NACFB Magazine - January 2017

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Issue 42 January 2017

The magazine for the National Association of Commercial Finance Brokers

To mark this milestone, we look back at our achievements

In this issue

2017: Getting the most out of fintech

Digital brokers, roboadvisers and making technology work for you

2016: A year of change The industry witnesses some considerable transformations

The inexorable rise of the lenderbroker bond

Strong relationships help meet unprecedented demand

Welcome | NACFB It’s a fascinating time to be taking on the position of interim CEO at the NACFB and my first message to you comes with a serious undertone.

I’ve written a bit about my high expectations regarding compliance on page 24. Compliance has been, and remains, absolutely key.

Property finance, the way it should be.

As recently as 2015 this was a quarterly magazine, but now it is monthly. That gives our lenders, partners and pundits three times as much of an opportunity to spread their various messages, which condense down to Adam Tyler’s mantra: “funding is out there”!

The cover story is about how the Association turns 25 this year. It was initially set up to stamp out fraud in the industry, and we have never taken our foot off the pedal. New patrons such as Rivers Leasing Ltd, BNP Paribas Leasing Solutions and Lendy Ltd are testament to how the NACFB continues to play a key role in the future of the wide variety of commercial finance out there, but this issue also delves a little into our past and demonstrates what’s changed and what has stayed the same.

So although I may be a new face to some of you and certainly a new voice in the magazine, I’ll be standing by the values that the Association has maintained since 1992. Whether a patron or a member, I want everyone to take pride in getting things right. I hope I can count on your unwavering support as the NACFB reaches a quarter of a century!

Best regards Rob Lankey

octopusproperty.com Octopus Property is the trading name of Bridgeco Ltd (Reg No 6629989), Fern Trading Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Rednel Ltd (Reg No 7531926) and Octopus Co-Lend Limited (Reg No 8913299), Registered Office: 33 Holborn, London EC1N 2HT, registered in England and Wales and Dragonfly Finance S.ar.l. (Reg No B189290) Registered Office: Parc d’Activité Syrdall, 6 Rue Gabriel Lippmann, L-5365, Munsbach, Luxembourg registered in Luxembourg. Rednel Ltd and Octopus Co-Lend Limited are authorised and regulated by the Financial Conduct Authority.

Rob Lankey CEO (interim) NACFB

In this January issue issue NACFB News 4 4

Association news NACFB launches new website Dates for your diary Notes from our sponsor

4 6

Commercial Finance 8-10

Essential news bites

Top Story 12

Castle Trust to acquire retail finance specialist

Case Studies 14

Secure Trust Bank packages deal for Foodpack

Cover Story 16-17 NACFB celebrates 25 years of supporting UK business and brokers 18-19 Meet your 2017 NACFB board

Spotlight 20

Kuflink opens new HQ

Special Features 26-27 2016: A year of major change 28-29 Letting agent fees banned: the industry responds 30-32 The new faces of Masthaven 34 Developers show concerns for 2017

Industry Guides 36 38

Getting the most out of fintech in 2017 Looking for value from a bridging lender

Opinion & Commentary 40 42 44 46

Discovering the untapped potential of asset finance in the new year P2P funding: a new key component for growing UK businesses What’s next for bridging?

The inexorable rise of the lender-broker bond

Patron Profile 22-23 Hampshire Trust Bank

Ask the Expert 24

Interim CEO Rob Lankey on the future of the Association

For further information Robin Skuse, press officer t. 020 8952 1414 Hamilton House, 1 Temple Avenue London EC4Y 0HA Email: admin@nacfb.org.uk

ADVERTISING & EDITING: Medianett 0203 818 0163 www.medianett.co.uk DESIGN & PRODUCTION: Carbide Finger Ltd t. 0845 812 8206

NACFB Magazine | 3

Welcome | NACFB It’s a fascinating time to be taking on the position of interim CEO at the NACFB and my first message to you comes with a serious undertone.

I’ve written a bit about my high expectations regarding compliance on page 24. Compliance has been, and remains, absolutely key.

Property finance, the way it should be.

As recently as 2015 this was a quarterly magazine, but now it is monthly. That gives our lenders, partners and pundits three times as much of an opportunity to spread their various messages, which condense down to Adam Tyler’s mantra: “funding is out there”!

The cover story is about how the Association turns 25 this year. It was initially set up to stamp out fraud in the industry, and we have never taken our foot off the pedal. New patrons such as Rivers Leasing Ltd, BNP Paribas Leasing Solutions and Lendy Ltd are testament to how the NACFB continues to play a key role in the future of the wide variety of commercial finance out there, but this issue also delves a little into our past and demonstrates what’s changed and what has stayed the same.

So although I may be a new face to some of you and certainly a new voice in the magazine, I’ll be standing by the values that the Association has maintained since 1992. Whether a patron or a member, I want everyone to take pride in getting things right. I hope I can count on your unwavering support as the NACFB reaches a quarter of a century!

Best regards Rob Lankey

octopusproperty.com Octopus Property is the trading name of Bridgeco Ltd (Reg No 6629989), Fern Trading Ltd (Reg No 6447318), Nino Ltd (Reg No 9015082), Rednel Ltd (Reg No 7531926) and Octopus Co-Lend Limited (Reg No 8913299), Registered Office: 33 Holborn, London EC1N 2HT, registered in England and Wales and Dragonfly Finance S.ar.l. (Reg No B189290) Registered Office: Parc d’Activité Syrdall, 6 Rue Gabriel Lippmann, L-5365, Munsbach, Luxembourg registered in Luxembourg. Rednel Ltd and Octopus Co-Lend Limited are authorised and regulated by the Financial Conduct Authority.

Rob Lankey CEO (interim) NACFB

In this January issue issue NACFB News 4 4

Association news NACFB launches new website Dates for your diary Notes from our sponsor

4 6

Commercial Finance 8-10

Essential news bites

Top Story 12

Castle Trust to acquire retail finance specialist

Case Studies 14

Secure Trust Bank packages deal for Foodpack

Cover Story 16-17 NACFB celebrates 25 years of supporting UK business and brokers 18-19 Meet your 2017 NACFB board

Spotlight 20

Kuflink opens new HQ

Special Features 26-27 2016: A year of major change 28-29 Letting agent fees banned: the industry responds 30-32 The new faces of Masthaven 34 Developers show concerns for 2017

Industry Guides 36 38

Getting the most out of fintech in 2017 Looking for value from a bridging lender

Opinion & Commentary 40 42 44 46

Discovering the untapped potential of asset finance in the new year P2P funding: a new key component for growing UK businesses What’s next for bridging?

The inexorable rise of the lender-broker bond

Patron Profile 22-23 Hampshire Trust Bank

Ask the Expert 24

Interim CEO Rob Lankey on the future of the Association

For further information Robin Skuse, press officer t. 020 8952 1414 Hamilton House, 1 Temple Avenue London EC4Y 0HA Email: admin@nacfb.org.uk

ADVERTISING & EDITING: Medianett 0203 818 0163 www.medianett.co.uk DESIGN & PRODUCTION: Carbide Finger Ltd t. 0845 812 8206

NACFB Magazine | 3

NACFB | in the news Association news and updates for January 2017 Helping fund UK business November was the busiest month of 2016 on our findSMEfinance site, with an average of £1.1m in leads per day after a dip during March-July. More than 4,000 different small businesses consulted an NACFB broker through findSMEfinance last year.

Compliance support In 2016, we completed 151 visits to member firms. Four NACFB consultants have worked elsewhere in the industry prior to their appointments with the Association.

They are based in the South West, South East, Midlands and the North.

We are looking to expand our reach as 2017 progresses.

2017 fees As a reminder for our current members, the base fee for a single Registered Individual (RI) is now £525 per annum, with an additional

£210 for every additional RI. So a firm with two RIs will now be invoiced for £735 when its membership is due for renewal.

Membership update In 2016, the NACFB signed up 233 new member firms and 26 new lenders. The Association is also starting to see an increase on applications from residential brokers. We continue to take a firm stance on this sector of the market, maintaining our standards to ensure all brokers meet the minimum criteria of membership.

NACFB events We are teaming up with Barcadia Media this year to co-brand a season of events across the country.

Roadshows are taking place on four consecutive dates in February, May and October 2017. Check our website (www.nacfb.org.uk) for the full details and to register.

NACFB launches new website Five and a half years after our previous website was created, we are launching a significantly revised version.

The reason we considered this an essential move is that we wanted to automate the kind of data gathering queries that our members and lenders bring to us on a daily basis. Patrons of the NACFB like to be able to delve into the data we hold on our members, while brokers like to be steered in the direction of the right sort of lender.

Having 142 patrons on our panel makes it difficult for brokers to keep up with all the specifics, and we do what we can to help with that process through the e-newsletter and this magazine, but also with a new page on the website.

There is also the question of how our members actually use the current site.

For example, they are increasingly viewing it in portrait format rather than landscape. On a smart TV, our directors’ faces appear larger (and sadly no prettier) than life. So while

4 | NACFB Magazine

Dates for your diary NACFB Roadshows with Barcadia – West When: 21-24th February Where: Bristol, West Midlands, Bolton & Belfast NACFB Roadshows with Barcadia – South When: 23-26th May Where: Venues TBC Commercial Finance Expo When: 21st June 2017 Where: NEC Birmingham NACFB Roadshows with Barcadia – East When: 17-20th October Where: Venues TBC Finance Professional Show When: 9th November 2017 Where: Olympia London Gala Dinner & Industry Awards When: 30th November 2017 Where: Park Plaza Westminster Bridge, London

the original site could be expected to appear to our members through a 19-inch monitor, modern sites have to change their shape and size in appropriate ways. The old one didn’t do this very well.

We’ve also got five years’ worth of feedback to respond to, and a lot of data about what functions our members actually use and what they don’t. So even if they told us before that they wanted x, y and z, they do not actually use y and z very much, which means we can give more space to x.

Fast property finance. Interest from 0.64%.

We’ve slashed rates across our Tier 1 residential product, designed for all your standard-security, unregulated bridging cases.

To find out more about our exclusive rates for intermediaries, speak to Magnus today on 020 7118 1133 or visit intermediaries.lendinvest.com, your dedicated lending resource.

Loan size: £75,000 to £3 million Up to 75% LTV No exit fees

Have a look – nacfb.org.uk – and let us know what you think. We already have Phase 2 plans, so if you ask us for something that isn’t there, please by all means speak up and we will try to make it happen.

LendInvest is registered at 8 Mortimer Street, London W1T 3JJ (Company No.08146929), and is authorised and regulated by the FCA, no FSCS. Your property may be repossessed if you do not keep up repayments on your mortgage.

For intermediaries only.

NACFB | in the news Association news and updates for January 2017 Helping fund UK business November was the busiest month of 2016 on our findSMEfinance site, with an average of £1.1m in leads per day after a dip during March-July. More than 4,000 different small businesses consulted an NACFB broker through findSMEfinance last year.

Compliance support In 2016, we completed 151 visits to member firms. Four NACFB consultants have worked elsewhere in the industry prior to their appointments with the Association.

They are based in the South West, South East, Midlands and the North.

We are looking to expand our reach as 2017 progresses.

2017 fees As a reminder for our current members, the base fee for a single Registered Individual (RI) is now £525 per annum, with an additional

£210 for every additional RI. So a firm with two RIs will now be invoiced for £735 when its membership is due for renewal.

Membership update In 2016, the NACFB signed up 233 new member firms and 26 new lenders. The Association is also starting to see an increase on applications from residential brokers. We continue to take a firm stance on this sector of the market, maintaining our standards to ensure all brokers meet the minimum criteria of membership.

NACFB events We are teaming up with Barcadia Media this year to co-brand a season of events across the country.

Roadshows are taking place on four consecutive dates in February, May and October 2017. Check our website (www.nacfb.org.uk) for the full details and to register.

NACFB launches new website Five and a half years after our previous website was created, we are launching a significantly revised version.

The reason we considered this an essential move is that we wanted to automate the kind of data gathering queries that our members and lenders bring to us on a daily basis. Patrons of the NACFB like to be able to delve into the data we hold on our members, while brokers like to be steered in the direction of the right sort of lender.

Having 142 patrons on our panel makes it difficult for brokers to keep up with all the specifics, and we do what we can to help with that process through the e-newsletter and this magazine, but also with a new page on the website.

There is also the question of how our members actually use the current site.

For example, they are increasingly viewing it in portrait format rather than landscape. On a smart TV, our directors’ faces appear larger (and sadly no prettier) than life. So while

4 | NACFB Magazine

Dates for your diary NACFB Roadshows with Barcadia – West When: 21-24th February Where: Bristol, West Midlands, Bolton & Belfast NACFB Roadshows with Barcadia – South When: 23-26th May Where: Venues TBC Commercial Finance Expo When: 21st June 2017 Where: NEC Birmingham NACFB Roadshows with Barcadia – East When: 17-20th October Where: Venues TBC Finance Professional Show When: 9th November 2017 Where: Olympia London Gala Dinner & Industry Awards When: 30th November 2017 Where: Park Plaza Westminster Bridge, London

the original site could be expected to appear to our members through a 19-inch monitor, modern sites have to change their shape and size in appropriate ways. The old one didn’t do this very well.

We’ve also got five years’ worth of feedback to respond to, and a lot of data about what functions our members actually use and what they don’t. So even if they told us before that they wanted x, y and z, they do not actually use y and z very much, which means we can give more space to x.

Fast property finance. Interest from 0.64%.

We’ve slashed rates across our Tier 1 residential product, designed for all your standard-security, unregulated bridging cases.

To find out more about our exclusive rates for intermediaries, speak to Magnus today on 020 7118 1133 or visit intermediaries.lendinvest.com, your dedicated lending resource.

Loan size: £75,000 to £3 million Up to 75% LTV No exit fees

Have a look – nacfb.org.uk – and let us know what you think. We already have Phase 2 plans, so if you ask us for something that isn’t there, please by all means speak up and we will try to make it happen.

LendInvest is registered at 8 Mortimer Street, London W1T 3JJ (Company No.08146929), and is authorised and regulated by the FCA, no FSCS. Your property may be repossessed if you do not keep up repayments on your mortgage.

For intermediaries only.

NACFB NEWS

Notes from our sponsor

SPECIALISTS IN

GOOD SENSE

AWA R D W I N N I N G S H O RT T E R M O F F E R I N G

We are defined by our close broker relationships and emphasise a personal, transparent approach to lending. Together, we can help provide the right outcome for your clients.

Solutions for individuals, Ltd companies & expats: Purchase & sell on Karen Bennett Sales and marketing director Shawbrook Bank

After a unique 2016 characterised by Brexit, the changes in stamp duty and interest rate relief, as well as the findings of the Prudential Regulation Authority consultation into buy-to-let (BTL) underwriting standards, 2017 promises to be an equally exciting year for us all.

We would like to thank our broker partners for their support throughout the historic industry changes we encountered during the previous 12 months. The intermediary channel has always been a vital resource that Shawbrook supports and, in a year where investors and landlords had to steer through unchartered territory, the benefits of using a qualified broker cannot be overstated.

This is something the NACFB appreciates, with over 135 lender patrons loyally supporting the broker market with thousands of different lending products and services. It is important that we all maintain our commitment to the best interests of the borrower, driving positive customer outcomes, while championing the importance of the intermediary market.

Here at Shawbrook, we believe there are reasons to be positive as we look ahead and many opportunities to grow in the next 12 months for both intermediaries and investors alike.

The new rules around affordability requirements, which have been in effect since the new year, will undoubtedly have a significant impact on landlords’ investment strategies moving forward.

There will be an onus on professional investors to grow their portfolios more slowly, with yield being a primary concern. We might also see limited companies gearing more highly, further supporting a shift to

corporate structures, where there will be opportunities to raise higher levels of finance. A softening in BTL rates will help to cushion these adjustments and this should remain a compelling investment strategy, as well as one that is increasingly suited to the professional landlord.

With the above in mind, drawing upon the advice of professionals, such as a mortgage broker or financial adviser, is a wise course of action for any investor in 2017, and a tactic which we at Shawbrook recommend.

Building a long-term investment strategy that takes all of the above factors into consideration should be top of the list for investors and landlords as they navigate an ever changing financial landscape.

On behalf of everyone at Shawbrook, we are all excited and motivated to work together with our intermediaries in the year ahead. This is a market that remains rich in opportunity for those committed to the longterm health of our industry.

Light & heavy refurbishment Add to a portfolio Pay down development finance Chain breaks

C O N TA C T O U R D E D I C AT E D S H O RT T E R M L O A N T E A M TO D AY TO D I S C U S S YO U R C A S E S .

T 01277 751 111 cm.broker@shawbrook.co.uk W W W. S H AW B R O O K . C O. U K

SPECIALIST BTL

STL & REFURB

C O M M E RC I A L INVESTMENTS

TRADING BUSINESS

THIS ADVERTISEMENT IS INTENDED FOR INTERMEDIARY USE ONLY AND MUST NOT BE DISTRIBUTED TO POTENTIAL CLIENTS 6 | NACFB Magazine

NACFB NEWS

Notes from our sponsor

SPECIALISTS IN

GOOD SENSE

AWA R D W I N N I N G S H O RT T E R M O F F E R I N G

We are defined by our close broker relationships and emphasise a personal, transparent approach to lending. Together, we can help provide the right outcome for your clients.

Solutions for individuals, Ltd companies & expats: Purchase & sell on Karen Bennett Sales and marketing director Shawbrook Bank

After a unique 2016 characterised by Brexit, the changes in stamp duty and interest rate relief, as well as the findings of the Prudential Regulation Authority consultation into buy-to-let (BTL) underwriting standards, 2017 promises to be an equally exciting year for us all.

We would like to thank our broker partners for their support throughout the historic industry changes we encountered during the previous 12 months. The intermediary channel has always been a vital resource that Shawbrook supports and, in a year where investors and landlords had to steer through unchartered territory, the benefits of using a qualified broker cannot be overstated.

This is something the NACFB appreciates, with over 135 lender patrons loyally supporting the broker market with thousands of different lending products and services. It is important that we all maintain our commitment to the best interests of the borrower, driving positive customer outcomes, while championing the importance of the intermediary market.

Here at Shawbrook, we believe there are reasons to be positive as we look ahead and many opportunities to grow in the next 12 months for both intermediaries and investors alike.

The new rules around affordability requirements, which have been in effect since the new year, will undoubtedly have a significant impact on landlords’ investment strategies moving forward.

There will be an onus on professional investors to grow their portfolios more slowly, with yield being a primary concern. We might also see limited companies gearing more highly, further supporting a shift to

corporate structures, where there will be opportunities to raise higher levels of finance. A softening in BTL rates will help to cushion these adjustments and this should remain a compelling investment strategy, as well as one that is increasingly suited to the professional landlord.

With the above in mind, drawing upon the advice of professionals, such as a mortgage broker or financial adviser, is a wise course of action for any investor in 2017, and a tactic which we at Shawbrook recommend.

Building a long-term investment strategy that takes all of the above factors into consideration should be top of the list for investors and landlords as they navigate an ever changing financial landscape.

On behalf of everyone at Shawbrook, we are all excited and motivated to work together with our intermediaries in the year ahead. This is a market that remains rich in opportunity for those committed to the longterm health of our industry.

Light & heavy refurbishment Add to a portfolio Pay down development finance Chain breaks

C O N TA C T O U R D E D I C AT E D S H O RT T E R M L O A N T E A M TO D AY TO D I S C U S S YO U R C A S E S .

T 01277 751 111 cm.broker@shawbrook.co.uk W W W. S H AW B R O O K . C O. U K

SPECIALIST BTL

STL & REFURB

C O M M E RC I A L INVESTMENTS

TRADING BUSINESS

THIS ADVERTISEMENT IS INTENDED FOR INTERMEDIARY USE ONLY AND MUST NOT BE DISTRIBUTED TO POTENTIAL CLIENTS 6 | NACFB Magazine

Commercial Finance | news Essential news bites from the world of commercial finance 17 firms authorised to manage Innovative Finance Isas

A total of 17 firms have been authorised to manage Innovative Finance Isas (IFIsa)

by HM Revenue and Customs as of 26th October 2016.

The IFIsa was launched on 6th April last year and allows savers to use part of their annual Isa investment allowance to receive tax-free interest and capital gains on funds lent through FCA-regulated peerto-peer lending platforms.

500,000 Scots to launch businesses

More than half a million Scottish adults expect to start their own business, according to recent research published by the Bank of Scotland.

The figures showed that 12% of Scotland’s adult population anticipate starting a company on their own or with a partner.

This sentiment was particularly strong among younger adults, with 26% of 25- to 34-year-olds and 24% of 18- to 24-year-olds expecting to start a business.

Government launches advisory panel to boost SME investment The government has formed a new advisory panel which is set to boost spending on smalland medium-sized enterprises (SMEs) across the UK. Some 24 entrepreneurs and leading business figures will work with the government to ensure that by 2020 £1 of every £3 invested by Whitehall in goods and services goes to SMEs. If met, the target would create an extra £3bn of new business each year.

8 | NACFB Magazine

Ireland named top European location for buy-to-let

RBS sets aside £400m ahead of SME fee refunds

Ireland has been declared the number one location for buy-to-let investments by the international money transfer and currency specialists World First in their European Buy-to-Let League table.

RBS has launched a new complaints process that will automatically refund complex fees paid by SME customers who were transferred to the bank’s former Global Restructuring Group (GRG).

