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Q1 2018 Buy to let mortgages

Commercial mortgages

Property development finance

Bridging & short term finance

Residential mortgages

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Remortgage within six monthst ü

Raise capital for further investment

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Repay bridging loans Remortgage at uplifted value Consolidate debt Replenish savings used for refurb works

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Welcome Buy to let lending is shrinking. In 2017 the overall lending figure sat at £34.9bn (£35.8bn including further advances). That’s about a 11.8% reduction on the year before. In 2018, I reckon we will see the market shrink further, maybe by another 11%, so that by the end of the year the final tally will reach £31bn at best. Clearly the fiscal and regulatory measures designed to curb buy to let lending are working. And my gut tells me that as a proportion of the whole residential mortgage market, no more than 15% is probably about right. For brokers who focus on buy to let you might think that that a smaller market could have a detrimental effect on business. Here at Mortgages for Business, we see things somewhat differently. In fact, we see the smaller market as a distinct opportunity and have plans to expand our buy to let offering in 2018 with particular and continued emphasis on the specialist sector. For those of you who are not overly familiar with buy to let, the specialist end of the market caters to landlords with more complex borrowing requirements. By this I mean landlords… l With four or more distinct mortgaged buy to let properties- what the PRA now defines as a “portfolio landlord” l Borrowing via limited company structures – such as Special Purpose Vehicles and trading companies l Needing finance for non-standard property – including HMOs, multi-units and mixed-used properties, as well as commercial property l Wanting to finance entire portfolios in one go, rather than one at a time l Landlords who develop property for rent – either build to rent or buying existing properties which require renovation or conversion I’m not saying it’s going to be easy. Far from it. I think it will be an extremely challenging year. But we have very strong relationships with the specialist buy to let lenders and we work hard to understand exactly what their lending criteria means in practice for our landlord clients. And landlords with complex borrowing requirements are a savvy bunch. Despite the anticipated contraction in the market, a large proportion of our existing clients tell us that they intend to expand their portfolios in 2018. These clients expect us to know, from memory, what each lender will and won’t do. Sometimes it can feel like being a contestant on Mastermind… l Your name please? David Whittaker. l Your occupation? Specialist buy to let broker. l And your specialist subject? Specialist buy to let lending criteria. Right! You have 90 seconds on your specialist subject, starting now.

Contents

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Property Finance Research

Property Investor Survey Results Complex Buy to Let Index Ltd Company Buy to Let Index Buy to Let Costs Index

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5 6-7 8 9

Case Studies

Remortgage of 7-bed care home 11 Mortgage for chef to purchase freehold of Grade II listed pub 12 Company directors raise capital from their unencumbered hotel 13 Trustees remortgage 1-bed flat of deceased relative 14 £5m commercial mortgage for investor refinancing large college 15

16

Specialist lenders

Specialist lenders vs mainstream 17 Lender in the Spotlight InterBay Commercial 18 Keystone Property Finance 19-23 Find your BDM Classic Range Product Guide Buy to let is now a specialist market 24 Placing development finance deals 25 Meet the deal placement team 26 MFB news 27

l Which lenders cater to all the specialist scenarios listed in the bullet points above? l How many specialists will accept HMOs with more than eight bedrooms? l What SIC codes are acceptable to buy to let lenders considering applications from landlords using SPVs? l Which lenders will accept trading limited companies? l If there is fixed and floating charge already in place on a portfolio owned in a limited company, which other buy to l let lenders will still consider lending? l When do the new EPC rules come into play for landlords issuing new AST agreements? l Which lenders will consider flats above food takeaway outlets? l Which lenders don’t take a fixed and floating charge over a trading limited company? l Which lenders will accept a landlord’s own portfolio spreadsheet? l When submitting a buy to let application from a portfolio landlord, which lenders require a business plan and cash flow forecast? You’ll notice that I haven’t supplied the answers. After all who doesn’t like a quiz? I would like to think that all the brokers on our buy to let desk, know the answers to all of these questions. And more! The point is, if you don’t know the answers and you intend to broker complex buy to let deals, you need either to do your homework quickly or work with a broker who can place the deals for you. And that’s where we come in…

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Property Finance Research 4

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Q1 2018


PROPERTY INVESTOR SURVEY RESULTS

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COMPLEX BUY TO LET INDEX This quarterly industry index tracks mortgage transaction data for Vanilla Buy to Let, Houses in Multiple Occupation (HMO), Multi-unit Freehold Blocks (MUFB) and Semi-Commercial Property (SCP). Lenders and Products Q2 2017

Q1 2017 Average no. products Average no. lenders

1,167

36

Q3 2017

1,220

1,223

36

36

Q4 2017 1,332 36

Vanilla Buy to Let Q1 2017

Q2 2017

Q3 2017

Q4 2017

41%

39%

41%

49%

Remortgages Average loan size

59% £196,813

61% £204,147

59% £211,517

51% £183,202

Average property value

£299,075

£310,918

£326,611

£284,529

Average loan to value

68%

69%

69%

67%

Average yield

5.7%

5.5%

5.5%

5.6%

Purchases

Houses in Multiple Occupation (HMO) Purchases

Q1 2017 39%

Q2 2017 29%

Q3 2017 27%

Q4 2017 33%

Remortgages

61%

71%

73%

67%

Average loan size

£224,360

£241,286

£234,217

£285,138

Average property value

£331,711

£307,171

£331,269

£434,643

Average loan to value Average yield

70%

70%

72%

68%

9.3%

8.7%

9.2%

8.2%

Multi-unit Freehold Blocks (MUFB) Q2 2017

Q3 2017

Q4 2017

Purchases

Q1 2017 41%

21%

47%

29%

Remortgages

59%

79%

53%

71%

Average loan size

£322,364

£441,065

£273,558

£305,672

Average property value

£492,707

£742,836

£424,919

£439,750

Average loan to value Average yield

71%

67%

69%

70%

7.8%

7.9%

8.6%

8.1%

Q3 2017

Q4 2017

Semi-Commercial Property (SCP) Q1 2017

Q2 2017

Purchases Remortgages Average loan size

50%

67%

67%

40%

50%

33%

33%

60%

£167,600

£268,000

£694,375

£191,159

Average property value

£228,000

£373,333

£1,124,167

£483,000

Average loan to value

73%

72%

66%

42%

7.9%

8.7%

6.3%

6.9%

Average yield

6

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Q1 2018


COMPLEX BUY TO LET INDEX

HMOs still generating the highest yields for buy to let Whilst HMOs generated the highest yields in 2017, vanilla properties proved to be the most consistent investment. Lenders and Products There was no change in the number of lenders offering buy to let mortgage products to landlords in Q4. However, product numbers rose yet again to an average of 1,322 which is a total increase of 84 products compared to the same quarter in 2016. In fact, buy to let mortgage product availability has increased 444% since 2011 when the index was first launched. Purchases and Remortgages In the final quarter of 2017, the proportion of vanilla properties being purchased rather than remortgaged grew for the second consecutive quarter, from 41% in Q3 to 49% in Q4. This almost 50/50 split bucks the trend seen in the wider buy to let lending market which, for some time, has favoured remortgaging. The reasons for the growth is not entirely understood but is thought to be due to: l Landlords acquiring lower-value properties for

the purpose of achieving higher yields (either immediately or in future)

l Landlords incorporating existing portfolios, i.e.

