Paragon forecasts wave of BTL remortgaging activity in 2022

Paragon Bank, the specialist lender, has forecast a boom of remortgaging activity in the buy-to-let sector next year.

The catalyst behind this is the new underwriting standards that were brought in by the PRA in 2017.  The lender will be well placed to manage the increasing numbers of borrowers with five-year fixed rates, who now wish to switch to longer terms.

The lender also expects the industry to increase offerings that assist customers in purchasing more energy efficient properties and upgrading to improve their EPC rating, before the new rules on EPCs come into force in 2025.

Moray Hulme, mortgage sales director at Paragon Bank, said: “Five years ago, the PRA introduced new underwriting standards that required lenders to take a more holistic approach to assessing mortgage affordability.

“This correlates with 2017 seeing a significant increase in the volume of mortgages fixed over five years. As a result, we’re anticipating strong levels of remortgage business throughout the next year.

“This presents a fantastic opportunity for brokers to generate business and, with the process often involving additional borrowing, we recommend that they do this at the earliest opportunity.

“The sector has shone during another incredible year and with 2022 shaping up to be equally eventful, we look forward to working with our industry partners to support landlords in providing good quality, affordable homes for millions of tenants in the UK.”

Original article featured here…

Last month, Paragon reduced rates on selected 75% and 80% LTV five-year fixed rate buy-to-let products.  The lender’s green mortgage five-year fixed rate, at 80% LTV, has been reduced from 3.99% to 3.85%.  The standard five-year fix at 80% LTV is now down from 4.09% to 3.95%.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/paragon-forecasts-wave-of-btl-remortgaging-activity-in-2022/

Nationwide house price index shows rise in UK house price growth

The latest Nationwide House Price Index has revealed that 2021 was the strongest calendar year performance since 2006.  Annual house price growth in December was 10.4%, staying in double digits again.

The average house price in the UK this year was £254,822, an increase of almost £24,000 over the year and a new record high.

In Wales, house prices rose 15.8% year-on-year, making it the region with the highest increase for the first time.  In Northern Ireland, house price growth was at 12.1% and England saw the lowest increase at 9.0%.  Within England, the South West had the largest increase, seeing house prices rise by 11.5%.  London was the only region to have slower growth than in 2020, at 4.2%.

Robert Gardner, Nationwide’s chief economist, said: “The price of a typical UK home is now at a record high of £254,822, up £23,902 over the year – the largest rise we’ve seen in a single year in cash terms. Prices are now 16% higher than before the pandemic struck in early 2020.

“Demand has remained strong in recent months, despite the end of the stamp duty holiday at the end of September. Mortgage approvals for house purchase have continued to run above pre-pandemic levels, despite the surge in activity seen earlier in the year. Indeed, in the first 11 months of 2021 the total number of property transactions was almost 30% higher than over the same period of 2019.

“At the same time, the stock of homes on the market has remained extremely low throughout the year, which has contributed to the robust pace of price growth.

“It appears likely that the housing market will slow next year, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax. The Omicron variant could reinforce the slowdown if it leads to a weaker labour market. Even if wider economic conditions remain resilient, higher interest rates are likely to exert a cooling influence. Indeed, house price growth has outpaced income growth by a significant margin over the past 18 months and, as a result, housing affordability is already less favourable than before the pandemic struck.

“However, the outlook remains extremely uncertain. The strength of the market surprised in 2021 and could do so again in the year ahead. The market still has significant momentum and shifts in housing preferences as a result of the pandemic could continue to support activity and price growth. Indeed, the Omicron variant could serve to reinforce the shift in preferences in the near term.”

Gareth Lewis, commercial director at MT Finance, commented: “The year finished on a high as far as the housing market is concerned, and in the most unpromising of circumstances given the global pandemic.

“Covid focused the minds of buyers like nothing else, persuading people to move further out of urban centres in the search for more space, aided by remarkably low mortgage rates. Unsurprisingly, house prices performed most strongly in Wales, the north of England and the south-west as working patterns changed. However, affordability in London remains incredibly stretched, making it very difficult for a young workforce to buy in the capital.

“Although many people have made their move, there is still plenty of pent-up demand, which will keep property prices high. An easing of stamp duty for downsizers looks increasingly necessary in order to encourage them to move, free up larger family homes and keep property price growth at a more manageable level.”

