The Retrofit Explorer tool offers an accurate, transparent view of the upfront cost and returns of retrofitting a home. It also recommends cost-effective methods for energy upgrades.
This will be integrated into the Octopus Real Estate website to encourage retrofitting and bolster green residential lending.
It will work in conjunction with Octopus Real Estate’s green product offering, which comprises refurbishment loans to fund up to £200,000 of works. Where a property’s EPC rating has been improved following works, borrowers will benefit from a 1.8% per year discount on the interest rate.
Octopus Real Estate said that, when it came to making homes more efficient, borrowers were faced with the challenges of not understanding the costs, the return on investment and being unaware of what works to undertake.
The lender said this partnership was a “no brainer” as it would help to decarbonise housing in the UK.
Joe Webb, chief growth officer of Kamma, said: “Retrofitting offers benefits on many levels, reducing emissions, saving on energy bills and even adding to asset value. It further reduces transition risk, supports transition planning and limits financed emissions for lenders.
“In this context, the lack of actual activity in the market has been surprising. We aim, for the first time, to make these benefits clear to consumers and lenders alike, driving up retrofit activity and driving down emissions and energy bills.”
Steve Matthews (pictured), head of residential lending at Octopus Real Estate, said: “We want to offer genuine incentives to customers seeking to borrow to improve their property investments. We’re delighted to partner with Kamma, who clearly illustrate the benefits from making positive changes.
“Together, we’re aiming to drive genuine change and improve the availability of quality, sustainable homes.”
Last month, Octopus Real Estate revealed it had completed over £35m in green homes lending through the Greener Homes Alliance initiative. The scheme is in partnership with Homes England and offers discounted rates to developers to encourage energy-efficient projects.
The platform will be implemented across all of Together’s core products, including regulated residential and buy-to-let (BTL) mortgages, commercial loans, bridging loans and development finance.
Through the use of Ncino’s Cloud Banking Platform, Together will be able to scale and digitise its operations as well as react quickly to changing economic conditions, interest rate changes and market expectations.
Andrea Dalton, chief transformation officer at Together, said: “We’ve been helping people achieve their property ambitions for fifty years, and with Ncino’s support, we will continue to deliver on that mission with added efficiency, speed and agility.
“We currently originate over £200m in loans every month and, with Ncino, we’re excited to scale and become more efficient through digital consolidation, enhanced risk management and a more modern customer experience.”
Charlie McIver, managing director of EMEA at Ncino, added: “We’re excited to partner with Together on this transformation programme.
“Working with our proven technology and system implementation partners, we look forward to delivering a strategic digital lending platform across all of Together’s core products that will help the lender grow and best meet the needs of its colleagues and customers.”
The Ncino platform covers the mortgage origination lifecycle from application to completion. It can be developed to react to market changes faster and remove the need for manual processes.
Speaking to this publication in February, Ryan Etchells, chief commercial officer at Together, said the lender was still primed for growth.
Celebrating its 50th year of business in 2024, this followed the announcement that the lender’s loan book rose to £6.8bn in the first quarter of this year.
Earlier this week, Together priced its £378m first charge-only residential mortgage-backed securitisation, which was the second transaction of this kind this year.
The latest Primary Mortgage Market Survey from the Federal Home Loan Mortgage Corporation (Freddie Mac) shows that an average 30-year fixed rate was 7.17%.
This was higher than the previous week’s average of 7.1%, and compared to a year ago, higher than the average of 6.43% in 2023.
The 15-year fixed rate average rose from 6.39% to 6.44% week-to-week, and was up on the previous year’s average of 5.71%.
Sam Khater, Freddie Mac’s chief economist, said: “Mortgage rates continued rising this week.
“Despite rates increasing more than half a percent since the first week of the year, purchase demand remains steady. With rates staying higher for longer, many homebuyers are adjusting, as evidenced by this week’s report that sales of newly built homes saw the biggest increase since December 2022.”
US mortgage applications decline
Mortgage applications decreased by 2.7%, according to the Mortgage Bankers Association’s (MBA’s) Weekly Mortgage Applications Survey.
Joel Kan, MBA’s vice president and deputy chief economist, said: “Mortgage rates continued to move higher last week, reaching their highest levels since late 2023 and putting a damper on applications activity. The 30-year fixed rate increased for the third consecutive week – the highest since November 2023.
“Purchase applications declined, as homebuyers delayed their purchase decisions due to strained affordability and low supply. The adjustable-rate mortgage (ARM) share of applications increased to 7.6%, consistent with the upward trend in rates, as buyers look to reduce their potential monthly payments.”
The share of mortgage refinance activity fell to 30.8% of total applications, down from 32.1% during the previous week.
Also, since the office was established in June last year, the team has doubled in size. This has resulted in a move to larger premises.
Simply Asset Finance’s Liverpool office has worked with more than 50 brokerages to help clients in the North West secure financial solutions, helping more than 800 clients.
The lender said its Liverpool team showed how its growing national presence supported its growing lending pipeline and its regional broker partners.