they are selling vanilla properties they already own into their limited companies

been looking further north for their acquisitions where prices are cheaper. The benefits of this strategy include less stamp duty, scope for rental increases which thus allow for higher yields, and future capital growth. For HMOs, whilst LTVs remained stable at an average 69% for the year, it was a different scenario for property values which increased in Q4 2017 to the highest level since 2011. This suggests that landlords are still attracted to both HMOs in the more expensive regions (i.e. the South) and to larger HMOs in the less expensive areas (i.e. further north), likely driven by the need for portfolio diversification and the appeal of consistently higher yields. Whilst HMO yields are considerably greater than those achieved on vanilla property, in 2017 they actually declined to an average of 8.9% compared to 10.2% the year before. Average property values and LTVs are much less consistent on multi-units and semi-commercial property due to fewer numbers of landlords operating in this space and inherent differences in location prices and the number of units within these property types. Despite this, yields remain higher typically compared to their vanilla counterparts. In 2017, yields averaged 8.1% and 7.5% for multi-units and semi-commercial properties respectively.

Whether this growth continues is doubtful as we would expect remortgaging to increase in Q1 2018 as landlords near the end of 2-year tie-in periods from mortgages taken out in the run up to the introduction of the higher rate of stamp duty in 2016. Values and Yields In 2017, LTVs and yields on vanilla properties remained fairly stable despite landlords choosing to finance cheaper property than in the previous year. The average value of a vanilla buy to let property in 2017 was ÂŁ305,283 which is a drop on the average of ÂŁ375,409 in 2016. This suggests that that landlords are seeking lower value properties and, anecdotally, we hear that they have Vanilla Buy to Let Properties in this category tend to be normal 2-3 bed houses and flats. Both borrowers and properties fit the general lending criteria for offthe-shelf products offered by the mainstream buy to let lenders

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LIMITED COMPANY BUY TO LET INDEX

Limited company buy to let purchases outstrip remortgages In Q4, 72% of all completed mortgages for limited companies were for landlords purchasing property. This figure includes both additional property acquisitions and landlords selling property they already own personally into their limited company. (All transfers of properties from individuals to limited companies must be treated as a new purchase, and as such will not qualify as a remortgage.) Remortgaging accounts for fewer transactions because of the relatively short period of time in which limited

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companies have been growing in popularity. We would expect remortgage activity to grow as Early Repayment Charge periods expire, allowing landlords to refinance without penalty.

Stricter affordability testing guidelines for lenders assessing personal buy to let mortgage applications has contributed further to the migration by landlords to limited company borrowing vehicles.

This rapid growth in limited company transactions represents a sea-change in landlord behaviour. Prior to July 2015, when former Chancellor of the Exchequer, George Osborne announced changes to income tax relief on mortgage interest, only 21% of transactions were made by landlords using limited companies.

Although overall, buy to let borrowing is thought to have peaked, we expect landlords to continue to switch to limited companies as borrowing vehicles for buy to let, particularly when expanding their portfolios.

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Q1 2018


BUY TO LET COSTS INDEX

Buy to let lending margins squeezed The last quarter of 2017 saw lenders absorbing more costs to keep their rates competitive, according the latest results of the Buy to Let Mortgage Costs Index, published by Mortgages for Business. The analysis revealed that the underlying cost of funds rose in Q4 2017. In particular; swap rates remained elevated, coinciding with the hike in Bank Rate. By the end of the year, two, three and five-year swaps, on which fixed rate mortgages are typcially based, were higher than at the start of 2017. Buy to let lenders, whose margins have been diminishing since July 2016, chose not to pass on the increases to borrowers. Instead, it seems they opted to squash their margins further, as they vyed for customers in light of fast-approaching year-end lending targets. The data revealed that, between the beginning and the end of 2017, average lender margins over swaps had declined by 0.4% points.

To the detriment of products with fees calculated as a percentage of the loan amount, lenders increased the number of buy to let mortgage products without arrangement fees, probably as part of their drive to meet targets. Fee-free products accounted for 16% of the market in Q4, up from 14% in Q3 and the proportion of products with percentage-based fees dropped from 44% in Q3 to 42% in Q4. At 42%, the proportion of products with a flat fee structure remained the same, although the average fee charged by lenders rose by £53 to £1,423. Steve Olejnik said: “Looking back over the last couple of years, flat fees have actually come down in price from over the £1,500 mark. The fact that they increased in Q4 could be a sign that borrowers are about to experience price hikes not only on the underlying costs but also at the point of sale. Now is definitely a very good time for landlords to review their borrowing arrangements.

Commenting on the results, Steve Olejnik, COO of Mortgages for Business said: “I doubt that lenders will consider lowering rates again. If anything, I would expect them to find ways of making up for the lost margins, particularly given that overall buy to let lending looks set to dip this year.”

If I were in the market for a buy to let mortgage, for either a purchase or a refinance, I would consider fixing for five years. And I would be asking my broker about fee-free products whilst there are more of them around.”

The index also revealed that the effect of fees remained largely unchanged quarter on quarter, adding an average of 0.58% to the headline rate advertised to borrowers – the lowest amount since the beginning of 2013 when the index started tracking this data. Fees include lender arrangement fees, valuation fees and legal costs.

Lender Arrangement Fees on BTL Mortgages Fee Type

Q2 2017

Q1 2017

Fee-free

14%

16%

44%

48%

44%

42%

Flat

41%

41%

42%

42%

Av. Flat

£1,397

£1,446

£1,370

£1,423

15%

Q4 2017

11%

%-based

Q3 2017

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Case Studies

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Case studies

Remortgage of 7-bed care home for people with learning disabilities The Client: A broker with no knowledge of the care sector approached us to source finance for his client, a registered care home owner with more than 25 years’ experience.

The Property: A seven-bed Victorian house in the Midlands which the client owns personally. It is registered and run by the client as a home for people with learning disabilities. The client runs the business through a limited company which pays him rent for the property.

The Business: The client successfully trades the home which turns over around £250k a year and generates profits of c£74k. However, after a statutory inspection in 2016, a Care Quality Commission (CQC) report raised a few minor issues which the client subsequently addressed.

