Bridging & Commercial Magazine — The Regional Lending Issue
WHY DO BROKERS STILL STRUGGLE OUTSIDE OF LONDON?
+ The captain & crew steering the ship to success p30
In the 12 months to Christmas, Somo gave to meeeeee...
...total dedi - cation an-y business - purpose ten years - of - lending
second - charge amazing higher loan - to - value offers in - an -hour
interest free for - clients FIVE star - - - reviews a trophy for the winner
three hench - men two Black - Friday - Offers and a violin - ist at the F P
Our tenth year has been a great year. Here’s to 2025 and strengthening our working relationships even more. And for those who have yet to experience Somo’s way of working... Why not give us a call in the New Year 0161 312 5656. A Merry Christmas to all. why make bridging difficult
C7
We go further so you can too
The partnership that takes you further United Trust Bank are relationship-builders. We believe the most effective relationships are the ones with the most trust, familiarity and longevity – those are the relationships we build.
United, we go further
Buy-to-Let and Bridging Loans from Lendco
In a market that increasingly makes no sense, let us show you something different.
Speak to us about how we “can do”, where others can’t.
HMOs up to 20 bedrooms
No upper limit on units in a MUFB
£5m maximum loan per asset
£20m aggregate borrowing
Individuals / Ltd Co / SPV / Trusts
rates
Large portfolios to increase your clients’ leverage, allowing them to borrow more 5
Ex-Pats and Foreign Nationals
First- time landlords
Loans from £100k to £7m
Terms from 2 – 36 months
Dual rep available
Residential and Dev Exit
Commercial and Semi-Commercial assets
Light and heavy refurb
We use OMV
Bridge-to-Let with sensibly priced BTL exits
Acknowledgments
Editor-in-chief
Beth Fisher
Magazine manager
Dhuha Al-Zaidi
Creative direction
Beth Fisher
Dhuha Al-Zaidi
Sub editor
Christy Lawrance
Andrea Johnson
Contributors
Jaxon Stevens, Ashley Illsen, Timothy Slinger, Neil Rudge, Conor McDermott, Cameron Linnell, David Travers, Ozan Zorba, Jodi Lund, David Smith, Richard Angell, Uliana Kuzmis, Jonathan Newman, David Birch, Paul Gammond, Juliet Baboolal, Rachel Geddes, Martin Bloe
Photography
Alexander Chai
Illustration
Valf / Jestertofu
Sales and marketing
Beth Fisher beth@medianett.co.uk
Special thanks Lynn McHale, TAB Tom Ghirardi, Together
Abraham Bolel / Gary Bailey, Simple Bridging Juliet Baboolal, Gunnercooke
Paul Hunt / Crofton Bonney / Alex Hammond, Square1 Media Uliana Kuzmis
Printing
The Magazine Printing Company
Design and image editing Jana Rade, impact studios
Bridging & Commercial Magazine is published by Medianett Publishing Ltd
Managing director
Beth Fisher
beth@medianett.co.uk 0203 818 0160
It’s officially silly season. The office has been blasting Mariah since mid-November (I’m not mad), and the Christmas puns in news releases and marketing emails are, as always, getting slightly out of hand. A sprinkling of snow, twinkling shop windows, and after-work mulled wine sessions make this time of year feel downright magical. But let’s not forget—while we’re juggling Secret Santas and end-of-year parties, the specialist finance sector is gearing up for something far bigger: laying the groundwork for a strong 2025.
This issue of Bridging & Commercial dives headfirst into the unique challenges and opportunities of regional lending, offering a fresh lens on how to make waves outside the M25 bubble.
Our cover story, on why brokers are being sidelined in regional deals [p52], explores how operational headaches can sometimes leave brokers out in the cold when it comes to transactions in areas other than London. Thankfully, three experts weigh in with actionable ideas to help unlock the true potential of local markets.
We’re taking you on a whirlwind tour across the UK, too. Chris Field at Sirius Finance maps out hotspots driving growth in hospitality and healthcare sectors [p74], while Cameron Linnell, Albatross’ first regional sales manager, reveals what makes their northern expansion tick [p20]. Over in the North East, Paul Gammond of Simple Bridging explores the rising demand for bridging and development finance [p94], and David Travers, CEO at ScotLend, unpacks the strategy behind their ability to cover every postcode in Great Britain [p24].
Elsewhere, we get into the juicy stuff: fraud, social media, and regulatory curveballs. Our feature regarding a knowledge bank on fraud has you covered [p72]. Wondering if your next big marketing move could involve dancing on TikTok? We’ve got a guide for brokers looking to tap into the platform [p102]. And for the Basel 3.1 impact, we’ve broken down how the regulation might shake up regional lending [p47].
In our 'Moulding the next generation' series finale, we spotlight three incredible women who have stories that’ll stick with you long after the mince pies are gone. They share wisdom on mentorship, leadership, and carving out space for others [p109].
This issue also includes inspiring profiles of industry leaders. Duncan Kreeger, CEO at TAB, recounts how he built the lender from the ground up [p82], while Jack Coombs of Aspen Bridging outlines the company’s ambition to lend £250m in 2025 after a cracking 2024 [p30].
As you dive into these stories, I hope this issue inspires you to embrace the opportunities that regional markets hold and underscores the importance of connection—whether that’s between lenders and brokers, mentors and mentees, or businesses and their local communities.
To quote one of our cover story experts: “There needs to be some sort of recognition for the fact that good business happens all around the country.” Here’s to celebrating that truth—and wrapping up the year with purpose—together.
Wishing you a merry festive season, everyone! See you in 2025.
Beth Fisher
“If you have a lot of different things to offer brokers, they appreciate that because you can work with them across multiple, varying deal types”p30
The Cut
THE CUT
Budget: opportunities amid the costs
At last, we know what changes the first Labour budget in 14 years is bringing in—rising stamp duty, more cash for planning departments, and higher employers’ NI rates among them. Five specialist lending market experts from several English regions discuss the possible consequences from PRS disruption to stronger business models
Timothy Slinger
Jaxon Stevens
Relationship director at ASG Finance in South Yorkshire
Increased stamp duty land tax (SDLT) is very likely to have implications for landlords and the PRS. It could act as a deterrent to portfolio expansion or diversification, increase rental costs for tenants and, potentially, create cashflow constraints and reduced profitability for smaller landlords, meaning that some may exit the market. This could lead to an increased presence of larger, more professional entities. The rise in SDLT could lead to reduced supply and higher rents, impacting housing affordability and availability for tenants.
Finance director at Somo in Manchester North West England
As the accountant of a property portfolio of around 50 houses, I would say that business owners are celebrating that UK house prices have reached a record high. The stamp duty increase and the weak 0.25% forecast cut in interest rates might lead to continued strength in the PRS. Indeed, landlords might spend more sleepless nights worrying about capital gains tax than stamp duty.
Conor McDermott Director of SME lending at LHV Bank in London
The increases will accelerate the higher-end consolidation of the sector, super-charging the trend toward a professional, larger-scale landlord base in property investment. Smaller or accidental landlords will increasingly find it harder to justify the extra costs, particularly when entering the sector.
We are also likely to see a softening of market values with typical landlord investment properties, particularly lower-quality stock, including some of the poorer-quality office-to-residential developments, not all of which would necessarily be attractive to owner-occupiers.
I also expect investors to focus more on longer-term property investment strategies, where increased rental yields make them attractive as a long-term hold. Ultimately, we believe that for some clients there will be opportunities for growth. There is the potential to pick up stock from smaller, exiting landlords at keen prices as well as for increasing values, such as through consolidating properties within a block or acquiring properties with a view to increasing the number of bedrooms, taking advantage of permitted development rights and so on.
Ashley Illsen Co-CEO and co-founder of Magnet Capital in London
Ultimately, the ones who will be hardest hit by the SDLT increase will be the smaller landlords or those looking to enter the market either to become professional landlords or to create a passive income by way of investment. This is another barrier to entry on what has historically been a safe investment for individuals with spare capital. The obvious danger is that the rise in cost for the landlords will be passed on to tenants, causing rents to inflate further, particularly in regions with high PRS demand. This will also become stark if we cannot supply enough new homes to the market.
We have an unfortunate culture in the UK where professional landlords are often cast as the bad guys, despite fulfilling a vital function in our housing sector.
IN WHAT WAYS MIGHT THE INCREASE IN STAMP DUTY LAND TAX IMPACT EXISTING LANDLORDS AND THE GROWTH OF THE PRS MARKET?
Neil Rudge
Chief
banking officer for commercial at Shawbrook in Essex East England
An increase in SDLT could hinder the growth of the PRS by raising upfront costs for landlords, potentially deterring new investors and reducing the supply of rental properties. This could worsen the supply-demand imbalance and drive-up rental prices. Existing landlords might also see impacts on property values and equity, while smaller landlords could be discouraged from expanding their portfolios, shifting the sector towards larger, more professional investors. However, these changes may spur consolidation and strategic investment. By focusing on high-yield properties and leveraging economies of scale, landlords can seek to offset some of the tax impact.
Ultimately, this evolution could lead to higher standards, improved tenant experiences and more sustainable practices across the market.
WHAT EFFECT COULD THE £46M PROMISED FUNDING FOR RECRUITMENT AND TRAINING IN LOCAL PLANNING DEPARTMENTS HAVE ON REGIONAL PROPERTY DEVELOPMENT?
Jaxon Stevens Relationship director at ASG Finance in South Yorkshire
I would hope that the £46m pledge would go some way to help reduce the backlogs in the planning process that have remained for far too long. Increased funding for recruitment and training should help authorities to streamline planning approvals, hopefully enabling projects to move forward more quickly. A slicker process would boost confidence among developers, which I hope would lead to a rise in development applications. This could potentially contribute to economic growth and job creation.
Timothy Slinger Finance director at Somo in Manchester North West England
When the government talks about removing the right to buy scheme for council houses, I would assume that infrastructure development for social housing has moved up the political agenda—which is a good thing. Unfortunately, £46m is a very small percentage of the black hole in the public finances that our government is taking steps to fill. As a business director, I would note that £46m is less than £2 for every working person in the UK—a small drop compared to what is required.
Conor McDermott Director of SME lending of LHV Bank in London
This is a hopeful move. It may lead to short-term increased capacity and efficiency, reduce delays and accelerate property development projects.
The extra funding may even enhance local government’s ability to develop local plans, many of which have been held back by poor resourcing or are in desperate need of updating to meet modern community requirements.
The government has set ambitious targets for housebuilding and significant regional disparities remain in planning capacity—this funding should target those areas to help resolve that.
Ashley Illsen Co-CEO and co-founder of Magnet Capital in London
The planning system has been suffering from a chronic shortage of staff and expertise for many years now and this has become an increasingly large cost centre for developers. I’ve seen many development projects that have been rendered unviable purely due to the cost and delays caused by planning departments. My concerns are that the £46m is but a drop in the ocean and pouring good money into a bad system that is already slow and bureaucratic will not achieve what we’re hoping for here.
Unfortunately, the planning system is where we need more revolution than evolution.
Neil Rudge Chief banking officer for commercial at Shawbrook in Essex East England
The new funding for recruitment and training in local planning departments could accelerate regional property development. With more staff and improved expertise, planning applications could be processed more efficiently, encouraging developers to invest in new projects and reducing delays. This could stimulate growth in underdeveloped regions, support local economies and create jobs. Additionally, it could enhance the appeal of these areas to investors and ensure that new developments better align with local needs.
Jaxon Stevens
Relationship director at ASG Finance in South Yorkshire
NI contribution increases raise the cost of employment for SME lender and broker companies. This could make it more difficult for them to expand their teams and could, potentially, lead to reduced budgets in some areas for these businesses. All of this could lead to difficulties in attracting skilled professionals. This could, in turn, lead to greater investment in technology and automation for some of the more routine tasks.
SME lenders and brokers will need to adapt by reviewing their cost allocation across multiple areas.
Timothy Slinger
Finance director at Somo in Manchester North West England
While I was not shocked by this company tax, I will feel its pain. While investing to continually build and grow in an expanding bridging company, this is a leg shackle that slows our running speed. Our share of this tax on business can be absorbed in a profitable organisation but would have been critical had this levy been raised in our infancy.
Conor McDermott Director of SME lending at LHV Bank in London
The NI increase may have little direct impact on SME lender and broker companies, but will have a broad economic impact on inflation, potentially undoing some of the recent falls.
The combination of government spending plans and rising base rate (reflected by the increasing SWAP rates already being seen in the market) is causing headwinds that may make companies seriously reconsider…
Ashley Illsen Co-CEO and co-founder at Magnet Capital in London
We, like all businesses, cannot operate unless we’re making a profit. This shouldn’t be the case, but the government knows that every time they sting businesses and entrepreneurs, it is the employees who could ultimately suffer. This could come by way of lower wages or even fewer jobs. We need to create an environment where entrepreneurs can flourish in the country, as these are the people who drive growth. As a growing lender, we are hoping to buck the trend as we intend on taking on more staff in 2025.
HOW MIGHT THE INCREASE IN NATIONAL INSURANCE CONTRIBUTIONS IMPACT HIRING AND GROWTH FOR SME LENDERS AND BROKERS?
Neil Rudge Chief banking officer for commercial at
Shawbrook in Essex East England
A rise in NI contributions increases employment costs. This could hinder hiring, squeeze profit margins and force smaller firms to prioritise efficiency over expansion. However, this challenge can be turned into an opportunity. By investing in technology and automation, these firms can streamline processes, improve long-term efficiency and, potentially, enhance service delivery and competitiveness. Furthermore, prioritising the retention of high-quality talent over rapid expansion can foster a more skilled and committed workforce. This can strengthen company culture and customer relationships, leading to stronger client loyalty and increased business growth.
For forward-thinking companies, this shift presents an opportunity to build a more resilient and efficient business model that can drive sustainable growth in the long term.
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Cameron Linnell
A NEW QUEST TO CONQUER THE NORTH
In October, Albatross appointed its first regional sales manager, Cameron Linnell, to lead its northern expansion. He discusses how this move is not as simple as it may sound, and his route to securing a rare opportunity
Words by
After a stint in the garden, I’m delighted to be back, having joined Albatross Lending Group as its first northern-based regional sales manager. While my immaculately manicured weeds will of course miss me, I’m much happier now that I’m back and out on the road and reconnecting with my network. How I have missed them all.
I’ve known of Albatross founders Jordan Fearnley Brown and Lewis Casserley for a few years and always admired them. This was initially because of how well they dressed but, after a few chats here and there at various events, my one big takeaway was always that they seem like two genuinely nice guys. As I have got to know them better, that first observation proved to be spot on.
Albatross has built a really strong brand and an impressive team and reputation in a relatively short space of time. The team has recently been bolstered by the addition of Christian Gugolz, who has been brought on as head of sales. My reaction to that appointment was probably the same as most of the industry’s: “That’s a statement and a half!” Adding Christian and myself to the sales team alongside Nils Raber, who’s done such a good job leading from the front, makes it an incredibly exciting time for us and we really look forward to what we can do together as a collective—it’s just such a shame they’re both Chelsea fans.
In all seriousness, as soon as the possibility of joining Albatross was on the table, the overarching sentiment was one of excitement. It’s rare you get the opportunity to join an already successful company that’s still in its growth phase—and, after meeting all the team and hearing about some of the plans and ambitions for the not-too-distant future, that excitement only grew. I can’t wait to get really stuck in and play my part in our success over the coming years.
I would be lying if I said my initial excitement wasn’t mixed with a tinge of caution. A lot of lenders who predominantly operate in and around London have tried to crack “the North”. It is not as simple as hiring a salesperson based here. That tinge of caution quickly dissipated after my first few conversations and meetings. Thankfully, both Jordan and Lewis understood it wasn’t that simple; the product set they already have meshes really well with the region, they have an appetite and desire to lend in the North and they have done some really strong business and developed lasting relationships in the region.
My appointment will allow us to strengthen those existing relationships and, of course, foster new ones. We don’t want to play at the North—it’s a long-term ambition that’s now coming to fruition and it will be something we will get right.
From faxes to trade finance
Although I still think of myself as a bright-eyed and bushy-tailed 20-something, the stark reality is I’ve been in lending for over a decade now and I am no longer the 20-something I once was. I started off at NatWest in 2013, initially on a three-day contract working in a call centre and, after three months spent learning how to use a telephone and a fax machine (yes, to this day, banks still use trusty fax machines), I moved into a full-time role in trade finance.
CAMERON LINNELL
I quickly figured out that property was where I wanted to be—it was tangible, you could see what you’ve worked on and I won’t be alone in driving past a building I’d helped fund and letting everyone who cared to listen know that I played my part. I found out who headed real estate in the North West for the bank and dropped him an email asking if he’d like to go for coffee; six months or so later, a junior role came up in his team and I joined.
After five years of working with some brilliant people, I made the decision to leave the bank and step into the specialist lending world, initially as an underwriter at Goldentree Financial Services, where I eventually made the move into the sales team. From there, I’ve held sales roles at West One and, most recently, Avamore Capital. In the grand scheme, it has been a short career so far but I’ve had the pleasure of working with some of the best and brightest in the industry.
“We don’t want to play at the North—it’s a longterm ambition that’s now coming to fruition and it will be something we will get right”
Secure foundations
Rome wasn’t built in a day and our ambitions for what we want to do in the region won’t be in place over night; every salesperson in the industry has targets which, obviously, we all hope to exceed. While I’d love to set some records next year—perhaps win a Nobel prize for lending or maybe a knighthood—my ambitions for my first year in the role focus a bit more on the long term. I want to build strong foundations that we can build on in the years to come. That starts with hitting the road, getting out there and letting everyone know what we can offer and how we can support their clients. Then, when we’re called on, it’s about consistently delivering great results.
Sounds quite simple, doesn’t it? As we all know, simple is a rarity in bridging. They’ll always be a spanner waiting to be thrown into the works and, to be quite honest, that’s where we thrive and have the chance to really impress. I’ve been here for less than a month and I’ve already been so amazed at some of the things I’ve seen. There’s a desire to get deals done and find a way around issues and quirks, and we have the ability to make commercial decisions—actually make commercial decisions, not just talk about it. We’ve got a team that has been empowered and encouraged to come up with solutions and it’s one of the areas where I know I’ll add so much value. I’ll be in a position to lead the decision-making process and make credit calls that are essential where quick, quirky structuring is required.
I think the next year will be an interesting one… I feel that might have been said about each of the past five or six years, but it remains true. It’ll present a lot of challenges. I think development exits will continue to be used by a lot of our clients. Planning is still cumbersome and projects are taking longer to sell—every step of the development cycle seems that touch more difficult, and development exits allow clients to not rush the process and sell themselves short at the final hurdle. I think speed is going to be key; opportunities will present themselves and, when they do, clients that can move at a pace will prosper. Bridging trends have been on a downward slide in terms of completion timelines for a while now—lenders that can simplify the process and move quickly will do well.
Your clients need complete financial support when it counts. And we understand that.
Our tailored lending solutions can help to support their strategic goals.
With a dedicated broker team for you and a Relationship Manager for your client, we’re your go-to partner in business.
