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Shawbrook Bank – their opinion of Searchlight

“Searchlight has been working with us for many years and throughout that time has consistently demonstrated all the qualities that set them apart amongst their peers for service and expertise.

Simon and the Searchlight team have a close relationship with our underwriting team and can pick up the phone to talk through any roadblocks, shaping the deal to get the best possible outcome for the customer.

This constant focus on putting the customer first is just one of the many reasons why Searchlight continues to grow, building a reputation in the industry as exceptional across all aspects of their performance.”

Gavin Seaholme
Head of Sales, Shawbrook Commercial Mortgages

Another HMO rate decrease

Good news from Kent Reliance. Their popular 75% LTV 5-year fix has been reduced to 3.79% with a 2% lender fee.

Available for HMO’s and multi-units.

Kent’s sales director Adrian Moloney comments: “We’ve listened to broker feedback for mortgage lenders to continue to provide landlords with products that give financial certainty over the longer term. With a rising interest rate market, we’re delighted to announce this rate reduction to support our broker partners and their client’s needs.”

It’s not just about the rate?

We were recently approached by a new client who had obtained a decent 5-year fix quote from another broker for their limited company BTL. There was nothing wrong with the product but after talking to the client they wanted the following:

  • The ability to reduce the mortgage each year by overpayments
  • A lender that did product transfers, as they wanted the option to keep the costs down on expiry of the rate
  • Their grown-up children were down as shareholders but did not want to go on the mortgage application

The product that had been quoted offered none of these features so always be aware of what you need rather than the rate.

Light Refurbishment Bridging on Property & Costs

Shawbrook has initially launched this light refurbishment product to a limited panel including Searchlight.  Now, normally you would fund the costs out of your own money, which can limit the number of projects you do. Shawbrook will provide additional borrowing as long as:

Maximum initial loan 75% of lower of the purchase price or value. The total loan including purchase is not higher than 85% of the initial purcahse price or 70% of the end value.

A recent example for an experienced developer.

  • Purchase Price £150,000
  • Costs to refurbish £45,000
  • End Value £260,000

What happened

  1. Day 1 loan of £112,500
  2. 70% of the end value is £182,000 and 85% of purchase price is £127,500 so maximum total loan based on the lower figure is £127,500. Deduct the initial loan of £112,500 and the developer has an extra £15,000 from the lender towards their build costs. This was put towards another purchase which previously they could not afford.

Commenting on this significant development, Emma Cox, Sales Director, Shawbrook Commercial Mortgages;

“We have worked tirelessly over the past five years to improve this important element of our product offering, and 2018 represents a real success story for the Shawbrook STL range. The ability to borrow 100% of refurbishment costs under one facility can be critical for investors looking to add value and develop their portfolios, and we are delighted to be able to support this activity.”

“While the product range continues to evolve in response to market demand, we have managed to keep all the old benefits in place to help our brokers and their customers build for the future. The 0.25% discount remains available for repeat borrowers with no minimum interest periods or ERCs, and we are also pleased to retain a great deal of flexibility for borrowers with the maximum 24-month term providing time to refinance or sell.”

 

 

 

BTL Tip – Read and understand the Mortgage Illustration

Take your time to go through the Illustration which shows you everything about the product which includes all fees including arrangement, product, broker and valuation fees and also gives you details on any exit penalties or early repayments.

It also explains the rate that it will go to once the initial product is finished and if there is a free valuation or legal costs.

Ignore the amount specified under legal costs as unfortunately, most lenders keep this very very low and unrealistic.

Searchlight Finance Limited is registered in England and Wales No.07929050 Searchlight Finance Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fca.org.uk/register) under reference 743220. The FCA do not regulate Business Buy to Let Mortgages or most Commercial Mortgages and Bridging Finance. ICO Number Z3109319. Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

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