can continue to save on stamp duty costs.

“Over the coming weeks and months, it will be vital for lenders and brokers to work collaboratively in order to ensure that all transactions are processed on time. However, while some buyers rush to take advantage of the reduction in stamp duty, many borrowers will be unsure about what mortgage options are available to them, and which would best suit their particular circumstances. For this reason, professional advice will be crucial. Advisers are well placed to discuss the various options available for borrowers, and therefore have a key role to play in supporting clients’ decision making.”

Rob Barnard, director of intermediaries at Masthaven Bank, added: “It’s clear the stamp duty holiday has successfully injected energy into the market, but with the June deadline creeping closer, both lenders and brokers need to work collaboratively to ensure transactions are processed in time. For borrowers who want to prioritise speed, working with a broker and a specialist lender can give them access to a range of bespoke options. For some of these borrowers, short-term lending, such as bridging loans, could be an appropriate and often overlooked option.

“While the tax holiday has been beneficial for many buyers, it’s also important to remember there are many would-be borrowers who have been unable to take advantage of the tax break, because of the impact of the pandemic on their finances. Specialist lenders and mortgage brokers need to work closely to ensure these individuals have alternative financial solutions at their disposal. It’s vital that the end of various government support programmes doesn’t leave those who have been financially affected by the pandemic high and dry.”

Original article featured here…

Masthaven published Broker Beat at the close of 2020, showing confidence among brokers for 2021.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/stamp-duty-transactions-rise-by-48-year-on-year/

Aldermore findings show high rejection rate for first-time buyers

Aldermore, the specialist finance lender, has published the results from a survey of 1,000 prospective homeowners.  The findings show that only 19% of first-time buyers were successful on their first attempt to get a mortgage in the last year, with 43% experiencing multiple rejections. Before the pandemic, 48% were successful on the first time of trying.

A number of factors contributed to the rejections, with many first-time buyers being turned away for multiple reasons.  Poor credit history, low deposits, low income or being self-employed, overdrafts, student loans and credit card debt were all barriers to getting a mortgage.  In light of these findings, Aldermore have highlighted the increased amount of options that are now available.

Jon Cooper, head of mortgage distribution at Aldermore, said: “The growth of specialist lenders – who with human underwriting dig into the detail of more complicated applications – have opened the door for those with complicated income streams or credit issues in their past to find a pathway to home ownership.  

“The home buying process can be confusing and complicated, especially as this generation of first-time buyer is more diverse in financial circumstances than ever before.”  

He added: “It may feel daunting at times so we would recommend seeking advice from a mortgage broker that can give a whole of market view, and provide options specific to a new buyers’ individual circumstances.” 

Original article featured here…

Aldermore recently joined the Mortgage Market Alliance (MMA), which aims to promote the availability of lending for today’s diverse range of customers.

source https://commercial-mortgages-broker.co.uk/aldermore/aldermore-findings-show-high-rejection-rate-for-first-time-buyers/

Shawbrook introduces e-signatures

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has launched its new E-signature technology.  This will now be available to buy-to-let, bridging and commercial customers.

This technology will streamline the process to completion by allowing borrowers to e-sign and return formal offers immediately, with no delays, via an online verification system.

The entire application process for brokers will be fully streamlined with Shawbrook’s BTL platform which is soon to be launched, enabling a formal mortgage offer to made within days.

Claire Rankin, Director of Strategy and Digital Transformation at Shawbrook, said: “E-Signatures is one in a long line of digital enhancements that Shawbrook will introduce this year. Our aim is to continually make technological improvements to better support our broker partners and their clients.

Adopting this technology has allowed for more streamlined and efficient operations. Documents that previously would have taken days to co-sign can now be completed in a matter of minutes.

As our lives start to get busier again, being able to access and sign documents from anywhere and at any time makes applying for a mortgage a more straightforward process.

As well as simplifying the customer journey, it will also make our broker’s lives easier.

By freeing up time spent coordinating these small but time-consuming tasks, they can focus on supporting more clients. It’s a real win for everyone involved in the process.”