The Finance: The client was looking to raise £210k of capital on the home to repay an expensive bridging loan which he had used to buy out a former business partner from the limited company. We approached the business development manager of a high street bank with which we have successfully placed similar deals in the past to discuss the case. After an initial assessment, the she referred the case onto a local relationship manager who is situated closer to the home. In the meantime, we worked with the broker and his client to put together a proposal for the lender which included: l Trading accounts for the last three years l Latest two years’ CQC reports l Latest six months’ business and personal bank statements l Up to date occupancy schedule with relevant management information

discuss possible terms – the client was keen to secure a 10-year fixed rate. Both the home and the proposal passed muster with the manager who confirmed that the bank would be willing to lend subject to the property passing both a valuation and the CQC re-inspection which was scheduled for late 2017. Confident that the home would pass the CQC inspection, the client gave the go ahead for the property to be valued. The valuation report confirmed that the property was good security for the requested loan. A nervous wait of a few weeks followed, then in January, the client was delighted to receive a report confirming that the home has passed the reinspection. We then worked with the broker, his client, the bank and the legal representatives to ensure that the mortgage application was processed through to completion.

The bank manager then visited the home and the client to

Here are the details:

Property value: £400,000 Loan amount: £210,000 LTV: 52% Rate: 4.63% 10 year fixed Term: 15 years’ capital and interest

Lender arrangement fee: 2% of loan amount (£4,200 added to loan) Mortgage payment: £1,661 pcm Consultant mortgage broker: Andy Elley 01732 471644 andye@mortgagesforbusiness.co.uk

Broker proc fee: £1,050 Q1 2018

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CASE STUDIES

Mortgage for chef to purchase freehold of Grade II listed pub outset he had said he was unable to provide VAT returns and formal accounts! Fortunately, management accounts suggested the business was very healthy. Before we took the case to any lender, there was one particular point which needed addressing. Having been involved with many freehold pub acquisitions in the past, we were concerned that the recent valuation of the business of £975,000 was on the low side. We estimated a going concern value of £1.15m. To double check, we sought a professional opinion from Pinders, a specialist, RICS appointed valuation house, and some local agency contacts.

The Client: The client works as the head chef and front of house manager within the pub and has done so for almost five years; because of this he had been offered the pub at a discounted rate. To help fund the deposit, he planned to sell his sole rental property and use the proceeds. However, as this wasn’t not sufficient, he also enlisted help from two acquaintances who are regulars at the pub in question. Together they set up a limited company, where all three have an equal shareholding. The client’s co-directors will have no active involvement in the running of the business and will have their investment paid back with interest over a period of time. The pub is a Grade II listed, seventieth century detached property in the Essex countryside comprising a restaurant area, traditional bar, private residential accommodation, large garden and children’s play area. The pub has a good turnover with an estimated market value of eight to nine times the adjusted net profits.The broker had asked for our help as he felt that he did not have the experience required to place the case and negotiate the deal with the most appropriate lender.

The Finance: One of the main challenges in securing finance was the lack of accounting information from the vendor – from

Pub value (freehold & business): £975,000 Loan amount: £633,750 LTV: 65% Rate: 3.84% fixed for 5 years Term: 15 years amortisation profile

Correct in our assumption, this meant that the requested loan to value would sit at roughly 55%. We updated the proposal with our estimated valuation of the business and were now in a position to take the application to the lending market. We took the case to several high street banks and after some initial discussions, we arranged a meeting with the lender we felt could offer the best terms. The lender’s business manager took our updated valuation into account and explained the position to the credit committee (which has the power to agree loans). The lending request was sanctioned within 10 days and a valuation was instructed. Unfortunately, lender’s valuer was only prepared to value the trading business at the purchase price – not the going concern value. This meant that the loan to value was now 65% and outside of bank’s criteria! To counter the down-valuation, It was agreed that as well as first charge being taken over the pub, a first charge would be taken over one of the co-director’s investment properties. The bank agreed to cover the cost of this valuation! The lending was supported by a mortgage debenture over the newly formed trading limited company and low-level, unsupported, personal guarantees were taken from all three directors. The lender agreed that the business and applicants were a good risk and that there was significant scope to increase the profitability of the pub with future events and functions outlined in the business plan.

Lender arrangement fee: 2% of loan amount (£12,675 added to loan) Mortgage payment: £4736 pcm Consultant mortgage broker: Andy Elley 01732 471644 andye@mortgagesforbusiness.co.uk

This case came to us directly from a client. If this had been passed onto us from a broker the payaway would have been: 12

£2,218

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CASE STUDIES

Company directors raise capital for BTL from their unencumbered hotel The Client: A mother and son, both of whom are directors of an SPV limited company which owns outright a buy to let and a hotel. Both directors live off the rental income from both properties. They approached us for help in releasing equity tied up in the hotel, which they believed to be worth more than £1million.

The Property: A two-storey hotel including a restaurant on the ground floor in Surrey which the directors have owned for more than 15 years. Originally they ran the hotel themselves but after the business failed, they changed strategy and leased it as a going concern to tenants who have now been trading successfully for five years.

identity and address. We ensured that all of this information was packaged in the lender’s preferred format and duly submitted the application. True to their reputation, the lender’s surveyor got to work and a few days later produced a comprehensive valuation report for the hotel. Unexpectedly, the report down-valued the hotel by some £200,000! Whilst this reduced the amount the directors could borrow, fortunately, it didn’t affect their immediate investment plans,

The Finance:

The directors wanted to raise a mortgage of £600,000 secured against the value of hotel building, preferably on interest only terms, in order to expand their buy to let portfolio. Only one lender regularly offers finance against unencumbered commercial premises, so we knew which one to approach from the off. Unlike many banks, this specialist lender also offers: l Up to 10 years interest only terms – most lenders will only go between 2-5 years if at all for similar proposals l A pragmatic, hands-on approach to commercial underwriting – particularly useful given the directors’ income (which is derived solely from rent) and past trading record l A speedy property valuation service – useful because the directors were keen to proceed as quickly as possible

The application process: To support a mortgage application with this lender, we asked the directors to provide two-years’ accounts for the SPV, a copy of the tenant hotelier’s lease, three-months’ personal and business bank statements, plus proof of

Property value: £875,000 Loan amount: £568,750 LTV: 65% Rate: 5.39% (Lender’s LIBOR + 4.64%) Term: 10 years’ interest only

although it did delay the application process by a few days whilst the directors reconsidered their strategy and organised additional supporting documentation from their accountant. Paperwork and new loan amount sorted, the lender issued a formal mortgage offer which our clients were happy to accept. The application then proceeded without further ado, thanks to our case management team who ensure that all parties are kept in the loop and processing stays on track. The entire deal completed three months later.