For more information visit metrobankonline.co.uk/commercial-referrals or email us at: commercialreferral@metrobank.plc.uk
No drama.
David Travers
drama. Just deals.
ScotLend set out to be the opposite of a typical lender, covering any postcode in Great Britain, no matter how remote, and being utterly straightforward. David Travers, the CEO behind the company, talks about how it is freeing brokers and their clients from rigid norms
Words by David Travers
by ALEXANDER CHAI
Photography
Reimagining the lending landscape
When we launched ScotLend, our mission was simple: to make lending as flexible and adaptable as it needed to be to meet the real-world needs of brokers and borrowers. We didn’t set out to become your typical lender—in fact, we did the opposite. From day one, ScotLend was built with a fresh philosophy: real lending for real people, with the kind of flexibility that’s rarer than a yoga mat in a boardroom. We wanted to create a process that didn’t keep brokers waiting, didn’t impose unnecessary hurdles and, above all, didn’t complicate the already-complex world of property finance.
Before ScotLend, I saw a lot of what was wrong in the industry: lenders taking days to answer initial enquiries, a shortage of lenders willing to serve all areas of Scotland (the Highlands and Islands included), strict postcode restrictions and, perhaps most annoyingly, lenders that would change their terms at the last minute. All too often, brokers and borrowers found themselves at the mercy of a system that simply wasn’t built with their interests in mind.
We knew we could do better. We’ve tried to address these issues head-on right from the outset. We’ve done this by implementing a one-hour guarantee for responses to enquiries, offering funding throughout England, Wales and Scotland—including even the most remote postcodes—and by committing to terms that won’t suddenly change, giving brokers the confidence they need to proceed smoothly. This is what ScotLend was born to do: break down unnecessary barriers and offer brokers a sense of freedom—without the hassle.
From the beginning, our commitment to adaptability, client-centred solutions and challenging the industry’s outdated practices has led us here to an approach we call simply: “No drama. Just deals.”
Open doors to niche needs
What was the catalyst for ScotLend? In short, the market needed a lender with a straightforward, flexible approach—especially in Scotland. Being Scotland’s only lender originated in this country and lending across the Great Britain, we’re proud to serve a niche with tailored services that can adapt to the specific needs of brokers and borrowers from the streets of London to the shores of Loch Ness.
For us, though, it wasn’t just about addressing a gap in the market. It was about challenging the norms that have kept brokers—and their clients—boxed in by rigid and unnecessary lending criteria. We recognise that brokers work with clients who have unique needs that don’t always fit neatly into the tidy requirements of traditional lenders. Too often, we saw clients with incredible potential getting held back by rules that simply didn’t allow flexibility. By building ScotLend, we aimed to empower brokers to close deals that others might deem too tricky or unconventional.
Our approach? Stay flexible, be innovative and, above all, be practical. Brokers needed an option that didn’t limit their choices based on postcodes, unnecessary red tape or last-minute surprises. They needed a partner willing to look at a deal in its entirety and make fast, effective decisions that help them close with confidence. In other words, brokers needed freedom And freedom, to us, means working together to get things done, regardless of postcode or complexity.
Remote to urban, city to glen
So, what makes us different from other lenders? For starters, ScotLend’s main USP is that we lend across England, Wales and Scotland, including the Highlands and Islands, with no postcode restrictions. Whether you’re working on a property in a remote village in the Highlands or an urban development in central London, we’re here to make financing accessible. No complicated postcode rules, no wondering if your project’s too remote. If it’s in Great Britain, we’re ready to support it.
We also specialise in first- and secondcharge bridging loans, offering the flexibility to finance projects that range from simple acquisitions to complex refinancing. What’s more, our approach is entirely client-centred. We’re a small, dedicated team designed to act fast, focus on the customer journey and provide a level of personal support you don’t often find with larger, more corporate lenders.
By being agile, responsive and laser focused on delivering solutions that actually work, ScotLend offers an experience that brokers appreciate and borrowers trust. Our unique model doesn’t just set us apart—it defines who we are. And, by doing things differently, we’ve found our place in an industry that is often slow to adapt and evolve.
Proven demand
Looking back, our growth has been both rapid and rewarding. Since the company was launched in September, we’ve seen a tremendous response, which tells us there is, indeed, a demand for a lender willing to cut through the noise and focus on real lending.
Within our first few months, our enquiries tripled and, in October, we issued offers on more than £11m worth of loans. This growth speaks of a clear need in the market for a no-drama lender that brokers can depend on. Each new enquiry and each completed deal reinforce the core principles we established at ScotLend: transparency, efficiency, and reliability.
Our model is adaptable and ever ready for the unique demands of the property finance industry. And, as we move into the end of 2024, we’re confident that ScotLend’s impact will continue to grow.
Mover during shake-ups
So, what’s next for ScotLend? Simply put, we’re not done shaking things up. The lending industry is evolving rapidly, and we’re committed to evolving alongside it. We’ve got our eyes on innovative solutions that will continue to serve brokers and clients with the adaptability they need.
Our vision for the future is clear: we want to make ScotLend synonymous with a lender that says “yes” where others say “no”. We’ll continue to listen to our brokers’ feedback and adapt accordingly because that’s how we’ve made it this far.
There’s a growing recognition in the industry that outdated, one-size-fits-all lending models don’t work for everyone. ScotLend intends to keep challenging those outdated practices and bring something fresh to the table. As we expand our service offerings, embrace new technology and keep tailoring our products to meet real-world needs, we’re excited about the journey ahead.
We’ll keep challenging outdated practices, keep tailoring our products to meet real needs, and keep proving that lending doesn’t have to be complicated—it just has to work.
“It was about challenging the norms that have kept brokers and their clients boxed in by rigid and unnecessary lending criteria”
OUR ELVES DON’T JUST COME OUT FOR CHRISTMAS
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Jack Coombs
STEERING THE SHIP TO THE CAPTAIN & CREW SUCCESS
From revitalising heritage buildings to championing regional England, Aspen is charting an exciting course for growth. With a bold vision to lend a staggering quarter-of-a-billion pounds next year, the company is ramping up recruitment and targeting thriving provincial cities. Steering this dynamic journey, managing director Jack Coombs shares insights on market revival and the unique strategies driving their success
Words by DHUHA AL-ZAIDI
Photography by ALEXANDER CHAI
hanks to Aspen’s substantial growth over the past year, tackling challenges in the lending market should be a smooth voyage.
In September, the lender reduced its rates in a move aimed at supporting its clientele both nationally and overseas, to fulfil their growth ambitions. This step, despite its significance, is subtle compared to the company’s achievements over the past year.
“We have a number of specialist products across our range of offerings from our no-valuation product that levers in-house, RICS-qualified surveyors to deliver a best-in-class desktop service. We’ve used this to lend up to 75% LTV, and recently expanded it to now cover semi-commercial and commercial security,” says Jack Coombs, managing director at Aspen.
Aspen emphasises its “works and heavy refurbishment appetite” and as of March this year, now funds the costs of works of up to £5m per transaction. “We are writing 30% of our business in the heavy refurb space and a further 20% in dev exit loans, meaning that our core customer group is UK developers. In addition, we provide 25% of loans on purchase bridges, mostly on our no-valuation product, and another 15% on our BTL product. Both services are for the BTL investor market within which half of our lending is to overseas borrowers,” he says.
“Being equity funded makes a big difference because clients know that when they’re speaking to us about a deal, they’re speaking with a decision maker”
Always room to grow
Despite its strong roots in the West Midlands, Aspen has appointed two BDMs across the UK in 2024, with another expected next year. The South West accounts for nearly 20% of its loans alone, averaging around £1.4m in size and is headed up by its unique in-house development monitoring team.
“Bath and Bristol are definitely places that we have an established presence. We work with some really good developers there and are seeking to grow. For us, there's always room for expansion," says Jack.
The lender is keen to meet the evolving demands of the property market. “Who wouldn't want to live in a house with an amazing Georgian facade in a spa town with all the nice restaurants and things that come with that? Those places are having a bit of a revival, especially post Covid. There's quite a trend in people moving out from London to go and live in these regions. There are some great historic buildings in Bath and Bristol," says Jack.
With minimum loan sizes starting from £200,000, Aspen naturally gravitates toward higher-value areas. For instance, the South East, dominates roughly half of Aspen’s total deals and over 60% of its total pound lending. This is driven by two predominant specialities.
First is Aspen’s support for foreign national purchases. The second is Aspen’s expertise in lending to prime developers that modernise
“What we’ve got is reliability and an appetite for heavy works that some lenders don’t have”
“In the investor market, certainty is what people want. They don’t want to take a product and then change it two-years later—that’s why we kept the low early repayment charge model so that that’s still possible”
heritage assets in the capital and elsewhere, creating luxury homes while preserving historic features.
Regional rising
Geographical diversity is core to the lending criteria of Aspen and S&U, its FTSE-listed parent company. For Jack, “good business is good business”, and applying local perspectives to their lending is crucial.
Aspen plans to permanently appoint a BDM to head its widening foray into the Midlands and North in 2025 as part of its commitment to being geographically diverse. The funder has maintained a strong momentum in these regions, with 17% and 18% of loans respectively written there.
Not every deal is smooth sailing, but remaining enthusiastic regardless summarises Aspen’s approach to executing complex regional loans.
“In the summer, we completed a £3.1m loan on an 8,265 sq ft block of flats in the Georgian centre of Bath. Given that we had completed a number of successful loans with the borrower already and were satisfied by their expertise, we offered the loan at 80% on day one.
"Typically, with bridge-to-let products you do a little refurbishment and then flip it on to a five-year BTL. Our works offering is the opposite; it’s a heavy piece of work on a longer-term bridge. You can look at the serviced period as getting a cheap dev exit at approximately 0.64% pm —a really good thing for us to keep the customer and for the borrower to have time to sell," says Jack.
Hiring more crew
Aspen, already an expanding company, is set to welcome additions, and aims to provide more services to customers by investing in its workforce. New hires will be required to enrol on the CPSP programme, among other industry courses like those accredited by the RICS. “We’ve upskilled our staff by adding eight people in the last 12 months, with another five set to join next year. We're interested in delivering our products at a greater scale to brokers and borrowers alike,” says Jack.
The company also boasts 16 eager graduates from local universities under its Graduate Recruitment Scheme to support its growth with plans to take on another five in the spring. The in-house training offers insight from industry experts and immerses them in practical scenarios run by planning consultants and solicitors. As a result, some former graduates have already obtained senior positions in the firm.
Decisions there and then
Aspen is on the right route, with new year goals to increase lending by 30%. The key ingredients? Consistency and a hunger for success—which Jack claims has improved the company’s conversion rates to 20% from initial enquiry to completion, compared to the 15% last year.
“What we've got is reliability and an appetite for heavy works that some lenders don't have.
“Being equity funded makes a big difference, because clients know that when they're speaking to us about a deal, they're speaking with a decision maker. It avoids a lot of the problems that are associated with more traditionally funded lenders—where there is a bank credit committee somewhere in the background that you'll never communicate with,” says Jack.
One port for deals
Amid unpredictable and sometimes choppy economic seas, this lender is determined to stand out in the market.
On the current, Aspen anticipates lending a quarter-of-a-billion pounds in 2025. Jack shares the company’s navigation plan to reach this, with two products on the way.
First is a three-year bridge-to-let, aimed at those seeking flexible funding. "In the investor market, certainty is what people want. They don't want to take a product and then change it two-years later that's why a longer-term offering is needed, however we kept the low early repayment charge model so that flexibility is still possible," says Jack.
Second is a ground-up product for repeat borrowers and experienced developers who have an existing relationship with Aspen. This product looks to strengthen support and demonstrate the company’s reliability to both the broker and borrower involved.
“We are constantly keeping our finger on the pulse of the industry through conversations with our network and adapting by developing innovative products to create solutions to what are often complex funding requirements.
“One thing we’ve noticed is if you have a lot of different things to offer brokers, they appreciate that because you can work with them across multiple, varying deal types. They don't need to run around and know 50 lenders but, instead, have something like five lenders on hand—if those lenders can do different things, then they can have depth of relationship which is efficient,” he says.
S&U’s unwavering confidence in the business is backed by their deep understanding of regional lending complexities, and ability to steer in the right direction. With S&U’s plans for increased funding for Aspen’s specialist property lending and a steady flow of repeat brokers and clients, the lender is poised to sail into a wave of success.
‘Listen, engage, understand and deliver’
MSP Capital has appointed property expert Adam Tovey as commercial director, tasked with growing market share and championing the customer experience. It’s the second promotion in just two years for Adam, who joined the specialist lender in 2010, worked his way up to valuation director, and was most recently director of risk and underwriting. Here, he talks career, working culture, loan book ambitions, and MSP Capital’s drive to be the UK’s ‘go-to’ specialist for development and bridging finance.
One of the key market differentiators that members of team MSP like to highlight is that they are all ‘property people’. They understand the specific needs of developers, investors and brokers because they’ve been there themselves. A prime example is Adam Tovey. Born and bred in Poole, Dorset, where MSP Capital is based, Adam goes back a long way with managing director Martin Higgins. The pair first worked together over 25 years ago in the hospitality sector when Adam was still in his teens. Asked for his ‘property credentials’, Adam explains that he is a chartered surveyor with a degree in mining from the Camborne School of Mines in Cornwall.
“It’s not the most usual background for a position within a lending business,” he notes with a smile. After starting his career in the mineral industry, he returned to Poole to take up a valuation role at the local authority. Following qualifying as a chartered surveyor, he switched
to a regional property group where he specialised in valuation work for secured lending for high-street banks. One of the clients was MSP Capital, offering the chance to rekindle ties with Martin.
“I joined MSP Capital as a chartered surveyor with a view to focus on valuations,” explains Adam. “My role has evolved since then and become more strategic. I think I’ve worked on every aspect of activity that the company does. From overseeing the underwriting team to a focus on product, pricing, and originations. Over the past 18 months, it’s been more about proactive risk management policies and board-level implementation of enhanced due diligence.”
Loan book growth
Asked what stepping up to commercial director will mean for him and existing clients, Adam says: “It’s a move designed to enhance business growth
and strategy. We have a high volume of returning clients who keep coming back and recommend us to others.
I’m keen to strengthen those existing relationships we have with developers, investors, intermediaries, and brokers while generating new business, too. We want to spread the word and take our strengths and proposition to a broader market, emphasising our ability to perform and support clients in achieving their plans with confidence.”
The business has grown from a handful of staff in 2010 to over 50 people with an engaged, experienced, and supportive board of directors. This skill and determination spreads throughout the business and is optimised by the company’s strong future ambitions. Adam is aiming for £250m worth of new originations in 2025, £0.5bn by the end of 2026, and £750m over the next five years. “We want to be more aggressive in the market next year,” he states, “2025 is the time to achieve a higher market share.”
To help prepare for his new role, Adam recently completed an intensive MBA Essentials Certificate course through the London School of Economics. “I’m not an accountant, I’m a surveyor with a mining degree, and so I wanted to gain some further theory on business management and strategy,” he explains. “The course was all about leadership and key skills around tactics, influencing, finance, teamwork, and other disciplines. I’ve already been applying many of the learnings.”
deliver’
What
relationship-led means for MSP
Capital’s new commercial director
Development exit bridging
One product innovation Adam was heavily involved with in 2024 was a rate reduction on MSP Capital’s development exit bridging loan. The decision was taken well ahead of the base rate cuts from the Bank of England. The move, in June 2024, enabled clients to access development exit bridging from just 0.8% per month, the firm’s lowest rate since 2022, under a ring-fenced £50m funding allocation. “It was the right decision to provide a wellpriced, competitive product in line with expected rate cuts,” Adam says. “It has been well received. People welcome the lower rate. It’s ideal for situations where a loan is reaching expiry and the borrower has not yet sold all the units. They can come to us to get over that hurdle.”
Looking to next year and beyond, Adam expects to be just as strongly involved with clients and brokers as ever. “My engagement with clients and brokers won’t change. I’ll make sure I’m not removed from them. I’ll always be available. It’s about finding the right balance. We have an excellent team who can manage day-to-day issues. I will be speaking with clients and brokers with a management-level hat on, less deal-specific and granular and more general about how MSP Capital can help solve any problems. It’s about moving from the specific details and terms of an individual deal to a wider basis around how we can help now and in the future.”
Relationship-led in practice
As well as cultivating a team of experts steeped in the world of property, Adam points to several other factors behind MSP Capital’s success. “We have a culture of hard work and pride ourselves on great teamwork. Is this our secret sauce? Perhaps so.” He adds: “There is a lot of cross-departmental collaboration, with a small number of focused breakout groups or committees looking at specific agendas. Recently, these have included products and pricing, and individual development or loan
issues. Empowering colleagues from different departments such as underwriting, finance, or onboarding to come together and make decisions creates a more holistic approach.”
Other key strengths Adam says are evident at MSP Capital include ready access to key decision makers, certainty of the funding solution, technological innovation, and a proactive drive to continually align with what the client is trying to achieve.
“We provide direct access to key decision makers, including senior underwriters who can answer any query and talk through customers’ goals,” comments Adam. “Relationship-led starts with a commitment to listen, engage, understand, and deliver. You have to understand the deal and what people are saying. Our approach is to help overcome problems right at the start whether they involve planning, procurement, build costs, getting electricity connected, or something else. We know that sorting paperwork and enquiries early can save considerable time and effort later. We all understand the parameters of lending and, as soon as we support a development project, we become totally aligned. This is where we are unique. We really understand the property side of things.”
Reliability is another important strength. “Once we say we are going to lend, we perform. This enables our clients to move forward safe in the knowledge that their funding partner will not let them down. After we have lent, we want a project to be a success. It’s about securing profit for the customer, and a margin for us, and ensuring they come back next time. A win, win. We can guarantee the funding solution very quickly because we are a principal lender with our own money and don’t have to refer elsewhere. We then engage proactively throughout the life of the loan.”
On the tech side, Adam praises MSP Capital’s software developers for building a market-leading platform. “We have introduced an infrastructure for new business that simplifies applications and processes, collates data, handles engagement with third parties, and is simply more efficient.”
Access to land for developers
Regarding market trends, Adam says a period of stability would help developers to push on. “Volatility is where there are problems. We’ve seen interest rates start to fall and a commitment to bring in new local authority planning officers, so it’s a start but we still need to see a reduction in red tape and more freeing-up of land for new development. There are a lot of people out there who are very good at building houses, but the market as a whole needs to find stronger connections with those owning and holding the land. With traditional high-street lenders regressing from commercial and development funding, we and other non-regulated lenders have opportunities to leverage. We have the chance to provide much needed liquidity into that space.”
Summing up his appointment, Adam notes: “I’ve been at the company for a long time, played my part in helping to shape it, and this is a natural fit for me. I’m very lucky. I’m surrounded by great colleagues who work with enthusiasm and I’m still learning every day. We continue to evolve as a company, focused on providing an exceptional experience for our clients based on speed, flexibility and reliability. I want to influence and lead strategy and new business growth so we can progress as the go-to specialist property finance provider in the UK.”