With regards to average rental yield, Ireland – which recorded a figure of 6.54% – has jumped from its previous position of 10th to the top spot. This is 14 positions ahead of the UK, which recorded a rental yield of 4.91%.

The bank has launched the process with the agreement of the Financial Conduct Authority (FCA) after it reviewed the treatment of RBS SME customers impacted by GRG between 2008 and 2013.

However, the UK has still managed to move up six places from its previous position.

The new complaints process will be overseen by retired High Court judge William Blackburne.

Just 13% of brokers report bridging rise

Only 13% of brokers have experienced a rise in bridging loan volumes over Q3 2016, according to a survey from MTF. The bridging lender found that 61% of brokers felt volumes had remained the same, while 26% had not experienced a rise in volume over Q3 2016.

Mortgage delays and refurbishments were found to be the main reasons why clients took out a bridging loan (both 29%), followed by development projects (15%).

Sharia-compliant P2P lenders could enter market

Sharia-compliant peer-topeer (P2P) lenders could soon be coming to market, an Islamic banker has revealed.

Maisam Fazal, head of commercial finance at Al Rayan Bank, acknowledged that there may be a gap in the market for alternative finance models such as P2P lending.

In October 2016, RBS admitted that it had let some of its SME customers down in the aftermath of the financial crisis.

Consumer new car finance volumes up 3% in September

Figures released by the Finance & Leasing Association (FLA) show that new business in the point-of-sale (POS) consumer new car finance market grew 9% by value and 3% by volume in September 2016, compared with the same month in 2015.

In Q3 2016 as a whole, new business was up 7% by value and 3% by volume.

The percentage of private new car sales financed by FLA members through the POS reached 86.2% in the 12 months to September 2016, up from 85.5% in the 12 months to August.

The POS consumer used-car finance market also reported new business growth in September of 8% by value and 5% by volume.

IGF to invest a further £5m in SMEs

IGF has added a further £5m to its lending fund for Scottish SMEs to support management buyout activity.

IGF, which opened its Scottish branch back in July 2016, specialises in assetbased loans to SMEs.

So far, the lender has provided facilities to 10 clients, including a £100,000 invoice finance facility and a £2m assetbased lending facility.

Bridging lending drops

The value of loans written in Q3 2016 fell by 4% compared with the same period in 2015, according to figures released by the Association of Short Term Lenders (ASTL).

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M

Y

CM

MY

The figures also showed that the value of loans in Q3 2016 fell 17.4% compared with Q2 2016.

There is an alternative

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CMY

K

However, the total value of loans written by ASTL members for the year ending 30th September 2016 is up 15% compared with the year ending September 2015.

FCA spends £1.9m on Project Innovate

The regulatory sandbox accounted for only 5.4% of total staff expenditure in Project Innovate, the Financial Conduct Authority (FCA) has revealed.

The FCA stated that of the £1.67m spent on total staff costs for Project Innovate, only £90,184 had gone towards the regulatory sandbox. In total, some £1.85m had been spent on the project since its launch in October 2014.

A principal lender for commercial and residential property and development finance.

0208 349 5190

alternativebridging.co.uk finance@alternativebridging.co.uk @ABC_Bridging

Commercial Finance | news Essential news bites from the world of commercial finance 17 firms authorised to manage Innovative Finance Isas

A total of 17 firms have been authorised to manage Innovative Finance Isas (IFIsa)

by HM Revenue and Customs as of 26th October 2016.

The IFIsa was launched on 6th April last year and allows savers to use part of their annual Isa investment allowance to receive tax-free interest and capital gains on funds lent through FCA-regulated peerto-peer lending platforms.

500,000 Scots to launch businesses

More than half a million Scottish adults expect to start their own business, according to recent research published by the Bank of Scotland.

The figures showed that 12% of Scotland’s adult population anticipate starting a company on their own or with a partner.

This sentiment was particularly strong among younger adults, with 26% of 25- to 34-year-olds and 24% of 18- to 24-year-olds expecting to start a business.

Government launches advisory panel to boost SME investment The government has formed a new advisory panel which is set to boost spending on smalland medium-sized enterprises (SMEs) across the UK. Some 24 entrepreneurs and leading business figures will work with the government to ensure that by 2020 £1 of every £3 invested by Whitehall in goods and services goes to SMEs. If met, the target would create an extra £3bn of new business each year.

8 | NACFB Magazine

Ireland named top European location for buy-to-let

RBS sets aside £400m ahead of SME fee refunds

Ireland has been declared the number one location for buy-to-let investments by the international money transfer and currency specialists World First in their European Buy-to-Let League table.

RBS has launched a new complaints process that will automatically refund complex fees paid by SME customers who were transferred to the bank’s former Global Restructuring Group (GRG).

With regards to average rental yield, Ireland – which recorded a figure of 6.54% – has jumped from its previous position of 10th to the top spot. This is 14 positions ahead of the UK, which recorded a rental yield of 4.91%.

The bank has launched the process with the agreement of the Financial Conduct Authority (FCA) after it reviewed the treatment of RBS SME customers impacted by GRG between 2008 and 2013.

However, the UK has still managed to move up six places from its previous position.

The new complaints process will be overseen by retired High Court judge William Blackburne.

Just 13% of brokers report bridging rise

Only 13% of brokers have experienced a rise in bridging loan volumes over Q3 2016, according to a survey from MTF. The bridging lender found that 61% of brokers felt volumes had remained the same, while 26% had not experienced a rise in volume over Q3 2016.

Mortgage delays and refurbishments were found to be the main reasons why clients took out a bridging loan (both 29%), followed by development projects (15%).

Sharia-compliant P2P lenders could enter market

Sharia-compliant peer-topeer (P2P) lenders could soon be coming to market, an Islamic banker has revealed.

Maisam Fazal, head of commercial finance at Al Rayan Bank, acknowledged that there may be a gap in the market for alternative finance models such as P2P lending.

In October 2016, RBS admitted that it had let some of its SME customers down in the aftermath of the financial crisis.

Consumer new car finance volumes up 3% in September

Figures released by the Finance & Leasing Association (FLA) show that new business in the point-of-sale (POS) consumer new car finance market grew 9% by value and 3% by volume in September 2016, compared with the same month in 2015.

In Q3 2016 as a whole, new business was up 7% by value and 3% by volume.

The percentage of private new car sales financed by FLA members through the POS reached 86.2% in the 12 months to September 2016, up from 85.5% in the 12 months to August.

The POS consumer used-car finance market also reported new business growth in September of 8% by value and 5% by volume.

IGF to invest a further £5m in SMEs

IGF has added a further £5m to its lending fund for Scottish SMEs to support management buyout activity.

IGF, which opened its Scottish branch back in July 2016, specialises in assetbased loans to SMEs.

So far, the lender has provided facilities to 10 clients, including a £100,000 invoice finance facility and a £2m assetbased lending facility.

Bridging lending drops

The value of loans written in Q3 2016 fell by 4% compared with the same period in 2015, according to figures released by the Association of Short Term Lenders (ASTL).

C

M

Y

CM

MY

The figures also showed that the value of loans in Q3 2016 fell 17.4% compared with Q2 2016.

There is an alternative

CY

CMY

K

However, the total value of loans written by ASTL members for the year ending 30th September 2016 is up 15% compared with the year ending September 2015.

FCA spends £1.9m on Project Innovate

The regulatory sandbox accounted for only 5.4% of total staff expenditure in Project Innovate, the Financial Conduct Authority (FCA) has revealed.

The FCA stated that of the £1.67m spent on total staff costs for Project Innovate, only £90,184 had gone towards the regulatory sandbox. In total, some £1.85m had been spent on the project since its launch in October 2014.

A principal lender for commercial and residential property and development finance.

0208 349 5190

alternativebridging.co.uk finance@alternativebridging.co.uk @ABC_Bridging

COMMERCIAL FINANCE NEWS

33% call for more structured CPD for mortgage activities

A survey has found that a number of finance professionals are calling for more structured Continued Professional Development (CPD) for mortgage-related activities.

In total, 33% of readers who took part in a survey felt there was not enough structured CPD for mortgage-related activities.

However, most respondents were satisfied with the amount of CPD currently available to them.

Peer-to-peer lender to launch bank

Peer-to-peer lender Zopa has announced it intends to launch a bank as it looks to enhance its business.

The lender revealed it will be applying for a banking licence with the regulatory process expected to take 15-24 months.

Next Generation Bank will sit alongside Zopa’s current peerto-peer business and it intends to offer Financial Services Compensation Schemeprotected deposit accounts and revolving credit products to supplement existing loans and peer-to-peer investor products.

Housing transactions set to plummet by 16%

Housing transactions are set to fall by 16% over the next two years, according to a recent forecast.

Property expert Savills has warned that economic uncertainty could cause housing transactions to drop from 1.25 million in 2016 to just 1.04 million by 2018.

Of these, buy-to-let investors are expected to be particularly badly affected, with the stamp duty surcharge and tax disincentives potentially causing transactions to fall from 120,000 in 2016 to just 80,000 in 2018.

10 | NACFB Magazine

Bank of England given new buy-to-let powers

The Bank of England’s Financial Policy Committee (FPC) is to be granted new powers to direct the regulation of the buy-to-let mortgage market.

The FPC is responsible for monitoring and intervening in the financial system to minimise systemic risk.

From early 2017, the FPC will be directing the Prudential Regulation Authority and Financial Conduct Authority to require regulated lenders to place limits on loan-to-value ratios and interest coverage ratios for buy-to-let mortgages.

Inflation forecast to hit 4% in 2017

The National Institute for Economic and Social Research (NIESR) has forecast that consumer price inflation will reach 4% in the second half of this year.

The leading think-tank believes that the increase will have an “impact on real disposable income”.

In October, the Office for National Statistics revealed that inflation rose by 1% in the year to September 2016, up from the 0.6% figure recorded in August.

The rate of inflation in September was the highest since November 2014 (also 1%).

Interest rises could ‘expose shortage’ of valuation surveyors

EDM Mortgage Support Services (EDM MSS) has warned that there are not enough valuation surveyors to meet the likely increase in demand that would occur following a rise in interest rates.

EDM MSS suggests that higher interest rates will lead to mortgage borrowers shopping around more for the best deals, therefore increasing the demand for associated valuations.

Permitted development rights to be extended

Gavin Barwell, minister of state for housing, planning and London, has revealed that the government is set to expand permitted development rights for officeto-residential conversion.

Speaking at the London Property Summit at the Queen Elizabeth II Centre, the minister outlined several ways he was looking to improve housebuilding.

Mr Barwell revealed that permitted development rights would be extended to allow for the demolition of office buildings, which would be replaced by housing on a like-for-like basis.

61% want stamp duty abolished

Some 61% of the British public want stamp duty to be abolished, according to survey data released by WhatHouse?

The new-build property portal conducted a survey asking the British public their views on what Prime Minister Theresa May should do to address the problems in the housing sector.

It was found that 56% of respondents in London want to restrict foreign homebuyers, while 69% of the same group felt more strongly than the rest of the UK about stamp duty being scrapped.

European Commission launches fintech Task Force

The European Commission has announced that it has launched a Task Force on Financial Technology (TFFT).

TFFT has been created to assess and make the most of innovation in the fintech area as well as developing strategies to address the potential challenges it poses.

The taskforce builds on the European Commission’s aim to develop a comprehensive

strategy on fintech and brings together the expertise of commission staff across several areas.

These include financial and digital services, digital innovation and security, competition and consumer protection.

Asset finance market records 36th consecutive month of growth

Figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 12% in September 2016, compared with the same month in 2015 - the 36th consecutive month of growth.

In Q3 2016, new business was also up by 12% compared with the same quarter in 2015.

The commercial vehicle finance and business equipment finance sectors reported new business up in September 2016 by 5% and 29% respectively, while plant and machinery finance new business increased by 16% over the same period.

Specialist finance.

By specialists Amicus group provides outstanding solutions for specialist markets. Working with us means you work with real people: talented teams with the drive, experience and insight to make things happen.

SMEs to contribute £217bn to UK economy by 2020

SMEs in the top 10 UK cities are predicted to contribute £217bn to the economy by 2020, according to a study by challenger Hampshire Trust Bank.

The research, which was conducted in collaboration with the Centre for Economics and Business Research (CEBR), found that contributions to the economy will grow by 11% between 2015 to 2020.

property finance

commercial finance

asset finance

Bespoke short-term lending

Flexible invoice discounting

Specialist asset finance

London contributed the most (£149bn) in 2015, followed by Manchester and Birmingham (£12bn and £6bn respectively).

Discover more at amicusplc.co.uk

London will also see the highest increase in SMEs, rising from 444,880 in 2015 to 534,035 by 2020.

Amicus is a trading name of Amicus Finance PLC. Registered in England & Wales, no. 06994954.

Registered office: 7 Air Street, London W1B 5AD.

Helping Fund UK Business

COMMERCIAL FINANCE NEWS

33% call for more structured CPD for mortgage activities

A survey has found that a number of finance professionals are calling for more structured Continued Professional Development (CPD) for mortgage-related activities.

In total, 33% of readers who took part in a survey felt there was not enough structured CPD for mortgage-related activities.

However, most respondents were satisfied with the amount of CPD currently available to them.

Peer-to-peer lender to launch bank

Peer-to-peer lender Zopa has announced it intends to launch a bank as it looks to enhance its business.

The lender revealed it will be applying for a banking licence with the regulatory process expected to take 15-24 months.

Next Generation Bank will sit alongside Zopa’s current peerto-peer business and it intends to offer Financial Services Compensation Schemeprotected deposit accounts and revolving credit products to supplement existing loans and peer-to-peer investor products.

Housing transactions set to plummet by 16%

Housing transactions are set to fall by 16% over the next two years, according to a recent forecast.

Property expert Savills has warned that economic uncertainty could cause housing transactions to drop from 1.25 million in 2016 to just 1.04 million by 2018.

Of these, buy-to-let investors are expected to be particularly badly affected, with the stamp duty surcharge and tax disincentives potentially causing transactions to fall from 120,000 in 2016 to just 80,000 in 2018.

10 | NACFB Magazine

Bank of England given new buy-to-let powers

The Bank of England’s Financial Policy Committee (FPC) is to be granted new powers to direct the regulation of the buy-to-let mortgage market.

The FPC is responsible for monitoring and intervening in the financial system to minimise systemic risk.

From early 2017, the FPC will be directing the Prudential Regulation Authority and Financial Conduct Authority to require regulated lenders to place limits on loan-to-value ratios and interest coverage ratios for buy-to-let mortgages.

Inflation forecast to hit 4% in 2017

The National Institute for Economic and Social Research (NIESR) has forecast that consumer price inflation will reach 4% in the second half of this year.

The leading think-tank believes that the increase will have an “impact on real disposable income”.

In October, the Office for National Statistics revealed that inflation rose by 1% in the year to September 2016, up from the 0.6% figure recorded in August.

The rate of inflation in September was the highest since November 2014 (also 1%).

Interest rises could ‘expose shortage’ of valuation surveyors

EDM Mortgage Support Services (EDM MSS) has warned that there are not enough valuation surveyors to meet the likely increase in demand that would occur following a rise in interest rates.

EDM MSS suggests that higher interest rates will lead to mortgage borrowers shopping around more for the best deals, therefore increasing the demand for associated valuations.

Permitted development rights to be extended

Gavin Barwell, minister of state for housing, planning and London, has revealed that the government is set to expand permitted development rights for officeto-residential conversion.

Speaking at the London Property Summit at the Queen Elizabeth II Centre, the minister outlined several ways he was looking to improve housebuilding.

Mr Barwell revealed that permitted development rights would be extended to allow for the demolition of office buildings, which would be replaced by housing on a like-for-like basis.

61% want stamp duty abolished

Some 61% of the British public want stamp duty to be abolished, according to survey data released by WhatHouse?

The new-build property portal conducted a survey asking the British public their views on what Prime Minister Theresa May should do to address the problems in the housing sector.

It was found that 56% of respondents in London want to restrict foreign homebuyers, while 69% of the same group felt more strongly than the rest of the UK about stamp duty being scrapped.

European Commission launches fintech Task Force

The European Commission has announced that it has launched a Task Force on Financial Technology (TFFT).

TFFT has been created to assess and make the most of innovation in the fintech area as well as developing strategies to address the potential challenges it poses.

The taskforce builds on the European Commission’s aim to develop a comprehensive

strategy on fintech and brings together the expertise of commission staff across several areas.

These include financial and digital services, digital innovation and security, competition and consumer protection.

Asset finance market records 36th consecutive month of growth

Figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 12% in September 2016, compared with the same month in 2015 - the 36th consecutive month of growth.

In Q3 2016, new business was also up by 12% compared with the same quarter in 2015.

The commercial vehicle finance and business equipment finance sectors reported new business up in September 2016 by 5% and 29% respectively, while plant and machinery finance new business increased by 16% over the same period.

Specialist finance.

By specialists Amicus group provides outstanding solutions for specialist markets. Working with us means you work with real people: talented teams with the drive, experience and insight to make things happen.

SMEs to contribute £217bn to UK economy by 2020

SMEs in the top 10 UK cities are predicted to contribute £217bn to the economy by 2020, according to a study by challenger Hampshire Trust Bank.

The research, which was conducted in collaboration with the Centre for Economics and Business Research (CEBR), found that contributions to the economy will grow by 11% between 2015 to 2020.

property finance

commercial finance

asset finance

Bespoke short-term lending

Flexible invoice discounting

Specialist asset finance

London contributed the most (£149bn) in 2015, followed by Manchester and Birmingham (£12bn and £6bn respectively).

Discover more at amicusplc.co.uk

London will also see the highest increase in SMEs, rising from 444,880 in 2015 to 534,035 by 2020.

Amicus is a trading name of Amicus Finance PLC. Registered in England & Wales, no. 06994954.

Registered office: 7 Air Street, London W1B 5AD.

Helping Fund UK Business

Top | story Our pick of the latest patron news

Castle Trust to acquire retail finance specialist Castle Trust Capital PLC has entered into an agreement to acquire Omni Capital Retail Finance.

The parent company of mortgage lender Castle Trust has agreed to purchase 100% of the issued share capital of the finance specialist.

Omni Capital offers point of sale finance and helps SME retailers provide their customers with the ability to pay for products and services in monthly instalments, with the lender recently gaining FCA authorisation.

The lender has produced a wide range of innovative finance products which match the requirements of retailers’ sales strategy.

State-of-the-art technology as well as Omni Capital’s model allows retailers to offer finance in-store or online with credit decisions provided in seconds.

It is also a member of the Finance & Leasing Association and the lender has also developed a credit score system which delivers high acceptance rates compared to high street banks and mainstream financial institutions.

“Its portfolio of retailers creates a unique franchise in the market.”

How will Omni Capital Retail Finance change?

The management team at Omni Capital will remain with the business to ensure a smooth transition of ownership.

The lender will also continue to be located in Watford as it looks to carry on the continued successful management of its operations.

“Castle Trust Capital shares our vision and appetite for growth,” Colin Sanders of Omni Capital stated.

“Its proposed acquisition of Omni Capital is good news for the business, the management and employees.

“Under new ownership, we will have access to both fresh capital and efficient alternative debt funding, and will benefit considerably from Castle Trust Capital’s significant infrastructure and resources.”

Castle Trust will receive capital injections from majority shareholder JC Flowers & Co to support the acquisition and growth of the loan book.

Reasons for the acquisition Explaining more about the reasons behind the purchase of Omni Capital, Castle Trust stated: “Our entry into the point of sale market is a key strategic diversification which will make the group even stronger and more resilient.

“Castle Trust will operate in three distinct markets – specialist mortgages, development finance and point of sale.”

Castle Trust also revealed how it planned to develop the Omni Capital business.

“Castle Trust Capital has access to significant capital and funding resources which will unleash Omni’s significant untapped potential.

“It comes with an entrepreneurial management team who have deep expertise in the online retail point of sale market.”

Castle Trust also reaffirmed that this acquisition would not have an impact on its mortgage arm.

“Omni will be run as a distinct business unit within the group and will remain located in its existing site in Watford.”

Omni Capital is currently a brand of CPC Group, which also includes property finance lender Fortwell Capital.

What next?

Looking to the future, Castle Trust did not rule out further lender acquisitions in the new year.

Fortwell is not affected by the proposed sale of Omni Capital and will remain a CPC Group business.

“Castle Trust Capital’s strategy is to build a high-quality, diversified speciality finance business through a combination of selective acquisitions and controlled, profitable organic growth.

Castle Trust will be purchasing Omni Capital for around £26m and the deal is expected to be completed in Q1 2017 following FCA approval.

“The Omni Capital Retail Finance business is an excellent opportunity to acquire a business that provides online retail point of sale finance,” said Sean Oldfield, CEO of Castle Trust Capital.

12 | NACFB Magazine

Castle Trust Capital has access to significant capital and funding resources which will unleash Omni’s significant untapped potential

“In executing this strategy, we have the full support of our principal shareholder JC Flowers & Co.” Tom Belger Reporter Medianett

A fast and flexible way to raise capital from property and luxury assets

London New York Los Angeles

For simple referrals and live deal tracking visit Borro.com/nacfb or call us at 0808 163 3574

Top | story Our pick of the latest patron news

Castle Trust to acquire retail finance specialist Castle Trust Capital PLC has entered into an agreement to acquire Omni Capital Retail Finance.

