Cumberland BS increases holiday let mortgages to 75 per cent LTV
The change brings the range back in line with its proposition pre-lockdown.
At the same time, the Cumberland has re-introduced its two-year variable holiday let mortgage product, which had previously been withdrawn in August.
The two-year product is available at 3.54 per cent, joining the five-year fixed rate mortgage at 3.74 per cent.
Simon Whitwham, head of Cumberland business said: “Since the initial lockdown in March, we’ve been focussed on balancing the needs of our existing holiday let customers, a high proportion of whom required mortgage holidays for three to six months, while continuing to serve new borrowers.
“A survey we commissioned suggested 83 per cent of Brits plan to holiday in the UK rather than abroad this year, and 71 per cent intend to plan a UK holiday in 2021.
“Pair this with chancellor Rishi Sunak’s stamp duty holiday announcement in July, and holiday letting as an investment opportunity started to turn heads.
“In August, a surge of holiday let mortgage interest saw us hit record enquiry numbers, and demand remained high throughout September. Withdrawing the two-year products was the right thing to do, to allow us to give our existing customers the best possible service and support during that time.”
Time running out to register for the British Specialist Lending Awards
The awards are now only two weeks away and registration closes at 12pm on the day of the event, so book your ticket now to ensure you get a place.
If you do not register you will not be able to view the awards.
Book here: https://www.mortgagesolutions.co.uk/events/british-specialist-lending-awards/venues/book-now/?pfat=3cf6444efd8041e882f39f3e556806da
Make sure you join us for live entertainment from musical comedy duo Flo & Joan. Social network with colleagues using our interactive social media wall and enjoy creating our signature cocktail.
For more information visit the awards website.
Zephyr Homeloans cuts rates and expands reach
The lender has joined the Brilliant Solutions Mortgage Club panel with members able to access all Zephyr’s rates.
Matthew Arena, managing director for Brilliant Solutions, said: “It is fantastic to welcome Zephyr Homeloans to the buy-to-let panel of our mortgage club which will enable our advisers and their clients to benefit from Zephyr’s highly competitive rates and expertise in the buy-to-let sector.”
Following the reductions, rates start from 3.14 per cent for a two-year fixed-rate standard property buy-to-let mortgage and 3.44 per cent for a standard five-year fixed-rate loan.
The lender’s rates for new build and flats above commercial property now start at 3.54 per cent for a two-year fixed rate loan and 3.84 per cent for a five-year fixed rate loan.
Rates on standard properties, houses in multiple occupancy and multi-unit block properties available up to 75 per cent loan to value (LTV) have also been lowered.
The LTV is restricted to 70 per cent LTV on loan sizes between £1m and £1.5m.
Paul Fryers (pictured), managing director at Zephyr Homeloans, said: “We’ve had one of the busiest months in Zephyr’s history, and we are delighted to be able to reduce rates further and help the increasing number of landlords who are looking to expand their portfolios.
“As buoyancy in the buy-to-let market continues, these new rates provide potential borrowers with highly competitive products across a broad range of properties.”
Bridging will be vital to navigate roadblocks before stamp duty deadline – Jannels
Of course, the rapid decline in completions was not restricted to this particular sector and was felt across the UK as the housing market effectively shut down.
Bridging completions were recorded at £470m in Q2 2020, a fall of 56 per cent when compared to Q4 2019 figure – Q1 figures were not reported because of the lockdown.
The data also showed that applications increased by just over one per cent in Q2 compared to Q4 2019, while loan books showed a small decrease but remained at £4.5bn.
Average loan to values (LTVs) increased slightly in the same time period, but continue to remain at sub-60 per cent.
However, on a more positive note, it was encouraging to see recent reports that Hope Capital noted a record surge in demand between June 2020 and August 2020.
The lender saw its number of loans drawn treble compared to the same period the previous year. Looking at new cases, the quantity more than doubled over the same timeframe, rising by 128 per cent, and residential completions increased by 40 per cent.