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ESG factors assist lenders to gauge risks, uncover opportunities and align their lending portfolios with their own sustainability goals. Here, I encourage funders to adopt these principles to comply with rules and boost their reputation
ESG: to promise Pi atf
Words by OZAN ZORBA Associate solicitor at Harold Benjamin
London's ESG finance market is expected to grow in prominence as sustainability becomes integral to company strategies, with the regulatory landscape shaped by evolving standards and increased scrutiny through the introduction of various regulations surrounding green finance. For example, the FCA is aligning its disclosure requirements with the International Sustainability Standards Board guidelines. Similarly, the PRA is focusing on climate-related financial risks, highlighting the need for banks to improve their reporting systems around this.
Key developments include the FCA’s anti-greenwashing rule and guidance that came into force at the end of May 2024 and UK finance firms using labels with accompanying disclosures from late July, followed by the naming and marketing rules due to come into force this December. Asset managers and funds must clearly categorise products under labels such as "sustainability focus" or "impact" to help consumers make informed choices on green products offered; the characteristics should be in both name and product being offered. These rules also introduce anti-greenwashing measures, requiring firms to ensure their claims are accurate and not misleading.
The reputational risks associated with financing entities that perform poorly in ESG areas are becoming increasingly significant. Negative press or public backlash over lenders with controversial environmental or social practices can damage their brand and wear down investor confidence. As a result, lenders must take a more proactive stance in assessing the ESG credentials of borrowers
What to focus on
When lenders assess their loan books in terms of ESG factors, there are several key considerations to keep in mind. These help lenders evaluate not only the financial risks but also the broader sustainability implications of their portfolios.
Data availability and quality
First, lenders can have problems in accessing consistent, reliable ESG data from borrowers. This will remain an issue given that ESG reporting standards are still evolving, with regulatory pressures becoming more present. Accurate and comprehensive data on environmental impacts, social practices and governance structures is crucial for lenders if they are to assess potential risks and opportunities in their loan books. This includes gathering information on carbon footprints, diversity and inclusion, and corporate governance practices
Second, the availability and quality of ESG data for lenders vary significantly. Carbonintensive industries—oil and gas, mining and utilities—typically have better-developed ESG reporting frameworks as a result of regulatory scrutiny and investor pressure. ESG data from SMEs tends to be less available and of a lower quality as they have limited resources and reporting capabilities. These organisations may also lack the expertise or systems to track and report detailed ESG findings.
Finally, ESG disclosures by banks and insurers are improving as they are driven by regulations such as those issued by the Task Force on Climate-related Financial Disclosures (TCFD). However, their ESG impact is often indirect and depend on the sectors they work in.
Problems in data availability and quality include: inconsistencies in reporting standards because the lack of universal ESG reporting
Top tips for lenders:
standards leads to variations in how data is collected and presented; data gaps in emerging markets as a result of limited regulatory oversight and infrastructure in some regions; and greenwashing, which risks making data less reliable as some sectors may overstate their ESG credentials without rigorous verification.
Regulatory and legal uncertainty
The rapid evolution of ESG regulations and legal frameworks presents significant challenges for lenders. Regulatory and legal uncertainty complicates compliance, increases operational risks and can impact strategic decision-making.
ESG regulations are constantly evolving, with new standards being introduced and existing ones updated frequently, so lenders must stay agile to keep up. These include mandatory climate risk disclosures and biodiversity-related reporting such as that from TCFD, plus the the FCA’s sustainability disclosure requirements as well as its anti-greenwashing rule and guidance.
Non-compliance with ESG regulations can lead to fines, legal action and reputational damage. As regulatory scrutiny increases, lenders must implement rigorous governance frameworks to avoid these risks.
Risk and risk integration
With regulators increasingly focused on greenwashing, lenders face pressure to ensure that the ESG claims of their borrowers and financial products are genuine. Some lenders may underreport risks to meet their sustainability goals, thereby engaging in greenwashing themselves; they may label financial products as green without substantial evidence of ESG compliance, exposing
them to regulatory penalties. Misleading ESG reporting could result in significant reputational and legal risks.
There are several steps to incorporating ESG into established credit risk models.
First, relevant ESG factors should be identified and assessed. These can include: environmental risks, such as those around carbon emissions, energy efficiency and exposure to climate-related risks; social risks, for example community impact, employee practices and human rights issues; and governance risks, which can include those around corporate structures, business ethics and regulatory compliance.
These risks needs to be quantified. Scoring systems could be introduced where ESG factors are weighted based on their relevance to the borrower’s industry.
Risk models should be adjusted. ESG risks should be factored into risk models, including probability of default calculations, for example where a company with higher environmental risks may face regulatory fines that would increase their likelihood of non-payment. Regarding loss given default, lenders should assess how ESG risks may affect recovery rates, for example where a company facing liquidation holds assets in a carbon-intensive industry.
Incorporating ESG-related stress testing would help lenders evaluate how much ESG events could impact a borrower’s credit profile and would ensure they are prepared for potential shocks, such as sudden regulatory changes or climate-related events.
Pressure on profit
Profitability pressures related to ESG integration present significant challenges for lenders. Balancing the shift toward sustainability against financial returns requires careful management of costs and risks, particularly as
ESG expectations from regulators, investors and other stakeholders grow.
Costs will be incurred in adhering to regulations and meeting the evolving ESG regulatory requirements, as reporting systems and processes will need to be enhanced. Training existing staff and hiring ESG experts to develop knowledge around ESG will add to operational costs, which may put pressure on short-term profitability. Implementing new systems to collect and analyse data may require substantial investment in technology and expertise.
There is also a risk of assets becoming stranded. Lenders with significant exposure to carbon-intensive industries may face financial losses as these sectors decline due to regulatory and market shifts. If such assets become stranded, this will reduce their value and harm portfolio returns.
As more lenders enter the ESG financing space, competition for high-quality, sustainable assets will increase. This can compress margins on green loans or sustainability-linked loans.
ESG proposals often promise long-term financial and reputational benefits but returns may not materialise quickly. Lenders may face short-term profitability dips as they adjust their portfolios and invest in sustainability infrastructure.
Rapid shifts in regulatory environments or market preferences can lead to volatility in ESG-related investments. Lenders must carefully manage these risks to avoid undermining financial stability and returns
From a lenders’ perspective, achieving a balance requires an approach where ESG considerations are integrated into strategic decision-making without financial stability being compromised. Lenders must adopt innovation, enhance risk management and engage with stakeholders to ensure both profitability and sustainability goals are met.
Words by JODI LUND AND DAVID SMITH
Head of real estate finance and head of dispute resolution at JMW Solicitors
LENDERS SHOULD START DEALING WITH THE RENTERS’ RIGHTS BILL NOW
In conjunction with the Labour party’s manifesto came the Renters’ Rights Bill, a reform aimed at strengthening tenants’ rights that could also greatly increase lending risk in the event of landlord default. We explain its effects and why lenders should listen
One of the key flagship reforms of the new Labour government is the RRB. This is closely based on the previous government’s efforts to reform the PRS but with some additions.
Serious consequences
While this legislation is not expected to come into force until late summer 2025, its consequences are already being felt. The changes wrought by the bill will affect not just new tenancies that start after its enactment but all tenancies within its remit. In practical terms, this means that all assured shorthold tenancies will instantaneously become assured periodic tenancies on commencement of the new legislation, actually altering the basis of the agreement. This, effectively, will allow all tenants to remain in properties indefinitely, provided they comply with the terms of the
tenancy; landlords will need to have a specific reason to recover possession.
The scope of those reasons has been widened but, in important respects, they are more challenging to use.
Take the example of rent arrears. Currently, landlords need tenants to be in two months arrears of rent to be confident of obtaining possession in court. The RRB increases this to three months. In addition, the notice period is increased from two weeks to four weeks, meaning that tenants will need to be in almost four months of rent arrears before a landlord can even commence court proceedings. As court proceedings are currently (according to government figures) taking seven months, tenants may be in arrears of rent for up to 12 months before landlords can recover possession and restore a rental income.
If the landlord wishes to sell, they will not be able to do so for 12 months from the start
of the tenancy and must give a tenant four months’ notice. If they cannot obtain a sale, they will then be prohibited from re-letting the property for another 12 months—again, leaving them without rental income for a considerable period.
There is also greater regulation over property standards and tougher penalties for failing to deal with them. Landlords will need to join the PRS database and a landlord redress scheme. They will also need to meet new, more stringent standards for their properties. The penalties for failure will also rise. Landlords who do not join the relevant schemes will not be able to obtain possession of their properties, while those who do not meet standards or provide written tenancy agreements will potentially be subject to civil penalties from local authorities. More significantly, tenants will be able to seek rent repayment orders for up to 24 months of rent, considerably more than the current 12 months.
Lenders, listen up
However, these are all penalties for landlords so why do they matter to lenders?
The short answer: lending risk. Landlords who are not compliant are at a far greater risk of default on lending as the obligation to pay back significant sums of rent will detract from their ability to repay loans. Even if a lender were to appoint a receiver to remove the tenant and procure a sale, it may be almost impossible to obtain vacant possession if a landlord has not met their compliance obligations. This will mean that the sale may have to take place with a tenant in situ and the price will be consequently lower. Therefore, there is a much greater need for lenders to have compliant landlords. Generally, lenders have stayed out of this field and have been unconcerned with the behaviour of their landlords on the basis that they could recover possession anyway. Now that they need reasons—even then, they can be blocked from gaining possession if landlords have not complied with the law—it may be prudent for lenders to keep a far closer
eye on the operation and management of the portfolios they are lending against.
A further point that lenders may need to be aware of is the investigatory power being created in respect of “rental businesses”. This is a very loosely defined term and appears to encompass any business engaged in the rental of property. This might well include Law of Property Act (LPA) receivers if they are directly engaged in renting properties that are tenanted and are potentially pending sale. Local authorities have sweeping powers to enter rental businesses and take copies of documents or any durable medium (including computers) on which those documents reside. Therefore, LPA receivers directly managing rental properties may find that their records and those pertaining to lenders are less secure than might be desired. Again, lenders have historically avoided interfering in how these bodies operate; nonetheless, they may wish to insist that receivers employ agents to rent and manage properties so the latter can potentially argue that they are not rental businesses within the meaning of the legislation.
It’s almost here: watch your risk
Finally—and the reason to act promptly—is that the legislation is far advanced. It has finished its Commons committee stage early and may be moving to the House of Lords by Christmas. The government intends to bring the bill into effect next summer. When it does so, it will be brought into force for all tenancies, both new and existing. Already, there will be many properties that are securing debt on which the basis of the risk is likely to change dramatically and at short notice.
For all these reasons, lenders cannot afford to ignore the RRB.
new rules target risk Basel 3.1
Words by RICHARD ANGELL head of sales at Rockstead
The Basel 3.1 reform from the PRA aims to bolster the financial resilience of banks by requiring them to hold more capital against riskier assets such as certain property loans. While these changes, which address the final elements of the Basel III regulatory framework, are designed to reduce economic vulnerability, significant adjustments could be required to products such as bridging finance and those with higher LTVs.
MORE CAPITAL NEEDED
With the introduction of Basel 3.1, lenders and mortgage brokers are preparing for shifts in risk appetite and capital requirements, which are expected to make certain loans harder to secure. We explore how this could impact regional lending
Basel 3.1 focuses on increasing capital requirements, particularly for loans with higher-risk exposure. This framework encourages banks to build robust capital buffers by holding a greater percentage of capital against risk-weighted assets (RWAs), including in property and mortgage lending. By imposing stricter standards, the new rules are intended to reduce the risk of financial instability in the banking sector.
TIGHTER AVAILABILITY
For mortgage brokers, these regulatory changes could affect loan availability and options for borrowers, as banks may become more selective in what they offer to manage the increased capital costs. High-LTV loans and non-standard products could become less accessible as banks adjust their lending strategies to comply with the new requirements. Brokers may therefore face challenges in securing financing for borrowers with non-standard profiles or lower credit scores. Furthermore, banks could raise interest rates on higher-risk products and prioritise loans that present a lower level of risk, potentially affecting clients who are seeking more flexible finance.
DEMAND STAYS STRONG
Despite the changes due to be introduced in January 2026, demand for bridging and development finance remains robust. The BDLA’s Q3 2024 report highlights record-breaking activity, with applications, completions, and total loan book values reaching new highs. Specifically, bridging loan completions rose to almost £1.8bn in
Q3, marking a 2.6% increase over the previous quarter, while the overall loan book grew by 7.6% to surpass £9bn for the first time. Applications reached £10.9bn, a 6.7% quarterly increase, underscoring the continued strength of the bridging finance market.
Vic Jannels, CEO at the BDLA, commented that “the continued momentum we’re reporting . . . demonstrates the growing importance of bridging and development lending as a vital cog in the UK mortgage industry”. This demand highlights the sector’s resilience but also raises the need to maintain responsible lending practices, especially with the projected regulatory shifts we are considering here.
SUPPORT FOR LENDERS
In response to these regulatory changes and the continued growth in bridging finance, Rockstead has joined the BDLA as an associate member, reinforcing our commitment to supporting sustainable growth in the bridging and development finance sectors. This also aligns with our commitment to help firms navigate the complexities of Basel 3.1, offering insights and support to ensure that they meet the heightened regulatory requirements.
REGIONAL RESULTS
The impact of the new rules on lending practices will vary significantly across the UK, influenced by each region’s property values, economic conditions, and market demand. Here is how we believe Basel 3.1 is likely to shape mortgage lending and broker activities in the regions:
In London and the South East, high property prices make mortgages inherently riskier for lenders because of potential price volatility. Basel 3.1’s capital requirements may lead banks to reduce high-LTV lending, potentially limiting options for first-time buyers or those with limited deposits. Mortgage brokers may face difficulties in securing financing for borrowers as lenders reduce their exposure to riskier assets.
In places in the Midlands and the North with comparatively lower property prices, the regulatory impact may be less pronounced. Banks should face lower risks, which should allow them to continue offering higher-LTV products more readily. Brokers in these locations may find lending relatively unaffected, though some tightening of underwriting standards may still be observed as banks comply with the new rules.
Scotland and Wales may see less of an impact. In Scotland, where the property market has historically been stable, the effects on lending practices may be moderate. Welsh property prices are generally lower but potential market fluctuations could prompt lenders to take a cautious approach. Brokers here may notice minor adjustments to lending policies, although mortgage products should remain readily available.
These regional differences highlight the importance of local market expertise in managing the transition to the new rules. Rockstead’s insights can help lenders understand and adapt to the specific needs of each area, ensuring that they maintain regulatory compliance while continuing to serve brokers and borrowers effectively.
RISK ASSESSMENT AND DUE DILIGENCE
With an increased emphasis on RWA calculations, lenders must conduct more rigorous evaluations of borrowers’ financial health and property valuations.
UNDERWRITING REVIEWS AND COMPLIANCE
As Basel 3.1 introduces capital and compliance expectations, lenders will need to align their underwriting processes with the updated standards.
PORTFOLIO MANAGEMENT AND RISK MITIGATION
The PRA’s focus on higher capital requirements for riskier assets may prompt lenders to re-evaluate their portfolios. Lenders should be identifying risk concentrations and implementing strategies to achieve regulatory compliance.
REGIONAL MARKET INTELLIGENCE
As Basel 3.1 will affect regions differently, lenders should tailor their lending and risk strategies to the specific needs of each. By gaining insights into local market conditions, lenders will be able to make informed decisions that align with both regulatory expectations and the realities of the regional property market.
VIABILITY AS REGULATIONS TIGHTENS
With a recent rise in year-on-year bridging loan defaults, responsible lending practices are more important than ever. The BDLA’s commitment to maintain industry standards and sustainable growth aligns with regulators’ goals, helping to ensure that bridging and development finance remains a viable option for brokers and borrowers in the tighter regulatory environment. The BDLA’s efforts to promote accreditation such as the CPSP designation and to uphold a code of conduct underscore its dedication to industry resilience.
Vic Jannels commented on the association’s proactive stance: “We continue to promote the benefits of attaining the CPSP accreditation . . . alongside our ongoing dialogue with regulators and policymakers.” The organisation’s advocacy for sustainable lending practices complements Basel 3.1’s focus on risk management, making it a valuable partner for brokers, lenders, and industry associates.
RESILIENT AND RESPONSIBLE
As Basel 3.1 redefines the UK mortgage landscape, we will all navigate new challenges in lending, risk management, and compliance. By helping lenders understand and adapt to regulatory shifts, we aim to foster industry strength and enable sustainable growth, as well as helping to improve standards in an evolving financial landscape. w
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Lending in local regions has its challenges. For some brokers, securing funding for areas outside London can be fraught with troubles and frustration. With this in mind, how can lenders overcome operational difficulties to leverage local market demands?
Words by DHUHA AL-ZAIDI
Illustration by VALF
WHY DO BROKERS STILL STRUGGLE OUTSIDE OF LONDON?
Undoubtedly, there’s a myriad of specialist finance providers, making it overwhelming to pinpoint the best lending partners—and that’s without accounting for experts in specific areas. Yet brokers keen to serve diverse local markets can find themselves tangled in a web of regional impositions. Fixed lending criteria with seemingly no room for negotiation hinders communication and impedes harmonious relationships.
What’s the best solution to mitigating this disconnect and navigating local market priorities? Here, brokers based across the UK—Liz Syms at Connect Mortgages; Kevin Gaughan at DMK Finance; and Lucy Waters at Aria Finance—discuss where the problems lie and how the industry can overcome them.
DHUHA AL-ZAIDI: How would you describe your experience of working with regional lenders over the past 12 months? Have there been any particular challenges?
LUCY WATERS: It’s definitely got better. There was a time—probably when there were fewer lenders in the market, and they had more deal flow and more options in the areas they predominantly wanted to be in—that there were more regional restrictions.
You’d often find that in certain areas, especially those with mostly lower-value houses, there were difficulties around bridging and development finance in, say, Wales. And a lot of BTL lenders don’t fund in Scotland, even to this day. They have their reasons, but it’s disappointing that it hasn’t opened more, given that it’s a good, strong market up there.
Now that there’s more choice, it’s infinitely improved. But the problem you often come across is around property values and LTVs, because the cost in a repossession scenario is often, to an extent, fixed. If a lender’s taking back a property that’s worth £60,000 or £70,000, some of the fixed costs are the same as they’d be for a more expensive one. This alienates them from lending in certain areas, because they’re concerned that there isn’t the skin in the LTV, or they might apply more restrictions to it.
Now, that’s very product specific, so we might delve into it more and it’s perhaps less relevant in the mainstream mortgage and BTL world, but that’s how I would perceive it in a nutshell.
KEVIN GAUGHAN: I’ll jump in on the back of what Lucy said. I’m based in Glasgow, and although from my previous roles I’ve got a lot of contacts in England—which is fine because I get some lead sources from there—most of my activity is Scottish based. If the question is, have there been any challenges? Then yes, because at times you are restricted in where you can go. There are some fantastic lenders out there and we’d love it if they came and played in the Scottish market a bit more, or played in it at all
[Some of these] are great lenders, with great offerings, but we do miss out, and our clients miss out. From speaking to them, at roadshows and the like, there’s always an appetite. As Lucy kindly mentioned, there is a brilliant market up here, whether in the commercial or residential space.
