Gatehouse partners TPG in £500m Build to Rent joint venture
This is the Shariah-compliant bank’s third Build to Rent venture, this time with the real estate equity investment platform of global alternative asset firm TPG, as it aims to become one of the UK’s largest providers of purpose built single-family rental homes.
Paul Stockwell, Gatehouse Bank’s chief commercial officer, said: “We are delighted to have found an experienced, institutional partner in TREP as we launch our third major private rental investment initiative. This joint venture will see significant capital being deployed to build and develop the next generation of build-to-rent housing, concentrating on high-quality family homes in suburban locations.”
The plans include an initial seed portfolio of four sites, acquired in partnership with leading housebuilder Countryside Properties, which specialises in mixed tenure and regeneration projects.
The plans include 321 single family homes, in established residential communities in the Midlands, Greater Manchester and Merseyside.
With equity to drawn down, the venture will seek to strengthen existing partnerships, and develop new relationships with other housebuilders across the UK to forward-fund developments of 2,500 rental homes for families.
James Piper, partner at TREP, said: “We are pleased to be partnering in this joint venture with Gatehouse, a skilled operator in the UK’s build-to-rent market. TREP has a strong track record of developing and owning high-quality private rental assets in North America and we are excited to leverage this expertise to achieve similar success in the UK, where there is strong and growing demand for new-build rental homes. With this initiative, we aim to be a valued partner not only to homebuilders but also the communities and families that will call these properties home.”
Gatehouse Bank achieved a ground-breaking sale of its first portfolio, Thistle, in January to an institutional investor for a total consideration of around £150m.
Gatehouse Bank hires chief operating officer from Together Loans
Bailey (pictured) will report to chief executive officer Charles Haresnape and be based in the bank’s office in Wilmslow in Cheshire. In her role she will oversee operations in Wilmslow and Milton Keynes.
Bailey joins from Together Loans where she was director of lending and change. She spent over two decades with the Cheadle-based lender, initially joining as head of regulated underwriting and then taking on the role of operational transformation head.
Prior to Together she was head of secured lending at Advantage Mortgage Solutions, and before that worked at HFC Bank and Nationwide.
Haresnape said: “Tracey has considerable experience in key operational leadership roles where she has driven transformation and strategy, so she will be a great asset.
“We’ve been developing new ways to enhance our products and expand our offering, so it is an ideal time for her to join us, her experience will be invaluable as we look at additional ways to grow the business.”
Gatehouse Bank and trio of mutuals ranked top for BTL affordability – MBT
Tipton & Coseley Building Society took second place, Hinckley & Rugby ranked third while Interbay and Furness Building Society took the forth and fifth spots.
Based on a standard set of circumstances, these lenders offered the most generous buy-to-let loan amounts.
For top slicing, MBT found Barclays and Clydesdale Bank to be the best while Saffron Building Society and the Darlington produced strong results for expats.
For holiday lets, Ipswich Building Society and Principality Building Society were the strongest.
Tanya Toumadj (pictured), chief executive at Mortgage Broker Tools, said: “Affordability calculations are important for buy-to-let investors who want to maximise their leverage, so it’s really interesting that the top five lenders for affordability are arguably lesser-known lenders in this part of the market.
“This shows the importance of shopping around and carrying out thorough research. Every case is different and affordability results vary depending on the individual circumstances of a customer.”
Brilliant Solutions and MCI add specialist support to panels
Brilliant Solutions has added Gatehouse bank to its panel to increase the range of buy-to-let deals brokers have access to.
Gatehouse Bank is a Shariah-compliant finance provider that serves UK residents, expats and international customers.
The bank offers two-year and five-year fixed rate products in the buy-to-let market for single residency investments and portfolios up to £5m, along with multi-unit freehold blocks and houses in multiple occupation.
Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “We are seeing increased demand for our products from within and outside the Muslim community, and so we are delighted to be working with Brilliant Solutions to make our offering available to its club members.”
MCI Mortgage Club
MCI Mortgage Club has teamed up with Fluent Money to offer its members a secured loan referral service.
This is the first time the club has worked with the second charge market, and through the partnership, brokers will be able to access all second charge lenders in the market.
MCI members will be able to contact Fluent’s partner development team and marketing department and will have their own dedicated account manager.
Melanie Spencer, head of MCI Mortgage Club, said: “I personally believe there will be a greater demand for secured loans going forward, especially if people’s circumstances have changed because of the impact of Covid.
“A secured loan can often be a better option than remortgaging or taking a further advance on the first mortgage.”
Gatehouse Bank resumes HMO lending
The challenger bank provides Shariah-compliant products for those who want to purchase or re-finance HMOs, with finance to value up to 75 per cent for both UK national, expat and international landlords.
It withdrew the range at the end of March last year in response to the Covid-19 pandemic and restrictions on the property market.
Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “Gatehouse is proud to relaunch our HMO finance today following a short absence from the market.
“The initial downturn in the property market following April’s lockdown sent warning signals which we felt may affect this market considerably.”
“Fortunately the sector has proven to be more resilient than at first thought, the outlook is positive and we have seen significant demand from customers and brokers, so we have taken the decision to relaunch our suite of HMO products,” he added.
Gatehouse Bank appoints John Coles as asset manager
He has joined from Hearthstone Investments, where he was an investment manager for two year, and was responsible for a fund aimed at developing a portfolio of privately rented properties in the UK.
Coles (pictured) began his career as a surveyor, before moving to Mapeley Estates in 2014 where he worked as an asset manager for four years.
Gatehouse’s real estate investment advisory team sources, manages and advises on investments across the UK including build to rent schemes and private rented sector (PRS) properties.