Original article featured here…

In October, MT Finance appointed their first non-executive director, Chris Patrick.  In his new role, Chris will assist with MT Finance’s growth plans, focusing on funding strategy, ESG initiatives and technology.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/nationwide-house-price-index-shows-rise-in-uk-house-price-growth/

Landbay reflects on the BTL market this year

Landbay, the buy-to-let lender, has reflected on the UK BTL property market in 2021 and how demand has outstripped supply.  Writing in an article, Paul Brett, managing director of intermediaries, pointed towards the stamp duty holiday as the catalyst behind rising house prices.

In response to this, landlords have taken advantage of remortgaging products in order to release equity and purchase more property, often expanding their portfolios earlier than they had planned.

Paul Brett, managing director of intermediaries at Landbay, wrote: “As values increased landlords have been able to release more equity by remortgaging and using the money to fund a deposit on another property.

Even though landlords still had to pay the 3% stamp duty surcharge on additional properties, they were able to reduce their tax bill. We found landlords bringing forward their plans to increase the size of their portfolios.”

He continued: “Another new development for a few buy-to-let lenders, including ourselves, has been the introduction of green mortgages. We want to encourage landlords to buy and upgrade their properties to an EPC rating of A, B or C in return for a lower interest rate.

Launched in June, our green mortgage range is now accounting for around 10% of our new loans and has been very well received by intermediaries.”

Original article featured here…

Landbay recently repriced its limited edition range of five-year fixed rate BTL products; four of the five products in the range have been reduced by five basis points and the minimum loan value has been lowered to £200,000. The lender has also introduced a £500 cashback option for the range, which is payable upon completion.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-reflects-on-the-btl-market-this-year/

Shawbrook notes EPC challenges faced by landlords

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has noted the challenges faced by landlords with the new rules on EPCs (Energy Performance Certificate) coming into force in 2025.  Under these regulations, all properties with new tenancies will be required to have an EPC rating of C or above from 2025 and by 2028 this will apply to all rental properties.

Writing in an article, Sales Director Emma Cox pointed out the difficulties this will bring for those that own older rental properties, as improving their energy efficiency may take considerable work.  She also wrote that there has been little in the way of instruction given to landlords by the government in order to assist them with the necessary changes.  However, lenders are now offering green mortgages to encourage landlords to make changes.

Last month, Shawbrook published data from its Changing Face of Buy to Let Report, showing that landlords are already starting to improve the energy efficiency of their properties.  These findings showed that 17% of landlords and 22% of portfolio landlords (those with 4 or more properties), have already taken steps to improve the energy efficiency of their property.  This includes replacing boilers, heating systems and windows and also installing new white goods, all of which can positively impact the property’s EPC rating.

Emma Cox, Sales Director for the Commercial Mortgages business within the Property Finance Division at Shawbrook Bank, wrote: “Overall the changes to EPC regulation are positive. We need to reduce the impact all our homes have on the environment, and the end goal should be the creation of better-quality housing stock that benefits each and every one of us.

However, some challenges remain for landlords getting to grips with the regulation.

With activity in the market showing little signs of a slowdown this December, it’s fair to say that we can expect activity in the property market to start off strongly in the New Year. And with new proposals from the Bank of England to relax mortgage affordability checks, we could see more buyers enter the market. Time will tell, however, if this move helps the first-time buyers it is designed to support, or further stokes house price inflation. 2022 is looking like an exciting year for the property market, and after a challenging 2021, I am looking forward to what comes next!”

Original article featured here…

Shawbrook recently published its research findings, showing that UK landlords are planning to expand their portfolios in the coming year.  34% of UK landlords plan to purchase at least one additional property and 14% are now looking to purchase more properties than they had originally planned.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/shawbrook-notes-epc-challenges-faced-by-landlords/

Roma Finance has positive outlook for 2022

Roma Finance, the bridging finance, short term lending and buy-to-let finance specialist, has a positive outlook for the coming new year.

National sales manager Steve Smith, writing in an article, explained that the lender is well equipped to deal with any more challenges from the pandemic.  With staff now able to work remotely where necessary and using technology such as AVMs, video calling and drone footage of development projects, Roma Finance is prepared to face any restrictions that may be put into place to deal with the Omicron variant.

November was Roma Finance’s strongest month to date and the lender is confident that the new year will be a successful one with a robust property market.

Steve Smith, national sales manager at Roma Finance, wrote: “Even without the impact of the new variant, we’re expecting more subdued residential transaction volumes next year.

Government interventions put a rocket under the market in 2020 and 2021 and, inevitably, many purchases were moved forward to take advantage of the Stamp Duty Holiday.