But the legal differences are obvious, and that’s probably the biggest challenge they have. I think another frustration that creeps in with lenders who operate on both sides of the border is the knowledge gap. They think they know, but when they get dug in, you end up with a problem down the line because of it.
Also, there is life outside Glasgow and Edinburgh, but where some funds operated in those cities, they were restricted to those cities as well. You think, ‘What about Aberdeen?’ which has historically almost had its own little microclimate. And I know in a previous life, when I was in Lloyds Banking Group, it was almost deemed to be like London in terms of how good a market that was.
Obviously, that’s changed a lot. But there are other areas, like Islay, which is a little, beautiful island with lovely properties. I think they’re missing a real trick in some of these places. I’ll pause for breath now! [Laughs]
LIZ SYMS: Yes, and the other area that’s really restrictive, and it’s across all different product types, is Northern Ireland, particularly for specialist mortgages. We might be able to get a Lloyds loan or a mainstream lender there, but very few specialist lenders will consider it at all. So that can
“When you start going into more rural regions, possibly it’s the fear of relying on valuers to predict something that has no comparable evidence . . . it’s probably a lack of knowledge and being afraid of getting it wrong”
be problematic, because they’re just not getting access to some of the specialist criteria out there.
Touching on Lucy’s point, in terms of the minimum loan size, some of these that the lenders put in place make it really hard for certain regions that have lower-value properties, because the amount is just too large for them, maybe up north and so on.
But the difficulty for the lenders is it doesn’t matter whether the loan is £200,000 or £50,000, they’ve still got not just the repossession costs, but all the costs needed to get that loan set up in the first place. That’s why they’ll often put on that larger loan size, because they can recoup it. Of course, that causes problems for people who want to use those lenders in the lower-value areas.
LW: What you have to remember is that people are informed. They read the papers, they look at headline interest rates—and you quote them something and they say, “Hold on a second, Kevin. Why are you quoting me that when I can see the interest rates are starting from this?” Then you have to explain that it’s an area or a property value restriction. Naturally, that’s annoying for people, because the credit profile and everything else is alike.
We’re probably a bit spoilt where we are; Liz, you as well. While we deal nationally, we have a lot of business in Scotland, a few accounts we work with, so we do feel it. But when it comes to people local to us, they have a lot of options.
When you get into development and commercial loans, perhaps it’s even harder than in the mainstream mortgage and BTL space, because there’s the added component that they don’t always have the presence to be able to manage it.
If it’s a development loan, the lenders will want to monitor it. And while they’ll have monitoring surveyors that will partially do that for them, there’ll be fewer in the area, hence harder to find. If they want to go out to do site visits and inspections, on a £200,000-300,000 loan, and it takes three or four hours to drive to—and they’re able to write a million-plus in an area where they don’t have much of a drive—you can understand that from a business perspective it makes it a compelling argument to stick more locally. Obviously, that doesn’t help the consumer.
There needs to be some sort of recognition of the fact that good business happens all around the country. It’s not isolated to certain areas, and it would be nice to see lenders be a bit more forward thinking in how they could approach some of the operational difficulties of running that business.
LS: One of the other things we’ve seen is BTL investors with large portfolios going outside their region. Although we’re quite southern based, they’re looking at properties further away that are really good opportunities and a great way for them to expand. Then they come across challenges from lenders they use on a regular basis; suddenly they don’t meet the minimum loan or minimum value requirements.
LW: Actually, Liz, sometimes rates as well! As the loans get higher, you get preferential rates in many instances.
LS: Exactly. So it affects all types of business, not just one particular product area. It impacts BTL, commercial, residential in many ways.
DA: What factors do you believe lenders should better consider when addressing regional disparities?
LW: Tough question, because it’s a criteria point. If it doesn’t get past the first set of criteria, they’re not considering anything. It’s not usually like, “Oh, let’s look at the deal in its rounds.” It’s normally, “It doesn’t hit minimum loan, doesn’t hit minimum property value, or it’s out of area.” So, there must be a shift in a lender’s approach, and maybe that’s having more regional hubs, or a different way of underwriting and managing certain loans in other regions. I don’t have the solution, but the problem at the moment is criteria is just there, it’s set, it’s not to be debated.
LS: Yes, because you’ve got BTL and residential off-the-shelf products, then you’ve got the more bespoke bridging and commercial. But even with these, LTVs and minimum values are set. They might be flexible on their criteria in all other ways, but these are usually very much the hard line. I don’t know about you, Lucy and Kevin, but I don’t often see lenders flexing much on their minimum loan sizes.
LW: No, not at all.
LS: Originally, local building societies were set up for that purpose. So if you were in an area like Yorkshire, where you’ve got lots of leasehold houses, they would lend there, because they understood that, and therefore could also look at creating products that met the demand in terms of valuations and so on.
But you’re still back to that issue. The reason there’s less of that now is because it’s as costly for them to run a £50,000 or £100,000 mortgage as it is to run a £500,000 one that they’re going to make a lot more profit on. So, same as Lucy, really, where’s the answer? The market has shifted because of the profitability and the needs of the lenders, as much as anything.
KG: I suppose this is a question to Lucy and Liz, but are there any parts England that lenders won’t lend in? Would they not lend in a particular area of Yorkshire, or in Ipswich, or Felixstowe, or is it just pretty blanket?
LW: You get postcode restrictions and that’s normally due to bad debt and concentration. I know of one case recently, and Liverpool and Leeds have historically had it, where there have been masses of new-build apartments, and lenders have gone really underwater on some of those developments, so they’ll put in postcode restrictions.
Even in Scotland, you mentioned Aberdeen, that area used to be really popular and now it’s affected a lot of lenders because of the challenges it’s had. You get those sorts of restrictions, but it’s not normally because of where they are—it’s typically event driven.
LS: It’s exposure isn’t it, more than anything else? They tend to be exposure driven.
KG: Yes, whereas I think there’s a tendency to be selfish about the Scottish market at the moment, it’s almost like an ignorance that there are some fantastic parts. Look, Perth is a great place to live, and arguably one of the more expensive areas, but it gets completely overlooked. I have no idea why. I haven’t been in the industry a long time, but I’ve not had a true answer to that question. So, why do we do that?
LS: One of the lenders said to me once, particularly about specialist lenders: when they come to the market, they try to get established in an area that they know better, that they can predict better, with a legal system they understand. Then when they get that market, they start to think about Scotland. So, it’s always kind of second best, isn’t it, unfortunately?
LW: Yes, it’s a bit of an expertise thing. I suppose visibility wise, they’re maybe a bit more reliant on valuers and lawyers in some of the areas they don’t know so well, whereas London, just because of the mass of it, you can understand better. You can see performance of sales and trends. In terms of more remote areas, perhaps Glasgow and Edinburgh, of all the places, tend to be the easier ones because of the transaction levels and comparables.
When you start going into more rural regions, possibly it’s the fear of relying on valuers to predict something that has no comparable evidence. That tends to be more in the bespoke world—the bridging and development and real specialist investment side of things. It’s probably a lack of knowledge and being afraid of getting it wrong.
DA: What factors drive your preference for working with certain regional lenders in say, Scotland, versus national lenders?
KG: I’ll kick off. There’s familiarity, there’s a system, service levels, the speed that people get back to you. Existing relationships with the people you’re dealing with, from the client’s perspective, and generally an appetite to lend on whatever you’re looking at.
From my POV, when you’re speaking to a client and there’s something specific, you start to think, “Right, where am I going to go with this? And who would look at this and who wouldn’t look at it?” When you’re in a competitive space, as we are, there are lots of good commercial brokers. So you want to get back to people really quickly and to do a good job—it’s your only chance to really shine. I certainly deviate towards people who I know will give a good service for the client.
LS: We know that the mainstream lenders will go all areas. If you have a complex case in a complex region, then as an adviser, you’re looking for lenders that are open to those circumstances. It becomes another criteria feature. When you find out the property is a flat above a shop, or that the client has had some adverse credit, you factor in these things, and you take the widest possible pool, including mainstream lenders. And you’re saying, “Right, which ones are going to lend to my customer? Which ones are going to lend on this property and in this region? Now, here’s my shortlist; who’s mathematically going to be the best recommendation for my customer?”
LW: If we reflect—and maybe you don’t feel this so much Kevin, given the legal restrictions that mean people are either in or out—but if we’re talking England, it doesn’t seem like that long ago to me, where you might put a bridging or development loan to lenders, and it could be in Norfolk or Cambridge or just not near the M25, and they would go, “Oh, we don’t lend there. We don’t look at loans there.” I don’t know about you, Liz, but I find that’s really changed.
LS: They all run as a business now, don’t they?
LW: Yes. Well, there are more lenders. They’re chasing more market. Also, I think it’s probably accepted that not all the good business happens in and around London, that there are often higher margins to work with elsewhere, albeit the numbers are not as big. It doesn’t always mean it’s the best value, because of the competition for land and things like that. So, I’d say that has changed quite significantly.
I feel it most in the areas where it’s really persisted. Scotland—that one’s close to my heart—but like I’ve said, we do a lot of business there. Sometimes you’ve got a really lovely proposition. You’ve got a great client, a great property. Why am I finding it so difficult to get lending on this? Or how can I only come up with one or two options? Whereas I know if I just put in a different postcode, the floodgates open. That’s really infuriating.
Do I see it changing? Maybe a little around the edges, but it’s been this way for a long time. You guys might have a different view on that, but I don’t really see that improving
much for these areas. I mean, Northern Ireland! I keep talking about Scotland, but Liz’s point about Northern Ireland, that is the worst search market.
DA: On that note, if lenders open regional hubs, and expand fully, do you think they would understand the unique challenges and needs of local businesses in that area, or is there often a disconnect?
LW: They’d want to have a critical mass in those places, which is probably what precludes some lenders from doing it. It’s only worth opening a regional hub and putting the expertise there if they think they can get enough business. There are areas where that’s absolutely the case, and others where it just wouldn’t warrant the time and expense because, unfortunately, there aren’t the transaction numbers needed to make that hub worthwhile.
But we’ve seen a bit more of it. Especially since Covid, and with businesses hiring people all around the country, you are starting to see more lenders pop up with a presence elsewhere. So it might start to unlock things slowly.
LS: It’s a double-edged sword. If they know the area, there might be certain streets they go, “Oh, I wouldn’t want to be living there, so I don’t want to lend there.” So it’s not always the best thing to have that regional knowledge.
KG: What I’ve certainly seen in Scotland is that people will dip their toe in, and they’ll have people come up to visit and meet with certain brokers and find out a wee bit about it. Then they’ve appointed a bigger and more northerly based BDM or account manager, who then takes on an area, and they do the touring. If things look promising, then they’ll put somebody in permanently and so forth. You start to see an appetite to make more of what’s in the country.
“It’s a double-edged sword. If they know the area, there might be certain streets they go, ‘Oh, I wouldn’t want to be living there, so I don’t want to lend there.’ So it’s not always the best thing to have that regional knowledge”
“Clients up here, specifically if we are the smaller region, deserve to be on an equal level playing field with everybody across the rest of the country”
DA: With the chancellor’s £3bn allocation to SMEs and the BTR sector, do you expect more lenders to establish regional offices? What difficulties or opportunities might this create?
LW: I always think with these things, when governments come out and make promises, let’s wait and see, because we’ve had a push on housebuilding pledged for as long as I can remember. Whether that transpires or not remains to be seen. But naturally, it comes down to what I said before—if there’s a demand and a concentration, lenders will step in to fill it, for sure.
LS: I’d say with remote working, though, there’s probably going to be more of a tendency to have people presence in that area, as opposed to a regional office.
KG: As much as the opportunity’s there, there are always difficulties they’ll have to consider and weigh up. I wouldn’t expect to see much change.
DA: Given the challenges and economic differences across the UK, is there a rise in caution from lenders regarding loan approvals? Would this lead to borrowing rate inequality across the UK?
LS: I don’t think there will be a rise, but borrowing inequality is already there. The things we were discussing before, like minimum valuations, minimum loan sizes, create that disparity. Is it going to get worse because of the economy? No. In fact, could it actually get better because house prices are rising? Possibly.
LW: I don’t expect it to go backwards; I don’t expect it to go significantly forwards. But there’s always an evolution, and that’s often driven out of demand and saturation and various other factors. So, I don’t see there being a seismic shift, but it’s more likely to edge towards getting better than getting worse.
DA: Should lenders make the effort to expand their business in smaller UK regions? Do these hubs/touchpoints make a measurable difference in service quality or accessibility?
KG: I believe lenders should make an effort. If you look at it from a client perspective, ultimately they are disadvantaged by some of the decisions that are made. If that’s at the heart of the thinking, then they should consider it; albeit, I do think there will always be a rationale for why they haven’t. I’ve been fortunate to be on the lender side in the past, and I do appreciate the difficulties they face.
Will it change? Possibly. Will it change quickly? Probably not. But at the minute, clients up here, specifically if we are the smaller region, deserve to be on a level playing field with everyone across the country.
LW: You’re spot-on there. If someone said, just give your wish list without considering anything else, then you’d go, yes, of course, the lender should lend everywhere. There shouldn’t be minimum values. They should do everything. The point Kevin made about having the client at the heart of that decision, I think that’s borne out by most lenders; they want to do all they can for the customer.
But when you put a lender’s hat on, and try to understand their position, there are always good reasons. Not all things are equal. You have to take into account their operational, funding and logistical challenges. I think being good in this market means you have to acknowledge that.
In fact, ranting and raving about how unfair it is and how lenders should do more and shouldn’t have these restrictions is naive because, unfortunately, it’s not the way the world works. A business has to make money; it has to be operationally sound and efficient. That all has to be taken into account. As a brokerage, we always want more for all clients. You always want to be able to offer better things, but you understand why it’s not the case.
LS: I don’t think regional hubs make the difference. It’s that flexibility of criteria; it’s that push-pull for the lender in terms of wanting to help their communities and
local regions versus doing something that makes a profit and makes sense for the business.
What we can do as brokers is give feedback to the lenders on where we are struggling to get a decent amount of lending opportunities for our customers. That gives them the chance to consider that as a proposition and to see whether, pricing wise, they can accommodate that. I think that’s the way to look at it.
KG: I’m sure Lucy and Liz will agree, but the lenders have some terrific representatives across the country dealing with us, coming to see us face to face and understanding the types of clients we’re working with. And these guys do listen, they absolutely do.
And, as Liz says, we should do more to make sure we’re getting these messages across to the right people, whether it’s underwriting teams or heads or whoever it may be. We need to try to short circuit it and do it a bit more en masse, rather than one or two people randomly saying something.
LS: Yes, because often, and I’m sure you’ve had the same, lenders will come to us and say, “Tell us about the gaps in the market,” because we’re looking at their propositions and they want to find areas where they can get more business. But that’s very siloed to the people they’ve picked to have that conversation with. Is there any way we can create a more collective voice? Because my view on where the gaps are in the market, I probably wouldn’t be thinking about Scotland. That’s a much bigger gap than I could come up with.
KG: You don’t want every lender to be the same. If every lender is the same, then nothing would ever get done.
LS: We’d be out of a job as well, wouldn’t we? [laughter]
KG: Aye, exactly. It’s nice that they all have their niches, but there certainly could be some additions along the way.
DA: I like that point about lenders not being the same. What qualities would you like to see from lenders when dealing with brokers?
LW: It depends on which department and on what basis, but you could narrow it down to some key attributes: transparency, fairness, communication and efficiency. I’m sure there are loads more, regarding whether you’re dealing with salespeople, operational, back-end people. But it’s the qualities that you want to see in businesses in general, I would say.
LS: We want quite a lot as brokers. We want to be able to trust the lenders and have certainty in their decisions. Then we’d like them to have flexibility when we’ve got a case that needs it.
LW: Don’t give up our tricks! [laughter]
LS: And package it all up in some exceptional service with some great tech and deliver it to our office. Nothing much, really! [laughs]
LW: And put a bow on it.
KG: It’s a pretty standard thing, but just communicating effectively, even if it’s bad news.
LS: That’s what creates the trust, isn’t it?
KG: Yes, and it’s okay if it’s a no, and we can move on. But it’s when you wait three days, or someone else changes their mind. It’s just a basic thing, in any walk of life, if you talk to your clients and keep them updated, they’re happy. Even if it’s just, “Listen, we’re going to have an answer within 24 hours.’’ Perfect, thanks for that Kev. The value of communicating should never be underestimated.
LW: Yes, I agree.
“As a brokerage, we always want more for all clients. You always want to be able to offer better things to people, but you understand why that’s not the case”
“I
don’t think regional hubs make the difference. It’s that flexibility of criteria; it’s that push-pull for the lender in terms of wanting to help their communities and local regions versus doing something that makes a profit and makes sense for the business”
DA: You’ve mentioned a few issues that come with establishing regional hubs, but including now the rise in remote working and the expense of setting up offices, is there an alternative to this?
LW: These days, regional hubs tend to fulfil other needs, like if you’re looking to recruit office-based people and you’ve saturated the area you’re in, or you need bigger premises that are cheaper than being in or just outside London. Hubs aren’t necessarily the solution to lending in regional areas, but they do solve different problems and solve them well. So I’m not sure lenders are doing it to attract business in those markets. I think they’re probably doing it to attract talent into their businesses.
LS: One of the trends that we had seen, then it sort of pared back but there’s talk about it again, is having on-site underwriters in brokers’, packagers’, and distributors’ offices, which is an alternative. Then you’ve got that lender’s underwriter working within that community with the brokers who have the customers there. It will be interesting to see if more of that happens. Are you hearing more about that, Lucy?
LW: Yes, we’ve been hearing about it for a while. You get the odd lender that sends somebody in, but it’s not like it used to be.
LS: No. In the past, you’d have a packager or a distributor who’d have maybe 10 lenders on site permanently. It’s nowhere near where it was.
LW: It’s a good idea isn’t it, for lenders to do that? If they haven’t got the deal flow to support a hub.
LS: Yes, although they’re using it as sort of a remote office as well. It’s like, “Okay, I’ll put that underwriter in that office,” but they don’t just underwrite that company’s cases; they’ll do other underwriting while they’re there. So that kind of gets over that cost. There’s been more talk about that happening, but I’ve not seen it yet.
LW: No, me neither.
DA: As borrowing intentions are slightly improving across the UK, which suggests future demand for finance, what strategies can lenders set up to help support brokers and SMEs?
KG: A universal application process would be good. Because everybody asks for the same things, but in a slightly different method, and they all ask for the same data, but in a different way.
And when I’m out on the road, or away visiting a client, and I’ve got half an hour of travel, I’d love to have an app or something that I could go into and see live cases, see where they’re at. I don’t think that seems too far-fetched, but it would take a bit of investment. So these are the things I’d like, but that’s just to keep me happy.
LW: I’d like to see more lenders moving towards a more digital process. Of course, they’re all digital to some extent, but for me, it’s still remarkable, the number of wet signatures on offers and deeds and other documents that are needed. And also a legal charge for having to be wet signed. A lot of our customers don’t have printers or scanners. They usually have to post it back as well, which means going to a post office—it’s a real inconvenience.
