UTB launches bespoke FTBs residential range
It’s the bank’s latest step in developing its first and second charge specialist mortgages.
The range offers loan-to-values up to 80 per cent and the maximum loan size is £500,000.
It includes fixed rates starting at 3.8 per cent over two, three and five years.
The highest accepted income multiple is 4.5x and £25,000 is the minimum yearly income needed.
Property values can be as low as £100,000 and the products can be used with gifted deposits, gifted equity and for purchase at undervalue.
“This is another step towards a full suite of specialist mortgages for those requiring bespoke underwriting, rather than the sausage factory approach of generic, credit score-based high street lenders,” said Buster Tolfree, commercial director at United Trust Bank.
“Brokers’ feedback on our developing product range and technology has been overwhelmingly positive. We look forward to another busy year and more exciting changes to come,” he added.
UTB ups maximum bridging LTV
The increase applies to the lender’s whole range of regulated and non-regulated deals, including those for heavy refurbishment and conversions.
Sales director – property intermediaries Mike Walters (pictured) said: “We remained open for business throughout the pandemic, introducing many product, criteria and digital enhancements to help property finance intermediaries write more business.
“We believe the time is right to increase our maximum LTV appetite to support the market even further and you can expect to see more positive changes from UTB over the next few months as we respond to the changing environment and increasing confidence.”
The lender allows loans between £125,000 and £15m on its bridging ranges.
UTB unveils £250m development finance fund with Homes England
The five-year pact will support small and medium-sized builders with loans between £1m and £10m at up to 70 per cent loan to gross development Value (LTGDV).
Homes England said the Housing Accelerator Fund will improve access to finance offered to smaller builders and drive the continued diversification of the housing market over the coming years.
Applications are being accepted from today and prospective borrowers should contact UTB.
UTB executive director Noel Meredith said SME housebuilders have a vital role to play in delivering the UK’s housing needs.
“This is an exciting new partnership with Homes England which will make a real difference to both long established and newly formed development companies requiring competitive funding and the long-term support of a knowledgeable and experienced specialist lender,” he said.
“This alliance will help to reinvigorate and increase diversity in the SME housebuilding sector, and boost housing supply in areas under the greatest affordability pressures.”
Homes England chief investment officer Gordon More said it would help smaller builders get on as well as improving the lending landscape for SMEs by driving competition in the market, improving choice and encouraging innovation.
Housing minister Christopher Pincher added: “It is a top priority for this Government to build the homes this country needs and it is vital for our economic recovery that we support as many as possible within the house-building industry to deliver these homes.”
UTB launches faster bridging service
The service was soft-launched in December and the lender is now rolling it out to all advisers.
“The aim of this new streamlined service for loans meeting qualifying criteria is to simplify the process for straightforward transactions,” UTB said.
A dedicated team is in place for the service which is for deal of up to £500,000 net and with a maximum loan to value of 55 per cent.
A maximum of two security properties are permitted, the primary exit must be through sale or refinance of security properties, and it is not suitable for heavy refurbishments or property improvement loans.
Brokers can create their own terms, decisions in principle (DIPs) and ESIS using the broker portal, or liaising with the in-house team.
The service uses biometric ID verification, automated valuation models (AVMs) and dual legal representation.
UTB commercial director – bridging Gavin Diamond (pictured) said the lender believed this would enable brokers to do more business, quicker and more easily.
“We understand that a quick turnaround is vital to most customers, and often why they’ve chosen bridging in the first place, so having developed and implemented a number of time and effort saving systems and processes, we’ve brought them all together to provide this market leading bridging service,” he said.
“Feedback from the brokers who participated in our soft launch has been overwhelmingly positive and we’re now ready to make it available to all UTB registered brokers.”
Impact Specialist Finance was one of the firms in the soft launch. Managing director Dale Jannels said the experience had been positive.
