KSEYE eyeing longer-term BTL and development finance

KSEYE eyeing longer-term BTL and development finance

 

Speaking to Specialist Lending Solutions, KSEYE director Jitendra Khagram said that its current focus was on short-term property finance with loan term up to 24 months but it was looking to expand its product suite.

“Eventually, we hope to be a one-stop shop for all commercial and investment property-based lending requirements,” he said.

He added that its loan book was hovering around £110m and £120m, which mainly consists of short-term bridging loans that typically have a term of around 12 months.

He said that due to the short-term nature of the loans it was vital to maintain “strong origination levels” throughout the year to maintain its loan book.

Khagram said that with the introduction of two-year hybrid buy-to-let products in October, and the launch of longer-term loans in the future, it would see a “substantial increase” in its loan book in the next few years.

He said: “Our plans to diversify our product offerings will see the business go from strength to strength – longer-term products will not only provide greater stability to our loan book but branching out into new areas of the lending space will enable us to attract different types of brokers and clients, such as property developers.”

Bridging market expectations

Khagram said that awareness about bridging had increased during the pandemic, especially because of the stamp duty holiday.

He explained that as lenders had withdrawn products and become more restrictive in their lending property buyers had been left in the lurch so turned to alternative providers like bridging lenders who could “act with greater speed and flexibility to get deals done”.

Khagram said: “Notwithstanding some of the initial challenges of the pandemic, such as uncertainty and the shift to home working across most of the industry, KSEYE has had one of its most successful years to date.”

He added that whilst short-term circumstances like the stamp duty holiday had led to sharper peaks and troughs in demand, he expected the UK property market to remain “buoyant as ever” and for investment opportunities to remain available.

He said: “The rate of growth during the stamp duty holiday might not have been sustainable, but as demand for bricks and mortar remains high and supply remains so limited, it is easy to see why most experts are forecasting further significant price growth in the years to come.”

Khagram noted that over the past few years there had been a lot of new entrants to the market and with increased competition lenders would take “different approaches”.

“Some will reduce interest rates; some will ease up on lending criteria. Competition is good news for the borrower as it gives them more options for their funding requirements,” he explained.

He said: “All evidence would suggest the bridging market should fare well in 2022 and beyond. Certainly, KSEYE enters the new year full of confidence and looks forward to the opportunities that lie ahead.”

Recruitment plans

Khagram said that it expected the team to grow another 20 per cent to 30 per cent in the coming 12 months.

KSEYE, which was founded in 2012, has grown its team from 18 to 34 employees over the past year. It hired across underwriting, sales and marketing teams.

This includes a new head of underwriting, Kynan Benjamin, and a head of buy-to-let Steve Rundle.

Benjamin joined from Glenhawk, where he worked for nearly three years. Before that he worked at LendInvest for around a year and also held roles at Masthaven Bank, Shawbrook Bank and Halifax.

Rundle was previously at Equiniti for just nearly four years and before that worked at Monmouthshire Building Society for just under two years. He also spent 15 years at Yorkshire Building Society and nearly five years at Birmingham Midshires.