When people want the money quickly, it might delay things by several days or a week, and that’s frustrating for them, and for us and for lenders. It takes a bit of investment, and requires ensuring that those processes are robust, the charges get registered properly, and the offers are legally binding, but we know it can be done. As a bare minimum, we should be moving to a point where that is entirely digital.
LS: There’s some really good work being done by the Open Property Data Association. One of the problems in terms of the tech is that you upload some information into one system, where it’s called one thing, then it transfers to another platform that calls it something else. The OPDA is working on a common language that interprets what the different systems are calling it and says, right, that means the same thing.
They’re also creating an end-to-end journey, which starts at the estate agents, who are putting together the information
around the property, then that is available to the mortgage adviser for when they’re sourcing. It goes into their system, then it’s available to the solicitor. So the customer is only providing it once.
Some lenders are on board with that: a couple of big ones, a couple of smaller ones. It’s early days, and there are lots of government initiatives and things to drive this forward. We’d need more lenders to support the growth of that journey, but there are problems with it; there are parties that don’t want to be part of it, because it uncovers the weaknesses in their own processes.
KG: I’d like to add to what Lucy was saying about wet signatures. I don’t know how long this is going to last. I’ve got a 19-year-old and a 17-year-old, and I don’t think they’ve ever signed anything with a pen. I’ve genuinely never seen it, because everything’s online, using a finger or whatever it may be.
LS: It will come where the customer will give their authorisation at the start, and digitally all of their information will then be in a hub and shared with the relevant parties. How soon this happens will depend on all the parties getting on board.
DA: What product/criteria gaps do you want specialist lenders to fill in local regions that larger high-street banks overlook?
KG: I’ve got one that I would love. Not that it doesn’t exist, but more of what would be a bridge loan with an exit onto a BTL product or a commercial product for, say, two to five years. So, rather than go somewhere for a bridge then look to refinance elsewhere, I’d like to see more people offering both.
LS: There’s only a couple in the market that do that, right?
KG: Yes, and it makes perfect sense. That would be my big request.
LW: I’d like to see better BTL coverage, bridging and development. Development’s a really tough one, but in fairness, we don’t get a huge amount of demand in the areas that are really underserved. They come up, and it’s hard because you can’t place them.
But in terms of volume, BTL is what we see day in, day out, that we struggle to place. So, improved coverage for that in less favourable lending areas would be my option.
LS: I’d say coverage in different types of lending. For example, for areas with vulnerable tenants or assisted living. Currently, the government is moving people out of nursing care into assisted living homes and paying landlords a higher rate, but it’s very difficult for landlords to get lending. Very few lenders will consider those types of tenancies because of the vulnerabilities. That’s less about regions, although that comes into it, and more about the type of lending.
Region wise, we sometimes struggle on the BTL side with holiday lets and Airbnb, where you’ve got large areas or someone trying to offer accommodation outside a traditional holiday area, that sort of thing.
DA: Do you have any final comments that you’d like to make?
LS: We’re always open to innovation from lenders. There are definitely pockets of areas in our market that need new ideas, particularly around affordability. That can be regional—you could have somewhere that is high value but the rent doesn’t quite meet the affordability, but there’s much more potential for capital growth. Anything that lenders can do that’s innovative, that addresses those underserved markets, is welcome.
KG: I would just say, talk to us. There’s a lot of experienced brokers out there who have worked on both sides of the fence. They could probably add value and take away some of the pain that they think you might experience. And just engage with us. I’m sure that together we can ultimately make things better for clients, customers and everybody else.
“What we can do as brokers is give feedback to the lenders on where we are struggling to get a decent amount of lending opportunities for our customers. That gives them the chance to consider that as a proposition and to see whether they can accommodate that”
Regional lending: WORDS OF WARNING TO THE WISE
Lending and building in the regions can involve sparse sales data, idiosyncratic local factors that affect building, and finances that stack up very differently. And opening an office in the middle of it all still might not help lenders. Developers are better off going local
Words by ULIANA KUZMIS
former deputy managing director for development finance at Hampshire Trust Bank
Regional lending has two main challenges: limited comparables and relatively low capital values. The first is lack of comparables that are needed to confidently determine G DV and, as a result, market value of the proposed development project. In development finance, it’s all about how much your project is going to sell for when it’s built.
In a densely populated area, you can access market data platforms (such as Rightmove, Zoopla and so on) with hundreds of comparables for each postcode. You can slice and dice it into different property types: flats or houses, terraced or detached houses, or by number of
bedrooms. In the regions, you don't have that. You can look at funding a small development in Wales, and there are no sales figures because few people buy or sell, and nobody is building. You may be looking back a year or two and find no evidence of sales. If a sale has taken place in a reasonably recent time, the comparables might not be enough to give you comfort around values. So, you don't have confidence regarding the resale value of your project. When considering construction projects in Scotland, lenders tend to focus on Edinburgh or Glasgow—they are big cities with more sales data available, so there's a lot more comfort. Yet, in more remote areas, you don't have the sales data, so you start guessing, “I don't have any sales here, but what about in a three- or five-mile radius?” You expand your geographical reach: “The village nearby sold
some houses; will it give me any comfort that what I'm looking to fund will also sell?”
In big cities, you can get a good sense of supply-demand dynamics and absorption rates. If you don't have data, you have to rely on local expertise. This may be a valuer who might not be in the village you’re researching but some distance away—so you rely on their professional opinion rather than empirical data.
Lenders who do not have a strong regional presence might feel uncomfortable about going into these areas as they lack confidence in values and supply and demand data. A regional lender will feel better about lending in their area of expertise as the regions are their home grounds. Alternatively, you can hire people who live in the regions; again, although are familiar with the area, the lender will have to rely on an individual insight.
In simple terms, you visit your proposed construction site and think, “That’s a lovely village”. But what can it tell you about whether a unit will sell and how long will this take?
I have seen a professional opinion related to a small housing development in a remote village up north where with no data to underpin demand, we were presented with two schools of thought. One is: there is no demand for houses in the area, that is why nothing has been sold in this village for a while. We don't know who our target buyers are and how much they'll be prepared to pay for these houses. The other option is: nobody has bought anything here because there's no supply. So, if you build a new-build housing scheme, the houses will fly off the shelf.
Will they sell? It's a gamble.
The more remote you are, the less wealth developers and borrowers have. Margins are tight and cash is limited. When lenders are nervous about construction projects, the knee-jerk reaction is to pull back the gearing. Getting borrowers to put a little more money into the deal will partially mitigate uncertainties around supply, demand and capital values. This is where the system clashes; lenders desire to pull back the gearing and developers need to maximise development finance available to them.
RESALE VALUES
The other issue is capital values. With development finance, we are funding units that will be sold in two- or three-years’ time. What's important to us and to the developer is how much the land was bought for, the construction cost and the resale value. There is a rule of thirds—it's old fashioned and doesn't apply much now in particular in the regions—which says it
will cost you one-third to buy the site and one-third to build, and the other third is your profit. In the regions, the construction costs seem to overpower the site value and the profit in the schemes.
Developers will not enter a development project unless it makes money. The build costs in the regions are a little lower than in London and the South East. Labour is a little cheaper, but the labour pool is also smaller. Materials costs are around the same, albeit one can often get away with a simpler yet good quality specification. Yet your resale value is significantly lower.
If you build a new-build scheme in London, a commuter belt or the South East, you'll probably sell the completed units for about £600-1,100 per square foot (excluding Prime Central London) and it will cost approximately £180-250 per square foot plus fees to build. Taking into account the purchase price you paid for the site, there is typically enough room for a healthy profit margin in the project.
As you go further into the regions, some capital values drop to about £300 per square foot. If it costs you £160 with fees raising this to £220 and your resale value is £300 per square foot, there's very little to no profit in the project unless the site was free or subsidised. That’s one reason why there's so little development in regions. It just financially doesn't work.
HURDLE ON THE LENDING PATH
This can and will make it quite difficult for borrower and brokers to obtain development finance.
Every stage, of the process involves additional challenges: At the initial stage the lender would typically provide development finance indicative terms. However, if the valuation report doesn’t support the borrower’s optimism re the project and reports to the bank that there have been no sales in the area in the past few years, so there is no evidence of demand, the lender may change its mind based on that report and withdraw the offer. If the valuer is not confident in the scheme, the lender will get nervous and pull out. Construction costs are typically verified by an independent monitoring surveyor on behalf of the lender. The valuation happens first, and assuming it's glowing and claims the project will sell well, the lender will send the monitoring surveyor in. If surveyors uplift the costs—and they often do—it may drop profit margin below a level acceptable to the lender. Regional development sites tend to have rather tight profit margins to begin with. Any variation to the approved construction
costs will affect the deal’s feasibility.
Most lenders have minimum profit-on-cost requirements. It's quite common to see a 15% minimum, although some insist on 20% and others accept 10%; a lender cannot go below these as it will take the deal outside of policy. Even a small uplift to the borrower’s construction costs can easily drop the project’s profit on costs below the lender’s minimum requirements.
The moment that happens, the deal is off. It's complicated to approve those deals, so many lenders will just walk. That is frustrating for everyone, including lenders; they want to do deals, but sometimes their hands are tied.
BETTER BE ON THE SPOT
Regional presence and familiarity are what we're looking for. If you're building in Wales, there is no point going to a lender with no presence there. A regional lender will have local knowledge and experience with local challenges. They may even be comfortable with lack of evidence supporting capital values and underpinning demand and have more flexible product criteria.
A broker recently said to me, “You Londoners keep opening offices in the regions and then close them. Why?” The main reason for opening regional offices is the lender’s desire to increase their regional presence and demonstrate commitment to these areas, so physical presence is the first step. But these are satellite offices. Lenders may have origination, case management and portfolio management teams in these offices, but the leadership team, credit and underwriting functions are all typically based in the head office. These people are the decision makers and regional offices don’t make them any more comfortable with regional lending.
Opening a regional office does not mean you now have the local knowledge, and it may not attract the desired exposure. It does help with building relationships, but relationships take time. It is tough to compete with well established regional lenders who have excellent local knowledge, physical presence and reputation with regional developers that have been developed for decades. They live and breath the regions and understand them better than anyone else in the market. Hence, they will always be the first point of contact for regional developers.
Give your borrower the gift of truly transparent lending this Christmas...
Fraud
Lenders are unlikely to spot a type of fraud with which they are unfamiliar. A knowledge bank on this, drawn from market experience, should be created.
After all, unless we understand this crime, we cannot stop it
The BDLA has long taken the lead when it comes to addressing the big issues facing bridging and development lenders. Few are greater nowadays than the growing prevalence of fraudulent activity.
In October, I attended an event hosted by the BDLA that sought to identify a solution that would tackle fraud. It was an excellent event that brought together different stakeholders, including lenders, lawyers and software providers.
The event highlighted concerns about fraud, while reiterating that no experience is the same. Very few understand the many facades that fraudsters adopt nowadays.
Information sharing in a compliant way is vital—but this goes beyond simply highlighting the identity of likely fraudsters. From cases I’ve worked on, imposter ID fraud accounts for no more than 20% of incidents in the market and lenders are unlikely to spot a fraud they have not come across before.
Technology seeks to solve the problem of fraud for lenders. It can check names and details, even faces, but it addresses just one facet of fraudulent activity and there are many different elements out there. For example, technology can facilitate information sharing between lenders, but it won’t stop a real person who is determined to commit such an offence. The problem is that often lenders don’t understand all the different types of fraud—in the same way that insurers or software companies aren’t aware of them all either.
the how is just as important as the who
Lenders want shared access to a discreet record of who is committing fraud, but the truth is that today it affects a whole group of people including solicitors, valuers and borrowers, all working together with increasingly sophisticated technology. This means that lenders need to rely on their own due diligence and that of their lawyers. Creating a knowledge bank that can be accessed by lenders is important, but what knowledge should that include and where will it come from?
In my opinion, the best way to mitigate incidences of fraud is to develop a better understanding of what types of frauds have been committed in the market and how, rather than a list of likely fraudsters. The same names do, of course, crop up and there are people who attempt to commit multiple frauds, but addressing this is only part of the solution.
A library of the types of fraud and attempted fraud will help to educate those in the market, providing a picture of what they look like. This needs to be drawn from the different experiences of lenders, not just the name, address and contact details of those who have tried to defraud lenders in the past. If lenders don’t know what the problem is, how can they know the solution? The diversity of fraud activities can have complex consequences for lenders. For example, if borrowers say they are not living at a property but are, they are committing a type of fraud as the loan then becomes regulated, which makes it much harder for a lender to get its money back. Broker fraud is another element to consider—are they providing false information just to get a deal done or carrying out activities for which they are not authorised? Fraud on the part of lawyers is also prevalent, as it is among valuers.
There is no perfect solution, but lenders will put themselves in a better position to protect themselves if they have a greater awareness of the types of this offence that are going on and this requires greater collaboration when it comes to finding out what fraud looks like and how it happens.
Fraud has a wide legal definition and it can have catastrophic consequences for the lending community. There is no silver bullet to tackle it and any attempt to do so must be as multifaceted and nuanced as the fraudsters themselves.
Words by JONATHAN NEWMAN senior partner at Brightstone Law
Emma Ross
WHETTING THE APPETITE
APPETITE FOR HOSPITALITY
What will be the impact of the planning changes promised by the government on the hospitality market?
The new chancellor has recently announced a number of reforms to the planning system. It seems the government plans to make it easier to convert properties between commercial and residential use and vice versa, as well as being more amenable to change the commercial use of a property.
While it’s early days and there’s little evidence that it’s getting easier, they’re already creating confidence in the market. Labour’s pledges to “get Britain building again” by reducing the level of red tape within the planning system, speeding it up and giving enhanced support to developments. This will be achieved through amending the National Planning Policy Framework and reallocating decisions back to regional level.
The current green belt policy is changing with a view to allowing housing numbers to increase faster. But will this impact encourage commercial development of properties such as care homes, hotels, public houses and restaurants among these new conurbations?
At Sirius Finance, we work with many clients who purchase pubs to repurpose them—converting them into restaurants or other business types is a common example. But pubs have a unique flexibility and can be transformed for diverse uses.
We’ve seen pubs become children’s day nurseries, leveraging their spacious downstairs areas and parking facilities, and even offices for small construction firms, which use the car park as a yard. We’ve even completed one deal where an investor purchased a pub with some acreage to create a caravan park with glamping facilities and an on-site cafe.
Typically, these care businesses are local authority focused, with few or no private fee payers and, after some well-publicised corporate disposals nationwide, there are more opportunities. Some of these care homes are considered as older stock and are a mix of conversions and purpose-built properties, and many have Care Quality Commission inspection reports that give them a status of “requiring improvement” or even “inadequate”.
Historically, this might have been a showstopper for borrowers, but now we are seeing an adaptive market with appetite to support such acquisition projects, especially if the borrower is an established operator with a track record of turning around homes.
What are the challenges in the sectors, and what’s the outlook?
Base rate is a critical factor—while we anticipate it will continue to decrease, this may not happen as quickly as we’d all like. That said, we’re already seeing substantial improvements in the debt market. Since the start of the year, we’ve noticed more banks expressing interest in lending again. The competition among finance providers is pushing lending margins down, which is good news for borrowers and even the high-street banks are starting to join in again.
We spoke with Chris Field, head of care and hospitality at Sirius Finance. He gives a flavour of the latest trends and what’s on the government menu for his area of work, and how this could prove to be very much to investors’ and brokers’ tastes
Another factor to consider is that closed or failed pubs are often more affordable than typical properties in the area, which opens the door to developers willing to take on planning risk by purchasing the freehold and aiming for a full or part residential conversion. With the anticipated planning changes, that risk is minimised, so we’re expecting a surge of developers snapping up these properties. So the promised planning reforms are instilling renewed confidence in the market.
Are there currently any regional hotspots in the hospitality and healthcare industries?
Yes, there are some clear regional trends. In licensed hospitality, the generally affluent home counties and some coastal locations are seeing a surge in transactional activity, creating a bustling market in recent weeks.
In healthcare, care homes in the north of England are attracting attention due to their affordability and high occupancy rates. Buyers are increasingly open to taking on properties that might need some work or present a higher risk. Fortunately, the market has adapted, and there are now more financing options for these kinds of acquisitions, even those that might have been less appealing to lenders in the past.
Covid significantly impacted hotels, pubs and care homes— but they’re rebounding. At the moment, a lot of our focus is on refinancing bounce back and CBILS loans, often as part of a wider group refinance remit. While the capital was welcomed in a time of need, these loans were advanced on aggressive terms of just a few years, and this can cause cashflow strain for businesses. Restructuring these loans provides clients with more flexibility.
Overall, the borrowing environment is the strongest we’ve seen since the lockdown. The outlook is very positive.
Are there any gaps in lending products within the sector that need to be addressed?
The market has become more nuanced, with several niche products available that cater to specific needs. Some bridging lenders, for instance, are offering three- to five-year flexible loans that they are marketing as term loans but on an interest-only basis. Interest can be structured to be fully retained or partially serviced, and this approach can help manage cashflow. This is particularly useful for a new business, providing funding as it establishes a track record with a view to refinancing onto a longer-term product.
Some gaps remain, but we’re seeing more lenders adjusting their policies to capture the opportunities in the market. The industry is gradually filling these gaps, and we’re optimistic about more solutions coming up as lenders continue to adapt.
“Some gaps remain, but we’re seeing more lenders adjusting their policies to capture the opportunities in the market”
Chris Field
“As the market evolves, brokers with a keen understanding of lender requirements and sector trends will be well-positioned to guide clients towards success”
What do you think the impact of the recent Budget will be, particularly for new entrants?
To be honest—and politics aside—I don’t think the Budget will make a dramatic difference in our sectors. However, there are positive signs in hospitality. One of our clients, who owns a successful pub group in the Home Counties with an impressive £20m-plus turnover, has noted a recent increase in average spend per customer. That suggests consumer confidence is on the rise, which is great for hospitality.
Pubs offering food and drink and letting rooms are especially attractive to lenders because they provide three revenue streams. We’re also seeing a trend with tenants opting for the market rent-only route, paying higher rent in exchange for the freedom to choose their suppliers, thus boosting gross profit margins. The cost of a brewer’s barrel of beer can be almost half that charged by a corporate brewery landlord.
We’re working closely with multiple pub tenants who have the opportunity to buy the freehold interest of their business. This year, we’ve considered over 250 individual applications from tenants who are keen to explore this further.
While the hospitality sector can be challenging for new entrants due to lender expectations around experience, it’s not impossible to secure funding. Presentation is crucial as is the structure of the deal—for example, the amount of capital and or makeweight security that buyers are willing to commit to the project.
We’re getting deals done for new entrants, though it’s rarely at maximum LTV—but funding solutions are out there if you know where to look.
A growing number of short-term lenders are increasing appetite in the market, and they offer opportunities for new entrants to establish a track record. Industry experience isn’t always necessary—albeit they will need a strong business plan and a clear exit and have the appropriate acumen and consultative support.
Having a knowledgeable broker who knows what they’re doing makes all the difference. It’s not an easy path but, with the right partnership, new entrants can find opportunities.
Where do you see future opportunities in the market?
The hospitality and healthcare sectors are cyclical, and while some businesses face struggles, others will see opportunities. With better access to debt, it’s easier for buyers to seize these opportunities.
