LendInvest adds law firm Juno to BTL legal panel
Juno joins four other firms on LendInvest’s legal panel and will advise on BTL legal matters.
The law firm specialises in property conveyancing and has a fully online process, with an online dashboard that provides updates on case progress to clients.
LendInvest can provide up to £3 million in finance for BTL, with two-year rates starting from 2.9 per cent and five-year rates starting from 3.29 per cent. It has a maximum loan to value of 80 per cent and offers terms from seven to 30 years.
It has been expanding its BTL offering, entering a £500 million funding partnership with JP Morgan in January to back its BTL product.
The lender launched two new 65 per cent and 70 per cent LTV BTL products earlier this month with rates starting from 3.34 per cent. It also repriced a selection of its two and five-year fixed 75 per cent LTV products.
LendInvest’s head of lending operations Lauren Eaton said: “We’re excited to be working with a team like Juno’s, particularly due to our shared ethos of a technology-enabled approach to lending. This new appointment comes at a time of high growth for our BTL business, and we’re delighted to be working with the team.”
LendInvest adds share of BTL market in upbeat trading year
Buy-to-let originations were £127.9m in the six months to 31 March 2019. The product launched in November 2017.
“The UK mortgage market is dominated by slow-moving banks that are suffocated by ever-changing regulation, legacy processes and technology from the 1980s,” said LendInvest co-founder and chief executive, Christian Fees (pictured).
“We made a big move into longer-term lending with our BTL product, which is winning market share from the banks and proving very popular.”
The lender reported £2bn in total cumulative originations from 2008 to 31 March 2019.
It reported £170m in short-term finance, saying this was “continued growth in demand” for bridging and development products during the year to 31 March.
The company has secured new funding of more than £500m from investors and financial partners, including £200m from HSBC to launch a homeowner loan product later this year.
The platform’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 82 per cent to £4m and platform revenue rose by 36 per cent to £72.7m. The value of platform assets was up by 69 per cent to £788.3m during the year.
“LendInvest has notched up another year of profits showing that you can be a fast-growth Fintech business, invest substantially in disruptive technology and be profitable.
“In the past year, we secured substantial investment from pension funds, global banks such as HSBC and a fund set up by the European Investment Fund, part of European Investment Bank Group,” Faes added.
LendInvest buy-to-let deals added to Mortgage Brain
The products will be available on the online and desktop sourcing systems – MortgageBrain Anywhere and MortgageBrain Classic.
The move will extend the lender’s reach to 22,000 intermediaries.
LendInvest sales director Ian Boden (pictured) said: “Partnering with a market leader in optimising the loan sourcing process like Mortgage Brain, marries directly with our goals as a lender.
“Internally, our team work continuously to alleviate pain-points in the application process, and we strongly believe this should start at the point of search.
“As we ramp up the distribution of our buy-to-let product one year on, Mortgage Brain’s extensive and diverse member-base will be a true asset.”
LendInvest slices buy-to-let rates and fees
The lender has reduced its five-year fixed-rate deal to 3.60%, with the interest cover ratio (ICR) calculation at a pay rate of 3.60%.
At the same time, product fees for all buy-to-let mortgages on standard property and houses in multiple occupation (HMO) cases have been reduced to 1%.
Valuation fees have been reduced to £100 for all standard property cases.
Ian Boden, sales director at LendInvest, (pictured) said: “One year on from the launch of our buy-to-let product we are proud of the offering that we have worked on continuously throughout the year.
“As the business continues to enjoy the support of more lending capital, we are confident that the rates we’re now able to offer across our products mean we hold a very competitive position in the market.”
Buy to let transactions down as landlords hold on to property – LendInvest
According to data from LendInvest, buy-to-let transaction volumes fell in every one of the 105 ranked postcodes it monitors across England and Wales over the last three months.
It found that transaction volumes fell by as much as -6.77% on average, but noted that other industry data and its own experience had found a surge in remortgaging.
The lender noted that there were a number of factors coming into play for influencing the growth in remortgage cases.
“As property values begin to improve, landlords will be more inclined to want to remortgage to leverage the increased value of their asset, rather than try to sell in a slower market,” it said.
“We have also recently reached the expiry of the initial term on mortgages taken out just prior to the stamp duty changes for second properties. This will be encouraging investors to take the time to explore their options.
“As buy-to-let investors also eye the prospect of rate rises in the not so distant future, we can certainly expect more borrowers take these proactive measures to minimise interest costs where possible,” it added.
Buy, hold, remortgage
LendInvest sales director Ian Boden said: “Data from the BTL Index, UK Finance and our own experience as a mortgage lender strongly suggests that right now a ‘buy, hold and remortgage’ strategy is some investors’ preference while the market works through a possible slowdown.”
“Each of the very top performing BTL locations this quarter is experiencing a slowdown in transactions – substantial falls in places, dips in others.
“But, the best places this quarter continue to outperform the competition well thanks to strong performances on other, equally important metrics like rental yield, capital gains and rental price growth,” he added.
LendInvest cuts buy-to-let mortgage rates amid range refresh
The specialist lender has launched a 2.99% two-year fixed-rate for borrowers at 75% loan to value (LTV).
And rates have been improved at 80% LTV to start from 3.69% for portfolio landlords, limited companies and individuals for a select time.
At the same time, the valuation fee has also been reduced to £100 on buy-to-let remortgage cases up to £300,000, with free title insurance also offered on these cases.
Title insurance helps streamline the loan application process and provides cover for issues that regularly crop up in the due diligence process, bringing forward completion time by around three weeks.
Ian Boden, sales director at LendInvest (pictured), said: “In the five months since launch, our buy-to-let product has gained impressive momentum, allowing us to step back and regularly evaluate our product offering.
“At LendInvest we are constantly listening to the brokers we work with and re-assessing how we can adapt and evolve our proposition to best suit our borrowers.
“These changes are not only huge cost saving initiatives, but also dramatically cut down the time taken to deliver our loans,” he added.