The parent company of mortgage lender Castle Trust has agreed to purchase 100% of the issued share capital of the finance specialist.

Omni Capital offers point of sale finance and helps SME retailers provide their customers with the ability to pay for products and services in monthly instalments, with the lender recently gaining FCA authorisation.

The lender has produced a wide range of innovative finance products which match the requirements of retailers’ sales strategy.

State-of-the-art technology as well as Omni Capital’s model allows retailers to offer finance in-store or online with credit decisions provided in seconds.

It is also a member of the Finance & Leasing Association and the lender has also developed a credit score system which delivers high acceptance rates compared to high street banks and mainstream financial institutions.

“Its portfolio of retailers creates a unique franchise in the market.”

How will Omni Capital Retail Finance change?

The management team at Omni Capital will remain with the business to ensure a smooth transition of ownership.

The lender will also continue to be located in Watford as it looks to carry on the continued successful management of its operations.

“Castle Trust Capital shares our vision and appetite for growth,” Colin Sanders of Omni Capital stated.

“Its proposed acquisition of Omni Capital is good news for the business, the management and employees.

“Under new ownership, we will have access to both fresh capital and efficient alternative debt funding, and will benefit considerably from Castle Trust Capital’s significant infrastructure and resources.”

Castle Trust will receive capital injections from majority shareholder JC Flowers & Co to support the acquisition and growth of the loan book.

Reasons for the acquisition Explaining more about the reasons behind the purchase of Omni Capital, Castle Trust stated: “Our entry into the point of sale market is a key strategic diversification which will make the group even stronger and more resilient.

“Castle Trust will operate in three distinct markets – specialist mortgages, development finance and point of sale.”

Castle Trust also revealed how it planned to develop the Omni Capital business.

“Castle Trust Capital has access to significant capital and funding resources which will unleash Omni’s significant untapped potential.

“It comes with an entrepreneurial management team who have deep expertise in the online retail point of sale market.”

Castle Trust also reaffirmed that this acquisition would not have an impact on its mortgage arm.

“Omni will be run as a distinct business unit within the group and will remain located in its existing site in Watford.”

Omni Capital is currently a brand of CPC Group, which also includes property finance lender Fortwell Capital.

What next?

Looking to the future, Castle Trust did not rule out further lender acquisitions in the new year.

Fortwell is not affected by the proposed sale of Omni Capital and will remain a CPC Group business.

“Castle Trust Capital’s strategy is to build a high-quality, diversified speciality finance business through a combination of selective acquisitions and controlled, profitable organic growth.

Castle Trust will be purchasing Omni Capital for around £26m and the deal is expected to be completed in Q1 2017 following FCA approval.

“The Omni Capital Retail Finance business is an excellent opportunity to acquire a business that provides online retail point of sale finance,” said Sean Oldfield, CEO of Castle Trust Capital.

12 | NACFB Magazine

Castle Trust Capital has access to significant capital and funding resources which will unleash Omni’s significant untapped potential

“In executing this strategy, we have the full support of our principal shareholder JC Flowers & Co.” Tom Belger Reporter Medianett

A fast and flexible way to raise capital from property and luxury assets

London New York Los Angeles

For simple referrals and live deal tracking visit Borro.com/nacfb or call us at 0808 163 3574

Case Studies Completion highlights from a selection of our patrons and members

Nic: 020 7655 3397 Daniel: 020 7655 3388

Secure Trust Bank packages deal for Foodpack David Green Regional sales director Secure Trust Bank Commercial Finance

Secure Trust Bank Commercial Finance provided a £7.5m asset-based lending package to support Seneca Partners’ acquisition of food packaging specialists Foodpack Limited (formerly known as Kapak Foods Limited) out of administration.

The package included £2.3m of debt funding and more than £1.2m of equity funding.

Founded in 1999, Foodpack Limited is a specialist contract food packaging provider with a dedicated team of 150 employees, including food technologists and engineers.

Operating from its 80,000 sq ft, highcare food factory facility in St Helens, the business has access to a wide range of facilities and machinery, providing turnkey solutions to both large and small food and retail organisations.

The company manages an extensive portfolio of food products and operates in both the UK and European markets for clients including Kraft, Müller, Cadbury and Yeo Valley. Foodpack reported a turnover of £17m in 2015.

However, unsustainable pressure on cash flow culminated in the appointment of administrators on 1st October 2015 and sale on the same day.

Growth The investment safeguarded over 150 jobs, and provides the business with a robust capital structure and firm financial footing from which growth will be driven.

The company has also strengthened its board with the appointment of Anthony Hitchen, an experienced food industry professional. He joined the business as senior director and will aid in the management of objectives and policy at Foodpack Limited.

A challenging and complex transaction, the deal was recognised by the business community at a prestigious regional awards ceremony.

Secure Trust Bank Commercial Finance is the alternative finance arm of FTSE-listed Secure Trust Bank. Since its inception in 2014, the bank has quickly established itself as one of the top 20 providers of asset-based lending in the UK, offering alternative finance

14 | NACFB Magazine

packages ranging from £500,000 to £30m in value to SMEs across the UK in a wide range of sectors. The company is known for its flexible and tailored solutions, demonstrated through the bespoke debt structures and turnaround times offered to its clients.

Maximising potential David Green, regional sales director at Secure Trust Bank Commercial Finance, said: “We were delighted to support the new owners through the transaction, with a funding structure which provided a platform to maximise the obvious potential of the business. It has been great to see them delivering their plans since the acquisition and we look forward to supporting them in their strategy for the growth of the business”.

Anthony, senior director at Foodpack, said: “The business has a committed and skilled workforce, supported by a strong management team and state of the art production facilities. These factors combined represent a solid platform from which we are able to support existing customers and grow the business. We are excited about the future for Foodpack and are looking forward to working with the existing team to deliver our growth strategy.”

Tim Murphy and Richard Manley, who worked on the deal for Seneca Partners, said: “We’ve introduced a team … who are respected throughout the food industry. We are confident that together we can drive the business forward, building on its undoubted strengths.

“The completion of this transaction in a very short timescale is thanks to the support we received from Secure Trust Bank and our legal team at Napthens.”

The perfect partners for funding your development project.

Speak to us about fast finance. acceptances.co.uk

Case Studies Completion highlights from a selection of our patrons and members

Nic: 020 7655 3397 Daniel: 020 7655 3388

Secure Trust Bank packages deal for Foodpack David Green Regional sales director Secure Trust Bank Commercial Finance

Secure Trust Bank Commercial Finance provided a £7.5m asset-based lending package to support Seneca Partners’ acquisition of food packaging specialists Foodpack Limited (formerly known as Kapak Foods Limited) out of administration.

The package included £2.3m of debt funding and more than £1.2m of equity funding.

Founded in 1999, Foodpack Limited is a specialist contract food packaging provider with a dedicated team of 150 employees, including food technologists and engineers.

Operating from its 80,000 sq ft, highcare food factory facility in St Helens, the business has access to a wide range of facilities and machinery, providing turnkey solutions to both large and small food and retail organisations.

The company manages an extensive portfolio of food products and operates in both the UK and European markets for clients including Kraft, Müller, Cadbury and Yeo Valley. Foodpack reported a turnover of £17m in 2015.

However, unsustainable pressure on cash flow culminated in the appointment of administrators on 1st October 2015 and sale on the same day.

Growth The investment safeguarded over 150 jobs, and provides the business with a robust capital structure and firm financial footing from which growth will be driven.

The company has also strengthened its board with the appointment of Anthony Hitchen, an experienced food industry professional. He joined the business as senior director and will aid in the management of objectives and policy at Foodpack Limited.

A challenging and complex transaction, the deal was recognised by the business community at a prestigious regional awards ceremony.

Secure Trust Bank Commercial Finance is the alternative finance arm of FTSE-listed Secure Trust Bank. Since its inception in 2014, the bank has quickly established itself as one of the top 20 providers of asset-based lending in the UK, offering alternative finance

14 | NACFB Magazine

packages ranging from £500,000 to £30m in value to SMEs across the UK in a wide range of sectors. The company is known for its flexible and tailored solutions, demonstrated through the bespoke debt structures and turnaround times offered to its clients.

Maximising potential David Green, regional sales director at Secure Trust Bank Commercial Finance, said: “We were delighted to support the new owners through the transaction, with a funding structure which provided a platform to maximise the obvious potential of the business. It has been great to see them delivering their plans since the acquisition and we look forward to supporting them in their strategy for the growth of the business”.

Anthony, senior director at Foodpack, said: “The business has a committed and skilled workforce, supported by a strong management team and state of the art production facilities. These factors combined represent a solid platform from which we are able to support existing customers and grow the business. We are excited about the future for Foodpack and are looking forward to working with the existing team to deliver our growth strategy.”

Tim Murphy and Richard Manley, who worked on the deal for Seneca Partners, said: “We’ve introduced a team … who are respected throughout the food industry. We are confident that together we can drive the business forward, building on its undoubted strengths.

“The completion of this transaction in a very short timescale is thanks to the support we received from Secure Trust Bank and our legal team at Napthens.”

The perfect partners for funding your development project.

Speak to us about fast finance. acceptances.co.uk

Cover Story | feature Helping Fund UK Business Established in 1992,

NACFB celebrates 25 years of supporting UK business and brokers

the NACFB this year celebrates 25 years of successfully promoting best practice within the commercial finance market.

NACFB becomes an associate member of the FLA.

Founded by Dick Appleby, Melvin Helme, Chris Arnold, Mark Alexander, Stuart Gray and Stuart Hare, the NACFB was originally supported by three lenders, one of whom, Birmingham Midshires, is still with us today.

The Association holds its Gala Dinner at the Natural History Museum.

1999

Our 1,500 members write £19.2bn in business during the 12 months ending June 2007, and by the end of that year we work with 85 patrons. Adam Tyler takes on the role of chief executive officer.

2000

2002

2003

2005

The Association introduces a compulsory CPD requirement of 35 hours. Membership hits 750 brokers. Launch of the Association of Vehicle Finance Brokers (AVFB) and the Association of Short-Term Funders (ASTF), which is created independently by some of our patrons and run parallel to the NACFB’s own processes.

The Association stops funding 100% of our members’ Professional Indemnity Policy premiums, and starts requesting a contribution from April onwards. Gala Dinner guest speaker is Ian Hislop.

More than three-quarters of NACFB members are still not FSA regulated at this time.

2004

We bring on our 100th patron and begin to put together a plan to deal with the FCA regulation that will come into effect from 1st April 2014.

2006

2010

We begin the year with just 45 patrons. There’s a fortnightly electronic newsletter now, too. We hold our first Commercial Finance Expo in the summer.

16 | NACFB Magazine

2011

2012

2007

The number of NACFB patrons has grown to 70. We launch the Certificate in Commercial Mortgages, supported by the Institute of Financial Services. Business reported by our members reaches an all-time high at £13.3bn.

The NACFB is nominated for two Association Excellence Awards.

In September 2015, we begin our broker visits, due to be completed by the end of 2017, visiting all 800 of our members and conducting a free of charge health check.

2008

The phrase ‘credit crunch’ makes a first appearance in an NACFB publication. Our thin, printed newsletter gets upgraded to a printed bi-monthly magazine, with issue one going out at the beginning of the year.

According to our Annual Member Survey published in July, business written by members finally reaches a new record level, beating 2008.

Inspired by the NACFB, a first of its kind alternative lending conference takes place in Westminster in June, further increasing the reputation of the Association as a key figure in UK SME funding.

2009

In 2016, our members reported writing an all-time record volume of business. Now, before plunging into the new year and taking on even higher goals, we take a moment to look back at our successes, together with our members and patrons, and the journey that brought us to where we are today.

Recruitment drive adds 400 new members, mostly at associate level.

Chris Bialan is appointed as president.

The Association has 85 full and 20 associate members, and our email address is nacfb@birmingham.co.uk, because we are firmly Birmingham-based.

NACFB Member Services is created as a way of helping brokers maintain income levels despite the falling numbers of completed deals.

remain compliant with FCA regulation, and continuing to raise the bar for the commercial finance broker industry.

As we continue to uphold our high standards and quality services, 2017 will no doubt bring new challenges – so we will ensure we continue to provide one-toone guidance for members, helping them

In November, Adam Tyler begins a two-year secondment from NatWest Bank.

The NACFB has 40 patrons, and hosts its first COMFEX - the model for CFE.

1992

Early 2017 will certainly be a time of change, with chief executive Adam Tyler stepping down after 11 years with the Association, and Rob Lankey taking up the baton this month as interim CEO.

We also launch our Minimum Set of Standards to further help our members adhere to the FCA’s regulations, and increasing our focus on providing guidance and assistance to our members, whenever they need it.

2013

2014

2015

2016

London office space expands mid-year, and full-time staff count reaches 10.

Adam Tyler steps down as CEO, Rob Lankey appointed interim CEO.

In March, Adam attends the FSB National Conference and urges members to get in touch for exclusive funding via the “Finance for Business” scheme.

NACFB moves its head office from Exeter to its current premises in the capital city.

As of April, all members need interim or full/limited permissions from the FCA.

Martin Nield, the first NACFB apprentice broker, starts work in January.

NACFB Magazine | 17

Cover Story | feature Helping Fund UK Business Established in 1992,

NACFB celebrates 25 years of supporting UK business and brokers

the NACFB this year celebrates 25 years of successfully promoting best practice within the commercial finance market.

NACFB becomes an associate member of the FLA.

Founded by Dick Appleby, Melvin Helme, Chris Arnold, Mark Alexander, Stuart Gray and Stuart Hare, the NACFB was originally supported by three lenders, one of whom, Birmingham Midshires, is still with us today.

The Association holds its Gala Dinner at the Natural History Museum.

1999

Our 1,500 members write £19.2bn in business during the 12 months ending June 2007, and by the end of that year we work with 85 patrons. Adam Tyler takes on the role of chief executive officer.

2000

2002

2003

2005

The Association introduces a compulsory CPD requirement of 35 hours. Membership hits 750 brokers. Launch of the Association of Vehicle Finance Brokers (AVFB) and the Association of Short-Term Funders (ASTF), which is created independently by some of our patrons and run parallel to the NACFB’s own processes.

The Association stops funding 100% of our members’ Professional Indemnity Policy premiums, and starts requesting a contribution from April onwards. Gala Dinner guest speaker is Ian Hislop.

More than three-quarters of NACFB members are still not FSA regulated at this time.

2004

We bring on our 100th patron and begin to put together a plan to deal with the FCA regulation that will come into effect from 1st April 2014.

2006

2010

We begin the year with just 45 patrons. There’s a fortnightly electronic newsletter now, too. We hold our first Commercial Finance Expo in the summer.

16 | NACFB Magazine

2011

2012

2007

The number of NACFB patrons has grown to 70. We launch the Certificate in Commercial Mortgages, supported by the Institute of Financial Services. Business reported by our members reaches an all-time high at £13.3bn.

The NACFB is nominated for two Association Excellence Awards.

In September 2015, we begin our broker visits, due to be completed by the end of 2017, visiting all 800 of our members and conducting a free of charge health check.

2008

The phrase ‘credit crunch’ makes a first appearance in an NACFB publication. Our thin, printed newsletter gets upgraded to a printed bi-monthly magazine, with issue one going out at the beginning of the year.

According to our Annual Member Survey published in July, business written by members finally reaches a new record level, beating 2008.

Inspired by the NACFB, a first of its kind alternative lending conference takes place in Westminster in June, further increasing the reputation of the Association as a key figure in UK SME funding.

2009

In 2016, our members reported writing an all-time record volume of business. Now, before plunging into the new year and taking on even higher goals, we take a moment to look back at our successes, together with our members and patrons, and the journey that brought us to where we are today.

Recruitment drive adds 400 new members, mostly at associate level.

Chris Bialan is appointed as president.

The Association has 85 full and 20 associate members, and our email address is nacfb@birmingham.co.uk, because we are firmly Birmingham-based.

NACFB Member Services is created as a way of helping brokers maintain income levels despite the falling numbers of completed deals.

remain compliant with FCA regulation, and continuing to raise the bar for the commercial finance broker industry.

As we continue to uphold our high standards and quality services, 2017 will no doubt bring new challenges – so we will ensure we continue to provide one-toone guidance for members, helping them

In November, Adam Tyler begins a two-year secondment from NatWest Bank.

The NACFB has 40 patrons, and hosts its first COMFEX - the model for CFE.

1992

Early 2017 will certainly be a time of change, with chief executive Adam Tyler stepping down after 11 years with the Association, and Rob Lankey taking up the baton this month as interim CEO.

We also launch our Minimum Set of Standards to further help our members adhere to the FCA’s regulations, and increasing our focus on providing guidance and assistance to our members, whenever they need it.

2013

2014

2015

2016

London office space expands mid-year, and full-time staff count reaches 10.

Adam Tyler steps down as CEO, Rob Lankey appointed interim CEO.

In March, Adam attends the FSB National Conference and urges members to get in touch for exclusive funding via the “Finance for Business” scheme.

NACFB moves its head office from Exeter to its current premises in the capital city.

As of April, all members need interim or full/limited permissions from the FCA.

Martin Nield, the first NACFB apprentice broker, starts work in January.

NACFB Magazine | 17

COVER STORY

COVER STORY

Meet your 2017 NACFB board Paul Goodman Chairman

Adrian Coles Vice chairman

Goodman Corporate Finance

Commercial Mortgage Solutions

Paul is now in his seventh year on the board of the NACFB, and his second as chairman.

Having worked as a lender and broker for over 25 years, Adrian has been a member of the Association since 1993.

After 24 years in the industry, Paul provides objectivity and integrity, and specialises in business turnarounds.

He has been director of the NACFB since 2009.

In addition to his work with his own company and the NACFB, Paul is a governor at his son’s school, and in his spare time he likes to relax and spend time with his family.

0844 3102818 paul@goodmanconsultancy.com

He believes in looking forward rather than at the past, and is passionate about the role of independent brokers in the marketplace.

01425 652006 adrianc@cms-comm.co.uk

Ralph Black Compliance

Ray has been in asset finance for over 30 years, starting as a junior representative at Lloyds & Scottish Finance. He later worked in Copenhagen as an account manager for the Swedish and Finnish markets. After returning to the UK, he launched his own brokerage, Chenalfame Ltd.

Ralph worked as a regulatory & training consultant, advising banks and insurers and helping them understand FSMA regulations, and deal with FOS complaints, with extensive knowledge to bring to the NACFB board.

020 7381 8384 ray.wells@first-for-business.com

18 | NACFB Magazine

Alan Ellison Serving director

John Phillips Serving director

Business Credit Solutions Ltd

Kingswood Associates Ltd

Mike has been in the industry since 1993, with a background in banking and lease management. He joined Asset Finance Solutions (UK) Limited (AFS) in 2006, where he has been focused on developing vendor relationships.

He helped prepare for regulation and successfully secured principal status under the FCA. AFS now has the largest appointed representative network in the asset finance sector.

Alan’s career has spanned over 40 years, and he has worked in all aspects of asset finance, leasing, contract hire and more. In 1993, he created his own brokerage business, and now specialises in all aspects of commercial finance and regulated mortgages (including equity release).

John has been with the Association for over six years. He has been in the industry since 1994, having started out as a broker, and established Kingswood Associates Ltd. in 1997. John is a firm believer that good service, provided with honest intentions, helps maintain your reputation and your flow of business.

Starting out as a gymnast, Graham later became the first ever cost & management accountant at Fabergé at the age of 21.

Alan and his wife Jean, married for over 40 years, enjoy a game of golf in their free time together – when their busy schedules allow.

John looks after clients in both Cardiff and Chiswick, as well as nationally through introducer networks.

He has run courses in vehicle finance, and advised the police as expert witness on lease fraud. He has also written for various national newspapers, and writes a regular monthly column for ‘Motor Finance’.

Adrian has three children with his wife Julie, and is a keen golfer in his free time.

Ray Wells HR director, international relations - co-opted Chenalfame Ltd

A self-declared “ageing ‘rocker’”, Ray enjoys motorbikes and blues music, as well as playing the guitar and a round of golf in his free time.

Mike Geddes Asset finance, compliance committee Asset Finance Solutions (UK) Limited

Commercial Finance Brokers (UK) Ltd

Ralph has been a commercial broker since 2008, when he set up CFB (UK) with his business partner. They cover most types of finance, with property being the most significant aspect.

01473 323 842 ralphblack@cfbuk.com

07764 351 959 mike.geddes@afsuk.com

01949 869076 alan@bcsolutions.info

029 2035 3089 jwphillips@kingswoodassociates.co.uk

Graham Hill PR, marketing, vehicle finance - co-opted GHA Finance

Graham has been on the NACFB board for over seven years, serving as president for two.

01444 235 132 ghafinance@aol.com

David Sampson Training & education, membership growth Omega Commercial Solutions Ltd

David Newborough Finance director

Robert Collins

Geoff Wilson

Serving director

Serving director

Ashgates Corporate Services Ltd

Brightstar Financial

White Rose Finance Group Ltd

David began his career in banking in 1984, switching to commercial banking in 1988. After 15 years, he moved to Omega, working as a broker and later as operations director. His main duties include the day-to-day running of the business, assisting brokers where he can and maintaining close lender relationships.

David has been in the industry since 1995, spending his first eight years at a renowned international accountancy firm. He moved to Ashgates in 2003, where he generally works with smalland medium-sized businesses. He has significant experience in audit work, and has a strong background in advising on business strategies for growth and profit.