We’re expanding our team to meet this rising demand. As lending criteria evolve and more funding options become available, the market will continue to present opportunities. With the right strategy and insight, there’s plenty of potential for growth in hospitality and healthcare.
What’s the main message you would like brokers to take away?
The hospitality and healthcare sectors are entering a phase of transformation, and the planning reforms are likely to accelerate this trend. With fewer barriers to changing property use, lenders re-entering the market and new financing products emerging, the outlook is optimistic.
As the market evolves, brokers with a keen understanding of lender requirements and sector trends will be well positioned to guide clients towards success.
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Growing Bigger, Staying Better.
playing to win DUNCAN KREEGER
We spoke with Duncan Kreeger, founder and CEO of TAB, who talks about starting as a lender with no money, the power of positivity, and AI in lending
Words by DHUHA AL-ZAIDI
Photography by ALEXANDER CHAI
Duncan Kreeger
If someone asked me about my teenage years, it would probably be awkward decisions, questionable fashion choices and, overall, drama. So, as I sit down with Duncan Kreeger, the founder and CEO of TAB, I find myself in awe of his determination from as early as 17 years old. In his early 20s, he was hustling from within the four walls of his bedroom, but his dreams expanded beyond the confines of its corners.
“I've always been entrepreneurial—I didn't like the idea of working for other people even at a young age, before I even knew what that was. But, through every experience, I've learned something along the way: you learn a lot more from your failures than you do from your successes,” says Duncan.
EMBRACING THE GRIND
After becoming a mortgage broker, Duncan set out to open the door to a “challenging” opportunity— becoming a lender without any money and, in turn, paving way for West One, “I’ve learned a lot of lessons in the boardroom and met some influential people very early in my career, one being Marc Goldberg when Together was formerly Lancashire Mortgage Corporation. We became friends and he took me under his wing,” he says.
“I think he probably regrets it now. In fact, I'm emailing him as we speak and he said, ‘I never thought it would quite turn into this’.”
The following years offered successful growth for both the business and Duncan himself, before he sold the company 10 years ago after running it since 2005. “I was being pigeonholed into smaller, different areas of the business where I couldn't really have an impact or the same one that I was used to. I always played hard and never missed a day of work in my life—the first day I pulled my duvet over my head and thought, ‘I don't really want to go in today’, was the day it was over,” he adds.
FIELDING HIS OWN AI
People can buy assets from the tap of their phone—wine, art, cars and gold—and, for Duncan, homes are no different.
His vision for a revolution in real estate includes the concept of walking past a building and being able to scan a QR code that instantly shares its price. This, combined with his enthusiasm for technology and lending, brought about the establishment of TAB.
“When you think about what you can do now with AI, the finance market does lag behind. So, I built my own system with all sorts of AI that allows people to understand their investment portfolio. It’s about finding out what works and stitching it together within our ecosystem to make sure it's useful,” he explains.
For instance, Duncan plugs valuable information into the AI platform—think lending policies, procedures and loan book figures—and provides answers from it for customers. This is a giant leap from flipping through extensive paper documents to source data.
These advancements have been significant in training staff to better serve customers and understand the product line better, as well as streamlining the underwriting process. “I don’t believe that robots will replace humans, but I think they will help humans a lot. I use ChatGPT a lot in my day-to-day, and I've been on it all morning,” notes Duncan. “Now, I can understand how the business can grow without necessarily needing to expand headcount at the same rate, and that is really exciting.”
I always played hard and never missed a day of work in my life—the first day I pulled my duvet over my head and thought, ‘I don’t want to go in today’, was the day it was over”
PITCH POSITIVE
Yet, with rapid technological advancements, countless news updates on the economy and continually changing business goals, Duncan’s ability to carry on is down to a simple trait—positivity.
The early bird gets the worm could not be truer here, as Duncan typically starts his day at 5:30am, ready to recite a list of powerful affirmations.
“It's something that I've ingrained in my own head that: I wake up in the morning, I tell myself I'm going to have a great day. For me, it helps deal with the first setback of the day, like I've overslept or something's cancelled. That's when you need it the most because, otherwise, what I've seen in my experience is people start to spiral quite quickly,” he says.
“Just be yourself. Be happy. Get on with it. What's the worst that can happen?” he adds.
REALITY CHECK
His emphasis on optimism extends beyond his role as a CEO and is central to him being a father. After three boys, Duncan welcomed his daughter, Matilda.
While most people recognise the entrepreneur as a dedicated businessman, Duncan focuses on his family and makes time for hobbies.
When you think about what you can do now with AI, the finance market does lag behind. It’s about finding out what works and stitching it together within our ecosystem to make sure it’s useful”
“I like to be the first person in the office every day if I can, but not necessarily the last person to leave. I want to take some time, hang out with my kids and pick them up from school. Today, I’m going to watch an under-11 rugby match, because what’s important is trying to spend time individually with each of my kids,” he shares.
And real life is a frequent reminder not to be complacent: “I told one of my kids, ‘You’re really lucky that I get to come to games with you’, and he said to me, ‘But you’re always on your phone’. That was a reminder that I’m on a journey to try to improve every day, accept what I’m not good at, where I can get better and to embrace it,” he notes.
“I’m comfortable with the fact that I’m not perfect and I want to get better.”
Outside the family realm, Duncan’s not-so-guilty pleasure is skiing in the French Alps every year, with a glass of luxury wine at the end of the day—a justified reward for his hard work.
IN THE NET
If you’re on the specialist finance side of social media, you’ve probably run across Duncan Kreeger on your feed. If he has a latent talent, I’d guess it is for being in front of the camera.
He is somewhat of a finance influencer online, sharing all aspects of his work life—opinions, case studies, team achievements, you name it—as well as some wholesome memories of his family on Instagram.
For Duncan, keeping on top of emerging trends is worthwhile. “It has become important to build your personal brand, because people want to deal with a company or a person that is relatable. I certainly do. So my number one thing is to be authentic,” he explains.
“That might mean showing a few more things than others would when they’re trying to control the narrative. But I have absolutely no fear of posting something that might be read in the wrong way or the wrong time.”
CUED UP FOR QUEUES
After 20 years in the property business, Duncan has witnessed several economic cycles. In the upcoming year, he anticipates a busy market. “I'm waiting for the sunshine to come out and people to queue up outside properties gazumping each other again, and I can see that happening,” he predicts.
He explains that major events, such as the US elections, cause a long tail of bad news, which disrupts the market chain. As things settle, Duncan expects the market to boom.
“I've learned to expect the unexpected. We’ve seen buildings mysteriously burned to the ground, people knocking down their property to build a new one while they had a loan on it, refurb done very badly. I've even seen people trash a nice property on the way out,” he shares.
TAB appears unfazed, as Duncan looks forward to the development of mortgage products and improving the condition of properties.
“I'm a big believer in investing in modernising properties we’re sitting in today to make them last. It’s really important that people are incentivised to improve buildings along the way and it's quite concerning that if you let buildings go to a state of disrepair, they will become less valuable. On the flip side, if you can stimulate the market to help people invest in and modernise buildings with technology and infrastructure, then these buildings will live on for a long time—I like the idea that we can help the market to do that,” he says.
We’ve got a good plan, but that doesn’t mean that I’m not shooting for the stars. I just think it’s important to be happy with what you’ve got and enjoy the now ”
NEXT SEASON’S LEAGUE
With goals set for the new year, Duncan concentrates on living in the moment before aiming for a final score. When I asked him how he would define success, he smiles before answering: “I already feel quite successful.”
“I'm really proud of the business we have grown this year; we have an amazing team who I really like on a personal level and who represent the business really well,” he states. “We've got a good plan, but that doesn't mean that I'm not shooting for the stars. I just think it’s important to be happy with what you've got and enjoy the now
On the to-do list to achieve this and, ultimately, to grow business, are accessing cheaper capital, remaining efficient and implementing sustainability.
Small HMOs, complex valuation
Requests to value small HMOs are rising, but doing this is far from straightforward, with a lack of data on comparables and assessment methods that can mislead. Here, I look at various approaches to achieve a reliable result in what can be a complicated, confusing area
Words by DAVID BIRCH Valuation audit director at VAS Panel
s a valuation panel management firm, we see trends emerge daily. Our records show the dial is shifting towards an ever-increasing number of HMOs in England, as landlords look to maximise yields.
RISING VALUATION REQUESTS
In the past 12 months, we have seen a sharp increase in the number of valuation requests for small HMOs. Since identifying this, we have been working with our brokers, lenders, and valuers to help support a wide gap in industry knowledge, address growing uncertainty, and clarify differences in approach by valuers. From our in-depth research, we are concluding that those who have traditionally invested in BTL homes have had to seek out greater returns as interest rates are higher than when the properties were purchased. As such, they are turning these buildings into HMOs and, while that makes every house more management intensive, they can achieve larger returns which offset elevated interest rates.
WHAT IS A SMALL HMO?
According to RICS, a small HMO is a traditional, single-household C3 home that has been converted to a C4 HMO under permitted development rights, which can be occupied by a maximum of six unrelated tenants. Each room is usually let to individuals on assured shorthold tenancies with high levels of flexibility.
This gets a little more complicated if the property is in an article 4 location. Here a local authority might have taken away permitted development rights, such as those around change of use, in an area or to a particular type of property to protect local amenity or wellbeing. In these areas, landlords will need to gain permission first.
GREY AREA
Small HMOs are in the grey area of valuation. Accurate valuations rely on sales evidence of comparable properties, which is used to set a benchmark against which assessments can be made. The first issue we are seeing is that not many small HMOs are being sold. Secondly, there are no readily available databases that provide valuers with this sales evidence even though there are plenty of open databases for residential and commercial sales.
As such, there is a heavy reliance on valuers hitting the phones to local agents to find out what HMOs have sold. This is difficult information to find; the valuer has to ask for the actual rental income, not what was quoted when the property was listed as available. Obtaining net rent figures, after non-recoverable running costs have been deducted, is even more difficult.
In reality, these properties are not selling. Investors are choosing to buy similar C3 houses and doing their own conversion works, rather than paying a premium for a house where this has been done.
TWO WAYS TO ASSESS
The level of specification of the conversion and the property location are extremely important to a valuer.
Small HMO properties can be valued in two ways:
• a direct comparison method as a C3 house, even if a property is receiving rental income as a small HMO
• an investment method looking at rent multiplied by yield, where a potential purchaser pays a premium above what traditional houses are selling for in the area. In this context, houses might have been refurbished with all bedrooms having en suites or be located next to a hospital or university where there is a ready market for the rooms
UNREALISTIC SALES FIGURES
There is a common misconception among investors that valuers will automatically opt for the investment method if their properties are receiving a reasonable rental income. If a valuer carried out the investment method of valuation, then divided the value by the floor area, you might notice that the rate per sq ft is significantly higher than that of traditional houses that have sold nearby. Would it be realistic to think someone would buy this property on this assumption that it is worth the value calculated? This grey area makes it difficult for the valuer.
Here is a common example: Imagine you buy a four-bed holiday home in north Wales for £250,000. You might let the property as an HMO or through Airbnb. If you are successful and achieve high occupancy rates, you might achieve a gross rent per year of somewhere in the region of £50,000.
Now, if you, as the owner, believe that since you are earning this level of income every year, your property has an 8% yield, and the house would be valued at £625,000.
Here lies the critical question: would anyone buy the property for £625,000? No, they will buy a similar house in the vicinity for £250,000, spend around £50,000 on development and end up with an HMO building for less than half of the investment value.
This is a simple example but it is very relevant to small HMOs.
LOCATION, RIGHT OR WRONG
While a small HMO owner might have spent money converting the property—the lounge might now be a bedroom with an en suite—what other considerations are there?
If this property is in an area that is not an established or a popular one for HMOs, how should the valuer approach it? Would a purchaser pay a significant premium over a traditional C3 house to allow for the works that have been carried out?
For experienced landlords who have traversed the changing landscape over many decades, these are major considerations.
KNOWING THE PROPERTY
Some lenders have created bespoke valuation instructions and guidance regarding small HMOs based on their requirements. However, many lenders are yet to do this and, instead, delegate to valuers who will draw on their experience and judgement.
It is important for brokers to understand the property they are looking to lend against in order to support their customer with financing. They should be aware of where the property sits in terms of licensing, planning, and location at a minimum. A broker must also know the proposed lender’s specific instructions on HMOs.
Doing all of this can help brokers achieve better outcomes for their customers. They should also ask this key question: would that client buy their property at the level of value they have estimated?
Consistency in a complex area
While we’ve started to take the lead on this issue, it is important that brokers, lenders, and valuers understand all the elements at play when transacting in the HMO market.
VAS Panel is in constant communication with its valuers regarding HMOs. We have developed a new short-form small HMO template to provide a more consistent approach across the marketplace.
It’s fair to say that we are still only scratching the surface of the issue and all its various levels of complexity.
There are many variables at play but, by starting the positive education process now and with key players working from the same page, we are demonstrably taking steps in the right direction.
It’s a dynamic area, with rising yields, extensive transport links, high tenant demand, and burgeoning needs for short-term and development finance. This makes the North East a promising place for brokers, developers, and lenders alike
Words by PAUL GAMMOND Sales director at Simple Bridging
North East offers a financial feast
The North East of England, with its industrial legacy and resilient spirit, is becoming one of the UK’s most exciting property investment areas. Spanning Newcastle, Sunderland and Middlesbrough, this region is benefiting from competitive property prices, strong rental yields, and government initiatives focused on levelling up the local economy. In the past year, specialist lending has enabled brokers, developers, and investors to take advantage of opportunities in this region, while the outlook for the coming year remains promising. As a bridging finance lender based in the North East, Simple Bridging UK brings specialist insights and decades of experience to this vibrant market, with a deep understanding of regional trends. Here, I reflect on the successes of the past 12 months, anticipate opportunities, and examine the challenges likely to shape the property finance landscape in the coming year.
HIGH YIELDS AND TAILORED FINANCE
The north-east property market has seen robust investment over the past year, with Simple Bridging UK seeing Newcastle offering average rental yields of 6–8% and Sunderland reaching as high as 8%. With attractive returns driven by low acquisition costs and
property values, BTL investors are seizing the opportunity to benefit from both competitive prices and strong tenant demand. The region’s relatively affordable housing also attracts tenants from young professionals to families, further boosting requirements for rental properties. For example, Simple Bridging UK has observed a 43% rise in BTL enquiries over the past year, from November 2023 to November 2024.
Beyond the BTL market, specialist lending—such as bridging loans—has empowered investors and developers to move quickly in this high-opportunity landscape. Property auctions are driving many transactions, and bridging finance is helping investors to secure properties with fast turnaround times that traditional financing often cannot achieve. Brokers from all over the UK are integral to connecting clients with these tailored, short-term simple funding options, which are particularly useful in the area’s fast-paced market.
Development finance has also thrived, driven by projects like the Tees Valley Freeport, which was anticipated to generate around 18,000 jobs over five years when it began operations in 2021. Transforming old industrial sites into modern commercial and residential spaces has spurred a development wave that is boosting property values and drawing more investors from across the UK, not just the North East. Regeneration projects here have fundamentally changed the landscape and created an attractive
environment for national investors and brokers looking to capitalise on the region’s competitive returns, with Simple Bridging UK experiencing a 32% increase in completions over the past 12 months.
HOUSING TO BOOST MIXED USE
The North East’s future is bright, with property finance set to benefit; the government has allocated around £1bn so far to projects in the area through investment programmes, including the Levelling Up Fund and Community Ownership Fund. When operations started, it was announced that the Tees Valley Freeport expected to generate billions of pounds for the local economy, further fuelling the demand for specialist finance solutions in the area.
As commercial projects are planned, the region is primed to see an increase in mixed-use schemes, with more demand for homes. Brokers across the UK and lenders with a strong insight into the dynamics of this location will play key roles in delivering flexible finance options that keep up with the rapid pace of development and high yields.
The BTL sector is likely to remain a core growth area. With projected rental yields to stay high as people seek affordable housing and work in this region, investors will continue to benefit from yields in areas such as Sunderland, Middlesbrough and Durham, where Simple Bridging UK is seeing averages of around 7–8%.
Development finance is also poised for continued demand as redevelopment projects gain momentum, especially for conversions of commercial and industrial spaces into residential and mixed-use properties. This trend will open up new revenue streams for brokers, developers, and lenders alike, as urban transformation generates fresh opportunities in the market.
PROSPECTS FOR SPECIALISTS
As the North East develops, the market is evolving in ways that offer both challenges and opportunities. Despite its promising outlook, the region faces hurdles, including supply constraints and the pressing need for affordable housing. In response, local councils and developers are actively working to deliver new housing units and ensure sustainable growth. Rather than viewing them as barriers, the region’s unique characteristics call for innovative approaches, with specialist
lender insight. The rapid development and regeneration under way necessitate tailored financing solutions, especially for brokers handling time-sensitive projects in a competitive market. Bridging finance will likely continue to address these needs, as more investors seek rapid acquisitions in this high-growth area.
Infrastructure improvements also represent opportunities, especially in parts of the region that need better transport links to fully unlock property values. In February, it was announced that almost £20m of government investment was allocated to County Durham, Tyne and Wear and Northumberland to improve the availability and quality of sustainable zero emission transport options. Work on roads, rail and transport networks are set to increase accessibility and make property investments even more attractive. As connectivity improves, the region’s appeal to both national and local investors will only strengthen, further boosting its property market.
While interest rates, property tax laws and housing regulations may shift, the province has shown resilience, adapting to these changes with agility and optimism. Strategic government policies continue to benefit the region and, with simple, flexible, innovative lending solutions, the market remains accessible to a broad range of investors. Brokers spanning the breadth of the UK and lenders who have adapted alongside the region’s development will find ongoing prospects to serve their clients and contribute to the North East’s progress.
STANDING OUT ON THE NATIONAL STAGE
The North East is no longer a hidden opportunity—it’s a prime property investment destination, attracting brokers and investors from every corner of the UK.
Looking forward, the next 12 months are set to be equally promising. This market remains ripe for flexible, short-term lending solutions, and development finance will likely stay in high demand as projects in the Tees Valley and beyond progress. From BTL investors to commercial developers, more professionals are realising the potential in this vibrant region.
With a landscape rich in opportunity, it is poised for ongoing success. Those who embrace this dynamic environment can look forward to long-term returns in a region that is not just evolving—it’s thriving. The North East isn’t simply a property market—it’s a region of potential, where innovation, resilience, and investment promise a prosperous future.
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What’s ahead in 2025
Words by JULIET BABOOLAL
Partner at Gunnercooke
Price growth and demand
Recent insights from the Land Registry showed that UK house prices rose by 2.8% in the year to August 2024, up from the revised estimate of 1.8% in the 12 months to July. I anticipate prices to continue their upward trajectory into 2025 due to several critical factors. The persistent imbalance between housing supply and demand remains a key driver of price increases. With the UK’s population on the rise and a strong desire for homeownership, the competition for available properties is fierce. Consequently, prices are expected to remain elevated, particularly in high-demand areas.