Lender arrangement fee: 1.5% of loan amount (£8,531 added to loan) Mortgage payment: £2,770 pcm Consultant mortgage broker: Richard Winston 01732 471673 richardw@mortgagesforbusiness.co.uk

This case came to us directly from a client. If this had been passed onto us from a broker the payaway would have been: Q1 2018

£2,205

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13


CASE STUDIES

Trustees remortgage 1-bed flat of deceased relative some refurbishments so that it could achieve a good rental return. We knew that lending to a trust is quite a specialist area which requires expert knowledge to underwrite. Also, we knew that the personal income streams from both the mother and her son could prove a sticking point. For these reasons, we felt that our best bet would be to approach a specialist, commercial lender rather than a mainstream buy to let provider.

The Solution: We talked through the scenario with a couple of lenders and one stood out as being the best possible match. The lender agreed in principle that the deal could work based on the trustees providing personal guarantees, so we submitted a full mortgage application and a valuation of the flat was instructed.

The Clients: A mother and son who had been appointed trustees of a recently deceased relative’s estate. The mother, who will be the primary mortgage applicant, is an experienced landlord and property developer. The son, (second applicant) is in full-time employment earning less than £25k pa. Both mother and son own their own homes.

The valuation report confirmed that the flat was good security for the loan. At their request, we provided the lender with the following documentation from the trustees in support of the application: l The last three years’ SA302s l Tax overviews for the last two years

The Property: A 1-bed flat in a 5-storey block of nine flats in London which had been the home of the deceased relative. The relative had bequeathed the property in trust to five young nieces and nephews; however, the flat was mortgaged and the lender required the loan to be repaid.

l Three months’ bank statements

The Finance:

The trustees were delighted to receive a formal mortgage offer just two weeks later. We then worked with our clients, the lender and the solicitors to get deal over the line, and the mortgage completed 40 days later. Here are the details:

The trustees decided in order to retain the flat they would need to refinance it, refurbish it then let it out. So, they approached us for help in securing buy to let finance to repay the existing mortgage and raise funds to carry out

Property value: £545,000 Loan amount: £150,000 LTV: 28% Rate: 4.20% fixed for 5 years Term: 10 years interest only

l Proof of identity and address l Details of the trust and its beneficiaries

Lender arrangement fee: 1.75% of loan amount (£2,625 added to loan) Mortgage payment: £525 pcm Rental income after works: £1,841 pcm Gross yield: 4.1% pa Consultant mortgage broker: Gareth Richards 01732 471627 garethr@mortgagesforbusiness.co.uk

This case came to us directly from a client. If this had been passed onto us from a broker the payaway would have been: 14

£750

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Q1 2018


CASE STUDIES

£5m commercial mortgage for investor refinancing large college campus The Client: A commercial property investor and entrepreneur aged 65 who was formerly a headmaster.

The property: A large private college campus consisting of multiple, Grade II Listed buildings and land including tennis courts and other sporting facilities. The client owns the college via an SPV company - he is the majority director and shareholder. The college is leased to an organisation which runs numerous other successful, private educational establishments.

meet with our client to talk through terms. This was duly arranged and we attended too to support our client and help answer any questions. Both the BDM and the underwriter were impressed with the whole set up and made a recommendation to the bank’s credit committee that our client was a good risk. Accordingly, terms were issued and our client was more than happy to accept a 15-year commitment on a 20-year repayment basis. Our case management team then worked hard to keep the mortgage application process on track, liaising with all parties to ensure the deal completed in a timely manner.

The Finance: Currently the college is financed by a high street bank on a five-year commitment basis. Our client approached us in the hope of finding a more cost-effective deal, preferably on a 15-20-year commitment basis. Refinancing every five years could cost our client c£80k each time! Not only is this costly, there is also a risk that the bank may decide to stop lending at the end of 5 years, which would mean searching for a new lender. Our client is nearing retirement and is looking for an easier life.

The Challenge: Many commercial mortgage lenders will not grant commitments longer than five years so we knew we needed to approach a bank that is innovative, has a flexible underwriting process and will also consider applicants with unusual and complex borrowing requirements. We worked closely with the applicant to produce a strong proposal included the tenants’ business accounts which demonstrated that they could more than service the rent. We then approached the Business Development Manager of a bank which we knew, from past experience, would at least be prepared to consider offering a deal.

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The BDM and underwriter wanted to visit the college and

College value: £9,650,000 Loan amount: £5,000,000 LTV: 52% Rate: 3.25% + Bank Rate (currently 3.75%) Term: 15 year commitment with repayments calculated over a 20-year term (C&I)

Mortgage payment: £28,368 pcm Rental income: £52,500 pcm Lender Arrangement Fee: 1.5% (£75,000) Gross yield: 6.5% pa Consultant mortgage broker: Paul Keddy 01732 471655 paulk@mortgagesforbusiness.co.uk

This case came to us directly from a client. If this had been passed onto us from a broker the payaway would have been: BrokerBusiness

£12,500

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15


Placing Deals with the Specialists


COMMERCIAL MORTGAGE LENDERS

Specialist lenders vs mainstream lenders for commercial mortgages By Gareth Richards, 01732 471627 If you are looking to place a commercial owner-occupier case or a commercial investment case, knowing which lender to approach can be tricky. To help demonstrate my decision-making process I have created a matrix, which details the average requirements for both the specialist and mainstream lenders. Please bear in mind that this matrix should be used as a guide only, as of course the individual lenders under each category have different requirements and specialities. Generally speaking, the guide can be applied across all industry sectors (retail, leisure, office, healthcare, education, trades, industry, etc.)

COMMERCIAL OWNER-OCCUPIER MORTGAGE

MAINSTREAM LENDER

SPECIALIST LENDER l Borrow up to 14 times the ajusted profits

l Borrow up to 8 times the adjusted profits

l Rates from 3.54% over LIBOR

l Rates from 2.85% over Bank Rate

l Interest only up to 10 years

l Capital & repayment up to 25 years

l Capital & repayment up to 25 years

l Part interest only available (case by case)

l Evidence of 2 years’ experience

l First-time owner-occupiers accepted

COMMERCIAL INVESTMENT MORTGAGE

MAINSTREAM LENDER

SPECIALIST LENDER

l Borrow up to 50% loan to value (based on typical ICR)

l Borrow up to 75% loan to value l Rates from 3.54% over LIBOR

l Rates from 2.50% over Bank Rate

l Interest only up to 10 years

l Capital & repayment up to 25 years

l Capital & repayment up to 25 years l First time commercial investors accepted dependent on strength of applicant

l Part interest only available (case by case) l First time commercial investors accepted dependent on strength of applicant

Want to know where your client’s finance requirements would fit? Or just want more of a breakdown of different lender requirements? Call me today on 01732 471627 or email garethr@mortgagesforbusiness.co.uk.