Robert is an experienced property finance professional, and has a wealth of knowledge gained from positions in the UK and overseas. He has worked in the finance sector for over 25 years, and has worked both as a principal lender and as a commercial finance broker, giving him a unique perspective on the lending process.

A systems engineer by training, Geoff has spent over 25 years working in the international IT and telecommunications environment, eventually at European MD level for a global network provider.

David enjoys helping businesses obtain much-needed funding, and takes every opportunity to do so when his time allows.

David joined the NACFB board in January 2015, handling the Association’s finances.

Away from work, Robert is a keen golfer and a follower of rugby.

0845 230 2100 david@omegacs.org

01332 380 691 dnewborough@ashgates.co.uk

01277 500 900 robert@brightstarhub.co.uk

Giving up on a nomadic lifestyle in order to spend more time with his family, Geoff launched White Rose Finance in 2004.

08458 381 954 gwilson@whiterosefinance.com

NACFB Magazine | 19

COVER STORY

COVER STORY

Meet your 2017 NACFB board Paul Goodman Chairman

Adrian Coles Vice chairman

Goodman Corporate Finance

Commercial Mortgage Solutions

Paul is now in his seventh year on the board of the NACFB, and his second as chairman.

Having worked as a lender and broker for over 25 years, Adrian has been a member of the Association since 1993.

After 24 years in the industry, Paul provides objectivity and integrity, and specialises in business turnarounds.

He has been director of the NACFB since 2009.

In addition to his work with his own company and the NACFB, Paul is a governor at his son’s school, and in his spare time he likes to relax and spend time with his family.

0844 3102818 paul@goodmanconsultancy.com

He believes in looking forward rather than at the past, and is passionate about the role of independent brokers in the marketplace.

01425 652006 adrianc@cms-comm.co.uk

Ralph Black Compliance

Ray has been in asset finance for over 30 years, starting as a junior representative at Lloyds & Scottish Finance. He later worked in Copenhagen as an account manager for the Swedish and Finnish markets. After returning to the UK, he launched his own brokerage, Chenalfame Ltd.

Ralph worked as a regulatory & training consultant, advising banks and insurers and helping them understand FSMA regulations, and deal with FOS complaints, with extensive knowledge to bring to the NACFB board.

020 7381 8384 ray.wells@first-for-business.com

18 | NACFB Magazine

Alan Ellison Serving director

John Phillips Serving director

Business Credit Solutions Ltd

Kingswood Associates Ltd

Mike has been in the industry since 1993, with a background in banking and lease management. He joined Asset Finance Solutions (UK) Limited (AFS) in 2006, where he has been focused on developing vendor relationships.

He helped prepare for regulation and successfully secured principal status under the FCA. AFS now has the largest appointed representative network in the asset finance sector.

Alan’s career has spanned over 40 years, and he has worked in all aspects of asset finance, leasing, contract hire and more. In 1993, he created his own brokerage business, and now specialises in all aspects of commercial finance and regulated mortgages (including equity release).

John has been with the Association for over six years. He has been in the industry since 1994, having started out as a broker, and established Kingswood Associates Ltd. in 1997. John is a firm believer that good service, provided with honest intentions, helps maintain your reputation and your flow of business.

Starting out as a gymnast, Graham later became the first ever cost & management accountant at Fabergé at the age of 21.

Alan and his wife Jean, married for over 40 years, enjoy a game of golf in their free time together – when their busy schedules allow.

John looks after clients in both Cardiff and Chiswick, as well as nationally through introducer networks.

He has run courses in vehicle finance, and advised the police as expert witness on lease fraud. He has also written for various national newspapers, and writes a regular monthly column for ‘Motor Finance’.

Adrian has three children with his wife Julie, and is a keen golfer in his free time.

Ray Wells HR director, international relations - co-opted Chenalfame Ltd

A self-declared “ageing ‘rocker’”, Ray enjoys motorbikes and blues music, as well as playing the guitar and a round of golf in his free time.

Mike Geddes Asset finance, compliance committee Asset Finance Solutions (UK) Limited

Commercial Finance Brokers (UK) Ltd

Ralph has been a commercial broker since 2008, when he set up CFB (UK) with his business partner. They cover most types of finance, with property being the most significant aspect.

01473 323 842 ralphblack@cfbuk.com

07764 351 959 mike.geddes@afsuk.com

01949 869076 alan@bcsolutions.info

029 2035 3089 jwphillips@kingswoodassociates.co.uk

Graham Hill PR, marketing, vehicle finance - co-opted GHA Finance

Graham has been on the NACFB board for over seven years, serving as president for two.

01444 235 132 ghafinance@aol.com

David Sampson Training & education, membership growth Omega Commercial Solutions Ltd

David Newborough Finance director

Robert Collins

Geoff Wilson

Serving director

Serving director

Ashgates Corporate Services Ltd

Brightstar Financial

White Rose Finance Group Ltd

David began his career in banking in 1984, switching to commercial banking in 1988. After 15 years, he moved to Omega, working as a broker and later as operations director. His main duties include the day-to-day running of the business, assisting brokers where he can and maintaining close lender relationships.

David has been in the industry since 1995, spending his first eight years at a renowned international accountancy firm. He moved to Ashgates in 2003, where he generally works with smalland medium-sized businesses. He has significant experience in audit work, and has a strong background in advising on business strategies for growth and profit.

Robert is an experienced property finance professional, and has a wealth of knowledge gained from positions in the UK and overseas. He has worked in the finance sector for over 25 years, and has worked both as a principal lender and as a commercial finance broker, giving him a unique perspective on the lending process.

A systems engineer by training, Geoff has spent over 25 years working in the international IT and telecommunications environment, eventually at European MD level for a global network provider.

David enjoys helping businesses obtain much-needed funding, and takes every opportunity to do so when his time allows.

David joined the NACFB board in January 2015, handling the Association’s finances.

Away from work, Robert is a keen golfer and a follower of rugby.

0845 230 2100 david@omegacs.org

01332 380 691 dnewborough@ashgates.co.uk

01277 500 900 robert@brightstarhub.co.uk

Giving up on a nomadic lifestyle in order to spend more time with his family, Geoff launched White Rose Finance in 2004.

08458 381 954 gwilson@whiterosefinance.com

NACFB Magazine | 19

Spotlight Unmissable industry coverage

Businesses like Kuflink are vital to this country

Kuflink opens new HQ

Stephen Hammond MP cuts the ribbon

Peer-to-peer (P2P) group Kuflink has celebrated the opening of its new headquarters in Gravesend.

The firm relocated from another location in Gravesend to the site of a former Blockbusters following a period of expansion in which it has rebranded and launched a P2P proposition.

Around 60 guests attended the ribbon-cutting ceremony, including Stephen Hammond, MP for Wimbledon and member of the Treasury Committee, and Adam Holloway, MP for Gravesham.

Speaking at the event, Mr Hammond said: “…Businesses like Kuflink are vital to this country. “…We’re likely to see more and more difficulty for small firms who want to grow to get that access to finance.

“So, in the next two years, I think this is a business that could really grow … in a big way, but also help more businesses to grow and be a prominent part of the local community.”

The Kuflink team celebrating the launch

Mr Hammond revealed that the Treasury Select Committee had been spending more time looking at alternative forms of lending, as many small businesses were losing faith in banks.

“So a business like this, Kuflink, is going to be vital, I think both for your local area and local businesses,” he stated.

The MP for Wimbledon was followed

by Kuflink spokeswoman Darshana Ubl, who explained the concept of P2P lending for those in the crowd who were not familiar with the industry term, including councillor David Turner, deputy leader of Gravesham Borough Council, and members of the local press.

I GET BY WITH A LITTLE HELP…

The launch comes just weeks after Kuflink secured full FCA authorisation to offer consumer buy-to-let products.

Commenting after the opening, Narinder Khattoare, sales and marketing director at Kuflink, added: “This is the culmination of a huge amount of hard work by the whole Kuflink team and we are now well set for 2017 to build on the considerable success we have enjoyed in the past few years.

“The bridging market continues to provide valuable liquidity to the commercial and residential property markets and we look forward to working with new introducers and their clients, as well as strengthening ties with our existing broker partners.”

Short term finance, long term benefits At Kuflink Bridging we offer short term bridging and development loans, so you don’t have to worry about missing out on a deal with great potential.

We provide the short term finance, so you can receive the long term benefits.

w: www.kuflink.co.uk T: 01474 33 44 88

After Mr Hammond’s speech, guests were invited to network and mingle over drinks and Kuflink-themed cupcakes.

Kuflink staff also rallied for a team photograph in the firm’s new colours These were introduced as part of its rebrand earlier this year.

Alex Lynn Reporter Medianett

This Advert is for intermediary use only.

Your property may be repossessed if you do not keep up with repayments.

Kuflink Bridging Ltd is fully authorised and regulated by the Financial Conduct Authority. FCA. (723495)

20 | NACFB Magazine

Spotlight Unmissable industry coverage

Businesses like Kuflink are vital to this country

Kuflink opens new HQ

Stephen Hammond MP cuts the ribbon

Peer-to-peer (P2P) group Kuflink has celebrated the opening of its new headquarters in Gravesend.

The firm relocated from another location in Gravesend to the site of a former Blockbusters following a period of expansion in which it has rebranded and launched a P2P proposition.

Around 60 guests attended the ribbon-cutting ceremony, including Stephen Hammond, MP for Wimbledon and member of the Treasury Committee, and Adam Holloway, MP for Gravesham.

Speaking at the event, Mr Hammond said: “…Businesses like Kuflink are vital to this country. “…We’re likely to see more and more difficulty for small firms who want to grow to get that access to finance.

“So, in the next two years, I think this is a business that could really grow … in a big way, but also help more businesses to grow and be a prominent part of the local community.”

The Kuflink team celebrating the launch

Mr Hammond revealed that the Treasury Select Committee had been spending more time looking at alternative forms of lending, as many small businesses were losing faith in banks.

“So a business like this, Kuflink, is going to be vital, I think both for your local area and local businesses,” he stated.

The MP for Wimbledon was followed

by Kuflink spokeswoman Darshana Ubl, who explained the concept of P2P lending for those in the crowd who were not familiar with the industry term, including councillor David Turner, deputy leader of Gravesham Borough Council, and members of the local press.

I GET BY WITH A LITTLE HELP…

The launch comes just weeks after Kuflink secured full FCA authorisation to offer consumer buy-to-let products.

Commenting after the opening, Narinder Khattoare, sales and marketing director at Kuflink, added: “This is the culmination of a huge amount of hard work by the whole Kuflink team and we are now well set for 2017 to build on the considerable success we have enjoyed in the past few years.

“The bridging market continues to provide valuable liquidity to the commercial and residential property markets and we look forward to working with new introducers and their clients, as well as strengthening ties with our existing broker partners.”

Short term finance, long term benefits At Kuflink Bridging we offer short term bridging and development loans, so you don’t have to worry about missing out on a deal with great potential.

We provide the short term finance, so you can receive the long term benefits.

w: www.kuflink.co.uk T: 01474 33 44 88

After Mr Hammond’s speech, guests were invited to network and mingle over drinks and Kuflink-themed cupcakes.

Kuflink staff also rallied for a team photograph in the firm’s new colours These were introduced as part of its rebrand earlier this year.

Alex Lynn Reporter Medianett

This Advert is for intermediary use only.

Your property may be repossessed if you do not keep up with repayments.

Kuflink Bridging Ltd is fully authorised and regulated by the Financial Conduct Authority. FCA. (723495)

20 | NACFB Magazine

Patron | profile

While the relaunched Hampshire Trust Bank may be relatively new, its employees are experienced and understand, in all its intricacies, the markets in which it operates

Hampshire Trust Bank

Property funding solutions for SMEs Hampshire Trust Bank announced its launch into the commercial mortgages sector a year ago and, since then, we have been building a team with specialist knowledge of the market – people that understand our focus on service and delivery.

So, who is Hampshire Trust Bank and what can the bank offer NACFB brokers and their clients?

22 | NACFB Magazine

Hampshire Trust Bank is a specialist bank, staffed by experts focused on helping UK businesses realise their ambitions. Originally established in 1977, Hampshire Trust relaunched as Hampshire Trust Bank in 2014 following a management buyout. Since then, the bank has achieved significant growth, both financially and in terms of its number of employees. Indeed, the bank is due to move to new, larger headquarters in Bishopsgate, London, in the early part of this year to support its expansion plans.

of a dependable, responsive, best-inclass service. Hampshire Trust Bank specialises in asset finance, property finance and commercial mortgages, and provides savings accounts to individuals and businesses.

While the relaunched Hampshire Trust Bank may be relatively new, its employees are experienced and understand, in all its intricacies, the markets in which it operates. It takes a traditional approach to banking, creating lasting relationships founded on an open approach and the provision

We are an experienced team; I for one have worked in the mortgage sector for more than 20 years, and as a former broker myself I understand the challenges that intermediaries face.

Our commercial mortgages team Our processes and decisions are undertaken by specialists to ensure our introducer partners and borrowers get balanced decisions for complex cases.

Service and certainty are at the core of our proposition.

Over the past 12 months we have been expanding our expert team, most

recently appointing new underwriters, commercial lending managers and a business development manager.

We have been well received by the market, and with everyone in our team working to further improve broker service, we believe that our focus on service and delivery sets us apart from the crowd.

Our products Our commercial mortgages team provides structured specialist lending with tailored solutions for SMEs, trading businesses and investors, offering bridging and term finance secured against buy-to-let, semicommercial and commercial property.

Working with a UK-wide network of master brokers, we currently offer five products with loan amounts from £100,000 to £10m:

Buy-to-let Commercial and semi-commercial Bridging finance Refurbishment finance Development exit finance Recent deals include:

Our plans for the future In 2017, we will focus on enhancing our product range and continuing to grow our introducer-focused team, ensuring that the intermediaries we work with are provided with the specialist and swift service they are looking for.

£1.9m loan to finance a heavy refurbishment project £960,000 developer exit finance facility for an experienced property developer £550,000 loan to a professional landlord looking to refinance a buyto-let property

Colin Bell Managing director of commercial mortgages Hampshire Trust Bank

NACFB Magazine | 23

Patron | profile

While the relaunched Hampshire Trust Bank may be relatively new, its employees are experienced and understand, in all its intricacies, the markets in which it operates

Hampshire Trust Bank

Property funding solutions for SMEs Hampshire Trust Bank announced its launch into the commercial mortgages sector a year ago and, since then, we have been building a team with specialist knowledge of the market – people that understand our focus on service and delivery.

So, who is Hampshire Trust Bank and what can the bank offer NACFB brokers and their clients?

22 | NACFB Magazine

Hampshire Trust Bank is a specialist bank, staffed by experts focused on helping UK businesses realise their ambitions. Originally established in 1977, Hampshire Trust relaunched as Hampshire Trust Bank in 2014 following a management buyout. Since then, the bank has achieved significant growth, both financially and in terms of its number of employees. Indeed, the bank is due to move to new, larger headquarters in Bishopsgate, London, in the early part of this year to support its expansion plans.

of a dependable, responsive, best-inclass service. Hampshire Trust Bank specialises in asset finance, property finance and commercial mortgages, and provides savings accounts to individuals and businesses.

While the relaunched Hampshire Trust Bank may be relatively new, its employees are experienced and understand, in all its intricacies, the markets in which it operates. It takes a traditional approach to banking, creating lasting relationships founded on an open approach and the provision

We are an experienced team; I for one have worked in the mortgage sector for more than 20 years, and as a former broker myself I understand the challenges that intermediaries face.

Our commercial mortgages team Our processes and decisions are undertaken by specialists to ensure our introducer partners and borrowers get balanced decisions for complex cases.

Service and certainty are at the core of our proposition.

Over the past 12 months we have been expanding our expert team, most

recently appointing new underwriters, commercial lending managers and a business development manager.

We have been well received by the market, and with everyone in our team working to further improve broker service, we believe that our focus on service and delivery sets us apart from the crowd.

Our products Our commercial mortgages team provides structured specialist lending with tailored solutions for SMEs, trading businesses and investors, offering bridging and term finance secured against buy-to-let, semicommercial and commercial property.

Working with a UK-wide network of master brokers, we currently offer five products with loan amounts from £100,000 to £10m:

Buy-to-let Commercial and semi-commercial Bridging finance Refurbishment finance Development exit finance Recent deals include:

Our plans for the future In 2017, we will focus on enhancing our product range and continuing to grow our introducer-focused team, ensuring that the intermediaries we work with are provided with the specialist and swift service they are looking for.

£1.9m loan to finance a heavy refurbishment project £960,000 developer exit finance facility for an experienced property developer £550,000 loan to a professional landlord looking to refinance a buyto-let property

Colin Bell Managing director of commercial mortgages Hampshire Trust Bank

NACFB Magazine | 23

Ask | the expert

Market Financial Solutions Bridging with Finesse

Answers and help from among the most knowledgeable of NACFB associates

The NACFB is, and will be, leading the way in continuing to raise standards as a selfregulated body within a regulated arena across the commercial finance industry Market Financial Solutions is an award winning independent Bridging Finance provider that deals with a range of innovative bridging solutions that are fast and flexible for all our intermediaries and clients.

Q

Now that you have the reins of the Association, can you share with us your three main areas of focus?

A

It’s a familiar story, but one that needs re-telling. We have handled the demands of FCA regulation very well for two and a half years and retained record levels of membership. To some extent, the Association anticipated the potential for a fall-off in member numbers as the requirements of compliance hit home. I’m delighted to say that didn’t happen, and most members and patrons are taking their regulatory obligations seriously. We were also prepared for a decline in business post-referendum; the opposite has actually happened.

Given that we have more members than before, and doing more business than before, it follows that compliance has just become even more critical.

Q A

And you’re really planning to visit all your 853 member firms?

Yes, our important compliance visits to members are well underway – we’ve seen a fifth of our members already, so the plan is right on schedule. Members might call these reviews ‘your compliance MOT’. I’m pleased to say we’re observing some areas of good practice and working with members to identify improvements in other areas.

It’s my job now to ensure that this momentum is sustained. In fact, I’m going to be turning the dial right up to 11! I expect the highest standards in conduct and practice from all patrons and members when it comes to compliance in regulated activities.

Nothing less can be acceptable.

These regulatory requirements have been well publicised by the NACFB. A failure to comply could mean unenforceable loans for patrons and criminal activity being undertaken by members. Hitherto, we have been busy providing support and encouraging compliance. Now, we move into the critical stage of seeking evidence of compliance and taking enforcement action where needed for the good of the industry.

So, my first message to you comes with an appeal to members: please help us to help you by accommodating my colleagues when they book your broker review meeting.

Q A

Presumably there’s more behind the scenes than just paying house calls.

A lot more. The NACFB is, and will be, leading the way in continuing to raise standards as a self-regulated body within a regulated arena across the commercial finance industry. I want both our patrons and members to take “pride in excellence”. The regulatory vehicle has no reverse gear, it only surges onwards. So, whether a patron or member, the only right thing to do is to run a compliant business and be able to evidence you are doing so.

What we must be able to do is stand in front of the FCA and say: “Here we are, a selfregulating body, practicing what we preach and more than keeping pace with changes in the regulatory environment.” And when our office takes calls from small businesses looking for funding, we tell them that they should look for their local broker with the NACFB logo. Making sure that logo means excellence in practice, that’s absolutely key.

Low monthly interest rates From 0.75%

Independent Lenders , in-house funding for fast effective solutions

Funding for commercial, residential investment properties towards acquisitions & re-mortgage

Specialists in complex deals Simple & Transparent approach

0845 303 8686 Rob Lankey CEO (interim) NACFB

info@mfsuk.com www.mfsuk.com

24 | NACFB Magazine

Berkeley Square House, Mayfair, London W1J 6BD

Ask | the expert

Market Financial Solutions Bridging with Finesse

Answers and help from among the most knowledgeable of NACFB associates

The NACFB is, and will be, leading the way in continuing to raise standards as a selfregulated body within a regulated arena across the commercial finance industry Market Financial Solutions is an award winning independent Bridging Finance provider that deals with a range of innovative bridging solutions that are fast and flexible for all our intermediaries and clients.

Q

Now that you have the reins of the Association, can you share with us your three main areas of focus?

A

It’s a familiar story, but one that needs re-telling. We have handled the demands of FCA regulation very well for two and a half years and retained record levels of membership. To some extent, the Association anticipated the potential for a fall-off in member numbers as the requirements of compliance hit home. I’m delighted to say that didn’t happen, and most members and patrons are taking their regulatory obligations seriously. We were also prepared for a decline in business post-referendum; the opposite has actually happened.

Given that we have more members than before, and doing more business than before, it follows that compliance has just become even more critical.

Q A

And you’re really planning to visit all your 853 member firms?

Yes, our important compliance visits to members are well underway – we’ve seen a fifth of our members already, so the plan is right on schedule. Members might call these reviews ‘your compliance MOT’. I’m pleased to say we’re observing some areas of good practice and working with members to identify improvements in other areas.

It’s my job now to ensure that this momentum is sustained. In fact, I’m going to be turning the dial right up to 11! I expect the highest standards in conduct and practice from all patrons and members when it comes to compliance in regulated activities.

Nothing less can be acceptable.

These regulatory requirements have been well publicised by the NACFB. A failure to comply could mean unenforceable loans for patrons and criminal activity being undertaken by members. Hitherto, we have been busy providing support and encouraging compliance. Now, we move into the critical stage of seeking evidence of compliance and taking enforcement action where needed for the good of the industry.