John Wiles, managing director of Simply Asset Finance’s Liverpool office, said: “Our Liverpool office’s phenomenal growth is a testament to the talented team and our commitment to building our regional footprint to support even more SMEs [to] grow and thrive.
“As we continue to expand our national presence, we are as committed as ever to recruit and train the next generation of industry talent in the North West. They will support us on our mission to deliver tailored support and service to both our customers and broker partners.”
Simply Asset Finance launched in 2017 and offers alternative finance solutions.
It has lent more than £1bn to more than 6,800 small and medium-sized businesses since it was established.
In its half-year results for 2023, it reported a pre-tax profit of £3.2m and £152m in funding to UK businesses.
This week, Mortgage Solutions is speaking with Amy Cliffe, intermediary mortgage desk adviser at Vernon Building Society.
What does your role entail and how long have you been doing it?
I began my role as an intermediary mortgage desk adviser at Vernon Building Society in November 2023. My day-to-day role entails being the first point of contact for mortgage intermediaries and developing effective relationships, processing new registrations, accessing decisions in principle (DIPs) and processing procuration fees. I’m also responsible for the accuracy of our lending products on sourcing systems.
What attracted you to working in the mortgage/property/finance sector?
I didn’t go to university and after finishing college; I had no idea what I wanted to do as a career. At the time, I was working part time at Primark, knowing I wanted a change, but not what that change was. The opportunity came for a role in financial services in savings in March 2020. In February 2022, while in this role, I was given the opportunity to join a broker programme that involved contacting brokers to re-establish a relationship. This was when I realised that I wanted to enter the mortgage world, but I wanted to be more involved in the case from start to finish. This is where the opportunity to join our local building society as an intermediary mortgage adviser came up, and I have loved it ever since. I love working in such a challenging industry and being an important part of the property chain.
What were you doing in the five years before starting here?
I had finished college and was working part-time at Primark before I started my first role as a customer service specialist at Yorkshire Building Society in March 2020. While I was there, I was involved in saving account openings, became the home insurance champion, and also joined the Accord mortgages broker programme, which was my first experience in the mortgage sector. Before this, I had never even heard of a ‘mortgage broker’.
What personal talent/skill is most valuable in doing your job?
One of my favourite things to do is bake, which requires the ability to use your initiative and pay attention to detail, which is a key part of my role. I liaise with various internal and external clients on a daily basis, and a lot of my work revolves around ‘non-standard’ cases that require a lot of initiative to make work.
What personal talent/skill would you most like to improve on?
I would like to understand company accounts better for the self-employed. Once I have completed my CeMAP qualification, I plan to take a self-study accountancy course to further my knowledge in this area.
How has the pandemic changed the way you approach your job?
My first experience in the financial sector was a week before the pandemic occurred. I didn’t have to adjust to a ‘new’ normal in the industry, as this was my normal. It made me realise the challenging nature of the industry I was entering into. A lot of people’s lives have drastically changed since the pandemic, especially people’s finances and ability to apply for a mortgage.
What is the most interesting/memorable property deal/case you’ve been involved in?
A broker approached us with a local applicant who was looking to buy a residential property. The property was an old police station converted into a block of flats and had been declined by various other lenders due to its proximity to commercial premises and non-standard construction. We liaised with our valuers on various occasions, and we were happy to offer the mortgage. We took the time to understand the situation fully and make the case work, where various other lenders had failed. It was so nice to be able to do that, especially for someone local.
Where do you see yourself in five years’ time?
Hopefully, with my own residential property, fully qualified in my CeMAP and completing further studying to advance in my career such as a CERAR, AML or accountancy course.
If present-day you could go back in time and tell yourself something five years ago, what would it be?
Get on the property ladder as early as possible and fix the rate for as long as you can, because a pandemic is coming, and rates are going to increase drastically.
If you could have one superpower, what would it be?
It would be that anytime I want to buy something, I always have the correct amount of money in my pocket to do so.
And finally, what’s the strangest question you’ve ever been asked?
Nothing to do with mortgages but I was once asked by a friend: “Would you rather have the power to stop time or to reverse time?” and it’s the first ‘would you rather’ that I’ve been asked that I still don’t know the answer to.
This has led to our business development managers (BDMs) frequently being asked questions such as “What’s the difference between an Airbnb and serviced accommodation?” or “What’s the difference between a holiday let and a short-term let?”
While these appear to be pretty straightforward questions on paper, from a lending perspective, we often have differing approaches in terms of risk, policy and criteria for such property types. So, you can fully understand why there may be some lingering confusion within the intermediary community.
Getting into the details of short-term and holiday lets
Speaking more generally, short-term lets and holiday lets provide landlords with flexibility, allowing them to let out their properties on a stopgap basis, without the need for an Assured Shorthold Tenancy. These can be more ‘standard’ short-term lets where the property is occupied by travelling businesspeople, or those in need of a temporary home.
Alternatively, holiday lets have become increasingly popular in the wake of the ‘staycation’ phenomenon, especially due to the continued growth of online platforms that are making it easier for property owners and managers to advertise their rooms or properties to potential guests both domestically and internationally.