From a return to city living to stabilising interest rates, there are many elements that can influence the housing market. Here, we look at key strategies to follow to better understand how the real estate market will fare in the year to come
Urban migration is also reshaping the market landscape. An increasing number of individuals are relocating to town centres in search of better employment opportunities and vibrant lifestyles. Major cities such as London, Manchester, and Birmingham are at the forefront of this trend, exhibiting robust housing demand that shows no signs of diminishing. This influx of residents is likely to maintain upward pressure on property prices in these metropolitan areas.
Interest rate influences
Interest rates are projected to play a pivotal role in shaping the real estate finance landscape as we transition into 2025. Following a period characterised by rising rates, there are indications of stabilisation or even a slight decline. This change will depend on inflationary pressures and broader economic indicators. A favourable interest rate environment could stimulate demand and positively impact property values.
If interest rates decrease, mortgage terms may become more favourable, making homeownership more accessible to a wider range of potential buyers. This could further amplify demand and support sustained price growth.
Government policies
Government initiatives aimed at promoting homeownership are anticipated to have a substantial impact on the market. Key programmes, such as the Help to Build scheme, are designed to encourage first-time buyers to enter the market. The scheme provides financial support to self and custom builders, including loans and grants, to cover the costs associated with building a new home. This initiative aims to increase the number of custom and self-built homes, offering more flexibility and choice to homebuyers. When the build has completed, a government-backed loan is made available. These new participants could boost demand and positively influence price trends.
Moreover, sustainability regulations are gaining traction as the UK government commits to achieving net-zero carbon emissions by 2050. Properties that comply with sustainability standards are expected to appreciate in value as buyers increasingly seek energy-efficient homes. This trend could lead to price premiums for environmentally friendly properties.
According to a study by Santander, homebuyers are putting a 9.4% premium on homes that have been retrofitted, creating new opportunities for environmentally conscious investors.
Increased land registry fees and stamp duty
The anticipated rise in land registry fees and higher stamp duty rates will have significant implications for the real estate market. These financial burdens may deter some prospective buyers, particularly first-time buyers, leading to longer transaction times and extended wait periods for property acquisitions. The additional costs associated with these changes may encourage a more cautious approach among buyers, influencing market activity and potentially tempering the intense competition that has characterised recent years. The knock-on effects of small landlords leaving the market will be felt by tenants because a reduction in rental properties will increase prices.
Investment landscape
The investment landscape in real estate is also evolving, with several noteworthy trends on the horizon. A rise in alternative financing options is expected and, while these financing methods are not new, the criteria is more relaxed than the traditional requirements of a commercial mortgage loan, which ultimately provides additional avenues for buyers and investors, further stimulating market demand.
Technological advancements
The growth of proptech continues to revolutionise the industry by streamlining processes and enhancing access to information and financing for buyers. This increased efficiency has the potential to lead to higher transaction volumes and ultimately drive price growth. Digital platforms that facilitate property transactions are lowering barriers for buyers, encouraging a broader base of individuals to invest in real estate. This trend has the potential to significantly contribute to rising property values as the market becomes increasingly accessible and transparent. These digital platforms will continue to help to balance supply and demand for a more inclusive housing market by providing a wide range of property options and enhancing access to information.
Key London trends
As we delve deeper into 2025, several key trends are expected to shape London’s property market. A heightened focus on sustainable and energy-efficient homes is anticipated. The UK government’s commitment to achieving net-zero carbon emissions by 2050 is driving demand for greener properties.
Another significant trend is the ongoing influx of international capital. Investors from the Middle East, Asia and North America are increasingly active in this dynamic market. In 2023, almost half (45%) of prime central London property purchases were made by overseas buyers, a trend that shows no signs of abating. The weakened pound, combined with London’s status as a stable investment destination, makes the city particularly appealing to foreign investors seeking both immediate rental yields and long-term capital appreciation.
As of 2024, London’s property market remains attractive, with average rental yields around 4.0%. Some areas, such as Barking and Dagenham and Newham, are exceeding this average, offering yields between 5.5% and 6.0%. These figures highlight the potential for stable rental income and long-term capital growth, reinforcing the capital’s position as a prime destination for property investment.
To effectively navigate these trends, consider the following strategies:
demand by offering multifunctional spaces equipped with a variety of amenities, including co-working zones, residents’ lounges for business meetings, fitness centres, swimming pools, and even spas. This trend enables residents to balance work and leisure without the constraints of commuting, creating a more enriched lifestyle.
Maintaining focus
• monitor regional variations in house prices to identify optimal investment opportunities
• stay informed about government initiatives that may affect homebuyer support and market affordability
• leverage technology and proptech solutions to improve efficiency in property transactions and investments
• evaluate the long-term sustainability of properties in alignment with evolving buyer preferences
• anticipate potential changes in interest rates and adjust financing strategies as needed
The shift toward flexible working arrangements has also significantly influenced housing demand across London. Homebuyers are increasingly prioritising properties that feature a space that could be used for a home office and access to co-working areas. New developments are rising to meet this
The urgent issues of housing affordability and the need for sustainable development practices require continuous attention.
Navigating these emerging trends is vital for buyers, sellers, and investors in the current evolving real estate landscape. The future presents substantial opportunities, and those who are well prepared will be best positioned to capitalise on them. As we look towards 2025, staying informed about these developments will be crucial for making strategic investment decisions in an everchanging market.
As we advance into 2025, the interplay of these various factors will significantly influence property price trajectories and the overall state of the real estate market. By maintaining a focus on market trends, buyers and investors can make informed decisions that align with their strategic objectives in the dynamic realm of property investment.
Rachel Geddes
BUILD BRAND AND BUSINESS WITH TIKTOK
Keeping up to date in a hypercompetitive industry can be tough—and that’s without factoring in social media. Here’s why I think finance experts should consider video platform TikTok, as it might just aid your business
TikTok has been part of our lives since September 2016 and is a go-to place for many. Originally, it was for music and entertainment, but now individuals are using it in all areas of their lives, from finding lifestyle, health and fitness information and product reviews to how to manage their finances.
So why it is important to brokers in the mortgage, bridging, and commercial market? In an industry that was stuck in the paper age for so long, it can sometimes feel like a lot of change is happening, yet what the past has taught us is that we are incredible at adapting and evolving to every era and our clients.
TikTok has a massive global audience. Around 82% of those who use the platform have discovered independent businesses on TikTok before seeing them elsewhere, with 52% of them making an online purchase. As the fastest growing social media platform—according to the Guinness Book of Records—can we really afford not to explore it?
Words by RACHEL GEDDES
Mortgage
adviser
and business principal at MAB
As our industry sees a new generation of clients (Gen Z and millennials) emerging, it has never been more important to be able to communicate with them in the manner they want. This also applies to existing clients, who are changing how they engage with business and life.
Get going
So, how do you go about using TikTok? First—get yourself set up. Explore what others are doing, and decide who you want to engage with and what type of messages you want to be sharing.
Educational videos are a great starting point; keep them short, snappy, and informative. This could include informing people about lending processes, market updates, and common mistakes. Success stories are great to share—this will not only help educate clients but also grow awareness of your personal and business brand.
You may need to step outside your comfort zone to begin with, so buddy up with someone else already using TikTok, such as a colleague, lender partner, or another person who has taken that first leap. Learn from their experiences while you build your own confidence.
Clients want to know who they are working with so be personal, whether this means showing them you on your morning walk or commute, around the office, or even your office treats. Mix up the content so clients continue to engage. You’re telling a story, after all. It’s great that you can record these clips anywhere, on the go, so the information you are putting out is live and relational to retain attention, which ultimately grows your audience.
For all businesses, whatever their size—but especially for the SMEs with slim marketing budgets—TikTok offers an opportunity to market you and your company, while seeing trends and taking advantage of all the performance metrics TikTok has built for its users.
It is important to understand why people are using the popular platform. It can be just a distraction or an entertainment site to some, whereas others use it to feel part of a community, express themselves, and look for help and guidance that they struggle to find elsewhere.
Digital kits, AI, and technology have been evolving for many years and will continue to. Our client demographic is changing and will continue to; [our] clients are more likely to ask for a recommendation on a social media platform or discover a business on TikTok than through Google. Most people are adapting to incoming technology every day to stay ahead—and this applies to social media platforms, too.
“As our industry sees a new generation of clients emerging, it has never been more important to be able to communicate with them in the manner they want”
Foreign
Semi-commercial properties
Ian Miller-Hawes Director of
a look at the Scottish market
Scotland’s housing market is busy, with home prices, listings and sales up, even though landlords are pulling back. Investors are also seeking finance that lets them grab opportunities as soon as they arise, which is good news for those offering bridging finance
Words by MARTIN BLOE
Intermediary sales manager at Together
The Scottish property market has faced a barrage of challenges over the past few years, with rent controls and caps or tax on second homes, coupled with Covid, the mini-Budget and global instability. These have led to the government declaring a “housing emergency” in May, with more than one-in-four Scottish households in some form of housing need, according to a report produced for Homes for Scotland.
Worryingly, studies have shown a much higher proportion of landlords plan to sell their residential portfolio now compared to five years ago, and fewer intend to buy more properties to let. Some specifically mention shifting into commercial property, attracted by better returns, longer leases and a more secure income stream.
Despite the challenges, the market is enduring and there are positive signs on the horizon. Annual house prices have increased and, in the first quarter of this year, we saw the highest house price growth in the past four quarters.
Scotland’s market is busy. ESPC found that new property listings were up 11.2% in October on the previous year, and sales volumes increased by 19.1%. Edinburgh, the Lothians, Fife and the Borders all saw particularly significant increases.
The same data also shows strong seller confidence, with more than 80% of homeowners opting to list their properties for “offers over”. For context, this is nearly 10 percentage points higher than last year.
In addition, the appetite from specialist lenders such as Together to provide mortgages and bridging finance for homebuyers, movers and investors has never been stronger. Experts are anticipating that the residential mortgage market alone is set to grow by 70% to £54bn over 2023–29, according to Together’s research, meaning finance will be available for thousands of Scottish buyers and BTL investors.
RENT CONTROLS
Despite strict legislative control, rental yields in the private residential sector continue to rise in response to tenant demand and a higher rate environment for BTL mortgages. Landlords are seeking to cover their costs and prepare for new legislation from the Scottish government, which is expected to put in place the right to impose permanent rent controls. Data from Citylets and Rightmove shows that the asking price for privately rented homes continued to increase, albeit at a slightly slower rate than the recent historical highs.
The jury is out on the impact of any forthcoming additional rent controls, but the Scottish government shouldn’t take success for granted. There is a fine balancing act to play out. Reducing the profitability of any business inevitably impacts its attractiveness and, many other countries, such as Sweden, the Netherlands and Germany, have abolished rent controls on new-build housing in an attempt to reverse this.
Commercial property market conditions are expected to improve, according to the latest RICS commercial property monitor. It found that demand for retail space has fallen while demand for office and industrial space is strong, with surveyors predicting rental rises in the year ahead. Capital value increases are forecast to be particularly positive for industrial buildings, too.
WHAT INVESTORS WANT
But what are investors and businesses thinking? At Together, we are seeing that at the top of investors’ wish list are speed of service and certainty of funds, which would enable them to jump on opportunities quickly as they arise, wherever they happen to be in Scotland. As a result, demand for fast and flexible finance has increased, and we’ve seen a significant spike in both bridging and term lending as landlords seek to capitalise on resilient capital and rental yield growth.
It’s good to see indicators of new capital investment have improved since 2023, and the welcome news of a drop to 4.75% on interest rates from the Bank of England suggests there will be a continued trend downwards. However, businesses have reported they have concerns around falling demand and inflation in prices for goods and services, as well as rising interest rates and energy prices. These areas clearly need to be addressed if we are to improve the confidence of Scottish businesses.
Against a complex backdrop of increasing rental regulation and with a changing political landscape both north and south of the border, what now for Scottish lending?
The truth of the matter is that Scotland is a country that is full of opportunities but support from lenders and brokers is required to encourage growth. At Together, we have certainly seen an increase in business volume across Scotland, and we maintain a keen appetite to lend across the country.
Moulding the next generation
PART III
Words by DHUHA AL-ZAIDI
Illustration by VALF / JESTERTOFU
As a society, we collectively rejoice in individual achievement. We celebrate our promotions, we boast milestones in our careers, but there’s a quiet force that remains at the core of our achievements—mentorship, which serves as a powerful reminder of the beauty in community.
In this series, we’ve captured insight from some of the best in the industry who have shared valuable advice, reflected on their journeys as both mentors and mentees, and addressed challenges facing leadership today.
For our final feature, we get vulnerable with the mentors behind some of the big guns in the specialist finance industry, to portray the reality of what successful team leading looks like. Here, we explore the fundamental impact mentorship has on personal and professional paths, shedding light on the importance of continual learning as a mentor and looking after oneself to uplift others, too.
Finishing off with an inspiring female panel, we’re joined by Leah Brunskill, head of marketing at Market Financial Solutions; Andrea Glasgow, sales director at HTB; and Kim McGinley, director at VIBE Finance. This dream team share the key traits every mentor should possess, the need to have female experts in the field, and how inner confidence is paramount to shaping the next generation of leaders.
Beth Fisher: Can you share a memorable moment that you had with a mentor yourself?
Leah Brunskill: Someone once said to me as I was doing a presentation, “That’s all really interesting, but do you think , or do you know? Because you started every sentence with, ‘I think what this shows is blah, blah, blah.’” Then he said, “I know you know that is correct, so why are you saying I think?” That was a real pivotal moment for me: I do know, and it’s okay that I know, and I shouldn’t be changing my words to make other people feel more comfortable or to allow them to step in and voice their opinion on something that I am delivering. So, pretty simple, but that, for me, was a big one.
Andrea Glasgow: My mentor is the same as when I first entered the industry. It’s Alex Upton, and we’ve worked together on and off for the past nine years. But the first time I met her, I remember the high heels. She was walking towards the boardroom where I was in an interview, and I heard these heels and thought, ‘Oh my god.’ I was panicking. I had no BDM experience. I’d been working at Barclays for 10 years and I was very corporate, had no broker contact, I’d never done field sales…
Then she came in and asked me loads of questions like, “Do you know what DA means and what AR means?” And I sat there and thought, ‘Is this some sort of abbreviation of something?’ I didn’t have a clue. But she saw straight through that and gave me the job.
And nine years on, she’s still my biggest mentor; I lean on her a lot. I reached out to her yesterday, to ask her opinion on something I’d done, and she said to me, “You are my biggest and my best decision in my career.”
That is all you need from a mentor. She’s my biggest supporter, and I’m hers.
Kim McGinley: I joined the industry, or fell into it, when I was 19 or 20 years old, and mentors weren’t really a thing. Obviously, we had managers and leaders, but I’d never had a mentor until I started Vibe. And for me, the best thing that I did in the early days was enlist the help of a business coach. Because you do second-guess yourself. You’re on your own, making these big decisions, and they gave me reassurance and a steady hand, which is what I needed to realise that I did have it all in me. They just pulled it out, confidence-wise. So, I think core for me was that first year of Vibe, when I started to employ people. That’s when I got that advice and coaching, that reassurance that I really needed at the time.
BF: Do you think that’s something that’s worth continuing as well? Is it something you still utilise?
KM: The difficulty with business coaches and mentors is that you rely a lot on what other people have, their own experiences, and you depend on recommendations. Anyone can call themselves a business or a life coach, and it’s dangerous if you don’t get the right one. Absolutely, at the minute it’s imperative that I get another business coach and mentor, which is exactly what I’m looking at behind the scenes. I’m at that stage again where I need someone to help me figure some things out that are going on. So, yes, I 100% think that people should have a business or life coach. They’re amazing.
BF: Looking back, what would you tell your younger self when you started out in the finance industry?
KM: I would tell my younger self to take every opportunity, even the ones that I didn’t feel I could do or that seemed out of reach. I’d remind myself that my voice truly matters, despite how young I was—that it deserved to be heard. And that self-doubt shouldn’t stop me from doing anything. That’s why I tell myself, just go for it.
“I would tell my younger self to take every opportunity, even the ones that I didn’t feel I could do or that seemed out of reach. I’d remind myself that my voice truly matters, despite how young I was—that it deserved to be heard”
AG: I’d tell myself that it’s okay not to have all the answers and to actually ask. There were a number of occasions when I started in the industry, and one that springs to mind: I remember a broker called me and said, “Can you get the COT sent over?” I had to google it. And I was googling it because I had no industry knowledge of mortgages whatsoever. In the end, I rang up the completion lady and said, “We need the COT.” And she went, “We haven’t even underwritten it yet. What are you going on about?”
I’d tried to find the answer, there were resources out there to find it, but sometimes it’s better just to go and ask. And there are so many supportive people in this industry, regardless of whether you work for a competitor or not. Generally, when times are tough, you all get together, and you can always lean on someone. So, if you can’t find an answer, ask someone.
LB: Firstly, like Andrea, I’d say that you don’t need to have all the answers, but that there is a period of growth. When you start a job, you don’t have to be the absolute guru at the role at that time. There’s a reason someone has taken you on, and it’s because they could see the potential. You don’t hire someone who’s at their ceiling and expect them to just perform at that. You expect them to grow, so that’s okay.
“We do work in pressurised times, it’s not the easiest of markets— there’s communication you’ll receive from the top down, and how you mould that to who you’re delivering it to is crucial”
On the flip side of that, it’s good to grow and ask questions, but equally, if you’re sure of something, stick to it. I say this from a marketing perspective. Lots of people think they can do marketing, but they don’t always get the nuance of it. And that’s fine, because it’s not their job. A lot of what I do is so subjective that too many cooks come in with lots of ideas, and some people have great ideas—but if you know you’re doing something for the right reasons, keep to those reasons. It doesn’t mean it’s wrong just because someone else has a different idea. So it’s kind of twofold, but that’s what I’d tell myself.
Dhuha Al-Zaidi: What do people need to see more of from their team leaders, especially in such a demanding industry? And how do you plan on filling that gap?
AG: There are a couple of skill sets, but I’d say empathy and honesty. We do work in pressurised times, it’s not the easiest of markets—there’s communication you’ll receive from the top down, and how you mould that to who you’re delivering it to is crucial. It’s about changing the communication style to fit the audience, but also transparency. If the wider team need to know something, it’s about picking up the phone to them and making sure they know it.
Empathy. We all go through great times, really positive times, but also times when we’re feeling low and need a pick-me-up from the people around us. And it’s being that person to lean on.
Then just generally finding out what motivates people. The biggest thing you can do, which I did when I got appointed as a manager, is to understand what individuals need from you. What do you want me to start doing? What do you want me to stop doing? What pushes you? That’s key to driving their success and their performance.
So empathy, communication, transparency. I feel quite proud because I created a little family within the sales team and the wider team at SM are like a family, too. We lean on each other, so we do need to support one another as much as we can.
Leah Brunskill
KM: I’ve grown up in an era in my career where leaders are seen to be up on a kind of pedestal. You don’t often, or you never used to, see their human side. It was very much work. I feel times have changed so much that I’ve gone through a sort of evolution period from where I was at the start of Vibe to where I am now. I’ve learned that it’s okay to be yourself and to show a vulnerable side, and I would say that showing that human side helps with empathy.