So, my first message to you comes with an appeal to members: please help us to help you by accommodating my colleagues when they book your broker review meeting.

Q A

Presumably there’s more behind the scenes than just paying house calls.

A lot more. The NACFB is, and will be, leading the way in continuing to raise standards as a self-regulated body within a regulated arena across the commercial finance industry. I want both our patrons and members to take “pride in excellence”. The regulatory vehicle has no reverse gear, it only surges onwards. So, whether a patron or member, the only right thing to do is to run a compliant business and be able to evidence you are doing so.

What we must be able to do is stand in front of the FCA and say: “Here we are, a selfregulating body, practicing what we preach and more than keeping pace with changes in the regulatory environment.” And when our office takes calls from small businesses looking for funding, we tell them that they should look for their local broker with the NACFB logo. Making sure that logo means excellence in practice, that’s absolutely key.

Low monthly interest rates From 0.75%

Independent Lenders , in-house funding for fast effective solutions

Funding for commercial, residential investment properties towards acquisitions & re-mortgage

Specialists in complex deals Simple & Transparent approach

0845 303 8686 Rob Lankey CEO (interim) NACFB

info@mfsuk.com www.mfsuk.com

24 | NACFB Magazine

Berkeley Square House, Mayfair, London W1J 6BD

Special | features An up-to-date insight into the industry

2016: A year of major change While 2016 could be described as the year the world turned upside down – politically, economically, poll-defiantly – the commercial finance industry also witnessed some considerable transformations.

Funding lines

Mergers and acquisitions

Rebrands

Regulation

Expansion

Team changes

In February, SME lender LDF secured a £51m facility from the British Business Bank to fund a portfolio of newly originated small business asset finance receivables.

In June, GLI Finance acquired the remaining shareholding of FundingKnight to become full owners of the peer-to-peer lender.

GLI committed £1m of further funding capital to help grow the business.

In May, Alpha Bridging rebranded to Kuflink Bridging, as well as launching a new peer-to-peer platform in which it guarantees to fund the first 20% of any deal.

Bridging lenders Borro and Kuflink received FCA authorisation during the year, whereby both lenders can now offer consumer buy-to-let products. Borro later gained authorisation for its luxury asset business.

Challenger Masthaven Bank launched its new development finance division at the same time as it entered the retail banking market in late November, offering loans of up to £2m.

In June, James Bloom departed from the privately-owned business Regentsmead after 29 years to oversee the new specialist development finance division at Masthaven Bank.

Peer-to-peer platform Lending Works received full authorisation from the FCA in October, following an almost yearlong review process after submitting its application back in October 2015. It was revealed by Medianett that three firms had withdrawn their applications for peer-to-peer lending since March 2016; however, no peer-to-peer lenders had their authorisation applications declined as of 29th September 2016.

During the same month, online SME lender Spotcap revealed it was expanding into the UK market after operating in Spain, the Netherlands and Australia.

Alan Margolis left United Trust Bank in October after heading up the bridging team for over six years.

A month later, tennis star Andy Murray invested in peer-to-peer mortgage lender Landbay through its Seedrs fundraising campaign and Amicus Finance secured an asset-based lending facility from Royal Bank of Scotland (RBS) to support its new commercial finance arm.

Bridging lender Roma Finance also secured a significant three-year revolving credit facility and securitisation from RBS just weeks after the EU referendum result. The funding enabled Roma to lend up to a further £50m a year.

In the last quarter of the year, iwoca raised a £25m secured debt facility from a syndicate led by Shawbrook Bank to fund the development of its technology platform, while Ortus Secured Finance obtained an extra £20m of funding from investors, bringing its fund’s total lending capacity to £60m.

26 | NACFB Magazine

In the second quarter of the year, Mint Bridging entered into a joint venture with ex-West One CEO Mark Abrahams to launch specialist lender MB (Syndicates) Limited. The new lender focuses on high value first charge loans, low-risk development loans, second charge loans and commercial property, and aims to grow its loan book to over £100m.

Guernsey-based Special Opportunities Fund (Guernsey) LP sold its 5.51% stake in Shawbrook Bank in May, reducing its shareholding to 38.87%.

Freedom Finance acquired Sensible Home Finance in July, which was then rebranded to Freedom Mortgages, expanding the firm’s offering into the bridging and commercial markets.

Castle Trust Capital PLC also revealed it was to acquire Omni Capital Retail Finance, shortly after the lender gained FCA authorisation.

Platform Black was set to be renamed Sancus Finance Limited by the end of 2016 after securing further investment from its majority shareholder Sancus BMS Group.

During August, online challenger bank Mondo revealed its slightly refreshed name, Monzo, after opening up to suggestions from the general public, which attracted over 12,000 name ideas.

Dragonfly Property Finance changed its name to Octopus Property in Q4 of 2016 as the latest division of the Octopus Group, which acquired the short- and medium-term lender in late 2013.

Masthaven Finance rebranded to Masthaven Bank, which went live in late November, after being granted its retail banking licence seven months prior.

HM Revenue and Customs revealed that as of 26th October 2016, 17 firms had been authorised to manage Innovative Finance Isas, ranging from peer-topeer lending platforms, property crowdfunders and wealth managers.

As of 7th November 2016, the FCA revealed in a freedom of information request to Bridging & Commercial that no bridging lenders had applied for authorisation since Brexit. In contrast, 10 bridging lenders had applied for authorisation since November 2015.

Peer-to-peer lender Zopa announced its plans to launch a bank, stating it would be applying for a banking licence with the process expected to take 15-24 months.

Amicus Finance also submitted its banking licence application, while adding three new non-executive directors to the team in anticipation of the firm’s next big step.

Metro Bank also confirmed it would be launching a new asset finance platform, which it hopes will help support its aims to double its asset finance loan book over the next 12-18 months.

Adam Tyler stood down from the NACFB as chief executive after 11 years of service as of 31st December 2016. Rob Lankey joined the Association as interim CEO in November.

Mark Posniak, managing director, and Matt Smith, director of risk and recoveries, left specialist lender Octopus Property in November. Mark was promoted to managing director in September 2015 and had worked at the company for over eight years.

Beth Fisher Editor Medianett

NACFB Magazine | 27

Special | features An up-to-date insight into the industry

2016: A year of major change While 2016 could be described as the year the world turned upside down – politically, economically, poll-defiantly – the commercial finance industry also witnessed some considerable transformations.

Funding lines

Mergers and acquisitions

Rebrands

Regulation

Expansion

Team changes

In February, SME lender LDF secured a £51m facility from the British Business Bank to fund a portfolio of newly originated small business asset finance receivables.

In June, GLI Finance acquired the remaining shareholding of FundingKnight to become full owners of the peer-to-peer lender.

GLI committed £1m of further funding capital to help grow the business.

In May, Alpha Bridging rebranded to Kuflink Bridging, as well as launching a new peer-to-peer platform in which it guarantees to fund the first 20% of any deal.

Bridging lenders Borro and Kuflink received FCA authorisation during the year, whereby both lenders can now offer consumer buy-to-let products. Borro later gained authorisation for its luxury asset business.

Challenger Masthaven Bank launched its new development finance division at the same time as it entered the retail banking market in late November, offering loans of up to £2m.

In June, James Bloom departed from the privately-owned business Regentsmead after 29 years to oversee the new specialist development finance division at Masthaven Bank.

Peer-to-peer platform Lending Works received full authorisation from the FCA in October, following an almost yearlong review process after submitting its application back in October 2015. It was revealed by Medianett that three firms had withdrawn their applications for peer-to-peer lending since March 2016; however, no peer-to-peer lenders had their authorisation applications declined as of 29th September 2016.

During the same month, online SME lender Spotcap revealed it was expanding into the UK market after operating in Spain, the Netherlands and Australia.

Alan Margolis left United Trust Bank in October after heading up the bridging team for over six years.

A month later, tennis star Andy Murray invested in peer-to-peer mortgage lender Landbay through its Seedrs fundraising campaign and Amicus Finance secured an asset-based lending facility from Royal Bank of Scotland (RBS) to support its new commercial finance arm.

Bridging lender Roma Finance also secured a significant three-year revolving credit facility and securitisation from RBS just weeks after the EU referendum result. The funding enabled Roma to lend up to a further £50m a year.

In the last quarter of the year, iwoca raised a £25m secured debt facility from a syndicate led by Shawbrook Bank to fund the development of its technology platform, while Ortus Secured Finance obtained an extra £20m of funding from investors, bringing its fund’s total lending capacity to £60m.

26 | NACFB Magazine

In the second quarter of the year, Mint Bridging entered into a joint venture with ex-West One CEO Mark Abrahams to launch specialist lender MB (Syndicates) Limited. The new lender focuses on high value first charge loans, low-risk development loans, second charge loans and commercial property, and aims to grow its loan book to over £100m.

Guernsey-based Special Opportunities Fund (Guernsey) LP sold its 5.51% stake in Shawbrook Bank in May, reducing its shareholding to 38.87%.

Freedom Finance acquired Sensible Home Finance in July, which was then rebranded to Freedom Mortgages, expanding the firm’s offering into the bridging and commercial markets.

Castle Trust Capital PLC also revealed it was to acquire Omni Capital Retail Finance, shortly after the lender gained FCA authorisation.

Platform Black was set to be renamed Sancus Finance Limited by the end of 2016 after securing further investment from its majority shareholder Sancus BMS Group.

During August, online challenger bank Mondo revealed its slightly refreshed name, Monzo, after opening up to suggestions from the general public, which attracted over 12,000 name ideas.

Dragonfly Property Finance changed its name to Octopus Property in Q4 of 2016 as the latest division of the Octopus Group, which acquired the short- and medium-term lender in late 2013.

Masthaven Finance rebranded to Masthaven Bank, which went live in late November, after being granted its retail banking licence seven months prior.

HM Revenue and Customs revealed that as of 26th October 2016, 17 firms had been authorised to manage Innovative Finance Isas, ranging from peer-topeer lending platforms, property crowdfunders and wealth managers.

As of 7th November 2016, the FCA revealed in a freedom of information request to Bridging & Commercial that no bridging lenders had applied for authorisation since Brexit. In contrast, 10 bridging lenders had applied for authorisation since November 2015.

Peer-to-peer lender Zopa announced its plans to launch a bank, stating it would be applying for a banking licence with the process expected to take 15-24 months.

Amicus Finance also submitted its banking licence application, while adding three new non-executive directors to the team in anticipation of the firm’s next big step.

Metro Bank also confirmed it would be launching a new asset finance platform, which it hopes will help support its aims to double its asset finance loan book over the next 12-18 months.

Adam Tyler stood down from the NACFB as chief executive after 11 years of service as of 31st December 2016. Rob Lankey joined the Association as interim CEO in November.

Mark Posniak, managing director, and Matt Smith, director of risk and recoveries, left specialist lender Octopus Property in November. Mark was promoted to managing director in September 2015 and had worked at the company for over eight years.

Beth Fisher Editor Medianett

NACFB Magazine | 27

SPECIAL FEATURES

SPECIAL FEATURES

Letting agent fees banned: the industry responds Beth Fisher Editor Medianett

However, with a drop in costs associated with moving home, tenants can also gain more power if landlords increase the price of rent.

On 23rd November 2016, the chancellor of the exchequer Philip Hammond announced that tenants will no longer have to pay letting agent fees, sparking a divide in opinion within the buy-to-let sector.

Mr Hammond’s reasoning behind the ban was that he had seen unregulated fees charged to tenants spiral to hundreds of pounds.

“This is wrong. Landlords appoint letting agents and landlords should meet their fees.”

This means that if landlords think the fees from letting agents are too high, they are likely to shop around for cheaper offerings.

Since the announcement, a number of industry experts have predicted the fee ban could have a range of ramifications, including a possible rent hike.

28 | NACFB Magazine

How will the fee ban affect tenants?

In October 2016, the number of agents witnessing rent rises for tenants was at the lowest level since December 2015, according to the private rental sector report from the Association of Residential Letting Agents (ARLA).

Stephen Smith, director at Legal & General Housing Partnerships, believes the chancellor’s decision to clamp down on the “unjustifiable” fees charged by letting agents would be welcomed nationwide and will help tenants financially.

“Renters from every walk of life, be it students, young couples or professionals starting their careers will be relieved by Hammond’s decisive action,” Stephen said.

However, David Cox, managing director of the ARLA predicts the slowdown in tenant rent increases won’t last long after the fee ban.

“Just when rents were starting to stabilise, the chancellor has thrown the biggest curve ball, meaning that rents will unpreventably rise when the tax changes and letting fee ban come into effect.”

Russell Quirk, founder and CEO of eMoov. co.uk added: “A ban on tenancy referencing fees is great on the face of it, but the reality is that the agent will make their money regardless and this will be passed on to the

landlord and, in turn, the tenant through higher rents.

“We’ve seen the same thing happen in Scotland whereby the landlord must charge more to the tenant in rent to cover the increase charged by the agent – you would think the government would have known this.”

“The removal of these punitive fees will help to alleviate some of the financial pressures tenants have suffered while trying to find affordable, quality homes to rent.”

How will landlords be affected?

Islay Robinson, CEO of high-net-worth London mortgage brokerage firm Enness Private Clients, did not welcome the news, claiming it created a “false economy”.

“Not only will it deter investors from

entering the buy-to-let market, leading to a reduction in much-needed stock levels, but the tenant will be unlikely to benefit from this ‘saving’ in the long run.

“Would-be landlords have already been discouraged from entering the market, thanks to the extra 3% stamp duty incurred on buy-to-let properties and reduced tax allowances, and this is a move which further deters this type of investment.

“With home ownership still a key issue and unattainable by many, we should be encouraging this type of tenure, not attacking the market further.

“A more positive move would have been to regulate these fees, ensuring fairness across the board, rather than simply shifting the charge to landlords.”

While agreeing with the ban, Benson Hersch, CEO of the Association of Short Term Lenders, worried that landlords would be faced with higher costs.

“The banning of upfront fees by letting agents to tenants is well overdue – I just hope there will be no corresponding hike in fees for landlords as these are already too high and not value for money.”

Letting agents The share price of major letting agent Foxtons plunged from £1.23 to £1.06 on the day of Mr Hammond’s announcement.

Similarly, estate agency group Countrywide PLC’s share prices dropped from £2.06 on 22nd November to £1.93 on the day of the Autumn Statement. It then fell to £1.69 on 24th November.

Former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf said that letting agents, which added a lot to the tenant’s cost of renting, would suffer.

“The trouble is there are a few rogue agents who have been overcharging and as a result all agents will lose out financially.”

Mirroring these thoughts, Richard Price, executive director at the UK Association of Letting Agents (UKALA) said the problem of affordability in the private rented sector could not be addressed by preventing legitimate businesses from charging for their services.

“UKALA agents strive to provide a premium service which represents excellent value for money and this ban will place in jeopardy hundreds of professional businesses in order to deal with the few unscrupulous [ones].”

NACFB Magazine | 29

SPECIAL FEATURES

SPECIAL FEATURES

Letting agent fees banned: the industry responds Beth Fisher Editor Medianett

However, with a drop in costs associated with moving home, tenants can also gain more power if landlords increase the price of rent.

On 23rd November 2016, the chancellor of the exchequer Philip Hammond announced that tenants will no longer have to pay letting agent fees, sparking a divide in opinion within the buy-to-let sector.

Mr Hammond’s reasoning behind the ban was that he had seen unregulated fees charged to tenants spiral to hundreds of pounds.

“This is wrong. Landlords appoint letting agents and landlords should meet their fees.”

This means that if landlords think the fees from letting agents are too high, they are likely to shop around for cheaper offerings.

Since the announcement, a number of industry experts have predicted the fee ban could have a range of ramifications, including a possible rent hike.

28 | NACFB Magazine

How will the fee ban affect tenants?

In October 2016, the number of agents witnessing rent rises for tenants was at the lowest level since December 2015, according to the private rental sector report from the Association of Residential Letting Agents (ARLA).

Stephen Smith, director at Legal & General Housing Partnerships, believes the chancellor’s decision to clamp down on the “unjustifiable” fees charged by letting agents would be welcomed nationwide and will help tenants financially.

“Renters from every walk of life, be it students, young couples or professionals starting their careers will be relieved by Hammond’s decisive action,” Stephen said.

However, David Cox, managing director of the ARLA predicts the slowdown in tenant rent increases won’t last long after the fee ban.

“Just when rents were starting to stabilise, the chancellor has thrown the biggest curve ball, meaning that rents will unpreventably rise when the tax changes and letting fee ban come into effect.”

Russell Quirk, founder and CEO of eMoov. co.uk added: “A ban on tenancy referencing fees is great on the face of it, but the reality is that the agent will make their money regardless and this will be passed on to the

landlord and, in turn, the tenant through higher rents.

“We’ve seen the same thing happen in Scotland whereby the landlord must charge more to the tenant in rent to cover the increase charged by the agent – you would think the government would have known this.”

“The removal of these punitive fees will help to alleviate some of the financial pressures tenants have suffered while trying to find affordable, quality homes to rent.”

How will landlords be affected?

Islay Robinson, CEO of high-net-worth London mortgage brokerage firm Enness Private Clients, did not welcome the news, claiming it created a “false economy”.

“Not only will it deter investors from

entering the buy-to-let market, leading to a reduction in much-needed stock levels, but the tenant will be unlikely to benefit from this ‘saving’ in the long run.

“Would-be landlords have already been discouraged from entering the market, thanks to the extra 3% stamp duty incurred on buy-to-let properties and reduced tax allowances, and this is a move which further deters this type of investment.

“With home ownership still a key issue and unattainable by many, we should be encouraging this type of tenure, not attacking the market further.

“A more positive move would have been to regulate these fees, ensuring fairness across the board, rather than simply shifting the charge to landlords.”

While agreeing with the ban, Benson Hersch, CEO of the Association of Short Term Lenders, worried that landlords would be faced with higher costs.

“The banning of upfront fees by letting agents to tenants is well overdue – I just hope there will be no corresponding hike in fees for landlords as these are already too high and not value for money.”

Letting agents The share price of major letting agent Foxtons plunged from £1.23 to £1.06 on the day of Mr Hammond’s announcement.

Similarly, estate agency group Countrywide PLC’s share prices dropped from £2.06 on 22nd November to £1.93 on the day of the Autumn Statement. It then fell to £1.69 on 24th November.

Former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf said that letting agents, which added a lot to the tenant’s cost of renting, would suffer.

“The trouble is there are a few rogue agents who have been overcharging and as a result all agents will lose out financially.”

Mirroring these thoughts, Richard Price, executive director at the UK Association of Letting Agents (UKALA) said the problem of affordability in the private rented sector could not be addressed by preventing legitimate businesses from charging for their services.

“UKALA agents strive to provide a premium service which represents excellent value for money and this ban will place in jeopardy hundreds of professional businesses in order to deal with the few unscrupulous [ones].”

NACFB Magazine | 29

SPECIAL FEATURES

The new faces of Masthaven After being granted 2016’s first retail banking licence in April and formally launching as a bank in November, Masthaven is going from strength to strength – and fast. The human digital bank, guided by managing director Jon Hall, features a world-class leadership team and a unique commitment to personalised finance products.

The fast, flexible way to help grow your client’s business...

The BusinessPlus Prepaid MasterCard® Card from Just Cashflow gives your clients access to these great benefits...

✓ £25,000 pre-approved credit line* made accessible on The

Jon Hall Jon Hall, managing director Jon has led Masthaven Bank from idea to becoming a new UK retail bank in 2016.

Jon started his career with PwC, before joining Aviva and subsequently becoming CEO of Saffron Building Society. During his time at Saffron, the company won ‘Moneyfacts Best Service from a Mortgage Provider’ and was nominated twice for ‘Best Specialist Lender’ in the Mortgage Strategy Awards. It also became known for digital innovation and was voted second most digitally mature building society. Recently, Jon was selected as one of ‘The European Digital Financial Services Power 50’, a prestigious award for the most influential leaders within European financial services.

“Since having that early ‘imagine if we could really give individuals what they want from their bank’ conversation with Andrew [Bloom, founder and CEO], we’ve been driven to make this a reality!

Allowing customers to shape what they get from their bank has been our underpinning philosophy every day.

“From that initial idea to now having opened the digital doors to Masthaven Bank, it’s taken more than two years. Now is the most exciting time of all as we take what we’ve built into the world and hope it’s appreciated by the people that we’re most focused on – our future customers.

“We felt that blending human expertise and

James Bloom technology was something that customers were crying out for, and that the existing banks and new app-focused entrants were moving further and further away from this.

“Our customers, whether people investing their savings or intermediaries introducing prospective borrowers, will be the ones to decide whether those two years have been well spent and if we’ve achieved our goals of helping people save and borrow in ways that are better for them.”

BusinessPlus Card can be used to help with day-to-day cash flow ✓ ProtectPlus - a free Legal and Tax 24/7 helpline to help to protect their business ✓ EmploymentPlus - all the documents they need to comply with employment legislation

Just call us now

0121 418 5037 Alternatively, find out more

justcashflow.com/plus

James Bloom, managing director, development finance James joined Masthaven after 29 years at specialist development finance operator Regentsmead. During his tenure as chief executive, he created the shortterm lending department and grew the business to become one of the leading privately-owned development finance businesses in the market. James also sits on the executive board of Masthaven Bank and the credit committee.