After the holiday ended on 30th September, home sales in October fell 48.4% compared to September, and were down 30% year-on-year (HMRC).

The drop was fully expected and will likely settle into a steady but lower level of purchase volumes next year.

Other sectors are expected to be stronger. We’re still seeing high demand for development finance, and we predict this will continue into 2022. At Roma, our pipeline is particularly strong for heavy refurbishment and ground-up developments, and we don’t see this changing.”

Original article featured here…

In October, Roma Finance announced new promotions and appointments; Jack Ainsworth and James Edwards were both promoted to senior underwriter and a new hire has been added to the underwriting team, Farah Akhtar.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/roma-finance-has-positive-outlook-for-2022/

Redwood Bank honoured with award for fourth year in a row

Redwood Bank, the buy to let lender, has been awarded the national ‘Best Business Notice Account Provider’ award for the fourth year in a row.

In the 2022 Savings Champion Awards, the challenger bank was shortlisted in several categories, including Best Business Fixed Rate Bond Provider, and was honoured with the prestigious account provider award again.

These are the only national awards that focus entirely on savings, whilst also celebrating those banks and building societies that have promoted competitive rates in the market and taken care of their customers.

CEO and co-founder Gary Wilkinson, said: “We are delighted to receive this award for the fourth year running in what continues to be a challenging time for businesses everywhere.
“While the base rate for savings has remained low, we have been determined to continue to support businesses keen to secure their long-term future by putting some money aside.

“Redwood offers several different products which help businesses to put their cash to work and offering differing options around accessing their savings. For the judges of these awards to recognise the scope of what we offer is further proof that we put customers at the heart of all we do.”

Original article featured here…

Earlier this week, the challenger bank supported its local hospice in Warrington, St Rocco’s, with a generous donation before Christmas.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/redwood-bank-honoured-with-award-for-fourth-year-in-a-row/

Redwood Bank supports local hospice with campaign donation

Redwood Bank, the buy to let lender, has supported its local hospice, St Rocco’s with a generous donation before Christmas.

St Rocco’s is fundraising with a ‘renovate a room’ campaign, to make sure that every person who stays at the hospice is as comfortable as possible, in a bright and modern bedroom.  The hospice costs £5million per year to run and only has NHS funding to cover a fifth of the total amount.

Redwood Bank has kindly provided a donation of £2,000 donation to support the campaign.

Gary Wilkinson, Redwood Bank’s chief executive officer and co-founder, said: “Our focus has always been on supporting our local community.

“When we heard about St Rocco’s renovate a room fundraising opportunity, we knew immediately we wanted to help.

“The hospice is close to the hearts of many people in the area, and it can only continue its invaluable work through donations.

Original article featured here…

At the beginning of December, Redwood Bank appointed Mark Winlow as chairman, to oversee and support the next level of growth.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/redwood-bank-supports-local-hospice-with-campaign-donation/

Hope Capital saw high demand for bridging finance in 2021

Hope Capital the short term lending and bridging finance house, has had a busy year for bridging finance.  Writing in a blog, managing director Gary Bailey noted that amidst the uncertainty of the past twelve months, there has been steady growth in the demand for bridging loans enabling customers to undertake refurbishment works.

At the start of 2021, the lender created a new range specifically for investors and landlords wishing to refurbish properties.  Three 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 of Hope Capital, said: “With many investors and developers looking for opportunities to make a larger return on their investment, renovating a property can achieve this by adding significant value to a dwelling.

This is especially true at a time where well-maintained properties, designed to fit the work from home trend, are being snapped up, sometimes within hours of coming to the market.

Therefore, looking ahead, I can only see the demand for homes designed for this purpose and in turn finance options available to help achieve this, continue to grow.”

Original article featured here…

Hope Capital recently launched a new fast track bridging product, ‘LOANS Fast Track Bridge‘, which provides facilities up to £750,000. The product is available for properties worth up to £1m, with the maximum LTV at 75% .

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/hope-capital-saw-high-demand-for-bridging-finance-in-2021/

Shawbrook research shows landlords’ expansion plans

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has published findings from its research, showing that UK landlords are planning to expand their portfolios in the coming year.

34% of UK landlords plan to purchase at least one additional property and 14% are now looking to purchase more properties than they had originally planned.  Confidence in the market appears to be soaring, with 67% of those surveyed feeling confident about the coming year.

Only 13% of landlords are looking to purchase in a new area of the UK, and of those 36% were looking at urban locations whilst 30% were considering rural areas.   23% of landlords who intend to expand their portfolio are planning to purchase additional property in the north of England.

