Cover Story
Sophie Mitchell-Charman Commercial director at LendInvest
Jonathan Newman Senior partner at Brightstone Law Jonathan has continued to raise standards and push boundaries within the specialist finance sector, an example of which is when Brightstone Law, on behalf of a second-charge lender, took on a major high-street brand last year. The bank had accepted a loss to itself running into six figures, which caused the second-charge holder to suffer a complete shortfall. In this case, both loans had gone into default and possession orders had been obtained by both charge holders. The second-charge holder was on the cusp of repossession. The borrower claimed negative equity (taking both mortgages into account) and, shortly before enforcement was to take place, convinced the bank he had arranged a sale that promised the bank its best recovery return, with complete disregard for the interests of the second-charge lender. The bank took over the sale and sold the property to a buyer introduced by the borrower. The second-charge holder was wiped out and the bank accepted the sale proceeds. However, there were a number of red flags that should have alerted the bank to a sale at undervalue. The second-charge lender took the unusual step of pursuing the first mortgagee for breaching its duty of care. The second-charge holder’s case was denied entirely. Jonathan’s expertise, experience, and extensive understanding of the duties owed by all mortgage lenders led to a forensic scrutinisation of the bank’s process and conduct. Despite consistent denial of breach, the claim resulted in a substantial settlement in the second-charge holder’s favour. This case was a big win for the specialist finance sector and tells us that a well-known brand name is no guarantee of integrity. It also tells us that tenacity, perseverance, technical excellence, specialist expertise, and experience are key to successful property finance—qualities that Jonathan exhibited in winning this case.
Bridging & Commercial
Sophie has been praised for her strong work ethic and extensive knowledge of the specialist finance market, which she used during 2023 to successfully lead LendInvest during a tumultuous time. As part of her goal to further streamline the firm’s lending processes and improve its overall proposition, she has drawn on her expertise to introduce AVMs to its product range, and helped bring forth new tracker and seven-year fixed-rate mortgages. In addition, Sophie was a key player in creating LendInvest’s broker portal, which has helped the business streamline case management.
58
Jason Neale Managing director at Quantum Mortgages Landlords have been battered by numerous problems in the rental market in 2023—including difficulties in accessing BTL finance. Jason understands the importance of having a reliable lender for landlords and brokers alike. With this in mind, he chose to focus on providing finance for a range of clients—including affordable housing and providers of homes for vulnerable people—and to enhance the firm’s technology to reduce the number of documents required for deals, and thus further streamlining the lending process for intermediaries. Under his leadership and thanks to these initiatives, Quantum Mortgages quadrupled new lending since January 2023, doubled its headcount, and secured partnerships with numerous packagers, mortgage networks and mortgage clubs, which allowed it to further promote its BTL range.