Recognise Bank enters BTL market and targets professional landlords – exclusive

The range is for those with four properties or more, and has a five-year fixed rate option and variable rate option.

Rates start from 3.49 per cent and between £100,000 and £5m can be borrowed. The maximum loan to value (LTV) is 75 per cent. The range also has repayment and interest-only payment options with a term up to 10 years.

Single-let residential houses or blocks of flats let on an Assured Shorthold Tenancy (AST) basis are eligible. Individuals, partnerships, limited companies and LLPs can also access the products.

Speaking to Specialist Lending Solutions, Angela Norman, Recognise Bank’s head of corporate development, said the launch complemented the lender’s approach to supporting SMEs as professional BTL landlords typically derived a big portion of their income from this sector.

She added: “We also think that there’s an opportunity in the sector for a relationship-led approach, and I think that is our probably our biggest USP to be honest.

“It has just been reinforced with the other products that we have. The feedback we’ve had from brokers and customers around being there at the end of the phone, not only having a point of contact with the business development team, but we also have a loan management team that sees the loan throughout the whole process and that’s a real USP when people want to talk about the transaction, whether that is a broker or a customer.”

She said the lender’s flexibility and the bespoke touch was different to other lenders who “have a more tick-box approach”.

“We’ve got a tailored personalised approach where we will always be there to have a conversation, especially with complex transactions, where we can help hold the hand of the customer and the brokers right through the application process. It really makes a difference,” she explained.

The lender ran a trial of the range with several brokers, with over £20m in deals completed or still in progress. The trial had been geographically widespread across England, Scotland and Wales.

Norman said there was “strong demand” for the product, which showed the strength of the economy and the private rented sector.

She said the trial had “exceeded our expectations at this early stage”, and showed it was a good proposition. Norman added that there was a “complete mix of applications” and a wide range of LTVs.

She noted a budding trend of the conversion of offices into residential properties. Norman also said upcoming legislation requiring BTL properties to have an EPC rating of or above was an additional key concern amongst brokers and landlords, and as a lender it would do its utmost to support and inform about regulatory changes.

Norman said: “We want those professional landlords we want the experience to help I suppose improve standards in the industry as well working with really good quality operators where we feel like we can add value and help them equally you know, by helping them pull equity out.”

Earlier this year, the lender it would be targeting the BTL market as it considered it to be a “safe and secure” market which was set to grow in the future.

The bank gained its banking licence in November last year, having started the application in 2017.

It received its Prudential Regulation Authority (PRA) authorisation in September to enable it to collect deposits. This was after a £14m raise in August which allowed it to meet the PRA requirements.