With this in mind, it was interesting to see the Office for National Statistics (ONS) explore activity levels through three major online platforms, namely Airbnb, Booking.com and the Expedia Group.
The report showed that, from July to September 2023, there were nearly 2.8 million stays in short-term lets booked through these platforms in the UK. This totalled nearly 28.9 million guest nights with an average of 313,879 guest nights each day.
In the UK, domestic visitors were suggested to have made up 63.6% of guest nights (18.4 million) compared with 36.4% by international visitors (10.5 million); Wales was the UK country with the highest proportion of domestic guest nights (85.3%).
The local administrative units (LAUs) in the UK with the highest number of total guest nights in Q3 2023 were Cornwall (1,586,060), City of Edinburgh (1,157,180) and Westminster (871,900). The LAUs with the highest share of guest nights for each UK country were Cornwall (7.3% of England), City of Edinburgh (26.9% of Scotland), Gwynedd (19.1% of Wales), and Belfast (29.2% of Northern Ireland).
In addition, the most popular LAUs for domestic guest nights were Cornwall (1,311,380), Gwynedd (365,750), and City of Edinburgh (345,000), whereas the most popular LAUs for international guest nights were City of Edinburgh (812,190), Westminster (757,350), and Kensington and Chelsea (389,720).
Meeting the growing demand and interest
These represent some highly significant figures and are amplifying the emphasis on lenders to provide their intermediary partners with a wealth of options for landlords who may be looking towards a variety of property types, all with differing specifications and individual complexities.
Holiday lets and short-term lets form part of the core range from BTL by Foundation, but in addition to this, the growing demand for these properties from a wider range of borrower types has led us to launch a new suite of products from our new ‘Solutions by Foundation’ brand.
For example, we can now consider these short-term and holiday lets for UK landlords with multiple properties under one title – a scenario common when farm cottages have been converted or an individual property that has been divided into short-term lets or holiday let flats.
These specialist properties are an area of the private rented sector (PRS) that will continue to generate interest, questions and enquiries in the wake of sustained demand and the growth of online platforms.
She will report to Charlotte Grimshaw, Suffolk Building Society’s head of intermediary relations and mortgage sales.
Hillman will be tasked with fostering new and existing relationships with intermediaries to ensure their and their clients’ needs are met.
Suffolk Building Society said it created the new role to demonstrate its commitment to helping its intermediary partners.
Key intermediaries in the central London region will continue to be managed by Andrew Sadler, key account manager. He will primarily engage with mortgage clubs and networks.
Hillman has experience in the financial services sector and spent seven years in the mortgage sector. She was a mortgage and protection adviser for four years.
Hillman (pictured) said: “I am looking forward to expanding the society’s reach in central London. By providing pre-decision in principle [DIP] approvals, manual underwriting and direct access to underwriters, brokers can rely on the Suffolk team to help them shape cases and proactively advance applications.”
Grimshaw added: “Beth will be a huge asset to Suffolk Building Society, bringing with her key learnings from her time as an adviser – something we’re sure she’ll use to her advantage to further strengthen our service proposition.”
In its 2023 results, Suffolk Building Society posted £180m in gross mortgage advances, up from £165m the year before.
Lending was similar to the previous quarter, however, when Natwest completed £5.6bn in gross mortgage lending.
Within its retail banking division, Natwest said loans to customers fell quarter-on-quarter, due to a decrease in mortgage balances caused by higher redemptions. This was partially offset by new mortgage lending.
Its total income excluding notable items came to £3.4bn, which was 0.8% or £28m lower than the previous quarter. Natwest attributed this to “mortgage margin dilution”.
Its net interest margin (NIM) improved by six basis points over Q4 to Q1 to reach 2.05%. Compared to 2023, this was down on the NIM of 2.25% in Q1.
Natwest reported an operating profit before tax of £1.3bn, down from £1.8bn a year earlier. Compared to the previous quarter, it was higher than the profit of £1.2bn in Q4.
Natwest: A strong set of results
Paul Thwaite, chief executive of Natwest, said: “Natwest Group has delivered a strong set of results for the first quarter – with an operating profit of £1.3bn – as we remain focused on the priorities we set out in February, which will help us shape the future of this bank.
“Our performance is grounded in the vital role we play in the economy and in the lives of our 19 million customers. Though macro uncertainty continues, customer confidence and activity is improving, with both lending and deposits up in the quarter and impairments remaining low, reflecting our well-diversified business.
“We are ambitious for this bank, and by succeeding for our customers, we will succeed for our shareholders. Our first priority is delivering disciplined growth across our three businesses by serving our customers well. At the same time, we are becoming simpler, more productive and easier to deal with. As a result, we aim to generate returns that allow us to support our customers, invest in our business and deliver attractive distributions to shareholders.”
He added: “We are also pleased with the recent momentum in the reduction of HM Treasury’s stake in the bank. Returning Natwest Group to private ownership is a shared ambition, and we believe it is in the best interests of both the bank and all our shareholders.”
Last month, the government reduced its stake in Natwest to 29.8%, meaning it no longer has a controlling share in the bank.