The second half of Q2 certainly represented a transitional period for many links in the mortgage chain.
Transactions which had been delayed over the lockdown period were slowly resurrected and stamp duty changes ramped up activity levels towards the end of this period.
This meant Q3 kicked off with a real bang as pent-up demand surged through the market to generate what we can only class as a mini-boom.
Housebuying delays likely to continue
This has resulted in all types of property going under offer faster than they have for many, many years.
And all of this is happening while surveyors, conveyancers and lenders were, and in some respects still are, getting to grips with new working conditions and backlogs across a variety of transactions.
On the back of this, we are seeing reports emerging of property exchanges taking a month longer.
This is certainly not far from the mark, and these delays are only likely to be further extended as increased amounts of business flood through the door.
This may not seem like a huge issue with the stamp duty deadline still five months away but we all know how easy it is for chains to break, mortgage offers to be pulled and people’s circumstances to change.
Factors which really do place a sustained emphasis on speed and efficiency.
Time of the essence
Speed has always been a key word within bridging finance and this is a product type which will continue rising to the fore in Q4 and even more so in Q1 2021 as buyers will need to move swiftly to complete before the stamp duty deadline.
Bridging lenders are experts in processing applications under extreme time constraints and this type of finance will help more traditional homebuyers than ever to ensure chains are not broken, completions can take place on schedule and that robust plans are in place to exit this type of financial arrangement as soon as possible after the property has been secured.
Time really will be of the essence for thousands of potential buyers in the coming months.
Advisers with a clear route to bridging and other alternative forms of finance will be in a prime position to help a wider variety of clients to navigate any potential roadblocks.
Sirius Property Finance opens New Zealand office
Robert Collins (pictured), a co-founder of Sirius, will establish the bespoke brokerage and debt advisory service in Auckland in the new year.
“I cut my teeth in property finance down under and, while it is geographically distant, the legal and banking systems share many similarities with the UK,” said Collins.
“On top of this, both New Zealand and Australia have growing populations, increasing need for housing and a burgeoning demand for specialist and development finance.”
Rob Jupp, chief executive of The Brightstar Group, parent company of Sirius, said it was an “exciting step” for the brand.
He added: “We’ve identified a number of opportunities where an entrepreneurial debt advisory business can make a real difference in the New Zealand market, and the opening of our Auckland office in 2021 will be another significant milestone for The Brightstar Group.”
Foundation increases pair of BTL rates
The lender has made the changes to the two 75 per cent loan to value (LTV) deals within its F1 range which is available for landlords with an almost clean credit history.
Foundation increased the two-year fix from 3.19 per cent to 3.24 per cent, and the five-year fix from 3.44 per cent to 3.49 per cent.
The changes apply to both individual and limited company products.
FTB secures first BTL investment with Aspen bridge
The £460,000 bridging loan at 74 per cent loan to value (LTV) allowed the buyer to purchase a seventh-floor apartment in the Fulham Reach development as their first buy-to-let investment.
The initial rate is 0.59 per cent per month for six months.
Andrew Thriepland, senior mortgage and protection adviser at broker firm Capricorn Commercial, brought the case to Aspen while Leigh Haigh, real estate finance executive at law firm Fieldfisher, undertook the legals.
Thriepland said: “Leverage is vital for property investors, and in this particular case was essential for the applicant to secure the apartment, save their initial investment and begin their career as a property investor.
“As always Aspen, and in particular senior underwriter Prabhat Talwar who took the case from start-to-finish, immediately understood the aspiration and requirements and worked with all parties to ensure the funds were released as soon as possible.”
Ed Ahrens, managing director of Aspen Bridging, added: “To provide a first-time buyer with the required leverage in the current environment highlights the real can-do attitude of our lending criteria, but more importantly protects the investment for the applicant.”
Molo Finance launches HMO offering
The lender recently closed a round of funding and said it wanted to expand further into the buy-to-let market with the £266m raised.
