Anyone who has even so much as bought a house can tell you that it is rarely a simple process
– even the most vanilla, mainstream purchase can throw out challenges and complications.
That is one of the many reasons that mortgage brokers are relied upon to bring much-needed
expertise and clarity to the process.
When you shift your gaze to the specialist market, the complexity facing investors and their
brokers becomes vastly more acute, and the number of players with a strong enough
understanding of the nuances narrows considerably.
Here, there is little that might be described as vanilla or run-of-the-mill, and straightforward
cases are the exception, rather than the rule.
Specialist brokers must be able to think on their feet, problem-solve, and get their heads around complex situations on a daily basis.
It is a demanding role, and one that in many ways keeps the wheels of the UK property market turning.
They do not, however, have to do all this on their own. Underpinned by human underwriting and
extensive experience, lenders like Castle Trust Bank have a key role to play in making sure that
in the specialist market, ‘complex’ is not synonymous with ‘frustrating’.
Complex cases
A good lender with the right experience and a willing – albeit responsible – approach to lending,
will work alongside a broker in order to explore solutions to even the most complicated
problems.
This might mean non-traditional income streams or a complex borrower history, or instead relate to a unique or challenging property investment.
One such challenge we faced recently was a portfolio loan, secured against no fewer than 19
buy-to-let (BTL) properties in London, with an aggregated value of £9.3m.
Working with Specialist Hub, we helped the borrowers – an Israeli and UK national living in Israel – refinance onto a £5.4m TermTen loan with a 5-year fixed rate.
In what the broker described as “the most difficult case I have ever dealt with in almost 40
years,” Castle Trust Bank was able to provide a bespoke solution and turn the case around
quickly, giving much-needed certainty to the borrowers.
In another case, working once again with Specialist Hub, Castle Trust Bank was able to
complete a £1.37m heavy refurbishment bridging loan, enabling an investor to purchase a
property prior to planning permission being granted. The borrower was then able to increase
their loan to finance construction.
The conversion of two flats into a family dwelling – complete with extensions, a loft conversion
and the installation of various dormers and roof lights – was made possible by providing an
initial standard bridge at 75% loan-to-value (LTV), with the option to switch to an 80% heavy
refurb bridge once planning permission was achieved, and an 18-month term to accommodate
the works.
Many lenders might baulk at making a commitment prior to planning permission, but we saw the exciting project in the works, and helped the borrower make it a reality.
Dedicated and experienced
Both of these are great examples of challenges that might have seemed insurmountable at the
outset, but which were ultimately solvable with the right attitude.
The truth is, like any responsible lender, there will be applications we have to turn down, but
with a flexible and pragmatic approach, brokers can rest assured that all possible avenues have
been explored. There is no such thing as the ‘computer says no’ conundrum.
To get the most out of specialist lenders such as Castle Trust Bank, brokers need to know their
clients, have a sense of the details of a case – both the hurdles and the opportunities – and,
most importantly, be willing to communicate these clearly and honestly.
In the end, it can be the most complex cases that prove to be the most fruitful – from leveraging
a portfolio to enable future growth, to allowing for the much-needed rejuvenation and expansion
of the UK’s housing stock. We know your investors have exciting projects in mind, and where
possible, we want to be part of it.
At Castle Trust Bank, we establish relationships with brokers built on solid communication and
an open mind to possible solutions. This may be a complex market, but complex does not have
to mean impossible.
Barry Searle is managing director of Property at Castle Trust Bank