“I joined Masthaven in July, after being at a niche specialist lender for 29 years.

It’s definitely a testament to the amazing business and team Masthaven have created that I was able to make the difficult decision to leave a company I had been at my whole working life.

“Why did I join Masthaven? For the amazing vision and exciting opportunity

MasterCard is a registered trademark of MasterCard International Incorporated. The Card is issued by Wirecard Card Solutions Ltd (“WDCS”) pursuant to license by MasterCard International Inc. WDCS is authorized by the Financial Conduct Authority to conduct electronic money service activities under the Electronic Money Regulations2011 (Ref: 900051).

All transfers of funds are processed by Intercash partner banks using the approved Intercash “PrepaidGate” technology.

The pre-approved limit made accessible on the BusinessPlus Card from Just Cashflow is available to UK limited companies, subject to status at time of application. *The maximum daily amount that can be loaded on to the card on a daily basis is £5000 Just Cash Flow PLC is registered at 1 Charterhouse Mews, Farringdon, London EC1M 6BB under Company number 08508165

30 | NACFB Magazine

JCF10329 | © Just Cash Flow PLC 2015

SPECIAL FEATURES

The new faces of Masthaven After being granted 2016’s first retail banking licence in April and formally launching as a bank in November, Masthaven is going from strength to strength – and fast. The human digital bank, guided by managing director Jon Hall, features a world-class leadership team and a unique commitment to personalised finance products.

The fast, flexible way to help grow your client’s business...

The BusinessPlus Prepaid MasterCard® Card from Just Cashflow gives your clients access to these great benefits...

✓ £25,000 pre-approved credit line* made accessible on The

Jon Hall Jon Hall, managing director Jon has led Masthaven Bank from idea to becoming a new UK retail bank in 2016.

Jon started his career with PwC, before joining Aviva and subsequently becoming CEO of Saffron Building Society. During his time at Saffron, the company won ‘Moneyfacts Best Service from a Mortgage Provider’ and was nominated twice for ‘Best Specialist Lender’ in the Mortgage Strategy Awards. It also became known for digital innovation and was voted second most digitally mature building society. Recently, Jon was selected as one of ‘The European Digital Financial Services Power 50’, a prestigious award for the most influential leaders within European financial services.

“Since having that early ‘imagine if we could really give individuals what they want from their bank’ conversation with Andrew [Bloom, founder and CEO], we’ve been driven to make this a reality!

Allowing customers to shape what they get from their bank has been our underpinning philosophy every day.

“From that initial idea to now having opened the digital doors to Masthaven Bank, it’s taken more than two years. Now is the most exciting time of all as we take what we’ve built into the world and hope it’s appreciated by the people that we’re most focused on – our future customers.

“We felt that blending human expertise and

James Bloom technology was something that customers were crying out for, and that the existing banks and new app-focused entrants were moving further and further away from this.

“Our customers, whether people investing their savings or intermediaries introducing prospective borrowers, will be the ones to decide whether those two years have been well spent and if we’ve achieved our goals of helping people save and borrow in ways that are better for them.”

BusinessPlus Card can be used to help with day-to-day cash flow ✓ ProtectPlus - a free Legal and Tax 24/7 helpline to help to protect their business ✓ EmploymentPlus - all the documents they need to comply with employment legislation

Just call us now

0121 418 5037 Alternatively, find out more

justcashflow.com/plus

James Bloom, managing director, development finance James joined Masthaven after 29 years at specialist development finance operator Regentsmead. During his tenure as chief executive, he created the shortterm lending department and grew the business to become one of the leading privately-owned development finance businesses in the market. James also sits on the executive board of Masthaven Bank and the credit committee.

“I joined Masthaven in July, after being at a niche specialist lender for 29 years.

It’s definitely a testament to the amazing business and team Masthaven have created that I was able to make the difficult decision to leave a company I had been at my whole working life.

“Why did I join Masthaven? For the amazing vision and exciting opportunity

MasterCard is a registered trademark of MasterCard International Incorporated. The Card is issued by Wirecard Card Solutions Ltd (“WDCS”) pursuant to license by MasterCard International Inc. WDCS is authorized by the Financial Conduct Authority to conduct electronic money service activities under the Electronic Money Regulations2011 (Ref: 900051).

All transfers of funds are processed by Intercash partner banks using the approved Intercash “PrepaidGate” technology.

The pre-approved limit made accessible on the BusinessPlus Card from Just Cashflow is available to UK limited companies, subject to status at time of application. *The maximum daily amount that can be loaded on to the card on a daily basis is £5000 Just Cash Flow PLC is registered at 1 Charterhouse Mews, Farringdon, London EC1M 6BB under Company number 08508165

30 | NACFB Magazine

JCF10329 | © Just Cash Flow PLC 2015

SPECIAL FEATURES

FUNDERS

FRANCHISING I bloody love AFS! My husband comments so often, “They must be good, ‘cos you never moan about them!”

Kathryn Dimmack

Richard Deacon

Jon Sturgess

to build and launch a human digital bank, able to lend competitively in both the short- and long-term markets. There is amazing talent here, and many of the team have been together for a long time.

“Being a challenger bank has been a dream for many years and now that this dream has become reality, myself and the rest of the sales team firmly believe that we are well positioned to gain real market share.”

“My main role, other than being on the leadership team and credit committee, is to build on the existing, highly successful development finance division of the business. To that aim we have launched a new product to coincide with the launch, and we are building a specialist development underwriting team to work alongside the two excellent shortterm underwriting teams we have.

Jon Sturgess, head of sales Jon joined Masthaven in early 2015 as head of sales, and is responsible for the growth of new business for first and second charge residential and BTL mortgages for the company, as well as looking after key introducer accounts. In the industry for over 20 years, he previously worked as head of sales at Magellan Homeloans and sales leader for GE Money.

“There will be constant innovation with new products in 2017 and beyond to take into account all parts of the business. These are very exciting times for Masthaven and for all of the people who partner with us, whether they are clients, introducers or providers.”

“My role is to lead the long-term mortgage proposition for Masthaven Bank in both residential and buy-to-let first and second charge mortgages.

Richard Deacon, sales director Richard Deacon is sales director for Masthaven Bank, having worked at the company for over eight years, specialising in short-term bridging finance. Richard has been in the financial industry for more than 20 years, previously working as branch manager at HFC Bank and Welcome Finance, as well as national account manager for Personal Touch Packaging.

“I have been in financial services for over 20 years and experienced many different aspects, including retail banking, mortgage packaging, servicing and collections as well as secured and unsecured lending in branch management.

“I have been with Masthaven for eight years and throughout that time I have seen the company grow exponentially. I oversee a team of internal and external development managers who are the glue that binds the sales operation together.

32 | NACFB Magazine

“Our vision is to offer a wide range of innovative non-credit scored products to intermediaries whose customers are not traditionally served by mainstream lenders, or who have either complex financial circumstances or are not supported by a credit-scoring lender.

“Our approach is to bring a serviceled, expert, manually underwritten, ‘different doesn’t mean risky’ philosophy into the mortgage market.

“Masthaven has demonstrated for years that its approach to speed of response, flexibility and surety of a ‘yes’ will bring something fresh to the mortgage market.

“Product innovation is key to ensuring we meet customer needs, with products that fit their requirements and are competitively priced.”

Ruth Smith

Joined 2014

previously held senior positions at Nationwide and Barclays Direct during her successful career. Ruth has many years of invaluable experience in every aspect of customer service and brings a passion to Masthaven for delivering the perfect experience to every customer at every touchpoint.

“As head of customer services, my role is to ensure that we provide our customers with the highest level of customer service, ensure that each customer is treated as an individual, and provide a great experience.

“We have a highly trained specialist savings team who will make a call or send a personal email so that our customers see that while we are a digital bank, the service is provided by humans and not an automated response.

“I see excellent customer service as a service that treats customers with a professional and friendly attitude. We take our time to understand the needs of our customers, and we will always seek clarification where required so that we provide the right answer the first time around.

“My vision is that Masthaven Bank is a bank with a difference, not only for our products but our promise to deliver the best in customer service and experience, and exceed expectations.”

BE PART OF THE FAMILY Since establishing our franchise network model in 2005 it has successfully grown to be one of the largest independent broker networks in the UK. The experience built up over that time means we can provide finance brokers with their optimum working environment.

We have the longest established network, with over a decade of distinction and camaraderie.

Enjoy industry leading terms with full commission transparency.

We satisfy more clients by drawing on the experience.

We have direct access to an unrivalled panel of funders.

We facilitate FCA compliant businesses.

You can retain your independence – including keeping your existing trading name.

For more information, visit www.masthaven.co.uk

Justin Ford on 07740 095701 or email justin.ford@afsuk.com

Ruth Smith, head of customer services – savings Ruth joined Masthaven Bank having

Asset Finance Solutions (UK) Ltd is an Appointed Representatives of AFS Compliance Limited, which is Authorised and Regulated by the Finance Conduct Authority, firm number 625035

SPECIAL FEATURES

FUNDERS

FRANCHISING I bloody love AFS! My husband comments so often, “They must be good, ‘cos you never moan about them!”

Kathryn Dimmack

Richard Deacon

Jon Sturgess

to build and launch a human digital bank, able to lend competitively in both the short- and long-term markets. There is amazing talent here, and many of the team have been together for a long time.

“Being a challenger bank has been a dream for many years and now that this dream has become reality, myself and the rest of the sales team firmly believe that we are well positioned to gain real market share.”

“My main role, other than being on the leadership team and credit committee, is to build on the existing, highly successful development finance division of the business. To that aim we have launched a new product to coincide with the launch, and we are building a specialist development underwriting team to work alongside the two excellent shortterm underwriting teams we have.

Jon Sturgess, head of sales Jon joined Masthaven in early 2015 as head of sales, and is responsible for the growth of new business for first and second charge residential and BTL mortgages for the company, as well as looking after key introducer accounts. In the industry for over 20 years, he previously worked as head of sales at Magellan Homeloans and sales leader for GE Money.

“There will be constant innovation with new products in 2017 and beyond to take into account all parts of the business. These are very exciting times for Masthaven and for all of the people who partner with us, whether they are clients, introducers or providers.”

“My role is to lead the long-term mortgage proposition for Masthaven Bank in both residential and buy-to-let first and second charge mortgages.

Richard Deacon, sales director Richard Deacon is sales director for Masthaven Bank, having worked at the company for over eight years, specialising in short-term bridging finance. Richard has been in the financial industry for more than 20 years, previously working as branch manager at HFC Bank and Welcome Finance, as well as national account manager for Personal Touch Packaging.

“I have been in financial services for over 20 years and experienced many different aspects, including retail banking, mortgage packaging, servicing and collections as well as secured and unsecured lending in branch management.

“I have been with Masthaven for eight years and throughout that time I have seen the company grow exponentially. I oversee a team of internal and external development managers who are the glue that binds the sales operation together.

32 | NACFB Magazine

“Our vision is to offer a wide range of innovative non-credit scored products to intermediaries whose customers are not traditionally served by mainstream lenders, or who have either complex financial circumstances or are not supported by a credit-scoring lender.

“Our approach is to bring a serviceled, expert, manually underwritten, ‘different doesn’t mean risky’ philosophy into the mortgage market.

“Masthaven has demonstrated for years that its approach to speed of response, flexibility and surety of a ‘yes’ will bring something fresh to the mortgage market.

“Product innovation is key to ensuring we meet customer needs, with products that fit their requirements and are competitively priced.”

Ruth Smith

Joined 2014

previously held senior positions at Nationwide and Barclays Direct during her successful career. Ruth has many years of invaluable experience in every aspect of customer service and brings a passion to Masthaven for delivering the perfect experience to every customer at every touchpoint.

“As head of customer services, my role is to ensure that we provide our customers with the highest level of customer service, ensure that each customer is treated as an individual, and provide a great experience.

“We have a highly trained specialist savings team who will make a call or send a personal email so that our customers see that while we are a digital bank, the service is provided by humans and not an automated response.

“I see excellent customer service as a service that treats customers with a professional and friendly attitude. We take our time to understand the needs of our customers, and we will always seek clarification where required so that we provide the right answer the first time around.

“My vision is that Masthaven Bank is a bank with a difference, not only for our products but our promise to deliver the best in customer service and experience, and exceed expectations.”

BE PART OF THE FAMILY Since establishing our franchise network model in 2005 it has successfully grown to be one of the largest independent broker networks in the UK. The experience built up over that time means we can provide finance brokers with their optimum working environment.

We have the longest established network, with over a decade of distinction and camaraderie.

Enjoy industry leading terms with full commission transparency.

We satisfy more clients by drawing on the experience.

We have direct access to an unrivalled panel of funders.

We facilitate FCA compliant businesses.

You can retain your independence – including keeping your existing trading name.

For more information, visit www.masthaven.co.uk

Justin Ford on 07740 095701 or email justin.ford@afsuk.com

Ruth Smith, head of customer services – savings Ruth joined Masthaven Bank having

Asset Finance Solutions (UK) Ltd is an Appointed Representatives of AFS Compliance Limited, which is Authorised and Regulated by the Finance Conduct Authority, firm number 625035

SPECIAL FEATURES

Developers reveal concerns for 2017 80% Ashley Ilsen Head of lending and CMO Regentsmead

The last year has proved that it’s almost impossible to predict where our economy is heading. Many experts have now put anticipated inflation at 4% for the second half of 2017, which will inevitably impact builders and developers around the country.

What are your biggest concerns for 2017?

70%

Business-boosting loans up to £500,000 Fixed rate loans with no set up fees or early repayment charges

60% 50% 40%

Security may be required. Product fees may apply.

Over 18s only. Business turnover of up to £2 million.

Excludes refinance and Commercial Real Estate Finance.

30% 20% 10% 0 Access to finance

Quality of labour

Cost of labour

One of the most common complaints we see from our clients is the lack of quality bricks and blocks, and the lead-in time to ensure supplies are on site. For a successful development, timing is everything. However, this will only go so far, especially if the basic costs of a development are slowly growing.

In a recent Regentsmead poll among our clients, we asked our builders and developers to rate their foremost ‘on-site’ concerns for 2017 out of 10. Interestingly the cost of labour came out as a relatively low concern; however, an ability to source goodquality labour was more prominent. Rising costs of sourcing materials and supplies was consistently cited as the number one issue for our clients, with many saying that if inflation was to kick in at the forecasted rate, these would start to make a lot of their previous schemes unviable.

Who is most affected?

The biggest loser in all of this is likely to be the end consumer and those seeking to buy affordable homes. Developers are inclined, if they can, to pass the additional cost on to purchasers and if the market is rising steadily throughout the course of the project, then this should, in theory, absorb all the extra cost that inflation will bring about. If 2017 is a slow year in terms of property price growth, then SME developers will certainly feel the strain. Our developers that focus on building high-end properties have often looked to source higher-end supplies from all corners of the world and this is where we are seeing the biggest pinch on profitability, with developers having to come up with different ideas to add those extra luxury touches to

Cost of supplies

Land

Planning

Other

their end products.

The other side of the coin is the macroeconomic concerns that appeared in 2016. Inflation is expected to increase and if this continues, we may well see interest rates start to creep up next year. This will, of course, have major reverberations throughout the economy and may well impact property prices. There are, of course, the concerns that Brexit may or may not cause for our economy, added to pre-existing apprehensions in the eurozone, which will no doubt make a return in 2017 and don’t seem to be dissipating any time soon.

During the last recession, property developers were among some of the worst hit professions with many losing or having to mothball schemes. Since then, there has been an uphill battle featuring a range of problems from finance to planning and everything in between. It’s the nature of property development to be extremely sensitive to outside economics factors, and increased inflation is yet another challenge that developers will continue to come up against. The bottom line is that we have a severe shortage of not just affordable but good-quality housing in this country and rain or shine we will need to get them built.

The impetus from the government over the last 20 years seems to have shifted from SME builders and developers to major housebuilders, but it’s the SMEs that will be plugging the gap, so it seems unfair that they are always the worst hit, should we see a negative change in economic conditions.

Email us at brokerteam@natwest.com ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.

34 | NACFB Magazine

SPECIAL FEATURES

Developers reveal concerns for 2017 80% Ashley Ilsen Head of lending and CMO Regentsmead

The last year has proved that it’s almost impossible to predict where our economy is heading. Many experts have now put anticipated inflation at 4% for the second half of 2017, which will inevitably impact builders and developers around the country.

What are your biggest concerns for 2017?

70%

Business-boosting loans up to £500,000 Fixed rate loans with no set up fees or early repayment charges

60% 50% 40%

Security may be required. Product fees may apply.

Over 18s only. Business turnover of up to £2 million.

Excludes refinance and Commercial Real Estate Finance.

30% 20% 10% 0 Access to finance

Quality of labour

Cost of labour

One of the most common complaints we see from our clients is the lack of quality bricks and blocks, and the lead-in time to ensure supplies are on site. For a successful development, timing is everything. However, this will only go so far, especially if the basic costs of a development are slowly growing.

In a recent Regentsmead poll among our clients, we asked our builders and developers to rate their foremost ‘on-site’ concerns for 2017 out of 10. Interestingly the cost of labour came out as a relatively low concern; however, an ability to source goodquality labour was more prominent. Rising costs of sourcing materials and supplies was consistently cited as the number one issue for our clients, with many saying that if inflation was to kick in at the forecasted rate, these would start to make a lot of their previous schemes unviable.

Who is most affected?

The biggest loser in all of this is likely to be the end consumer and those seeking to buy affordable homes. Developers are inclined, if they can, to pass the additional cost on to purchasers and if the market is rising steadily throughout the course of the project, then this should, in theory, absorb all the extra cost that inflation will bring about. If 2017 is a slow year in terms of property price growth, then SME developers will certainly feel the strain. Our developers that focus on building high-end properties have often looked to source higher-end supplies from all corners of the world and this is where we are seeing the biggest pinch on profitability, with developers having to come up with different ideas to add those extra luxury touches to

Cost of supplies

Land

Planning

Other

their end products.

The other side of the coin is the macroeconomic concerns that appeared in 2016. Inflation is expected to increase and if this continues, we may well see interest rates start to creep up next year. This will, of course, have major reverberations throughout the economy and may well impact property prices. There are, of course, the concerns that Brexit may or may not cause for our economy, added to pre-existing apprehensions in the eurozone, which will no doubt make a return in 2017 and don’t seem to be dissipating any time soon.

During the last recession, property developers were among some of the worst hit professions with many losing or having to mothball schemes. Since then, there has been an uphill battle featuring a range of problems from finance to planning and everything in between. It’s the nature of property development to be extremely sensitive to outside economics factors, and increased inflation is yet another challenge that developers will continue to come up against. The bottom line is that we have a severe shortage of not just affordable but good-quality housing in this country and rain or shine we will need to get them built.

The impetus from the government over the last 20 years seems to have shifted from SME builders and developers to major housebuilders, but it’s the SMEs that will be plugging the gap, so it seems unfair that they are always the worst hit, should we see a negative change in economic conditions.

Email us at brokerteam@natwest.com ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.

34 | NACFB Magazine

Individual underwriting for individual portfolios

Industry | guides Enhancing your sector knowledge

Getting the most out of fintech in 2017

Streamline There are lessons to be learned from the emergence of digital brokers, and the frenzied talk of robo-advice too. Two online brokers have launched in the past year – Habito and Trussle – emphasising how their enhanced use of technology means they can streamline the mortgage process and deliver a more satisfying experience to borrowers.

Matthew Tooth Chief commercial officer LendInvest There was a time when a mortgage intermediary was expected to be on top of all product developments from every lender in the land, a walking – and constantly updating – encyclopaedia of interest rates, loan-to-values and lending criteria. The introduction of sourcing systems has lightened that load somewhat, at least in the mainstream mortgage market. But it’s only in the last few years that we have seen the emergence of sourcing systems specifically designed to help brokers navigate the specialist lending landscape start to get real traction.

It’s a development that has been a long time coming. It’s also an excellent example of the sort of sensible, targeted financial technology – or fintech – that can make life easier for brokers, and help them deliver a more satisfying experience to their clients.

Speeding things up The process of getting a mortgage, whether it’s for a traditional residential purchase or for an investment property, is a long and fragmented one. Researching products, getting advice, checking how much you can afford to borrow, applying for the mortgage, the legal process, valuing the property and then finally receiving the cash, with plenty of other intricate steps in between.

What’s more, it’s a very old-fashioned process with technology too often an afterthought. But it doesn’t need to be this fragmented. Technology can do far more in terms of taking over some of the time-heavy administrative tasks that fall to would-be borrowers, as well as bringing those disparate steps of the process closer together, seamlessly

36 | NACFB Magazine

But the reality is that if you are a finance business and you aren’t using technology to improve the efficiency of your business, then you’re at a huge strategic disadvantage. Technology isn’t going away.

linking all parties involved.

While other areas of financial services have jumped at the chance to incorporate technology, the mortgage industry has rather lagged behind.

Mortgage firms have been far more reticent to embrace technology, compared with other areas of the finance world which have immediately seen the benefits a more technologyenabled process can deliver. They have been faced with the stark choice of innovating or falling behind.

Mortgage firms have been far more reticent to embrace technology, compared with other areas of the finance world

Some industry figures have been quick to label them robo-advisers, though in truth they retain a significant human involvement in the advice process. They have spoken openly about the fact that a lot of a traditional mortgage adviser’s time is spent on “loss-making” tasks, such as producing key facts illustrations, going over the fact find and performing identity checks. But making use of technology to take over those time-heavy tasks has allowed their brokers to focus on actually giving advice.

