Changes include the addition of fixed rates at no additional cost, lending against open market value (OMV), free automated valuation models (AVMs), remote valuations and reduced developer exit rates.
Octane Capital said it wanted to strengthen its offering for brokers and borrowers by providing more certainty, flexibility and speed.
It will now lend against OMV on qualifying cases, replacing the previous 180-day valuation methodology. Octane Capital said this would give brokers more flexibility when structuring cases and allow cases to proceed where valuation constraints may have previously limited borrowing.
The decision to introduce fixed rates at no additional cost was due to demand for payment certainty, and this will enable borrowers to secure fixed monthly repayments without paying a premium compared to variable rate products.
To improve speed and affordability, the lender will now facilitate free AVMs and remote valuations on qualifying purchase transactions up to 75% loan to value (LTV).
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Jonathan Samuels, CEO of Octane Capital, said: “Our focus has always been on making it easier for brokers to get deals over the line and these enhancements represent one of the biggest improvements we’ve made to our proposition since launching Octane.
“Every change has been driven by a simple objective: reducing friction within the lending process. Whether that’s providing greater certainty through fixed rates, improving flexibility with OMV lending, reducing upfront costs through free AVMs and remote valuations, or strengthening our pricing on larger developer exit facilities, each enhancement has been designed to help brokers deliver better outcomes for their clients.”
He added: “Our acquisition by Aldermore has provided us with an even stronger platform from which to invest in our proposition, but this is very much the beginning rather than the end. We’ll continue to listen to broker feedback and invest across our products, technology and service as we build on what has already made Octane successful.”