Original article featured here…

Shawbrook Bank have been announced as the Official Banking Partner of Saracens Rugby Club.  This multi-year partnership with the Championship rugby union side will see Shawbrook support the club as they make a bid to return to the Premiership.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/shawbrook-introduces-e-signatures-57883/

UK house prices hit a record high

The latest Nationwide house price index show that UK house prices hit a record high last month.  House prices in the UK rose by 2.1% in April 2021.  This is the greatest monthly increase seen since February 2004.  There is a new record average high for house prices, of £238,831, which is an increase of £15,916 over the last year.  House price growth has rebounded year on year to 7.1% in April, up from 5.7% in March.

Robert Gardner, chief economist at Nationwide, said: “Just as expectations of the end of the stamp duty holiday led to a slowdown in house price growth in March, so the extension of the stamp duty holiday in the Budget prompted a reacceleration in April.

“However, our research suggests that while the stamp duty holiday is impacting the timing of housing transactions, for most people it is not the key motivating factor prompting them to move in the first place.

“For example, amongst homeowners surveyed at the end of April that were either moving home or considering a move, three quarters said this would have been the case even if the stamp duty holiday had not been extended.

“Housing market activity is likely to remain fairly buoyant over the next six months as a result of the stamp duty extension and additional support for the labour market included in the Budget, especially given continued low borrowing costs and with many people still motivated to move as a result of changing housing preferences in the wake of the pandemic.

“With the stock of homes on the market relatively constrained, there is scope for annual house price growth to accelerate further in the coming months, especially given the low base for comparison in early summer last year.”

Tomer Aboody, director of MT Finance, said: “With continuous government support and stimulus, particularly the extension of stamp duty relief, house prices shot up in April.

“Added to this the growing availability of 95% mortgages, and money being cheaper to borrow than ever, it is hard to see what is going to stop the housing market in its tracks this year.

“What the end of the stimulus will bring, we are not certain yet, but with economic uncertainty on the horizon, this artificial bubble could slowly deflate. That is the best-case scenario.

“The biggest factor is the lack of properties to buy, which is creating and overwhelming the pursuit of houses with gardens, which in turn is pushing up pricing.

“Will the government look to modify the stamp duty for downsizers in order to release more properties onto the market?

“This, along with the changing social environment with more flats being built in the centre and city of London, means a big cultural shift in society is on the horizon.”

Original article featured here…

The latest figures released by Halifax showed the average house price in the UK had risen to a record high of £254,606.  House prices in March were 1.1% higher than in February and 0.3% higher in Q1 of 2021 than Q4 of 2020.

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

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/uk-house-prices-hit-a-record-high/

Redwood Bank chooses new director of operations

Redwood Bank, the buy to let lender, has appointed a new director of operations, Sebastian Mrotzek.  Sebastian has a wealth of nearly 20 years experience in the financial services sector, having held roles in commercial banks, start-ups and regulators.

He has worked for Accenture, HSBC Global Asset Management, Barclays Retail and Business Bank and Lloyds Bank Global Transaction Banking.  He was also a member of the Bank of England’s technology and projects board and most recently, deputy COO and head of banking operations at Heyman AI Limited.

In his new role with Redwood Bank, Sebastian will be responsible for ensuring compliance and customer care with a role spanning project management, banking and credit operations and information technology.

Sebastian Mrotzek, director of operations at Redwood Bank, said: “I am thrilled to be joining such an experienced team at both management and operational levels,” said Sebastian.

“Redwood Bank has a genuine passion for achieving great customer outcomes and I’m excited to become part of its journey as it continues to develop and grow.

“Working in a challenger bank provides me with the opportunity to influence the direction of the company, without the constraints of legacy systems and set ups.

“In addition, it also provides a platform in which one can engage in the end-to-end operations.”

Gary Wilkinson, CEO and co-founder of Redwood Bank, commented: “This is a key role as it supports the smooth running and full operations of Redwood.

“We are impressed by Sebastian’s vast and varied experience and general management approach.

“There’s no doubt he’s set to become a very welcome addition to the Redwood team, and we welcome him with open arms.”

Original article featured here…

In December, Redwood Bank were awarded the Best Business Notice Account Provider prize by the Savings Champion Awards 2021.  These are the only awards that solely focus on savings, with categories ranging from easy access, fixed-rate bonds and cash ISAs.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/redwood-bank-chooses-new-director-of-operations/