Alternative property types are also being considered amidst the current supply issues, with 34% of landlords looking at semi-detached houses as an option and 31% considering terraced houses.  Flats also remain a viable option for 27% of landlords.

Emma Cox, sales director at Shawbrook Bank, said: “The resilience of the UK property market is clear from our research.

“Despite the hurdles caused by the pandemic, the market has stood firm and house prices have continued to soar in price.

“This has created attractive opportunities for investors and property developers, whose confidence in the market has grown over the last 12 months.

“Their buying activity and trends show that the market is likely to remain strong over the short term.

“Indeed, with 2021 announced as the ‘busiest year’ for the housing market according to Zoopla, despite recent falls in transactions, it’s clear that the market has fully rebounded from the lows of the pandemic.

“As supply continues to below, it’s unlikely that we’ll see house price growth slow significantly and as we move into January next year following the seasonal slowdown over Christmas, property investors will be seeking further opportunities to expand their portfolios.”

Original article featured here…

Earlier this month, Shawbrook made a new hire,  Craig McPheat, who has joined the bank as head of experience design. This is part of the bank’s plan to boost its team with at least another 100 new hires by the end of next year, in a variety of roles from developers, cloud and data engineers, product and customer experience designers and technology and data-related roles.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/shawbrook-research-shows-landlords-expansion-plans/

Shawbrook enhances team with Craig McPheat hire

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has made another new hire to enhance its team.  Craig McPheat has joined the bank as head of experience design.

Craig, who previously worked for Sainsburys Bank, has a wealth of knowledge in product, services and innovation design.  He has also held roles for NatWest and Tesco Bank.

In this new position, he will focus on the bank’s digital products and channels to ensure customers have a great experience with Shawbrook, leading a team of designers, thinkers and makers.

The bank plans to further boost its team with at least another 100 new hires by the end of next year.  This will be in a variety of roles from developers, cloud and data engineers, product and customer experience designers and technology and data-related roles.

Craig McPheat said: “The world beyond finance has been disrupted in recent years.

“Never has it been more important to understand the individual needs, issues and expectations of our customers in the environment we serve.

“Shawbrook Bank has made amazing strides in delivering products that recognise a customer’s individual circumstances and requirements, whether as an individual or a business, and in recognising how technology can help solve their problems.

“But we’re only getting started and I’m thrilled to join at this exciting time in order to build delightful, accessible and easy to use services for our customers by embracing real business agility, flow, and critical thinking in our product development.”

Marcelino Castrillo, CEO at Shawbrook Bank, added: “We continue to rapidly deliver new products and services into the market, building great customer experiences in-house and collaborating with fantastic partners by leveraging the digital connectivity we have enabled.

“It’s this pace of innovation and delivery that’s helping us to attract some of the best talent in the industry, and Craig joining us at this time is another great example.”

Stuart Doignie, head of fintech strategy and commercialisation at Shawbrook Bank, stated: “Customers choose Shawbrook for our ability to understand their circumstances and to provide them with the finance they need quickly and seamlessly.

“Technology and data play a significant role in that, but it’s our focus on simply creating brilliant customer experiences that makes the difference and is what helps us attract great talent into the organisation.

“People of Craig’s calibre and experience are in high demand, not least in the wider fintech arena, so I’m delighted he’s chosen to join us and the journey we’re on to redefine what a specialist bank can be.”

Original article featured here…

Shawbrook recently appointed a new director, Matt Fannon, to its Corporate Lending team.  This is part of an extension of the bank’s presence across Leeds, Yorkshire and the North East.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/shawbrook-enhances-team-with-craig-mcpheat-hire/

LendInvest reveals 2022 plans with eco-friendly focus

LendInvest, the London based buy to let finance and bridging finance platform, has revealed plans for new product launches next year.  The lender will have a drive towards energy efficiency. which will be reflected by the whole industry.

Earlier this year, the lender launched the EPiC catalogue, a new product range for eco-friendly properties.  This range enables borrowers with properties that have an EPC rating of C or above to access reduced rates and fees.  For standard properties rates start at 2.65%, for small HMOs at 2.91%, and for large HMOs, MUFBs and holiday lets at 3.49%.

LendInvest will continue its eco-friendly efforts by providing incentives for landlords to invest in green properties, and also giving support to those developers and investors who are looking to upgrade properties.

Leanna Smith, sales director at LendInvest, said: “[We hope] to continue expanding our place in the market with new products launching early in the year, and making accessing all of our products much easier through technology and growing out the portal,” Smith said in a blog on LendInvest’s website.