This is the approach that LendInvest has long advocated. There is no magical algorithm for writing a mortgage – the role of technology, from our perspective, is to help underwriters make the crucial final decisions on a mortgage, not replace them. It means they can devote their energies and expertise to the aspects of the lending process that most require them.

For senior management at larger broker firms, making the most of fintech does not mean becoming a slave to technology. It means looking at how it can be utilised to get the most out of your advisers, and working with lenders who adopt a similar stance. In the future, everyone will expect technology to improve their experiences in life. The mortgage market cannot expect to remain an exception.

Visit aldermore.co.uk/btlhub FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: 204503). Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662. ARM215-816-400258

Individual underwriting for individual portfolios

Industry | guides Enhancing your sector knowledge

Getting the most out of fintech in 2017

Streamline There are lessons to be learned from the emergence of digital brokers, and the frenzied talk of robo-advice too. Two online brokers have launched in the past year – Habito and Trussle – emphasising how their enhanced use of technology means they can streamline the mortgage process and deliver a more satisfying experience to borrowers.

Matthew Tooth Chief commercial officer LendInvest There was a time when a mortgage intermediary was expected to be on top of all product developments from every lender in the land, a walking – and constantly updating – encyclopaedia of interest rates, loan-to-values and lending criteria. The introduction of sourcing systems has lightened that load somewhat, at least in the mainstream mortgage market. But it’s only in the last few years that we have seen the emergence of sourcing systems specifically designed to help brokers navigate the specialist lending landscape start to get real traction.

It’s a development that has been a long time coming. It’s also an excellent example of the sort of sensible, targeted financial technology – or fintech – that can make life easier for brokers, and help them deliver a more satisfying experience to their clients.

Speeding things up The process of getting a mortgage, whether it’s for a traditional residential purchase or for an investment property, is a long and fragmented one. Researching products, getting advice, checking how much you can afford to borrow, applying for the mortgage, the legal process, valuing the property and then finally receiving the cash, with plenty of other intricate steps in between.

What’s more, it’s a very old-fashioned process with technology too often an afterthought. But it doesn’t need to be this fragmented. Technology can do far more in terms of taking over some of the time-heavy administrative tasks that fall to would-be borrowers, as well as bringing those disparate steps of the process closer together, seamlessly

36 | NACFB Magazine

But the reality is that if you are a finance business and you aren’t using technology to improve the efficiency of your business, then you’re at a huge strategic disadvantage. Technology isn’t going away.

linking all parties involved.

While other areas of financial services have jumped at the chance to incorporate technology, the mortgage industry has rather lagged behind.

Mortgage firms have been far more reticent to embrace technology, compared with other areas of the finance world which have immediately seen the benefits a more technologyenabled process can deliver. They have been faced with the stark choice of innovating or falling behind.

Mortgage firms have been far more reticent to embrace technology, compared with other areas of the finance world

Some industry figures have been quick to label them robo-advisers, though in truth they retain a significant human involvement in the advice process. They have spoken openly about the fact that a lot of a traditional mortgage adviser’s time is spent on “loss-making” tasks, such as producing key facts illustrations, going over the fact find and performing identity checks. But making use of technology to take over those time-heavy tasks has allowed their brokers to focus on actually giving advice.

This is the approach that LendInvest has long advocated. There is no magical algorithm for writing a mortgage – the role of technology, from our perspective, is to help underwriters make the crucial final decisions on a mortgage, not replace them. It means they can devote their energies and expertise to the aspects of the lending process that most require them.

For senior management at larger broker firms, making the most of fintech does not mean becoming a slave to technology. It means looking at how it can be utilised to get the most out of your advisers, and working with lenders who adopt a similar stance. In the future, everyone will expect technology to improve their experiences in life. The mortgage market cannot expect to remain an exception.

Visit aldermore.co.uk/btlhub FOR INTERMEDIARY USE ONLY Aldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. (Financial Services Register number: 204503). Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662. ARM215-816-400258

GUIDES

Looking for value in a bridging lender Jo Edwards Business development director United Trust Bank

There’s no doubt that the bridging market is in good shape with a variety of lenders and a healthy degree of competition.

This, coupled with the exceptionally low Bank of England base rate, means that the cost of a short-term bridging loan has probably never been lower. With the difference between lender rates often just a fraction of a percentage point, there are more factors at play than simply getting the deal with the lowest price. Getting out and talking to brokers in their offices and at various roadshows, and looking at the responses to our broker surveys, it’s clear that most brokers are considering where to place their cases based on the overall value of what the lender provides rather than just the rate. And it’s a strategy which is helping them to meet or exceed their customers’ expectations and give them more time to manage and grow their businesses.

Is cheapest best?

Few of us look purely for the cheapest option when buying a product or a service. In fact, according to one of our recent polls, just 3% of brokers always go for the cheapest when they’re buying goods or services for themselves and I would suspect a similar number of people working for lenders would say likewise. Interestingly, a much higher percentage of brokers, one in five in fact, said that their customers just wanted the cheapest deal when arranging finance. So, are brokers and their customers so very different?

38 | NACFB Magazine

I don’t think they are. We know that the customer sees the broker as the person they’re buying from, rather than the lender. As such, the broker adds value by assuring the customer that they can leave everything to them and the process will be stress-free and take up the minimum amount of their time. For some customers, getting the cheapest deal is a given, because for many, that’s their perception of what brokers do. They find you the cheapest deal. Actually, it’s not that hard to find the cheapest deal, and if that’s all a customer gets from the broker relationship, then they’re probably being sold short. A good broker will find their client the best deal for their needs at the most reasonable price. In effect, they will find them the best value deal, and customers need to acknowledge that it’s rarely going to be the cheapest.

Speed and certainty So, what are the key factors aside from rates which drive a broker to select one lender over another?

Flexibility, knowledgeable staff and great communication are all important. However, considerations which have moved to the fore more recently are the speed of the initial decision and the surety of funds, both in a lender’s willingness to lend and in actually having the funds ready to drawdown when required.

The feedback we have had from some brokers is that since the Brexit referendum, it has become harder to judge which cases will now be approved and then seen through by certain lenders. They say that from many lenders there’s a lack of consistency, which translates to slow initial decisions, proposals being turned down which would previously have been accepted, and, most frustratingly, it’s also now more likely that some lenders will look to move the goalposts should something even fairly minor crop up during underwriting. More than half of the brokers who took part in our last

survey said that around a quarter of the transactions they started, but which did not complete, were caused by lenders’ actions, inactions or demands.

Quick answers A quick initial decision is vital in cementing the broker’s relationship with their client. A broker wants to be able to go back to them promptly to give them the assurance that the funds will be available for their purchase or for a business deal to go ahead. Equally important to a broker is a swift ‘no’, which enables them to quickly refocus their efforts elsewhere or consider a different approach to finding a funding solution. Delays and inconsistencies caused by the lender can translate into cases taking longer, or in the worst examples, falling through.

When choosing a lender, of course the first consideration is always whether they can meet the customers’ requirements. If there’s a tick in that box, the next question brokers should ask themselves is whether the lender is going to help them to develop their business or is more likely to erode it. The value a lender can offer a broker is driven by making quick initial decisions, consistency in its underwriting and reliability in delivery. When these elements are coupled with competitive pricing, you have a winning combination for the customer, the broker and the lender.

GUIDES

Looking for value in a bridging lender Jo Edwards Business development director United Trust Bank

There’s no doubt that the bridging market is in good shape with a variety of lenders and a healthy degree of competition.

This, coupled with the exceptionally low Bank of England base rate, means that the cost of a short-term bridging loan has probably never been lower. With the difference between lender rates often just a fraction of a percentage point, there are more factors at play than simply getting the deal with the lowest price. Getting out and talking to brokers in their offices and at various roadshows, and looking at the responses to our broker surveys, it’s clear that most brokers are considering where to place their cases based on the overall value of what the lender provides rather than just the rate. And it’s a strategy which is helping them to meet or exceed their customers’ expectations and give them more time to manage and grow their businesses.

Is cheapest best?

Few of us look purely for the cheapest option when buying a product or a service. In fact, according to one of our recent polls, just 3% of brokers always go for the cheapest when they’re buying goods or services for themselves and I would suspect a similar number of people working for lenders would say likewise. Interestingly, a much higher percentage of brokers, one in five in fact, said that their customers just wanted the cheapest deal when arranging finance. So, are brokers and their customers so very different?

38 | NACFB Magazine

I don’t think they are. We know that the customer sees the broker as the person they’re buying from, rather than the lender. As such, the broker adds value by assuring the customer that they can leave everything to them and the process will be stress-free and take up the minimum amount of their time. For some customers, getting the cheapest deal is a given, because for many, that’s their perception of what brokers do. They find you the cheapest deal. Actually, it’s not that hard to find the cheapest deal, and if that’s all a customer gets from the broker relationship, then they’re probably being sold short. A good broker will find their client the best deal for their needs at the most reasonable price. In effect, they will find them the best value deal, and customers need to acknowledge that it’s rarely going to be the cheapest.

Speed and certainty So, what are the key factors aside from rates which drive a broker to select one lender over another?

Flexibility, knowledgeable staff and great communication are all important. However, considerations which have moved to the fore more recently are the speed of the initial decision and the surety of funds, both in a lender’s willingness to lend and in actually having the funds ready to drawdown when required.

The feedback we have had from some brokers is that since the Brexit referendum, it has become harder to judge which cases will now be approved and then seen through by certain lenders. They say that from many lenders there’s a lack of consistency, which translates to slow initial decisions, proposals being turned down which would previously have been accepted, and, most frustratingly, it’s also now more likely that some lenders will look to move the goalposts should something even fairly minor crop up during underwriting. More than half of the brokers who took part in our last

survey said that around a quarter of the transactions they started, but which did not complete, were caused by lenders’ actions, inactions or demands.

Quick answers A quick initial decision is vital in cementing the broker’s relationship with their client. A broker wants to be able to go back to them promptly to give them the assurance that the funds will be available for their purchase or for a business deal to go ahead. Equally important to a broker is a swift ‘no’, which enables them to quickly refocus their efforts elsewhere or consider a different approach to finding a funding solution. Delays and inconsistencies caused by the lender can translate into cases taking longer, or in the worst examples, falling through.

When choosing a lender, of course the first consideration is always whether they can meet the customers’ requirements. If there’s a tick in that box, the next question brokers should ask themselves is whether the lender is going to help them to develop their business or is more likely to erode it. The value a lender can offer a broker is driven by making quick initial decisions, consistency in its underwriting and reliability in delivery. When these elements are coupled with competitive pricing, you have a winning combination for the customer, the broker and the lender.

Opinion | & commentary Thought leadership from our patrons and members

Discovering the untapped potential of asset finance in the new year Philip Knight Credit & risk director Asset Advantage

“Bah,” said Scrooge, “humbug!” Now that all the Christmas and New Year nonsense is over and done with, it’s time to get to grips with what 2017 is going to throw at us.

Philip Knight, credit and risk director at Asset Advantage, rips down the decorations, folds up the Christmas stocking and consults the crystal ball he found in a cracker.

OK, so here’s my one-word summary of how 2017 is going to pan out: challenging. The slightly longer version is: extremely challenging.

Prediction one To begin with, I think that the next few years are going to be impacted by low investment, which means less buying of equipment. All the basics are in place. Weak business confidence; profits impacted by the rising cost of imports; a challenging export market with Europe still struggling; and the USA getting to grips with a new president, and some areas of spare capacity in the economy (eg London office space). And, of course, overlaying all of that is Brexit, which – even if it produces long-term benefits for the economy – is more than likely going to cause some short-term pain.

Prediction two On the subject of overcapacity, I suspect that the chilly winds of bad debt are going to cause some lenders to catch a bit of a cold during the next year. I’m on record as saying that the SME crowdfunding market will not maintain its current momentum, but I don’t think they are the only ones who are going to struggle. The contraction might not be as great as in 2008/09, but perhaps not every funder that starts this year will finish it. The past couple of years have seen a huge increase in the number of funders, whether they be new start lenders, hybrid broker lenders or crowdfunders. The pursuit of new business invariably results in narrowing margins and compromising credit covenants and this, sure as the port followed the mince pies, leads to problems.

Prediction three My final observation is to acknowledge what the crowdfunders have been extraordinarily good at promoting: alternative finance.

I therefore will not be surprised if one or more tier 1 lenders take a long, hard look at their business model, and consider disintermediating brokers and going direct to borrowers.

Well, that’s all a bit gloomy. But I’m not unhappy. I’m Scrooge: “I am as light as a feather, I am as happy as an angel, I am as merry as a schoolboy. I am as giddy as a drunken man.”

The great thing about uncertainty in the economy is the opportunities it provides for the hard workers and the clever thinkers.

Problems in the macro environment give all of us operating in the micro environment the chance to leverage our skills. Further retrenchment by mainstream funding sources will inevitably offer opportunities for brokers and independent funders alike. The market we operate in has huge untapped potential, we just need to go out and grab it.

“A happy New Year to all the world! Hallo here! Whoop! Hallo!”

ALTERNATIVE FINANCE CATERED FOR YOU sset d anta e is an a ard innin pri ately o ned spe ialisin in pro idin asset nan e and loans to t e ia a pre iu panel of introdu ers

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ore about oinin our sele t panel of introdu ers and our a ard nan e solutions please all ra y illso on

01256 316 200 or isit our

ebsite on

www.assetadvantage.co.uk Efficient Finance is our Advantage ird loor

40 | NACFB Magazine

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Opinion | & commentary Thought leadership from our patrons and members

Discovering the untapped potential of asset finance in the new year Philip Knight Credit & risk director Asset Advantage

“Bah,” said Scrooge, “humbug!” Now that all the Christmas and New Year nonsense is over and done with, it’s time to get to grips with what 2017 is going to throw at us.

Philip Knight, credit and risk director at Asset Advantage, rips down the decorations, folds up the Christmas stocking and consults the crystal ball he found in a cracker.

OK, so here’s my one-word summary of how 2017 is going to pan out: challenging. The slightly longer version is: extremely challenging.

Prediction one To begin with, I think that the next few years are going to be impacted by low investment, which means less buying of equipment. All the basics are in place. Weak business confidence; profits impacted by the rising cost of imports; a challenging export market with Europe still struggling; and the USA getting to grips with a new president, and some areas of spare capacity in the economy (eg London office space). And, of course, overlaying all of that is Brexit, which – even if it produces long-term benefits for the economy – is more than likely going to cause some short-term pain.

Prediction two On the subject of overcapacity, I suspect that the chilly winds of bad debt are going to cause some lenders to catch a bit of a cold during the next year. I’m on record as saying that the SME crowdfunding market will not maintain its current momentum, but I don’t think they are the only ones who are going to struggle. The contraction might not be as great as in 2008/09, but perhaps not every funder that starts this year will finish it. The past couple of years have seen a huge increase in the number of funders, whether they be new start lenders, hybrid broker lenders or crowdfunders. The pursuit of new business invariably results in narrowing margins and compromising credit covenants and this, sure as the port followed the mince pies, leads to problems.

Prediction three My final observation is to acknowledge what the crowdfunders have been extraordinarily good at promoting: alternative finance.

I therefore will not be surprised if one or more tier 1 lenders take a long, hard look at their business model, and consider disintermediating brokers and going direct to borrowers.

Well, that’s all a bit gloomy. But I’m not unhappy. I’m Scrooge: “I am as light as a feather, I am as happy as an angel, I am as merry as a schoolboy. I am as giddy as a drunken man.”

The great thing about uncertainty in the economy is the opportunities it provides for the hard workers and the clever thinkers.

Problems in the macro environment give all of us operating in the micro environment the chance to leverage our skills. Further retrenchment by mainstream funding sources will inevitably offer opportunities for brokers and independent funders alike. The market we operate in has huge untapped potential, we just need to go out and grab it.

“A happy New Year to all the world! Hallo here! Whoop! Hallo!”

ALTERNATIVE FINANCE CATERED FOR YOU sset d anta e is an a ard innin pri ately o ned spe ialisin in pro idin asset nan e and loans to t e ia a pre iu panel of introdu ers

out

ur nan e produ ts utilise a o bination of experien e expertise and un o pro isin business pro esses to deli er t e perfe t solution to our lients o nd out innin

ore about oinin our sele t panel of introdu ers and our a ard nan e solutions please all ra y illso on

01256 316 200 or isit our

ebsite on

www.assetadvantage.co.uk Efficient Finance is our Advantage ird loor

40 | NACFB Magazine

nan e business businesses t rou

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OPINION & COMMENTARY

P2P funding: a new key component for growing UK businesses interest rates through excess investor demand. This means fixed rate auctions are now a standard feature, where commercial borrowers clearly know the cost of funding up front rather than after an auction process.

Stuart Law CEO and founder Assetz Capital

In a matter of five short years, peer-to-peer (P2P) funding has become a credible alternative finance solution for businesses of all sizes.

Commercial finance loan brokers know only too well that you need more than a crystal ball to accurately predict the financial requirements of British businesses.

However, alternative finance, and P2P in particular, is making its impact on this market, and offering a viable and proven funding option to a variety of businesses.

Stability These days, small- and mid-sized businesses seem ever more vulnerable to minute sways in market conditions, politics and public confidence. This can cause major headaches for brokers trying to recommend sources of funding for their clients, with many lenders changing their appetite for lending like the wind.

However, the P2P industry has matured and developed to not just survive severe testing, but to thrive and remain stable even during uncertain times. As a result, the leading players in this market are in prime position to continue funding, regardless of disruptions by the likes of Brexit, the Trump presidency, interest rate changes and other market destabilisers.

Commercial P2P finance has gone from humble beginnings to fast becoming the option of choice for many small- and medium-sized businesses. This is down to a handful of organisations that have challenged and disrupted the traditional lending market by introducing savvy private investors and institutions to the business lending marketplace; through rigorous borrower due diligence; and through demonstrating solid returns.

Commercial P2P funding started out with online auctions and very few investors. While this seeded the concept for others to develop, it didn’t build the confidence of brokers. This basic model created uncertainty of loan funding availability and loan pricing until the auction process was complete.

This paved the way for more sophisticated P2P lending, and as the market progressed and grew, and the major players built both trust and more sophisticated online systems, more investors and institutions started to embrace this form of finance. Now the funding supply in the UK for loans is very deep and broad, and no longer in question.

Price auctions have also pretty much disappeared due to the weight of capital now looking to fund UK businesses, and to help avoid mispricing of loan

Off-shore company?

Deal on.

With a dedicated deal progression team to support brokers, Assetz Capital’s speed, execution and delivery is generally far more responsive than even the best traditional financial institutions. Also relevant is their nationwide team of relationship directors, who both assist and vet businesses looking for quick decisions in principle for loans from £100,000 up to £10m.

As an award-winning, five-star, Defaqtolisted peer-to-peer secured business lending leader, Assetz Capital’s traditional lending model – having highly experienced lending and credit personnel visiting and assessing all potential borrowers – means that their anticipated and historic losses are some of the lowest in the industry. All business loans are secured against tangible, realisable assets.

REAL ESTATE. REAL FINANCE.

Assetz Capital offers loans to businesses and products, including SME loans, commercial mortgages, renewable energy loans, development finance, bridging, residential buy-to-let, trade finance and a property investor hunting licence facility.

Dependable, effective effe eff fective ve bridging v bridging finance f nance fi

For loans <£1m

0161 443 0680 www.bridgebankcapital.co.uk

We actively lend to non-domicile individuals and off-shore SPV companies against real estate in the UK.

REAL ESTATE. T TATE. REAL FINANCE.

Contact a member of the team to find out more.

This advert is strictly for professional intermediaries use only.

Quantum by Bridgebank Capital and Bridgebank Capital are trading names of Bridgebank Capital (IM) Holdings Ltd. Co. Reg. No. 08126835.

Registered in England & Wales. Registered Office: 1 Riverview, The Embankment Business Park, Vale Road, Heaton Mersey, Cheshire, SK4 3GN.

For loans >£1m

0161 443 4349 www.quantum-bc.co.uk

Associate Lender

42 | NACFB Magazine

Investors are optimistic Still in its relative infancy, the P2P industry has provided UK businesses with more than £4bn in funding since its inception just a few years ago. Assetz Capital, a leading player in this market, just announced that investors have earned a total of £15m in gross interest since the company launched in 2013, typically earning more than 16,000 investors gross rates of return between 3.75% and 15% per annum, based on almost £180m invested through the platform to date. So, from a business perspective, the funding is there and the investor base is both optimistic and growing, especially considering the lack of other credible investment opportunities.

Trust This progression has brought trust and credibility to the P2P market, now led by a small group of successful and ever growing alternative finance providers with a proven track record. Some of the market leaders have adopted the best parts of traditional commercial banking. For example, Assetz Capital has implemented elements such as face-to-face regional relationship managers, as well as understandable credit policies that are more flexible than banks, and principally focus on affordability and security on a business-by-business basis.

Non-dom?

Association of Bridging Professionals

Helping Fund UK Business

OPINION & COMMENTARY

P2P funding: a new key component for growing UK businesses interest rates through excess investor demand. This means fixed rate auctions are now a standard feature, where commercial borrowers clearly know the cost of funding up front rather than after an auction process.

Stuart Law CEO and founder Assetz Capital

In a matter of five short years, peer-to-peer (P2P) funding has become a credible alternative finance solution for businesses of all sizes.