“The key to sourcing and delivering bridging finance is speed and efficiency and this service provides a really quick turnaround if cases are submitted correctly,” he added.
Brotherton advises UTB on £6m funding for beachside hotel conversion
Brotherton Real Estate advised on the case which was put forward by developers Harrington Homes.
Work has already begun on the site next to Harlyn Bay beach which has seen the former Harlyn Inn Hotel demolished to be replaced by a three-storey development.
The finished building will consist of 14 two and three-bedroom apartments and ground floor commercial space.
The projected has an estimated gross development value of £11m when finished.
Brotherton Real Estate introduced Harrington Homes to UTB in October with purchase completion due to take place in early November.
UTB said that although Harrington Homes was a new customer the firm had extensive development experience and a strong track record around the South West.
The lender’s credit committee agreed to provide the £6.18m required to cover the balance of the site purchase, construction costs, professional fees other obligations.
An extended repayment term was agreed to provide Harrington Homes with greater flexibility should the pandemic create disruption to the construction timetable.
Demolition works were underway within two weeks of the completion of the site acquisition and the first apartments should be released for sale around Easter 2021.
Robert Kleinman, chief finance officer of Brotherton Real Estate, said: “Mark Pannell and the United Trust Bank team pulled out all the stops to provide a quick decision on this deal and have the funds available within around six weeks of our first conversations.
“I’m very pleased to get another competitive funding deal with UTB over the line and look forward to working together on future deals.”
Mark Pannell, senior manager – property development at UTB added: “Harrington Homes have established a strong reputation for delivering high quality developments and I’m delighted that UTB will be providing the funding to create these superb homes in a stunning location.
“We had to move quickly on this deal and Brotherton’s involvement was crucial to us getting all the information we needed when we needed it.
“With around 40 buyers already showing interest in the apartments, I’m sure this will be another successful development for Harrington Homes and the bank.”
Brokers prepare for ‘challenging’ year as half miss 2020 targets – UTB
However, other advisers reported a more successful year in the United Trust Bank (UTB) end of year broker sentiment poll, as 23 per cent of respondents said they exceeded their targets and a further 23 per cent achieved their goals.
Meanwhile two-fifths said they were excited to see what 2021 would bring for their business.
Changes to working habits are expected to continue after the pandemic, the survey also revealed.
Some 69 per cent of brokers said they wanted to be more mindful of their work-life balance in the future and 49 per cent planned to increase their work from home flexibility.
Harley Kagan, chief executive of United Trust Bank, said: “The Covid-19 pandemic continues to create challenge and uncertainty but it’s encouraging to see that 46 per cent of property and commercial finance brokers overall achieved or exceeded their 2020 targets and many are looking forward to this year with enthusiasm.”
United Trust Bank raises maximum bridging loans to 65 per cent LTV
The lender’s bridging loans are available for borrowing amounts ranging from £125,000 to £15m and the minimum property value must be £150,000 or £100,000 for multiple securities.
Rates start from 0.48 per cent and automated valuation models can be used on loans of up to £1m, at a maximum LTV of 55 per cent and a maximum property value of £1m.
Mike Walters (pictured), sales director – property intermediaries at United Trust Bank, said: “Throughout 2020 United Trust Bank released a wide variety of products, criteria and digital enhancements to help property finance intermediaries write more business whilst still navigating the challenges created by the Covid-19 pandemic.
“As a result, the bank completed record volumes of new bridging business last year and we’re keen to top that achievement in 2021.”
He added: “This increase to our maximum bridging loan LTV is a clear signal of our confidence in the market, and our desire to support brokers and their customers in securing competitive and reliable funding from an experienced, through-the-cycle lender.”
UTB appoints key account manager from Twenty7Tec
Oades (pictured) will be responsible for the strategic development of relationships in the residential mortgage market, focusing on brokers operating within networks and mortgage clubs, UTB said.
At Twenty7Tec she was responsible for the company’s analytics platform and managing relationships with more than 130 UK mortgage firms.