“Despite not going into a full lockdown since early 2020, Covid will continue to loom large over the market as brokers, borrowers and homeowners continue to adapt.

“Around that though, much of the landscape will continue on the needs and trends of this year. Energy efficiency and green products will be on the top of the agenda for developers, bridging investors and landlords with Energy Performance Certificate ratings needing to be a C in all new tenancies by 2025, and in all tenancies by 2028.

“We will continue to operate in this space by incentivising landlords to invest in green properties and supporting developers and refurbishment investors to continue upgrading their properties.”

“Supporting young professionals and first-time buyers next year will be key,” she added. “This includes houses in multiple occupation with good amenities and affordable first homes.

Original article featured here…

Earlier this month, LendInvest refreshed its bridging product range, with LTVs up to 75% and rates starting at 0.49%.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/lendinvest-reveals-2022-plans-with-eco-friendly-focus/

Hope Capital announce new bridging product

Hope Capital the short term lending and bridging finance house, has launched a new fast track bridging product, ‘LOANS Fast Track Bridge’, which is now available.

This new offering provides facilities up to £750,000. The product is available for properties worth up to £1m, with the maximum LTV at 75% .

Hope Capital will be lending based on an open market valuation (OMV) as part of this offer, across residential, commercial and mixed-use property types.

The lender will also accept AVMs up to £750,000 and for residential properties (up to £1m), desktop valuations will be accepted.

Roz Cawood, director of sales at Hope Capital, commented: “As we once again face an uncertain period within the economy, we wanted to provide some additional festive support and a brand-new opportunity as we enter the new year.

“The LOANS fast track bridge offering reflects everything we stand for at Hope Capital: delivering innovative, flexible, tailored solutions quickly and efficiently, which cater for the requirements of different borrowers, their individual circumstances and their level of borrowing.

“The decision to now accept OMVs was made to increase our competitiveness as we head into 2022. This will also support borrowers who are looking to achieve their investment and business goals going forward.

“This new offer is suitable for all property types and is a highly competitive bridging loan facility. As we understand speed is of the essence, we will also lend based on AVMs and desktop valuations, making borrowing significantly faster and more accessible for customers.”

Original article featured here…

Last month, Hope Capital enhanced its bridging finance suite for Scotland, which was introduced earlier this year.  The lender has reduced rates, raised maximum LTVs and increased the maximum loan amount to £5m, from the previous £1m limit.

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

RICS data shows high demand and low supply in housing market

The November 2021 RICS UK Residential Survey has been published, showing a decline in new property listings for the eight consecutive month, as reported by agents.  This lack of housing is resulting in increasing prices, with 71% of respondents noting a rise.  This was also noted in October by the same number of those surveyed, suggesting that this price growth is consistent.

New buyer enquiries have risen by 13%, higher than the 11% rise in October, but agreed sales were reported to have fallen by 9%.  This was the fifth time in a row that a decrease in agreed sales was recorded.

Well over half of all respondents (66%) believe prices will continue to escalate nationwide in 2022.

Simon Rubinsohn, RICS chief economist, said: “The issue of supply is gathering ever more importance in the feedback to the RICS Residential Market survey. Critically, the theme runs strongly both through the latest set of contributor comments as well as the data around new instructions and the decline in inventory on agents’ books.

“Unless this trend is reversed soon, transaction levels may flatline in 2022 with limited choice proving more significant than any shift in the interest rate environment for new buyers.

Emma Cox, sales director at Shawbrook Bank, comments: “2021 has been a standout year for the housing market, with transaction levels and house price growth high. Even with the seasonal dip in activity expected in December, it’s safe to say that the last year has been one of the busiest on record. The stamp duty holiday combined with changing needs from buyers has well and truly stimulated the market, and while incentives like the stamp duty holiday feel far away now, their effects are likely to continue on. Growth is unlikely to slow down in the short term and we can expect activity to ramp up once again following Christmas and this is largely down to the continued lack of supply in the market.

“However, as inflation continues to rise and hit consumers’ pockets, a move from the Bank of England on the base rate could soon be on the cards. While any move will be gradual, as lenders follow suit, some buyers could be forced to re-evaluate their property plans. For those considering to buy or remortgage, locking in competitive terms now will be a priority.”

Lawrence Bowles, director of residential research at Savills, comments: “The latest RICS data show that sales activity is still running far higher than normal levels, even after moderating since the stamp duty holiday ended. In November, the sales to stock ratio was 46%, compare to the 2017-2019 average of 34%. As people rush to move home before Christmas, we expect continued strong activity through the year and for 2021 to go down on record as a bumper year for home sales.”