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17


LENDER IN THE SPOTLIGHT

Name: Adrian Moloney Position: Sales Director Lender: InterBay Commercial Hobbies: Liverpool FC, Cheltenham Festival and spending winnings on fine dining. Ideal dinner party guests: Jurgen Klopp, Frankie Dettorri, Marco Pierre-White

What sort of a lender is InterBay Commercial? InterBay Commercial is a specialist property finance lender. We are part of the OneSavings Bank family and we offer commercial, semi-commercial and buy let mortgages as well as a range of short term finance. Over the past year we have grown our distribution model to meet a groundswell of demand, placing an emphasis on developing personal relationships and expanding our underwriting team. Constant open communication with brokers has been crucial to our success and allowed us to develop specialist commercial propositions that standard High Street lenders have not been able to address.

How do borrowers access InterBay? Borrowers access us through their broker. Over the last 12 months we have grown dramatically our broker community and now have many intermediary partners ranging from master brokers including Mortgages for Business, specialist commercial firms and packagers.

What does a typical InterBay borrower look like? We have several types of customer all looking for property finance: l Investors seeking funds for residential and/or commercial property, ranging from individual units to complex portfolios of HMOs, blocks of flats, semicommercial and a wide variety of commercial properties

18

l Investors seeking short-term finance for residential and/or commercial property for a range of purposes including capital raise, auction purchase, refurbishment with the intention to sell or refinance, or to exit more expensive development finance while properties are being sold when a development is complete l Businesses looking to finance their own operational premises in multiple sectors, including offices, retail, light-industrial and more In many cases, we are the natural step up from a high street lender particularly when the borrower needs to leverage their position. Our ability to be more flexible and add value is very attractive to both brokers and borrowers.

The last time we interviewed you, Adrian, back in Q2 2016, you told us that InterBay Commercial was probably the industry’s best kept secret. What do you say now? I think the word is out! We’ve enjoyed great success widening our distribution. Many more borrowers are now able to take advantage our products. Since we last spoke we’ve become well-known for financing HMOs and a variety of semi-commercial property. These properties have grown in popularity with investors who have been looking to grow and diversify their portfolios. Despite being a more complex proposition in terms of funding and operating, they tend to be more profitable.

www.mortgagesforbusiness.co.uk

Are commercial mortgage rates more expensive than buy to let? Yes…but for a good reason. All our pricing is rightly risk-based but very competitive for the markets we serve.

Over the last two years, buy to let has been somewhat stymied by fiscal and regulatory intervention. As a result, have you seen an uplift in lending on semi-commercial property? Without doubt! We have witnessed huge interest in semi-commercial opportunities - particularly from professional landlords looking to diversify their portfolios and take advantage of the opportunities that exist in the commercial arena. To be honest, it’s what I’d expect professional investors to be doing.

How have the fiscal and regulatory interventions impacted your buy to let business? We have seen an impact but a positive one. We are certainly writing more portfolio and limited company business driven by the changing economic and political landscape. You have to remember that the big ‘traditional’ banks don’t like complexity and with commercial lending becoming more specialist, it plays to our strengths and that of our broker partners. Commercial investors value human advice!

Are there any particular industry sectors on which InterBay focuses when lending to commercial borrowers? We will consider a broad range of

Q1 2018


LENDER IN THE SPOTLIGHT customers and assets across a wide range of sectors. We have a very good pedigree and appetite for larger loans.

What supporting documentation does InterBay require from borrowers applying for a commercial mortgage? Each case is considered and under written on its own merits but generally we like to see proof of address and identity, company/individual accounts, six months’ bank statements, plus details of assets and liabilities. We rely on the broker to work with their client (the borrower) to collate this information which then gets submitted with the mortgage application.

From submission to offer, how long does it take, on average, to process a commercial mortgage application? Every case is unique in its own right and in turn so are the processing times. The key to a successful and quick completion is the quality of the mortgage application submission itself. That’s why we work closely with our broker partners to ensure that they know what we need up front. The broker can then work with their client to get all the paperwork in order at the start of the process.

What three things set InterBay apart from its competitors? 1. We’ve got an appetite to lend and we try to think outside the box. Unlike our competitors, our credit committee meets twice a week which enables us to give speedy responses. Supporting applications early on means that we can proceed to the valuation stage within days rather than weeks – not something which happens on the high street. 2. We have the ability to change and react to market conditions which ensures we always provide a compelling proposition supported by competitive pricing. We’re in this for the long term. 3. Our people. We are extremely proud of the sales team that we have built over the last couple of years. We employ only people with a high level of industry experience and knowledge. Last year we were

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recognised as ‘best in class’ at several prestigious industry events.

What might we not know about InterBay? Our sister companies are Kent Reliance and Prestige Finance. This in itself brings a lot of additional benefits and opportunities which we seek to leverage across the group as an intermediary only lender.

InterBay has recently expanded its short-term finance offering; what sort of deals are you looking to do? We’ve been particularly successful helping landlords and developers finance auction purchases and refurbishment projects. As we offer both short-term and long-time finance we are also good at providing developers with some smart exit finance solutions. Our short-term proposition has been very successful. Quick decisions supported by industry-leading pricing and products have enabled us to build a great reputation in this space from a standing start.

How do you see the commercial lending market evolving over the next 12 months?

geographical swing taking place. Where London once led the way, it now lags behind. With an affordability ceiling reached, rents are rising fastest outside the capital, while total returns are more attractive in areas like the North West. Tax changes are reducing net income, and more stringent mortgage finance criteria require investors to demonstrate higher yields. As a result, we expect the supply of rented properties to grow more rapidly in areas demonstrating better yields, and with lower house prices. Beneath the surface, the PRS is professionalising and becoming more business-like. Some part-time landlords are leaving the market. Many landlords with smaller-scale portfolios are now creating business plans for the first time, and limited companies as borrowing vehicles continue to grow in popularity. At the same time, stricter underwriting rules, and a reduction in the amount that can be borrowed from a loan to value standpoint will lessen the risks associated with buy to let lending. This bodes well for the longer-term stability of the market generally.

We think that investors will continue to add semi-commercial property to their portfolios and we’ll see more investors using limited companies as the borrowing vehicle – both are driven largely by changes to the tax environment but also market conditions.

And what, in your opinion, is the outlook for buy to let? The Prudential Regulation Authority has taken a more active role in the buy to let market; a move that is dampening demand for finance. Tax changes too, are now kicking in, adding additional costs for landlords, although we will only see the full effects on rents as landlords begin to submit tax returns for this tax year. These changes are slowing the growth of Private Rented Sector (PRS) which, on present trends, will climb to 5.7m households next year, rising in value to over £1.45trn.

Parent company of InterBay Commercial

Need access to InterBay? Call 0345 148 9238

Landlords are becoming even more discerning in their investment decision-making. There is a

Call 0345 148 9238

19


LENDER INPROPERTY THE SPOTLIGHT KEYSTONE FINANCE

Introducing two new business managers for the North, Sara Finlay-Hudson & Gary Dean... Keystone Property Finance has boosted its business development team with the appointment of Sara Finlay-Hudson and Gary Dean. Sara will be covering the North East and Gary the North West. Sara brings more than 30 years’ industry experience to Keystone, most recently working as a business development manager for Skipton Building Society. Gary joins from Together Money where he has been working for the last two years. Before that he was at Santander.