She will be working with the existing mortgage sales and introducer relationship team led by sales director – property intermediaries Mike Walters.
United Trust Bank commercial director for mortgages Buster Tolfree said: “Throughout this year we have continued to develop our mortgage proposition and have invested in the team to enable us to maintain service levels to all of our broker partners as we increase our product range and volume capability.
“Hannah already knows many of the key players in the specialist mortgage sector which gives her a valuable head start in deepening UTB’s existing relationships and establishing new ones.
“In addition, Hannah’s experience will be extremely useful as we continue to develop the UTB product range, introducer distribution and digital offering.”
UTB and Paragon make development finance hires
Ejikeme (pictured) joins from Oaknorth Bank where he worked as a senior manager of property development, while at UTB his role will involve supporting housebuilders and developers in the South and East of England.
He has nearly 15 years‘ experience in property finance and has previously worked at Lloyds Bank and Secure Trust Bank.
Ejikeme will be based in London and work with UTB property development director Phil Kirkwood.
He will be primarily responsible for promoting the lender’s development finance offering to SME house builders, developers and property investors.
Adam Bovingdon, senior director of property development at United Trust Bank, said: “We’re continuing to expand the property development team by recruiting experienced property finance professionals with the skills and drive to support SME developers and housebuilders across the country.
“Achi brings with him nearly 15 years of experience working with a wide range of customers on a variety of development projects and most importantly he shares our passion for delivering outstanding customer service. He is a valuable addition to the UTB team.
Paragon adds relationship director
Paragon Bank has hired Toby Burgess as a relationship director to its development finance team.
He will be based in the London office and work with SME developers across England and Wales, focussing on originating loans secured on residential projects.
Burgess has experience in financial services and property finance and he joins from Wellesley Finance where he was lending manager. Prior to that, he worked at GFI Group.
Burgess said: “I am delighted to be joining Paragon’s development finance team. I am looking forward to helping Paragon to continue to grow its development finance business as well as working with a variety of creative and hard-working developers and housebuilders.”
Robert Orr, development finance managing director at Paragon Bank, added: “Bringing somebody in with Toby’s expertise and experience will help us to continue supporting our current and new to bank clients, while growing our loan book.
“We have remained active throughout this challenging period when other lenders have retrenched and, looking forward, we are confident in the prospects for the market.
“The demand for new housing looks like it will remain strong into the future and smaller developers want to work with a bank that is consistent, is financially strong and has the experience and expertise to support their business,” he added.
UTB brings maximum lending up to 80 per cent LTV
Its first charge residential products are available for purchase and remortgage with a maximum loan size of £500,000.
There are two, three and five-year fixes with rates starting from 4.3 per cent and the maximum loan to income is 4.5. The primary income allowed must be from those in full time employment and clients need to be in their current role for a minimum of 12 months.
The second charge loan is up to 80 per cent LTV with a maximum loan size of £250,000. It is available on two, three and five-year fixed terms with rates beginning from 5.95 per cent.
United Trust Bank has also launched a near prime residential product up to 75 per cent LTV for purchase, remortgage, interest-only and unencumbered borrowers.
The maximum loan size is £500,000 dependent on the mortgage plan.
Defaults and county court judgments will be ignored if they are over a year old, as will unsecured credit commitments if they are being consolidated.
Buster Tolfree (pictured), commercial director – mortgages, United Trust Bank, said: “Throughout this year we have released a wide range of new products, criteria and digital enhancements to help mortgage brokers write more business whilst still dealing with the challenges presented by Covid-19.
“The feedback we received has been overwhelmingly positive and many brokers also suggested that a small increase in our maximum LTVs would give them additional opportunities.”
“Although uncertainty surrounding the pandemic continues, UTB has decided to back brokers and their customers in these challenging times.
“We believe that the best way to get through this crisis is to work together, supporting brokers wherever possible,” he added.