“With interest rate rises on the horizon and affordability set to tighten, we can’t expect this flurry of activity to continue indefinitely. We predict transactions will ease back to 1.24 million in 2022 – lower than this year, but still higher than the 2017-19 average (1.20 million).”

Original article featured here…

Last November, the 2020 RICS UK Residential Survey showed a steady demand from buyers.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/rics-data-shows-high-demand-and-low-supply-in-housing-market/

Shawbrook hires new director for Corporate Lending team

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has appointed a new director, Matt Fannon, to its Corporate Lending team.  This is part of an extension of the bank’s presence across Leeds, Yorkshire and the North East.

Matt joins from Allied Irish Bank, where he has worked for the past ten years, focusing on Acquisition Finance, Leveraged Finance and Cash Flow Finance.  He brings a wealth of experience with him, from over twenty years of experience in the banking sector in total.

In his new director role, Matt will focus on the delivery of the full Corporate Lending proposition, including asset-backed and leveraged finance solutions.

Matt Fannon said: “Having established a great reputation in the Corporate Lending arena, Shawbrook has a big part to play in providing flexible funding packages and debt structures in what is a very buoyant market. These factors – along with the bank’s flexibility and appetite to lend – were key drivers that attracted me to Shawbrook.”

Mark Parsons, Managing Director for Corporate Lending (Midlands, North & Scotland) at Shawbrook, said: “Matt joins the Corporate Lending team here at Shawbrook at an exciting time.

“During the first half of the year alone, the Corporate Lending team completed 30 transactions, providing £125m of new facilities to high-quality UK businesses in a range of sectors including precision manufacturing, professional services, technology, wealth management, training and education. Across Yorkshire and the North East, we’re working with great businesses like Hawthorn Timber, Glazerite and Carnaby Caravans.

“The advisor community in Leeds is particularly dynamic and very active right now, and with Matt’s experience and knowledge of the local market I’m looking forward to supporting many more businesses across the region.”

Original article featured here…

Shawbrook recently agreed a £17m development loan to Burnham Waters Ltd.  The project to be funded is the first phase of construction on a sustainable retirement village, in Burnham-on-Crouch, Essex.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/shawbrook-hires-new-director-for-corporate-lending-team/

Masthaven study shows increasing awareness of bridging finance

Masthaven, the UK bridging loans and development finance bank, has published the results of its latest study, conducted last month, with 140 people within the specialist lending industry asked for their views.

The research showed that 71% of brokers are noticing awareness of bridging finance growing across the market.  Of those surveyed, 51% noted higher demand for bridging finance.  Much of this growing interest is focused on specialised lending, with 35% of brokers seeing a rise in cases that would have gone through a high-street lender previously.

Chain breaks and mortgage delays were the primary factors behind this increasing demand for bridging finance, according to 41% of respondents.  Other driving reasons were cited as a boom in DIY and refurbishments (34%), buying at auction (28%), raising capital (19%) and re-bridging (11%).

Richard Deacon, sales director at Masthaven, said: “The pandemic has proved uniquely stressful and disruptive for the UK housing market, even while property prices and transaction levels have climbed to new highs.

“Bridging finance has always been a useful tool, but in the current market, it has really come into its own, growing in popularity as both brokers and borrowers look for flexible short-term finance solutions.

“Increasingly, these solutions have come from the specialist sector, which has worked hard to innovate and provide customers with the right tools to navigate this busy period.

“The factors pushing borrowers towards bridging may have been boosted by the pandemic, but they’re not going away any time soon.

“Bridging finance is no longer just an emergency option for borrowers, it has become truly mainstream.

“As awareness of the power and utility of bridging continues to grow, it will be increasingly important that lenders work hard to make their products competitive and accessible.”

Original article featured here…

Last month, Masthaven become a signatory of the Women in Finance Charter. Signatories pledge to implement four key industry actions, which include setting targets for gender diversity in senior management and annually publishing the progress made in working towards these targets.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/masthaven-study-shows-increasing-awareness-of-bridging-finance/

Aldermore boosts team with new hires

Aldermore, the specialist finance lender, has appointed three new property development managers to its commercial real estate team, as part of its growth strategy.

Pamela Mitchell, who will be covering Scotland, brings over fifteen years of experience as a property development surveyor.  She has previously worked for Regent Capital, Henry Boot Developments, Taylor Wimpey and Drum Property Group in development director and senior development manager roles.