Head of Sales

North East

Phil Riches

Sara Finlay-Hudson 07974 24244

07891 499274

North West

South East

Gary Dean

Moises Cruickshank 07971 822371

07974 242344

South West

Internal BDM

Paul Rockett 07971 822372

Ellie Boys 01732 471665

Internal BDM

Phillip Spacey 01732 471665

KEY LENDING CRITERIA

ü SPV Ltd Co’s & Trading Ltd Co’s ü Individuals üFirst-time landlords üSelf-employed üRetired applicants üEx-pats via SPVs üRelated transactions üComplex ownership structures üNo minimum income restrictions ü No max age for Ltd Co directors üMinimum age now 21 ü Non-home-owners ü Flats in high rise blocks üIndividuals to 85 years ü HMOs/multi-lets up to 8 beds üMulti-units up to 10 flats PROC FEES FROM: 0.70% PLEASE CALL TO CLARIFY 20

www.mortgagesforbusiness.co.uk

Q1 2018


FOR INTERNAL & INTERMEDIARY USE ONLY: 14 DECEMBER 2017

Broker Hotline 0345 148 9086

Classic Range Product Guide Standard BTL CLASSIC RANGE FOR PRIVATE INDIVIDUALS & LIMITED COMPANIES Property Type Standard BTL

Standard BTL

Standard BTL

Standard BTL

Standard BTL

Standard BTL

Standard BTL

Standard BTL

Standard BTL

Rate Type 2 year fixed (to 30/04/2020) 2 year fixed (to 30/04/2020) 2 year fixed (to 30/04/2020) 3 year fixed (to 30/04/2021)

3 year fixed (to 30/04/2021) 3 year fixed (to 30/04/2021) 5 year fixed (to 30/04/2023) 5 year fixed (to 30/04/2023) 5 year fixed (to 30/04/2023)

Initial Rate

3.39%

Reversion

LIBOR + 4.90%

LTV

65%

Loan Amount £50k - £1m*

RTI Multiplier RTI Multiplier (Individuals) (Individuals) (Ltd Co’s) (Ltd Co’s) 145%

150

125%

174

Criteria Early Repayment Charges: 2 year rates: 3% yr 1, 2% yr 2 3 year rates: 5% yr 1, 4% yr 2, 3% yr 3

3.59%

LIBOR + 4.90%

75%

£50k - £750k*

145%

150

125%

174

5 year rates: 5% yr 1, 4% yr 2, 3% yr 3, 2% yrs 4 & 5 Can overpay up to 10% pa without penalty.

4.25%

LIBOR + 4.90%

80%

£50k - £500k*

145%

150

125%

174

3.59%

LIBOR + 4.90%

65%

£50k - £1m*

145%

150

125%

174

3.79%

4.30%

LIBOR + 4.90%

LIBOR + 4.90%

75%

80%

£50k - £750k*

£50k - £500k*

145%

145%

150

150

125%

125%

174

174

Rent to Interest Cover: For Limited Companies 2 & 3 yr products - 125% at product pay rate or notional rate of 5.5% (whichever is higher) 5 yr products - 125% at product pay rate For Individuals 2 & 3 yr products - 145% at product pay rate or notional rate of 5.5% (whichever is higher) 5 yr products - 145% at product pay rate LIBOR: 0.53% wef. 14th December 2017 Loan Completion Fee: 2.00% added to loan at 80% LTV

3.69%

LIBOR + 4.90%

65%

£50k - £1m*

145%

224

125%

260

3.99%

LIBOR + 4.90%

75%

£50k - £750k*

145%

207

125%

240

4.35%

LIBOR + 4.90%

80%

£50k - £500k*

145%

190

125%

220

*Max loan amount £500k (inc fees) up to 80% LTV *Max loan amount £750k (inc. fees) up to 75% LTV: *Max loan amount £1m (inc. fees) up to 65% LTV


FOR INTERNAL & INTERMEDIARY USE ONLY: 14 DECEMBER 2017

Broker Hotline 0345 148 9086

HMOs & Multi-units Rate Type

2 year fixed (to 30/04/2020) 2 year fixed (to 30/04/2020)

Initial Rate

Reversion

LTV

Loan Amount

RTI (Individuals)

Multiplier (Individuals)

RTI (Ltd Co’s)

Multiplier (Ltd Co’s)

3.59%

LIBOR + 4.90%

65%

£50k - £750k*

145%

150

125%

174

Criteria

Early Repayment Charges: 2 year rates: 3% yr 1, 2% yr 2 3 year rates: 5% yr 1, 4% yr 2, 3% yr 3 5 year rates: 5% yr 1, 4% yr 2, 3% yr 3, 2% yrs 4 & 5

3.79%

LIBOR + 4.90%

75%

£50k - £750k*

145%

150

125%

174

Can overpay up to 10% pa without penalty. Rent to Interest Cover:

3 year fixed (to 30/04/2021) 3 year fixed (to 30/04/2021) 5 year fixed (to 30/04/2023) 5 year fixed (to 30/04/2023)

3.79%

LIBOR + 4.90%

65%

£50k - £750k*

145%

150

125%

174

3.99%

LIBOR + 4.90%

75%

£50k - £750k*

145%

150

125%

174

3.89%

LIBOR + 4.90%

65%

£50k - £750k*

145%

212

125%

246

For Limited Companies 2 & 3 yr products - 125% at product pay rate or notional rate of 5.5% (whichever is higher) 5 yr products - 125% at product pay rate For Individuals 2 & 3 yr products - 145% at product pay rate or notional rate of 5.5% (whichever is higher) 5 yr products - 145% at product pay rate LIBOR: 0.53% wef. 14th December 2017 Loan Completion Fee: 2.00% added to loan at 75% LTV

4.19%

LIBOR + 4.90%

75%

£50k - £750k*

145%

Call 0345 148 9086 Email enquiry@keystonepropertyfinance.co.uk Visit www.keystonepropertyfinance.co.uk

197

125%

229

Max loan amount £750k (inc. fees) up to 75% LTV:


FOR INTERNAL & INTERMEDIARY USE ONLY: 14 DECEMBER 2017

Broker Hotline 0345 148 9086

Light Adverse Rate Type

2 year fixed (to 30/04/2020)

Initial Rate

4.19%

Reversion

LIBOR + 5.40%

LTV

65%

Loan Amount

£50k - £1m*

RTI (Individuals)

145%

Multiplier (Individuals)

150

RTI (Ltd Co’s)

125%

Multiplier (Ltd Co’s)

174

Criteria

Early Repayment Charges: 2 year rates: 3% yr 1, 2% yr 2 3 year rates: 5% yr 1, 4% yr 2, 3% yr 3 5 year rates: 5% yr 1, 4% yr 2, 3% yr 3, 2% yrs 4 & 5

