Speaking to Specialist Lending Solutions, Adrian Moloney, group lending distribution director, said the first half of this year had “brought its challenges” with rapid rate and product changes, but OSB Group was “really pleased that [it] kept products out there” across its entire range, continuing to support the work of advisers.
Healthy BTL lending
Jon Hall, chief commercial officer, said he was particularly “impressed by the resilience and activity” across the buy-to-let (BTL) market, evidenced by the group’s rise in originations over the first half of the year.
The group’s BTL originations increased 10% to over £1bn, with its OneSavingsBank (OBS) segment reporting a 23% jump to £1bn. Meanwhile, its Charter Court Financial Services (CCFS) division, which is winding down its Precise BTL business as part of its pivot to residential lending, reported an 81% decline in BTL originations to £21.6m.
Hall noted that the landlords who remained in the market were evidently committed, adding: “In the conversations that we’ve been having with landlords, it’s often the case that because they are professional, they understand the licensing requirements and have strong communication with tenants, they have a strategy for the long term.”
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“What we are seeing in the BTL market is there isn’t a huge amount of purchase activity. Landlords are being very strategic in what they’re adding to their portfolio and a bit of repositioning. But there is absolutely a laser focus on the quality of the asset that they’re providing to their tenants, particularly those with larger portfolios,” Hall said.
OSB Group is also due to publish a report on where the pipeline of future landlords is coming from, finding this was people “receiving a portfolio”, primarily through inheritance from an older relative, and they had a positive attitude towards the future of their investment.
OSB’s Rely brand off to a successful start
Moloney said the launch of Rely had been a “massive success” and over 5,000 brokers had registered with the brand, benefitting from faster completion and application to offer times.
“It’s been a huge success bringing a new lender to market, that’s not an easy challenge. Saying goodbye to an old favourite in Kent Reliance was challenging in itself,” Moloney said.
He said the Rely platform was continuously improving based on broker feedback, supported by the agility of the technology.
The next phase of Precise as a residential brand
More broadly, Moloney said the group saw strong figures for both commercial and bridging, coinciding with the launch of its second charge bridging proposition through the Precise brand.
Originations across its commercial mortgages were relatively flat, with a 3% year-on-year fall to £301.4m, while asset finance lending declined 7% to £114.7m. Its development finance division saw a 12% increase in originations to £126.9m, while bridging originations grew 2% to £338.1m.
“In a time where the market was moving quite quickly, we have seen borrowers utilise bridging for chain breaks. Precise is the strongest regulated bridging lender in the UK market, so the trust and experience people have in using the lender has been really positive,” Moloney said.
Its CCFS division, comprising its Precise brand, saw an 81% surge in residential originations to £385.3m.
OSB Group is working on bringing the Precise 2.0 residential brand relaunch to its lending platform imminently, which is currently in the pilot phase.
Moloney added that the changes Precise had made to its residential offering backed its support for first-time buyers with complex needs, and the launch of Precise 2.0 would give the group further capability to serve the market with “big opportunities” ahead.
Hall said OSB Group had been impressed by the take-up of Precise’s range from first-time buyers, particularly with the criteria changes made in the last six months, such as the introduction of free valuations and longer mortgage terms.
A transformative period
With OSB Group going through a structural overhaul and an incoming change of chief executive, Hall said although the space was “very competitive”, OSB was proud to remain the leading specialist lender in the UK.
He added: “Being so far through the transformation programme means that we’ve got some really strong foundational capabilities in all of our lending lines, particularly, but also in savings, to continue to lead the way in terms of the digital experience that we can deliver, the strengthening of the specialist expertise we have – that human touch – and innovation. Innovation of products that are much more focused on the customers that use them, we’re well-positioned for that.”
Speaking on the changes made across the distribution and sales function earlier this year, which saw Moloney promoted to his current role and Emily Hollands promoted to unify the sales function as group head of intermediary sales and distribution, Moloney said that with over 19,000 brokers registered, OSB Group had the largest intermediary sales and support team in the UK specialist market.
Hall paid tribute to Andy Golding, who will retire as chief executive on 31 August, saying this would be the first time in 14 years that the group would have a change in leadership.
Hall said it was “one hell of a journey” for Golding to leave with a legacy of growing OSB Group’s balance sheet from £3bn to over £31bn during his tenure.
“14 years to go through that degree of growth, to be the first specialist lender to IPO. To be the first specialist lender to operate a scale merger and be the first specialist lender to lead through a full platform transformation.
“Andy’s legacy is embedded in where we go in the future,” Hall added.
He said the group’s business being 99% intermediated was key and as it entered the fourth year of its transformation programme, the “benefits of that are coming through on the asset and liability side”.
In H1, OSB Group reported a 2% fall in profit before tax to £187.2m, due to a higher impairment charge related to a rise in accounts in arrears and the macroeconomic environment, and higher administrative expenses related to the chief executive transition.
In the report, Golding said: “I am proud of the business I am handing over. These achievements reflect the dedication, expertise and commitment of colleagues across the group and I would like to thank them for their contribution.
“Enrique Alvarez Labiano’s appointment as the group CEO and board director will take effect from 1 September 2026. I wish him every success as he takes the business forward.”