Jonathan Driver joins the lender from Homes England, where he worked as a senior portfolio manager, managing a portfolio of equity investments and joint venture partnerships.  He has over fourteen years of experience in the banking and finance sector, including twelve years with Lloyds Banking Group in their Real Estate and Corporate Banking divisions.  In his new role with Aldermore, he will be covering the Midlands.

Kirsty Dyke is also joining the lender, with more than thirteen years of experience from the commercial finance sector.  Previously, she was a relationship manager for HSBC and also worked at Barclays Bank for a decade.  She will be responsible for the North West region for Aldermore.

Ian Bryson, head of development and specialist property at Aldermore, said: “I’m delighted to welcome Pamela, Jonathan and Kirsty to the commercial real estate team.

They have wide-ranging experience in the commercial and real estate sector, and I’m certain they will compliment Aldermore’s established development offering, enhance our UK Coverage, as well as enabling growth plans moving forwards.”

Original article featured here…

Aldermore recently provided a £900,000 invoice finance facility to an Ashton-Under-Lyne based company.  The loan was agreed in 2020 to support the purchase of Bar Code Data Ltd, a provider of barcode solutions such as scanners and mobile terminals.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/aldermore-boosts-team-with-new-hires/

West One expands BTL team with new hires

West One, the specialist bridging finance and buy to let finance lender, has expanded its BTL team with five new hires.

This forms part of West One’s growth strategy, as it continues to work with more networks and mortgage clubs.

The lender has hired a new completions case manager, along with four new underwriters to join the team.  More new hires are to be added over the next few months.

Andrew Ferguson, managing director for BTL at West One, said: “These new hires are just the beginning as we continue to strive towards being the ‘go-to option’ for brokers in the BTL arena.

“We pride ourselves on providing a bespoke, specialist and expert service to brokers, and bringing in more underwriters and case managers will ensure we continue to deliver on this.

“Even after these new appointments, we’re still looking for new members of our team.

“In the new year, we have set ourselves ambitious targets and we’re confident that our investment in people will support these growth plans.”

Original article featured here…

West One recently made changes to its BTL product suite, including lowered rates and criteria changes.

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

Shawbrook provides £17m development loan for retirement village

Shawbrook, the specialist UK savings, development finance, and bridging finance bank, has agreed a £17m development loan to Burnham Waters Ltd.  The project to be funded is the first phase of construction on a sustainable retirement village, in Burnham-on-Crouch, Essex.

This initial phase will include 44 bungalows, of a total of 103 to be constructed by the project overall.  In addition, there will be a care home with 70 bedrooms, 55 independent living flats, a gym, swimming pool, tennis courts and also shops and a surgery.

The retirement village will have a strong ecological focus and the scheme will aim for a 30% reduction in CO2 emissions (compared with the current building regulation requirements).  All bungalows will be energy efficient and each will have a charging point for electric vehicles.  Travel needs will be reduced by the amount of on-site facilities and an electric minibus service will be available for residents wishing to visit the local town centre.

Construction will start this month, with an expectation that the initial phase of 44 bungalows will be marketed by late spring/early summer of 2023.

Kate Chambers, finance director at Burnham Waters Ltd, said: “We’re creating a vibrant community for the over-55s in Burnham-on-Crouch, where residents can enjoy independence and privacy while being connected to friends, neighbours and a host of amenities.

Ian Holloway, project director at Burnham Waters Ltd, added: “Shawbrook Bank has proven to be a dependable partner that understands the intricacies of financing a multi-phase and complex project like Burnham Waters, and we’re on the cusp of starting this major project thanks to its support.”

Patrick Coughlan, relationship manager at Shawbrook Bank, commented: “Burnham Waters is an ambitious scheme, both in providing high-quality living on a large scale and in striving to be fit for a greener future.

“Our experience in property development and in healthcare means we’ve been able to help developers in the retirement living and care sectors, giving them access to specialist finance to deliver these much-needed schemes.”

Original article featured here…

Shawbrook recently expanded the remit of its new Enterprise group, led by Neil Rudge, managing director for business finance.  This followed the departure of John Eastgate, managing director for property finance.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/shawbrook-provides-17m-development-loan-for-retirement-village/

LendInvest refreshes bridging suite

LendInvest, the London based buy to let finance and bridging finance platform, has refreshed its bridging product range, with LTVs up to 75% and rates starting at 0.49%.