2 year fixed (to 30/04/2020) 3 year fixed (to 30/04/2021) 3 year fixed (to 30/04/2021) 5 year fixed (to 30/04/2023) 5 year fixed (to 30/04/2023)

4.39%

LIBOR + 5.40%

75%

£50k - £750k*

145%

150

125%

174

Can overpay up to 10% pa without penalty. Rent to Interest Cover:

4.39%

4.59%

LIBOR + 5.40%

LIBOR + 5.40%

65%

75%

£50k - £1m*

£50k - £750k*

145%

145%

150

150

125%

125%

174

174

For Limited Companies 2 & 3 yr products - 125% at product pay rate or notional rate of 5.5% (whichever is higher) 5 yr products - 125% at product pay rate For Individuals 2 & 3 yr products - 145% at product pay rate or notional rate of 5.5% (whichever is higher) 5 yr products - 145% at product pay rate LIBOR: 0.53% wef. 14th December 2017

4.59%

LIBOR + 5.40%

65%

£50k - £1m*

145%

180

125%

209

Loan Completion Fee: 2.00% added to loan at 75% LTV Max loan amount £1m (inc. fees) up to 65% LTV: Max loan amount £750k (inc. fees) up to 75% LTV:

4.79%

LIBOR + 5.40%

75%

£50k - £750k*

145%

Call 0345 148 9086 Email enquiry@keystonepropertyfinance.co.uk Visit www.keystonepropertyfinance.co.uk

172

125%

200


BUY TO LET UPDATE

Buy to let is now a specialist market In 2017, regulation dramatically affected buy to let for lenders, borrowers and brokers. Here we look at how this new governance impacts the market now and how up-coming regulation might change the market in future. January 2017 seems like such a long time ago. At the time, the buy to let sector was getting to grips with stricter Income Cover Ratios which, as a result of Prudential Regulation Authority guidelines, were introduced by lenders to landlords borrowing personally. In response, more landlords began setting up limited companies through which to make additional property acquisitions, although the initial, long migration towards incorporation started back in July 2015 when changes to income tax relief for landlords were announced. The ICR changes only sped up the process. Then last autumn, more PRA changes were introduced:

An official definition of a portfolio landlord

A landlord with four or more distinct mortgaged buy to let properties. This includes properties held by landlords in limited companies.

New underwriting guidelines on portfolio landlords

Lenders must take a specialist approach, i.e. be far more curious about landlords, their entire portfolios and their overall debt – yes! The whole portfolio must be stress-tested! For a while these changes compounded an already slowing market and landlords paused to take stock and watch how the chips would fall. But not for long…

A change in strategy

Whilst it is certainly true that for now buy to let mortgage lending has peaked, We would not say that the sector is in mortal decline. Rather, we are seeing a sector that is becoming far more specialised. A sector in which savvy landlords can and are succeeding because they have taken professional advice and switched strategies. Many are now: l Using limited companies as borrowing vehicles for additional purchases l Selling some personally owned properties to their companies l Diversifying the types of properties held within their portfolios l Looking further afield for lower value, higher yielding properties l Expanding their portfolios because owning fewer properties is less profitable

More buy to let mortgages for Ltd companies

In 2018, we expect more buy to let lenders will start offering products to landlords using limited companies. We also think, new lenders will hit the ground running with limited company products. For details of pricing and product availability, take a look at page 8. Of course, we’ll keep you updated on this through our fortnightly email,

24

the Broker Update. (You can sign up on the website, if you’re not already a subscriber!)

More regulation

Just when you thought it might be safe for landlords to crack on with the business at hand, the Government lobs two more spanners that could cause not only confusion but also the felling of a few more trees.

No EPC no buy to let mortgage

From 1st April 2018, landlords will not be able to grant a tenancy to either new or existing tenants if the property’s EPC rating is F or G. From 1st April 2020, if there is a tenant already in situ, it will become illegal for the landlord to continue letting the property out if the EPC has a rating of F or G! Fines of £5k can be imposed for breaches of the new rules. The rules also affect finance such that landlords may struggle to get a buy to let mortgage if their property doesn’t have a valid EPC rating of A, B, C D or E. Further, they may find that their properties are down-valued for having a poor rating. As a result, we expect refurbishment and bridging finance to become more popular as landlords look to renovate their properties to bring them in line with the new EPC requirements. This type of funding is well-priced at the moment.

Mandatory HMO licensing & minimum room sizes

More fines and even a criminal conviction could come barrelling down the track at HMO landlords if they fall foul of new legislative proposals which aim to extend the mandatory licensing parameters and introduce minimum room sizes in licensed HMOs. Whilst not yet written into law, we are urging landlords to acquaint themselves with the new requirements so that they can take action now to comply. Finance is available for landlords who need to raise funds to make adjustments to properties. But it’s not all doom and gloom. Finance is available. Lenders do have an appetite to lend. It’s just a matter of matching landlords to the right lender and the right type of finance!

Call The Deal Placement Team on: 0345 148 9238

www.mortgagesforbusiness.co.uk

Q1 2018


LENDER IN DEVELOPMENT THE SPOTLIGHTUPDATE PROPERTY

Out of the ground! Placing property development finance deals By Paul Keddy, 01732 471655 I thought I would just share with you some of the typical deals that pass across our new build development finance desk daily to give an insight into the types of funding we can obtain for your clients.

Finance for experienced property developers

Lots of the brokers with whom I work have clients who are: l Property developers with one or two “out of the ground” projects under their belts l Individuals who have worked (or who are still working) in the construction industry and are now looking to start some of their own “out of the ground” projects. Typically, finding finance for these clients is relatively straightforward. For us, the key is understanding the level of funding required and ensuring the development proposal plan is documented in a way that whets the appetite of the lender. As all lenders have their own way of assessing deals, it often means that we need to rejig the paperwork.

Current pricing

Rates very much depend on the amount of leverage required. Typically, we work with first, second and third tier lenders on the follow basis: Tier 1 lenders: If the funding requirement is around 60-65% of costs and no more than 50-55% of the gross development value (GDV) then we have access to lenders which will look to assist at an interest rate of say 4% above Bank Rate plus fees of 1.5% in and 1.5% out of the loan value. Tier 2 lenders: Should the funding requirement be higher, there are lenders which will advance 60% of the land purchase price and 100% of development costs if the total borrowing is no more than 65% of GDV. Interest rates are in the region of 5.5% above Bank Rate and just an in fee of 1.5% with no exit fee. Disappointingly, it’s worth noting that these lenders only operate in the Home Counties at present. Tier 3 lenders: If finance is required up 80% of costs but no more than 65% of GDV, we have access to lenders who will typically offer rates of around 7.5% (not above base rate) plus arrangement fees of 2% in and 1.5% out on the loan amount.