In his new role, Coles will support the build to rent team in growing its portfolio of single family units and assist in the expansion of the bank’s PRS business and build to rent funds. He will report to chief commercial officer Paul Stockwell.
Stockwell said: “I am delighted that John has joined Gatehouse Bank, his expertise and experience in the build to rent sector will make him a great asset to the team.
“Gatehouse’s activity in the private rented sector and specifically the build to rent market has been expanding rapidly over the past few years, and 2020 is on course to be another busy year for the bank.”
Coles added: “Gatehouse has a proven track record of delivering and managing PRS and build to rent schemes.
“With both sectors expected to continue expanding over the coming years, this is an exciting time to join the bank’s real estate team and be a part of a growing market.”
Gatehouse invests £10.2m in 66 home build-to-rent scheme
The scheme will be made up of 23 two-bed, 39 three-bed and 4 four-bed houses and is being built by Vistry Partnerships. The deal was advised by Gatehouse Bank which is also a co-investor.
Colliers International acted as property advisers and Dentons as legal advisors on the transaction.
The scheme, on Raleigh Street, will form part of the second build to rent fund advised by Gatehouse Bank which, since its establishment in December 2015, has spent around £90m on the construction of 684 single family houses across the UK.
Following the completion of Raleigh Street, the fund will comprise of a 750 unit single family housing private rented sector portfolio. The portfolio is being professionally managed through a build to rent platform, Ascend Properties.
Work on the Raleigh Street site in the Birchills area of Walsall began in September last year and is expected to be finished by the summer of 2022.
Paul Stockwell, chief commercial officer at Gatehouse Bank, said: “Gatehouse has a proven track record of delivering much-needed homes around the UK by successfully investing in and managing build to rent schemes.
“This is another example of our intention to fund developments in the single-family housing sector, providing attractive, affordable and professionally managed homes.
“The Raleigh Street site has remained dormant for eight years so this is a fantastic regeneration opportunity that will provide a significant number of family homes.”
Principality reintroduces JBSP; Gatehouse ups max FTV – round-up
This follows the bank’s decision to reduce its maximum FTV to 65 per cent on 1 April, due to difficulties around physical valuations during the lockdown.
FTV is the Shariah-compliant equivalent of loan to value (LTV) for conventional mortgages.
The maximum FTV for homes in multiple occupancy and multi-unit freehold blocks is 70 per cent. Maximum property values for buy to let have been increased to £5m and £2.5m for house purchases in England.
Any applications submitted before the lockdown in March for finance between 65 per cent and 75 per cent FTV will be processed, and the bank is accepting new applications to the 75 per cent FTV.
Roger Evans (pictured), director of home finance distribution at Gatehouse Bank, said: “We are pleased to be able to offer 75 per cent FTV products at competitive rates for UK, expat and international customers.
“We have seen considerable demand from these specialist markets since launching our initial home finance proposition in 2018.”
Principality brings back JBSP offering
Principality Building Society has reintroduced its Joint Borrower Sole Proprietor (JBSP) mortgage offering which allows parents, stepparents and grandparents to help their child or grandchild with affordability.
Up to four applicants can be accepted on the mortgage and there is no required minimum income for the application. Relatives also do not need to be on the title deeds and jointly owning the property.
The JBSP mortgage is available for purchases through both brokers and direct, and includes a two-year fixed at 2.06 per cent and five–year fixed at 2.08 per cent, both at 80 per cent loan-to-value.
Helen Lewis, national account manager at Principality Building Society, said: “It’s a challenging time for first–time buyers not only with rising house prices but current uncertainty in the housing market due to coronavirus.
“This product offers additional support for new borrowers to overcome affordability issues and ensure they can get on the ladder as soon as possible.”
Gatehouse Bank recruits former Aldermore BDM
Proudfoot (pictured) has five years’ experience in intermediary sales and joins from Aldermore where he also worked as a BDM for three years.
Prior to this, he was an account manager at Platform Home Loans, a subsidiary of The Co-operative Bank.
Proudfoot will manage existing and new broker relationships for the North region and replaces Lottie Clayton, who was recently promoted to become the bank’s head of intermediary sales. Proudfoot will report to Clayton.
Roger Evans, director of home finance distribution at Gatehouse Bank, said: “I am delighted that Chris has joined our rapidly growing team.
“He has invaluable knowledge and experience of the specialist finance market, which will assist him in forging strong working relationships with brokers in the region.
“The number of brokers and introducers we work with has continued to increase and Chris will play a key role in managing these relationships.”
Proudfoot added: “It’s an exciting time to be joining the business. The bank has expanded rapidly in the past couple of years, introducing new products to its home purchase plan and buy to let ranges and has plans for further growth within the intermediary market.”
Gatehouse Bank promotes BDM to head of intermediary sales
Clayton (pictured) has almost 20 years of experience in financial services, having joined Gatehouse from Chorley Building Society where she was a business development manager.
Earlier in her career, she worked as a mortgage adviser for a number of firms including Countrywide and NatWest.
Clayton will report to Roger Evans, director of home finance distribution, and be responsible for supporting the sales team to further build relationships with brokers and introducers.
Evans said: “Lottie has been with Gatehouse for a relatively short period but her previous experience and knowledge of the intermediary market, from both a broker and lender perspective, has helped her make a hugely positive impact.
“I am delighted that she’s stepped up to this important role. Her experience will be pivotal in helping the team enhance the bank’s relationships with brokers, as we continue to extend our reach into the intermediary market.”
Clayton added: “I have really enjoyed my time since joining Gatehouse and I am delighted to have been appointed to the role of head of intermediary sales.
“I believe my background of working within the intermediary mortgage market both as a broker and for a lender will allow me to support the BDM team in establishing, developing and maintaining strong broker relationships.”