The lender has adjusted rates over the entire product range, from residential to commercial, semi-commercial, land and refurbishment.  In addition, the maximum LTV on refurbishment finance has been increased to 85%, at a rate of 0.79%.

For all standard property applications, customers are now eligible for free legal fees, and also a reduced £150 valuation fee when refinancing to a LendInvest buy-to-let loan.

LendInvest have revealed that over half of all new enquiries and applications are not being submitted through their Bridging Portal, which streamlines both the application and case management processes.

Justin Trowse, director of bridging at LendInvest, said: “The opportunity to bring this newly priced range of products to our broker partners at a busy time for the industry is brilliant, and is a great example of the efficiencies and product tailoring we are able to achieve through market-leading technological developments like our Bridging Portal.”

Original article featured here…

LendInvest recently cited Scotland as having the highest BTL yields right now, and predict that house sales and prices will continue to rise in the major cities.  This is due to low supply coupled with high demand.

source https://commercial-mortgages-broker.co.uk/bridging-finance-news/lendinvest-refreshes-bridging-suite-suite-2/

Landbay reduces rates on limited edition BTL range

Landbay, the buy-to-let lender, has repriced its limited edition range of five-year fixed rate BTL products that were launched last month.

Four of the five products in the range have been reduced by five basis points and the minimum loan value has been lowered to £200,000.  For this limited edition range, the maximum loan value remains at £500,000.

The lender has also introduced a £500 cashback option for the range, which is payable upon completion.

LTVs are either 65% or 75% and there is a free valuation option on the standard remortgage products.  The new range also caters for HMOs and MUFBs, up to 6 bedrooms or units.

Paul Brett, managing director, intermediaries at Landbay, commented: “Following the initial limited edition launch a month ago, we’ve responded to feedback from the market, by lowering the minimum loan size, reduced rates by up to 5 basis points as well as now offering a £500 cashback.”

Original article featured here…

Landbay recently made a series of rate reductions and added two new mortgage products to its green product range.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/landbay-reduces-rates-on-limited-edition-btl-range/

Redwood Bank appoint Mark Winlow as chairman

Redwood Bank, the buy to let lender, has appointed Mark Winlow as chairman.  In his new role at the challenger bank for SMEs, he will oversee and support the next level of growth.

Mark joins with a wealth of experience in the industry, in both chairman and NED roles.  He had worked at various firms, including Ageas UK, Wellsley Group Investors and Transatlantic Reinsurance Company.

Mark Winlow said: “I am delighted to join Redwood Bank as it continues to grow and support the very best of Britain’s SMEs.

“It’s clear that the strategy behind achieving profitability has been based on having a clear vision, together with thorough planning.

“This will continue, as will our measured growth and a hands-on, traditionally tailored approach to customer service.”

Original article featured here…

Earlier this month, Redwood Bank announced that is is now profitable on a monthly basis.  In total, it has attracted deposits of over £400m and loaned over £400m to small and medium sized enterprises within the UK.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/redwood-bank-appoint-mark-winlow-as-chairman/

Castle Trust announce new cashback offer

Castle Trust, the short term, bridging finance and specialist finance provider, has announced a new cashback offer.  There is now up to £5,000 cashback plus VAT on valuation fees, offered across the whole product range.

This offer applies to all valuation fees which are paid on or after 1st December.  It is applicable to the majority of facilities, where the loan is completed before the end of 28th February next year.

Rob Oliver, sales director at Castle Trust Bank, said: “We’re really pleased to be able to offer this valuation cashback, which gives brokers and their clients reason to celebrate as we close 2021 and enter 2022.

“The cashback will mean that most customers who pay their fees from today and complete by the end of February, will not have to pay a valuation fee.

“Feedback from brokers tells us that valuation cashbacks offer a bigger benefit than free valuations as they enable greater freedom to choose a surveyor, which is particularly important in the current environment where there have been reports of delays with some firms.

“It further demonstrates our understanding of what brokers want and our commitment to supporting our intermediaries, building on our rate reductions earlier this year and our recent criteria enhancements, which included lending to first-time buyers.”

Original article featured here…

In September, Castle Trust cut rates and simplified its HMO and holiday let mortgages.  This forms part of a wider overhaul of its buy-to-let range.  Rates for HMO and holiday let mortgages now start at 3.83% and the loading has been removed.  The bridge-to-let product has also had a rate reduction, with the bridging rate now available for 0.67% pcm up to 80% LTV.

source https://commercial-mortgages-broker.co.uk/buy-to-let-news/castle-trust-announce-new-cashback-offer/