Co-founder and chief executive Francesca Carlesi (pictured) said despite current uncertainty within the market, the lender always intended to launch into HMO this year.
She said: “We did look at it carefully and that’s why for the last few months we’ve been a bit more conservative with the type of products we launch.
“With our selection of borrowers we already apply careful criteria.”
The lender is currently offering two HMO products up to 65 per cent loan to value (LTV), a two and five-year fixed offering for both individuals and limited company applicants.
The rate for the two-year fixed is 3.05 per cent while the five-year alternative has a rate of 3.44 per cent and there is a 1.5 per cent product fee.
Carlesi said Molo compared its products to similar offerings in the market so it could be competitive, and there is a difference of one basis point on the average rate on both of its deals.
The maximum loan size is £1m and first-time landlords with a minimum of 12 months’ experience can apply.
“A lot of people are buying properties right now because of the changes with the stamp duty and so on. At the same time a lot of lenders are limiting what they offer or the houses they lend on.
“We want to be there for customers, and we do see an opportunity to make sure customers can get a mortgage,” Carlesi added.
She also said the lender’s digital, direct-to-consumer proposition also made it an easier option amid physical restrictions and risks around the Covid-19 virus.
Molo primarily relies on automated valuations and only refers to a physical inspection if the initial check fails to confirm the property value.
Carlesi said: “We have a unique window of opportunity now, because the whole market is a little bit stuck in terms of physical proximities. With us they can do it from the comfort of their own home online without incurring any risk.”
Also, the online platform means customers can apply for property finance at times that suit them, Carlesi added.
“The habits are shifting,” she said. “Now [borrowers] know they can go online and get a mortgage at any time, we’re seeing a lot more out-of-hours activity on weekends and evenings.
“Before it would have been concentrated on those moments when people thought lenders were open but right now we’re home 24/7 so it makes a lot of sense.
“Our habits have shifted with regards to when and how people get a mortgage.”
Roma cuts rates, raises LTVs and maximum loans
The standard rate for residential investment property bridging has been reduced to 0.65 per cent per month with no exit fee and a maximum LTV of 70 per cent. Loan terms are three to 12 months.
Refurbishment rates have also been cut to start at 0.85 per cent with an LTV of up to 70 per cent.
Its development finance product now has rates available from one per cent per month for sites of up to six units, with a maximum term of 18 months.
The commercial bridging solution is now available with rates from 1.10 per cent and an increased LTV of 60 per cent.
Maximum loans sizes have been increased to £3m and exit fees have been removed from the majority of the range, the lender added.
Roma Finance commercial director Nick Jones (pictured) said: “With increasing distribution and support from our funding lines to help us keep pace with the growing demand, now is the time to ensure to we have the right criteria and solutions to meet the appetite for growth within the business.
“Business levels have grown significantly and we are maintaining the upwards trajectory.
“We are continuing to expand the Roma Finance team and the new lower rates will further stimulate our business in a focused and strategic way and we will continue to deliver excellent service to our intermediary partners and customers.”
Lendlord and Selina Finance team up for landlord credit facility
The credit facility is available up to £1m and will allow portfolio landlords to borrow against the equity tied up in their properties.
The loan can be secured on multiple properties through first, second, or third charges.
It works as a revolving credit facility serviced on an interest-only basis for a three-year term and landlords can draw and repay funds at any time.
Interest is only paid on the drawn balance and there are no early repayment charges or valuation fees.
Aviram Shahar, co-founder and CEO at Lendlord, said: “We are very excited to have the opportunity to work together with Selina Finance, which has a unique offering for property investors. This collaboration emphasises the continuous effort we invest to increase the value our platform provides our users.
“It was a natural fit, therefore, to embed a digital loan offering like Selina Finance, which is equipped to provide flexible and affordable finance to meet the changing needs of landlords.”
Andrea Olivari, co-founder at Selina Finance, added: “We’re very excited to be partnering with an innovative property management solution like Lendlord.”