Commercial finance loan brokers know only too well that you need more than a crystal ball to accurately predict the financial requirements of British businesses.

However, alternative finance, and P2P in particular, is making its impact on this market, and offering a viable and proven funding option to a variety of businesses.

Stability These days, small- and mid-sized businesses seem ever more vulnerable to minute sways in market conditions, politics and public confidence. This can cause major headaches for brokers trying to recommend sources of funding for their clients, with many lenders changing their appetite for lending like the wind.

However, the P2P industry has matured and developed to not just survive severe testing, but to thrive and remain stable even during uncertain times. As a result, the leading players in this market are in prime position to continue funding, regardless of disruptions by the likes of Brexit, the Trump presidency, interest rate changes and other market destabilisers.

Commercial P2P finance has gone from humble beginnings to fast becoming the option of choice for many small- and medium-sized businesses. This is down to a handful of organisations that have challenged and disrupted the traditional lending market by introducing savvy private investors and institutions to the business lending marketplace; through rigorous borrower due diligence; and through demonstrating solid returns.

Commercial P2P funding started out with online auctions and very few investors. While this seeded the concept for others to develop, it didn’t build the confidence of brokers. This basic model created uncertainty of loan funding availability and loan pricing until the auction process was complete.

This paved the way for more sophisticated P2P lending, and as the market progressed and grew, and the major players built both trust and more sophisticated online systems, more investors and institutions started to embrace this form of finance. Now the funding supply in the UK for loans is very deep and broad, and no longer in question.

Price auctions have also pretty much disappeared due to the weight of capital now looking to fund UK businesses, and to help avoid mispricing of loan

Off-shore company?

Deal on.

With a dedicated deal progression team to support brokers, Assetz Capital’s speed, execution and delivery is generally far more responsive than even the best traditional financial institutions. Also relevant is their nationwide team of relationship directors, who both assist and vet businesses looking for quick decisions in principle for loans from £100,000 up to £10m.

As an award-winning, five-star, Defaqtolisted peer-to-peer secured business lending leader, Assetz Capital’s traditional lending model – having highly experienced lending and credit personnel visiting and assessing all potential borrowers – means that their anticipated and historic losses are some of the lowest in the industry. All business loans are secured against tangible, realisable assets.

REAL ESTATE. REAL FINANCE.

Assetz Capital offers loans to businesses and products, including SME loans, commercial mortgages, renewable energy loans, development finance, bridging, residential buy-to-let, trade finance and a property investor hunting licence facility.

Dependable, effective effe eff fective ve bridging v bridging finance f nance fi

For loans <£1m

0161 443 0680 www.bridgebankcapital.co.uk

We actively lend to non-domicile individuals and off-shore SPV companies against real estate in the UK.

REAL ESTATE. T TATE. REAL FINANCE.

Contact a member of the team to find out more.

This advert is strictly for professional intermediaries use only.

Quantum by Bridgebank Capital and Bridgebank Capital are trading names of Bridgebank Capital (IM) Holdings Ltd. Co. Reg. No. 08126835.

Registered in England & Wales. Registered Office: 1 Riverview, The Embankment Business Park, Vale Road, Heaton Mersey, Cheshire, SK4 3GN.

For loans >£1m

0161 443 4349 www.quantum-bc.co.uk

Associate Lender

42 | NACFB Magazine

Investors are optimistic Still in its relative infancy, the P2P industry has provided UK businesses with more than £4bn in funding since its inception just a few years ago. Assetz Capital, a leading player in this market, just announced that investors have earned a total of £15m in gross interest since the company launched in 2013, typically earning more than 16,000 investors gross rates of return between 3.75% and 15% per annum, based on almost £180m invested through the platform to date. So, from a business perspective, the funding is there and the investor base is both optimistic and growing, especially considering the lack of other credible investment opportunities.

Trust This progression has brought trust and credibility to the P2P market, now led by a small group of successful and ever growing alternative finance providers with a proven track record. Some of the market leaders have adopted the best parts of traditional commercial banking. For example, Assetz Capital has implemented elements such as face-to-face regional relationship managers, as well as understandable credit policies that are more flexible than banks, and principally focus on affordability and security on a business-by-business basis.

Non-dom?

Association of Bridging Professionals

Helping Fund UK Business

OPINION & COMMENTARY

What’s next for bridging?

SECOND CHARGE LOANS

Last year was one of surprises, what with the Brexit referendum, the demise of the Cameron clique and the election of Donald Trump. It all goes to show the folly of predicting anything. Now we’re in 2017, who knows what awaits us?

Adam Tyler, who worked tirelessly for many years to promote the commercial finance industry, has left big boots to fill, but I’m sure that Rob Lankey will prove to be a worthy successor.

will see, but they’ll certainly benefit from it. Improved back-office systems will be implemented by more lenders to drive efficiency and speed of pay-out once lending has been approved. There will also be broker-facing benefits, such as case tracking so introducers are able to monitor case progress.”

It’s not only in the property world where the use of bridging will increase – property assets can be mobilised to meet short-

a slightly more cautious approach: “…The turmoil surrounding the Brexit vote may well take its toll as time goes on. I think it is highly possible that 2017 will be a rocky ride for some lenders, especially those reliant on outside funding, so we may see bridging lending, as a whole, plateau.

Saying that, as long as property prices either rise or stay the same, developers will continue to want to invest in property, adapting it to the changing requirements of the UK market. High-ticket, larger

What I am confident of is the future of bridging finance. It has grown from strength to strength and its reputation and use continues to grow Bridging will need to evolve to serve its market. The Bank of England has signalled that interest rates will remain low for some time, despite inflationary pressures. This will obviously also depend on external factors beyond the UK’s control, especially interest rates in the US (and, to a lesser degree, in the EU). I expect bridging rates to remain competitive, and the use of bridging finance as a facilitating tool to expand. I also think that property developers and investors will make more use of bridging and that the average term of a loan will increase.

The use of technology will gather pace.

Firms will need to adapt to a world where customers access financial products via devices and communications need to be almost instantaneous – as Scott Marshall, MD of Roma Finance, said: “Technology will also become crucial in 2017. It may not be the technology brokers and their customers

44 | NACFB Magazine

term cash flow dips as well as to enable customers to take advantage of profitable opportunities where time is a factor. It’s up to lenders to help brokers realise these uses, so they can better advise their clients where bridging is the solution to a problem. The ASTL looks forward to co-operating further with the NACFB to promote this.

Service, rather than price, remains vital in deciding which lender to use. Again, to quote Scott: “Service will continue to be a key differentiator and I can see the development of a much more focused service for brokers and their customers.” Many firms now make a point of having a meeting with the customer to ensure that transactions are viable and meet customers’ needs.

Overall, lenders are optimistic. However, Jonathan Sealey, MD of Hope Capital, had

commercial property may continue to see a dampening in demand, but appetite for small- to medium-sized developments I would expect to remain high.”

Emma Ryan, head of redemptions and in-house counsel at Amicus Finance PLC, commented: “Despite 2016 being perceived as a difficult time, for most of the year it was business as usual within the short-term sector. We are excited and optimistic about the prospects for 2017. Of course, we will continue with our prudent underwriting strategy and expect to see growth in market confidence.”

I’m looking forward to 2017 and wish lenders and brokers every success in their endeavours.

James thinks our new second charge loan products are something worth shouting about Streamlined range: easier to understand Available direct or through one of our Master Brokers Rates reduced by up to 2.65%: more affordable than ever NEW! 2 Year BBR Trackers

The specialist lender you can bank on Call us

0800 116 4385

Visit us

precisemortgages.co.uk

Follow us

James Briggs National Sales Manager

INTERMEDIARIES ONLY. Product information correct at time of print (01.12.16). BBR currently set at 0.25%. Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.

01651 (2)

Benson Hersch CEO ASTL

What I am confident of is the future of bridging finance. It has grown from strength to strength and its reputation and use continues to grow. The Association of Short Term Lenders (ASTL) has been at the forefront of the drive to make lenders more professional, more transparent and more responsible, and we are proud of what our members, many of whom are NACFB patrons, have achieved. We also applaud the work of the NACFB, particularly in the adoption of minimum standards for brokers, where we were delighted to assist in the formulation of the documentation.

The specialist lender you can bank on

OPINION & COMMENTARY

What’s next for bridging?

SECOND CHARGE LOANS

Last year was one of surprises, what with the Brexit referendum, the demise of the Cameron clique and the election of Donald Trump. It all goes to show the folly of predicting anything. Now we’re in 2017, who knows what awaits us?

Adam Tyler, who worked tirelessly for many years to promote the commercial finance industry, has left big boots to fill, but I’m sure that Rob Lankey will prove to be a worthy successor.

will see, but they’ll certainly benefit from it. Improved back-office systems will be implemented by more lenders to drive efficiency and speed of pay-out once lending has been approved. There will also be broker-facing benefits, such as case tracking so introducers are able to monitor case progress.”

It’s not only in the property world where the use of bridging will increase – property assets can be mobilised to meet short-

a slightly more cautious approach: “…The turmoil surrounding the Brexit vote may well take its toll as time goes on. I think it is highly possible that 2017 will be a rocky ride for some lenders, especially those reliant on outside funding, so we may see bridging lending, as a whole, plateau.

Saying that, as long as property prices either rise or stay the same, developers will continue to want to invest in property, adapting it to the changing requirements of the UK market. High-ticket, larger

What I am confident of is the future of bridging finance. It has grown from strength to strength and its reputation and use continues to grow Bridging will need to evolve to serve its market. The Bank of England has signalled that interest rates will remain low for some time, despite inflationary pressures. This will obviously also depend on external factors beyond the UK’s control, especially interest rates in the US (and, to a lesser degree, in the EU). I expect bridging rates to remain competitive, and the use of bridging finance as a facilitating tool to expand. I also think that property developers and investors will make more use of bridging and that the average term of a loan will increase.

The use of technology will gather pace.

Firms will need to adapt to a world where customers access financial products via devices and communications need to be almost instantaneous – as Scott Marshall, MD of Roma Finance, said: “Technology will also become crucial in 2017. It may not be the technology brokers and their customers

44 | NACFB Magazine

term cash flow dips as well as to enable customers to take advantage of profitable opportunities where time is a factor. It’s up to lenders to help brokers realise these uses, so they can better advise their clients where bridging is the solution to a problem. The ASTL looks forward to co-operating further with the NACFB to promote this.

Service, rather than price, remains vital in deciding which lender to use. Again, to quote Scott: “Service will continue to be a key differentiator and I can see the development of a much more focused service for brokers and their customers.” Many firms now make a point of having a meeting with the customer to ensure that transactions are viable and meet customers’ needs.

Overall, lenders are optimistic. However, Jonathan Sealey, MD of Hope Capital, had

commercial property may continue to see a dampening in demand, but appetite for small- to medium-sized developments I would expect to remain high.”

Emma Ryan, head of redemptions and in-house counsel at Amicus Finance PLC, commented: “Despite 2016 being perceived as a difficult time, for most of the year it was business as usual within the short-term sector. We are excited and optimistic about the prospects for 2017. Of course, we will continue with our prudent underwriting strategy and expect to see growth in market confidence.”

I’m looking forward to 2017 and wish lenders and brokers every success in their endeavours.

James thinks our new second charge loan products are something worth shouting about Streamlined range: easier to understand Available direct or through one of our Master Brokers Rates reduced by up to 2.65%: more affordable than ever NEW! 2 Year BBR Trackers

The specialist lender you can bank on Call us

0800 116 4385

Visit us

precisemortgages.co.uk

Follow us

James Briggs National Sales Manager

INTERMEDIARIES ONLY. Product information correct at time of print (01.12.16). BBR currently set at 0.25%. Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.

01651 (2)

Benson Hersch CEO ASTL

What I am confident of is the future of bridging finance. It has grown from strength to strength and its reputation and use continues to grow. The Association of Short Term Lenders (ASTL) has been at the forefront of the drive to make lenders more professional, more transparent and more responsible, and we are proud of what our members, many of whom are NACFB patrons, have achieved. We also applaud the work of the NACFB, particularly in the adoption of minimum standards for brokers, where we were delighted to assist in the formulation of the documentation.

The specialist lender you can bank on

OPINION & COMMENTARY

The inexorable rise of the lender-broker bond acceptable resolution.

Darrell Walker Head of sales InterBay Commercial Since the deregulation of the mortgage market in the mid-1980s, the rise of intermediation has defined the way mortgages are sold in the UK. In the decades that followed, product range and complexity, as well as greater regulation, have made brokers the oil that keeps the gears of the market turning, and the last decade in particular has been something of a roller coaster for everyone in the sector. It’s at times like this that the lender-broker bond is most important, and in my year leading the InterBay team I’ve been determined to put these broker relationships at the heart of how we serve the market.

There’s no denying the last few years have been turbulent for brokers. During the 2008 financial crisis, intermediaries suffered a severe drop in business and market share as the number of broker-arranged mortgages fell by 67% in the two years to 2010.

This share of the market has now largely recovered, with figures from IRESS showing that it had returned to 62% by September 2014. This recovery has been helped no end by the speed at which regulatory changes have come into force. The Mortgage Market Review, Retail Distribution Review and Mortgage Credit Directive have all bolstered the role of the broker in the market, while changes to mortgage tax relief have increased demand for complex products, such as limited company loans, and not forgetting the rush to complete transactions before the April stamp duty deadline, which gave brokers plenty to keep busy.

A partnership This new regulation, and an increase in complex transactions, has heightened the need for collaboration in the marketplace, especially when it comes to complex cases.

As a commercial lender, these hard-toplace cases are our bread and butter, but even so it meant going back to some of the old-fashioned basics to ensure brokers are getting the support they need to find an

Increasing our BDM footprint across the UK this year has improved visibility and allowed us to help more individual brokers, but also ensured brokers have access to a reliable, helpful, honest and responsive partner, whatever comes through the door. I’d urge everyone in our growing intermediary network to pick up the phone straight away if they’re tackling a hard-to-place case. If we can’t help, we believe it’s important to be honest and say so straight away. Nevertheless, all our BDMs are regularly bringing large deals, or those that fall outside of the box, to OneSavings Bank’s Transactional Credit Committee (TCC), which can usually find a solution to a specialist need.

Lend an ear While individual cases are important, the next step has to be translating these learnings into overall propositions. Second guessing what brokers need can only end in products that aren’t fit for purpose, so it’s vital that the lender-broker relationship involves really listening to the problems, and understanding how the gearing of a proposition can be changed to suit brokers and what they want. This is again especially important for commercial loans, where there

As the broker-lender bond has strengthened, we have also seen lenders take on a greater educational role, with many now offering CPD resources for intermediaries

is a lot more collaborative work involved to shape the deal.

As the broker-lender bond has strengthened, we have also seen lenders take on a greater educational role, with many now offering Continuing Professional Development (CPD) resources for intermediaries looking to expand their knowledge; and many are now vocal at conferences, offering their perspective on industry issues. Some lenders go further, publishing in-depth research reports offering brokers comprehensive market analysis, and we’ve found our Buy-to-Let Britain report a useful extension of this.

Working together The strength of the lender-broker relationship has been one of the few constants in the mortgage market over the last decade, and its strength has allowed the industry to rise to the multitude of challenges it has faced. A case in point would be the April 2016 deadline for the stamp duty changes, which caused a groundswell of activity in the first quarter.

Lending levels hit £25.7bn in March, a 47% increase on the previous month and the highest figure for March in nine years, with over 160,000 properties changing hands in that month alone. Lenders and brokers worked together to meet this unprecedented demand and ensured that despite the high volume of work, clients’ transactions ran smoothly and service levels didn’t slip.

The industry continues to evolve and with a new government, the upcoming PRA and FPC changes, and Britain’s exit from the European Union on the horizon, the rate of change looks unlikely to slow in the near future. However, we can take comfort from our experiences as an industry over the last decade and be confident that lenders and intermediaries will continue to rally together and adapt to weather any storms that come our way in 2017.

Yes. It’s never a maybe with our bridging finance decisions When we say yes, we mean yes Once we agree a bridging loan, assuming nothing changes, it’s set in concrete. Final, done, dusted. We won’t change our minds or try to re-negotiate. We’ll just get on with making the background process as quick and simple as possible, so you can get on with what you set out to do.

For more information about our bridging products please contact us on 020 7036 2000 or email enquiries@masthaven.co.uk

masthaven.co.uk Your property, provided as security for the loan, may be repossessed if you do not keep up with payments.

Masthaven Bank Limited is a company registered in England & Wales with registration number 09660012 and whose registered office is at: 11 Soho Street, London W1D 3AD. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Firm reference number 719354).

The “Masthaven” name and logos and all other brands, names, logos, marks and slogans on this document are the trademarks or service marks of us or our licensors.

46 | NACFB Magazine

OPINION & COMMENTARY

The inexorable rise of the lender-broker bond acceptable resolution.

Darrell Walker Head of sales InterBay Commercial Since the deregulation of the mortgage market in the mid-1980s, the rise of intermediation has defined the way mortgages are sold in the UK. In the decades that followed, product range and complexity, as well as greater regulation, have made brokers the oil that keeps the gears of the market turning, and the last decade in particular has been something of a roller coaster for everyone in the sector. It’s at times like this that the lender-broker bond is most important, and in my year leading the InterBay team I’ve been determined to put these broker relationships at the heart of how we serve the market.

There’s no denying the last few years have been turbulent for brokers. During the 2008 financial crisis, intermediaries suffered a severe drop in business and market share as the number of broker-arranged mortgages fell by 67% in the two years to 2010.

This share of the market has now largely recovered, with figures from IRESS showing that it had returned to 62% by September 2014. This recovery has been helped no end by the speed at which regulatory changes have come into force. The Mortgage Market Review, Retail Distribution Review and Mortgage Credit Directive have all bolstered the role of the broker in the market, while changes to mortgage tax relief have increased demand for complex products, such as limited company loans, and not forgetting the rush to complete transactions before the April stamp duty deadline, which gave brokers plenty to keep busy.

A partnership This new regulation, and an increase in complex transactions, has heightened the need for collaboration in the marketplace, especially when it comes to complex cases.

As a commercial lender, these hard-toplace cases are our bread and butter, but even so it meant going back to some of the old-fashioned basics to ensure brokers are getting the support they need to find an

Increasing our BDM footprint across the UK this year has improved visibility and allowed us to help more individual brokers, but also ensured brokers have access to a reliable, helpful, honest and responsive partner, whatever comes through the door. I’d urge everyone in our growing intermediary network to pick up the phone straight away if they’re tackling a hard-to-place case. If we can’t help, we believe it’s important to be honest and say so straight away. Nevertheless, all our BDMs are regularly bringing large deals, or those that fall outside of the box, to OneSavings Bank’s Transactional Credit Committee (TCC), which can usually find a solution to a specialist need.

Lend an ear While individual cases are important, the next step has to be translating these learnings into overall propositions. Second guessing what brokers need can only end in products that aren’t fit for purpose, so it’s vital that the lender-broker relationship involves really listening to the problems, and understanding how the gearing of a proposition can be changed to suit brokers and what they want. This is again especially important for commercial loans, where there

As the broker-lender bond has strengthened, we have also seen lenders take on a greater educational role, with many now offering CPD resources for intermediaries

is a lot more collaborative work involved to shape the deal.

As the broker-lender bond has strengthened, we have also seen lenders take on a greater educational role, with many now offering Continuing Professional Development (CPD) resources for intermediaries looking to expand their knowledge; and many are now vocal at conferences, offering their perspective on industry issues. Some lenders go further, publishing in-depth research reports offering brokers comprehensive market analysis, and we’ve found our Buy-to-Let Britain report a useful extension of this.

Working together The strength of the lender-broker relationship has been one of the few constants in the mortgage market over the last decade, and its strength has allowed the industry to rise to the multitude of challenges it has faced. A case in point would be the April 2016 deadline for the stamp duty changes, which caused a groundswell of activity in the first quarter.

Lending levels hit £25.7bn in March, a 47% increase on the previous month and the highest figure for March in nine years, with over 160,000 properties changing hands in that month alone. Lenders and brokers worked together to meet this unprecedented demand and ensured that despite the high volume of work, clients’ transactions ran smoothly and service levels didn’t slip.

The industry continues to evolve and with a new government, the upcoming PRA and FPC changes, and Britain’s exit from the European Union on the horizon, the rate of change looks unlikely to slow in the near future. However, we can take comfort from our experiences as an industry over the last decade and be confident that lenders and intermediaries will continue to rally together and adapt to weather any storms that come our way in 2017.

Yes. It’s never a maybe with our bridging finance decisions When we say yes, we mean yes Once we agree a bridging loan, assuming nothing changes, it’s set in concrete. Final, done, dusted. We won’t change our minds or try to re-negotiate. We’ll just get on with making the background process as quick and simple as possible, so you can get on with what you set out to do.

For more information about our bridging products please contact us on 020 7036 2000 or email enquiries@masthaven.co.uk

masthaven.co.uk Your property, provided as security for the loan, may be repossessed if you do not keep up with payments.

Masthaven Bank Limited is a company registered in England & Wales with registration number 09660012 and whose registered office is at: 11 Soho Street, London W1D 3AD. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Firm reference number 719354).

The “Masthaven” name and logos and all other brands, names, logos, marks and slogans on this document are the trademarks or service marks of us or our licensors.

46 | NACFB Magazine

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