Finance for property developers with no experience

Another typical scenario we see is one where a broker contacts us trying to place a deal for someone who has absolutely no property development experience whatsoever. Usually, their client has secured planning permission on land they already own (often in their garden or buy to let property) and they want finance to build property to sell on or rent out. Funding can be found usually shorter term finance - but the key is to ensure that the clients have: l A robust business/development plan in place. We can help put this together in a format that will appeal the most suitable lender l An experienced team of contractors who will take on the build and management of the project.

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Current pricing As you might expect, pricing tends to be higher as lenders perceive the risk to be greater. Currently, finance is typically available up to 60% of the land purchase price plus 100% of development costs, up to a maximum loan of 65% of GDV with arrangement fees of 3% in and a 2% out (of the loan amount not GDV).

Project monitoring

Regardless of the experience of the developer, most lenders will require an independent monitoring surveyor (IMS) to be appointed to check the progress of projects. The IMS signs off each stage of the development so that the lender can be comfortable that the loan tranche can be drawn down. Their involvement can add some £10,000 a project. This can be significant for sub-£500,000 deals, so it’s worth bearing in mind that we do have access to a lender which will consider sign-off of the works against the certification of the client’s own architect on smaller deals. Your client should factor in around £1,700 + VAT for the first report and then £700 + VAT per site visit.

Timescales

It’s hard to be specific because each case is judged on its own merits and much will depend upon how organised your client is with paperwork. Usually, the most timeconsuming part is putting the deal together in the right format for the right lender. We’ll work with you to get this organised and you should be prepared to chivvy your client! Once the application goes in the project has to be valued, underwritten and go through the IMS and legals so realistically we’re looking at a minimum of six weeks until the first tranche of funds can be released. However, in our experience, if the client has got all the documentation together in support of the application, the process can take around six weeks – but always expect more! Commission varies and often depends on the tier of lender but we’ll always have a frank discussion with you on this. Sometimes we split lender commission 50/50 but it does depend on the complexity of the deal. Some lenders might not pay commission, so it will be down to us to agree what to charge the client.

What we need to get started

In the first instance, I suggest you pick up the phone to chat through the deal, then to get the ball rolling, we would need to see as much of the following information as you are able to extract from your clients: l Full details of the development project and location l Developer’s CV / evidence of previous projects / capability statement l Detailed estimate of build cost l Estimated plans (including copies of any drawings) l Any comparable evidence for end GDV / evidence of likely re-sale value l Evidence of any planning consents granted l Details of any proposed contractors l Asset & liability statement - fully completed and signed for all parties to the loan l Latest 6 months’ bank statements, main personal account(s) and company account(s) l Details of personal income with evidence i.e. 3 years’ P60s, SA302s or audited accounts You can call me directly on 01732 471655 or email paulk@mortgagesforbusiness.co.uk.

0345 348 9238

25


MEET THE TEAM

The Deal Placement Team

Andy Elley

Gareth Richards

Paul Keddy

CeMAP, CertBB&C

CeMAP

CB:PSB, CertBB&C

01732 471644 andye@

01732 471627 garethr@

01732 471655 paulk@

Richard Winston 01732 471673 richardw@

@mortgagesforbusiness.co.uk

0345 148 9238 26

www.mortgagesforbusiness.co.uk

Q1 2018


LENDER MFB NEWSIN THE SPOTLIGHT New faces Georga Capper As part of the case management team for Mortgages for Business, Georga is responsible for ensuring the application process runs as smoothly as possible. Georga acts as the first port of call for clients, lenders and conveyancers with any queries on a mortgage application. Before joining Mortgages for Business, Georga worked as a sales quotation supervisor for a street lighting distributor.

Luke Worrell Luke provides support to the sales team, managing case files accurately within prescribed timescales, whilst focussing on achieving a high level of customer service. Luke acts as the first port of call for clients, lenders and conveyancers with any queries on a particular mortgage application. Prior to joining MFB Luke worked as a case manager for London & Country Mortgages.

Did you know? Our phone lines are now open from:

8:30 - 18:00 Monday to Friday Need to schedule a call out of hours? Just let us know. Our consultants can help with this too.

Michelle Cresswell Michelle assists the marketing team in daily activities, helping to implement the overall strategy. A varied role, Michelle helps with all aspects of marketing from events to digital campaigns. Michelle comes from a strong customer service background, working in one of London’s largest iconic landmarks.

Molly Penfold Molly provides support to Keystone’s case management team. Responsibilities include keeping records up-to-date, inputting data and general filing. Prior to joining Keystone, Molly worked within retail and hospitality in Australia. Returning to the UK, Molly approached us looking for a career in financial services.

Samantha Rose Samantha focuses on case management, responsible for processing applications through to completion. Samantha will deal with all cases in a professional and efficient manner, answering any questions brokers or their clients may have along the way. Prior to joining Keystone Property Finance, Samantha worked at Cabot Credit Management for just over seven years.

Natasha McKie Natasha provides support to the case management team in the Wilmslow office, ensuring day-to-day office tasks run smoothly. Tasks include uploading documents, inputting data and general filing. Prior to joining Mortgages for Business Natasha worked in retail and as a nursery nurse.

Sam Beagles Sam is responsible for tracking a wide range of both internal and external data, identifying trends, anomalies and opportunities and reporting back to the rest of the marketing team. Sam is also responsible for creating reports and indices to aid in bench-marking the property finance sector. Sam joins the marketing team with a background in trend analysis and data migrations.

Sarvar Woolf Sarvar is responsible for ensuring all processes and procedures comply with the rules and regulations as laid out by the Financial Conduct Authority and the National Association of Commercial Finance Brokers. Sarvar has worked within the financial services industry for over 12 years, spending the last six years as a regulatory risk and compliance overview analyst.

Charity Between us, staff at MFB have raised in excess of £2,500 in 2017!! With money going to Mind, Alzheimer’s Society, Prostate Cancer UK, Macmillan Cancer Support, Children in Need, Save the Children and Jeans for Genes.

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0345 348 9238

27


LET US PLACE YOUR COMMERCIAL DEALS FOR YOU

Proc fees up to 1%

l l

Rates starting from 1.9% over Bank Rate l

Arrangement fees from 0% l l

l

Business owner-occupiers

Lending to 14 x adjusted net profits l

l

Interest only terms

Experienced and first-time investors l

l

2 - 30 year terms

All property types

Access to refurb & development lenders

Pubs | Hotels | Care homes | Office blocks | Shops | New Developments | HMOs | Holiday Lets

CALL 0345 148 9238

Profile for mortgagesforbusiness

Broker Business Q1 2018  

Specifically written for brokers and other intermediaries. It is full of the latest market reviews, news and interviews with the leading pla...

Broker Business Q1 2018  

Specifically written for brokers and other intermediaries. It is full of the latest market reviews, news and interviews with the leading pla...