It helps to build trust with the team. I say this all the time, ‘safe space’ is kind of my thing this year, but it’s creating those spaces where they do trust you. Mental health is so critical, and you want to be able to have your team to be approachable.
“I would never ask my team to do something that I wouldn’t do myself. The minute you find yourself in that position as a leader, the respect goes out the window”
One of the biggest things I’ve learned over the years is that it’s never ‘do as I say, not as I do’. I would never ask my team to do something that I wouldn’t do myself. The minute you find yourself in that position as a leader, the respect goes out the window.
Another key thing, there are lots of business leaders that let certain behaviours slide. So many times I have to put my big girl pants on and be like, ‘We need to discuss this, draw a line, move on from it’. I’m not just talking about my team—I love my team—but there are moments when you have to have those difficult conversations, and you can’t skirt around them. Again, from a respect point of view, you have to own that and put yourself in those positions where it’s not nice, but it has to be done.
BF: I think that really ties in with what Andrea said about teamwork. If one person, for example, isn’t picking up the slack, then the others feel it. So it’s finding that early and bringing it all in together.
LB: You’re not an island as a leader, and you don’t need to be. Yes, you have to be strong for your team and strong in what you’re doing, but they can lean on you the same as you can lean on them. When you’ve got that trust and transparency, that’s when you can open up a bit more; that’s when you can have those difficult conversations.
DA: It sounds like the ultimate dream team right here! If you could name one trait that you think all mentors should have, what would it be and why?
LB: For me, it’s honesty— as a mentor and from a mentor. If you can’t have difficult conversations, then you can’t talk about the things that need to be worked on. I think it’s really easy when mentoring someone to focus on their good points and say, “Yes, you’re really good at this,” and, “You’re really good at that”. This absolutely needs to be a big talking point, but you have to be truthful about the things they’re not so good at, or different avenues they can go down. To be able to have those conversations, you need be honest and be comfortable being honest.
AG: Patience. I’m not the most patient of people, but I think it’s needed for everything. We’ve got some newer team members with varying levels of experience, and it reminds me of when someone took a chance on me early in my career. It’s great to see a team forming with different backgrounds and skill levels—some have been in the industry for decades, while others are just starting out. Taking the time to mentor each individual properly is key to helping them grow and become the best version of themselves.
It’s not the quickest race to the finish line. It’s more about understanding what they need. Out of 10 skill sets, there could be two that really need improvement, and they’re going to take a bit longer. And it’s having that patience to get them there.
KM: For me, it’s experience—a mentor who has walked that certain path and faced the challenges, made tough calls, had the highs and lows. That experience gives the credibility that’s needed in a mentor. And, as Andrea touched on, empathy. Empathy goes an immensely long way in mentoring someone. But experience will give them the inside scope and what to do and what not to do, and help guide them on that path.
DA: Can you share any strategies that you would typically use when you are managing or leading a team?
LB: I think mine, which I find difficult, is being quiet initially. Silence can bring out a lot from someone you’re trying to mentor, because naturally, when you’re leading a team, they want to showcase all the good they can do. They want you to look at them in a positive light, so they might not talk to you about their concerns at first. But if you allow them to speak or give small prompts that lead them to open up, you tend to get more out of them. So, from the beginning, when I first meet someone, I tend to listen to them, listen to their thoughts, their ideas, then kind of shape things from there.
KM: Honesty is my strategy with the team, being open and transparent. I’m a huge believer in career progression and growth, and I get inspired by helping others to move up the ladder. Sometimes people don’t want to move, they’re happy doing what they’re doing, but for those who do, I love that feeling of nurturing and helping them advance. So my strategy is honesty and offering the right support.
AG: I have a couple, but I like to keep it simple. Empowering the team, but also holding them accountable, so every region they manage, they manage it like it’s their business. Well, that’s what I aim for them to do anyway. Kim, please don’t tell me otherwise. [laughs] Also you should be understanding your region/business better than anyone else in the bank should.
Therefore, if I come to you and say performance has gone slightly backwards, and you say, “What do you think I’m doing?”—it will always be a case of, “This is what I think, but what do you think?” And generally, it’s that you’ve gone away from the basics. That’s it. So, it’s being clear, setting clear objectives in terms of, if you achieve this, that and the other, this is what your progression looks like.
DA: Can you recall a pivotal moment that challenged your leadership and how you overcame that?
KM: It isn’t really any one moment. It’s those times when, as a leader, you yourself are worried, you feel like the world’s caving in on you, but you have to rock up in that office and put on that face, and put the team and everything before you.
Being totally honest, there were times when I was driving to work, getting a bit teary, and I’d sit outside, sucking it up, and be like, “Right, get in there.” And I do—I walk in, and no one else would know a difference. But I’ve struggled with that, being the leader that they need when I wasn’t feeling it. Those moments have been the most challenging.
AG: I think mine was when I was first appointed to sales director, and I assumed that because you’re in sales, everyone is driven by the same incentives. My initial approach to managing the team was to focus heavily on traditional performance-based motivators. After a few months, it became clear that each person had different drivers, and my one-size-fits-all approach wasn't working. I learned that some are motivated by building their reputation, while others find fulfilment in different aspects of their role. As the team grows, it becomes even more apparent that everyone has unique motivations, and understanding those individual needs is key to helping them perform at their best. We’re always learning, aren’t we?
BF: 100%. I think that’s a really good point about motivation—and about how people like to be managed. Everyone is so different. And that is the empathy part. Some people like to be left to their own devices, others want more handholding, or they’re more interactive, or prefer to be quite siloed. It’s a very human thing, leadership.
LB: A real eye-opener for me was when I first became a manager—I was a very young manager—and it was realising that you can’t be everybody’s friend. I just presumed that’s what I would do. I’d be everybody’s favourite manager, everybody’s friend, and that’s why they’d work really hard for me. But that’s not the case. It’s not because they don’t like you—you can respect each other, you can have professional respect for each other—but you don’t have to be friends. They don’t necessarily want that, and actually, neither do I. So that was a pivotal moment.
BF: I think that probably plays into trust as well, because you trust your friends. So you always think, well, you have to be friends with the people you manage. I don’t know what you think about the saying that ‘trust should be earned, not given’, but I believe trust should start from the get-go.
KM: Absolutely agree. It’s a fundamental for me. It’s the first thing I tell people when they join my team: you’ve got my full trust until you haven’t. And once that’s gone, it is gone But I think it’s the only way to start, by saying it’s not earned—you give it. Everyone’s an adult. But there have been times, obviously, where the trust has ended.
DA: How do you implement self-care in your routine to remain a strong leader?
KM: I’ve made so many changes this year that are really benefiting me. I don’t go to sleep with my phones anymore. I realised three months ago that normal for me was waking up at 3am and I’d think, ‘Oh, I’ll just check the time.’ And I’d see an email, or something else would be there, and I’d be scrolling for two hours, then I’d go to sleep for an hour. That became my routine.
Now I’m sleeping really well. I don’t look at the news at all. It’s not good for me. I used to wake up and go to bed looking at the Daily Mail, and it’s just doom and gloom. Now I don’t know anything other than the main things that are going on.
It became paramount that I had to make these changes because it was affecting me, my mindset, everything. So going to the gym, working out, meditation— all the classic scenarios I’m now doing. If you’d said to me four years ago I’d be a person who got up and meditated, I’d have probably laughed at you. But realising how important self-care is in my routine has been amazing for me. And it also demonstrates to my team that I believe self-care should be a priority for them as well.
DA: From an editorial point of view, I appreciate the honesty of saying you don’t check the news. Please read our magazine, though! [Laughter] I think a lot of people don’t want to admit that, but I believe it’s important, from time to time, to give yourself that mental break.
LB: I’ve only recently prioritised self-care in a way that I’ve actually thought about it. I’ve always gone to the gym, that’s kind of my happy place, and done various activities, but now I sit down and I think about how I feel—whether I’m stressed, or need a break—and that would never have been a thing for me [before].
There have been some major changes for me this year as well, so I’ve kind of had to recognise when I’m really tired, when I’m feeling overwhelmed, and not just with work. With self-care, I’m still on a bit of a journey. I’ve started relatively simply in that I prioritise eight hours of sleep every night. That is… I hate the word non-negotiable, because everything’s negotiable, and I try to work on at least a mind or a muscle thing every day. I’ll either go to the gym or do some reading or learning that’s separate from my job.
Before I was like, “I’m fine; oh, this is fine; I’m really busy and I love being busy and rah, rah, rah,” then all of a sudden I’d go, “Oh, I’m too busy. This is too much,” and I’d need to start thinking about what I’m going to do to be calmer or to approach things in a different way. It’s still a learning process and I’m not sure I’m doing it right. But what’s been really interesting is realising that you have to prioritise self-care; you have to think about it.
KM: It’s so interesting that you brought that up. I don’t know how I missed this off, but the power of your thoughts is crucial. I’ve done so much work and looking into this this year, so I can totally relate to what you’re saying.
And you’re not doing anything wrong. The fact that you’re recognising your thoughts is good, because we’re conditioned from childhood and our experiences that your brain kind of protects you and tells you certain things that you can actually question. You can change the way that you’re thinking, and I think that’s super important.
AG: In our industry, we work in a very fast-paced market that loves to go out, loves to party, and I can tell you, since I hit 40, it has hit me like a sack of spuds. When I was managing myself, it was easy to just go out, have as much fun as I wanted—I didn’t have
Kim McGinley
to report up. But now I have to be there in the morning, ready to motivate my team. So, except for black-tie events, I’m aiming for going out until god knows and treating my body badly to be in the past.
In terms of self-care, when I’m in London I go to the gym at 5am every day. It’s not easy. I generally go to bed at 9pm. I could probably take a lesson out of Kim’s book and leave my phones downstairs. Both my phones go with me, so I’m kind of always accessible—I’m still going through that transition. Some of my team work until midnight and some start at 6.30am. And it got to a point where I felt like a 24-hour call centre; I can’t do this. So generally, after 9pm, I should be asleep. If I’m not, I won’t look at my phone until I wake up at 5am.
Initially, when I started training so early, it was summer, so it was easy. Now it’s more of a task, but it is the best thing to start my day, without a shadow of a doubt. The endorphins of going to the gym, I will pick that over a drink any day. It sets me up.
And because we’ve talked about wellbeing within the team, a few are now making time for activities like going to the gym or finding other ways to stay active—and they’re feeling the benefits. They’re happier making more balanced choices instead of spending every evening out. Now, it’s more like, “I’ll go for one drink, but I want to get home to spend time with my family,” or, “I’ve got the gym,” or, “I’m going to play football.” It's about finding the right balance, and it’s something we’re all working on together.
DA: Why is it important to have female leaders in the specialist finance industry?
LB: I think it’s about having somebody that everyone can relate to. It’s not just female leaders, but minority leaders, good male leaders. It’s leaders that people can look at and go, they’re a bit like me, and not even on gender or race, but they’re from a similar background or they’ve had a similar career path. It’s having enough people and enough diversity. That allows people to be inspired and to have someone to reach out to that they feel a connection with. So, it’s not necessarily just female leaders—it’s leaders of all ilks.
AG: I agree with Leah that I don’t think it makes a difference in your ability to manage. I think it’s the skill set. In terms of what women bring, I believe we are more empathetic with what someone’s going through. We give that little bit more patience. I’ve met some male leaders that are similar, but I generally think females have more of these traits.
KM: Just to add to that, the empathy, definitely. And I’d say it’s a well-known fact that there’s not enough diversity in boardrooms. Now more than ever, diversity can only strengthen a business, right? So it’s in the business’s best interest to diversify and to encourage more women into leadership roles. Women are very collaborative too, that’s another point, and you need collaboration at the top. It’s also an inspiration to other women to step up into these roles. And I do say this a lot, that much of the time, not all the time, we are the ones stopping ourselves by not putting ourselves forward. It is, again, well known that women have a way of doubting ourselves. We say, “Can I do it?” Men tend to have that sort of, “I’m going to do it, and I’m going to make it work.” The more women we have, the more inspiring it is to the next generation we want coming through—to see that it is possible, and it is normal, to reach that level.
AG: To add to that, I think it makes a difference who you’re surrounded by. I’ve worked with firms where it’s a boys’ club—you go out after work and you’re down the pub having a pint of Guinness. [Now], if I look at my colleagues, 50% of our team are female. We’ve got some really strong female leaders on our board, and it does have an effect.
Not only will they inspire you in all sorts of ways, but they’ll push you when you feel you’re not ready, or don’t believe in yourself enough. They’ll say, “You can do this. You just need to tweak these bits, but you’re on a journey, go for it.” It’s exactly what Kim said, we sometimes stop ourselves from going for things that we should feel comfortable doing. Inner doubt versus anything else.
Andrea Glasgow
“Active encouragement is needed from male allies. Not just in the boardroom, in any meeting room. If they know that someone’s quiet, they should urge women to speak up more”
BF: You commented earlier that Alex took a chance on you when you didn’t know the industry, and obviously that’s panned out extremely well for both of you. But there’s a study that shows when women are looking at job adverts, they’ll go through the requirements as a checklist and, if they don’t have all of them, then they won’t apply. Whereas men might have one or two and go, yes, I’ll apply for that. It makes me wonder how we can change the recruitment process and the questions and requirements we have. I think the best thing is just to meet the person. Are they willing to learn? What are they like?
DA: On that note, how can male allies better support female leadership and mentorship in the workplace to encourage female leaders in the next generation?
LB: It’s hard, because if they are allies, they’re probably already doing this. We want to talk to the ones who aren’t allies, but don’t necessarily know it, because I don’t think there can be many people left who seriously believe there shouldn’t be equality in the boardroom. For the most part, from what you hear in the industry, nobody’s going to come out and say that.
However, I’d say there are a lot of people who think they’re allies, but aren’t taking any action. I would just ask them to listen, to people’s experiences, and to believe them. If someone doesn’t believe you, or they think something is not as important as you’re making it sound, then they’re dampening how much we want to be heard.
We need to speak more. For me, I work in a business that is 50% female across the board: were 50% female at the top and 50% female in the rest of the business. So I don’t have the challenges other women have in male-dominated spaces, but when they tell me their experiences, I listen, and I believe them. And that’s what male allies, everyone, needs to do. Just because something is not your reality, it doesn’t mean that it’s not someone else’s reality.
AG: What we’ve got in the industry at the moment, because we’re doing so much about women in finance, are some great initiatives: Kim, your Ladies Who Cannes, the Women’s Recognition Awards, the MI Elite Women,
etc. At the same time, there is a minority of men who are saying they’re allies, and they’re not. So they’ll say, “Well done, well done,” but behind closed doors, they’re like, “Oh, god.” That’s kind of what we need to break. This also needs to start at the highest level and come from the top down. Who is leading this business, and how are they leading it? Is there equality? Are they encouraging women to go for board of director roles? Are they open to hearing women’s voices?
If they’re not, then you aren’t going to change the culture. I’ve been there in terms of working in a very male-dominated space. At Barclays, where I worked for 12-odd years, I think I was the second or third female premier banking manager, and this is going back 12 years. And everyone was applauding it, and I thought, ‘We’ve got a problem. The fact that you’re applauding me for being a female and having made it as a premier banking manager is insane.’
Even now, I saw a picture yesterday of an entire sales team and there wasn’t one female. That says it all for me. Would I apply for a job with that company to work in that team? Absolutely not. My perception is that my voice would never be heard, because I’m walking into a sales team of 15 men. And what I’d be saying as CEO of that business is we need to create more equality. When we recruit for any position, we look at equality in terms of gender. We interview a minimum of three people, and there’s actually an HR requirement to have an even split in terms of ratio.
You’ve got to drive a different culture, but that starts from within, then eventually it will transpire out.
KM: I’d say active encouragement is needed from male allies. Not just in the boardroom, in any meeting room, if they know that someone’s quiet, they should urge them, women, to speak up more. For me, it’s challenging biases, which are still rife within our industry, unfortunately. And challenging biases and behaviours is a massive stand.
It’s more difficult in certain situations, like Andrea says, when it’s top down, but today we’re talking about inspiring the next generation. We’ve got some young, impressionable people coming into our industry, and sorting out these behaviours is so imperative because times have moved on, but not enough. We desperately need more of the next, younger generation to shape our industry for the future. So challenging those biases and behaviours is a huge step forward.
Lessons learnt at the FP Show 2024
This year’s FP Show, hosted at Olympia London, achieved the highest attendance rate since its establishment in 2013.
The exhibition was vibrant, and packed with glamorous stands displaying the most recent finance products and the latest company rebrands—and that's excluding the luxury merch!
Exhibitors came prepared with questions and an eagerness to learn, and thanks to Knowledge Bank’s founder and CEO Nicola Firth's Live Criteria Clinics, they left with valuable discussion and key takeaways from several industry experts across various sectors. We recap their views on the latest discussion in the bridging, development, and commercial finance panels, and for the first time, the CPSP.
COMMERCIAL FINANCE SESSION
PANELISTS:
• Stephen Spinks, head of sales at Allica Bank
• Mike Davies, head of business development at YBS Commercial Mortgages
• Adrian Moloney, group intermediary director at OSB Group
• Tanya Elmaz, director intermediary sales at Together
KEY LESSONS LEARNT:
Following a poll, at least half of the audience was in agreement with the panelists that mixed-use properties would be the sector with the most development in commercial mortgage enquiries in 2025.
Despite the increase in employer NI following the budget, smaller businesses that are less impacted may see a boost in owner-occupied mortgages as they can offset the rise in NICs with the employment allowance.
Tanya claimed that Together would lend to start-ups and first-time buyers, but added: "It has to make sense—we have to see some kind of track record."
Clients must show evidence of experience, such as previous ownership of a company or plentiful experience in the sector.
BRIDGING FINANCE SESSION
PANELISTS:
• Jamie Pritchard, managing director of sales at Glenhawk
• Michael Stratton, CEO and founder of MS Lending Group
• Marcus Dussard, sales director at KSEYE
• Sundeep Patel, director of bridging at UTB
• Leanne Ardron, head of bridging finance at LendInvest
• Justin Trowse, head of bridging finance at Allica Bank
• Richard Deacon, managing director of sales at Octane Capital
KEY LESSONS LEARNT:
According to the panelists, the impact of the court appeal case in October on commission disclosure will be prevalent across the whole financial industry—even more significant than PPI.
Leanne commented that as the impact of the case unfolds, companies are assessing their policies. She mentioned that conversations with legal departments are already in motion, to ensure all documents align with the correct rationale for any fees.
Richard reassured that lenders and brokers already in compliance with consumer duty are well-prepared. “You should find yourself in a good space because you’ve already done quite a bit of work on this, in terms of price and fair value and treating customers fairly," he said.
DEVELOPMENT FINANCE SESSION
PANELISTS:
• Lee Merrifield, director of credit at MSP Capital
• John O'Donovan, partner at Harold Benjamin
• Lee Francis, head of origination at CapitalRise
• Leo Del Rosso, senior lending manager at Commercial Acceptances
• Roxana Mohammadian-Molina, chief strategy officer at Blend Network
• Guy Murray, co-head of shortterm finance at West One
KEY LESSONS LEARNT:
Many of the panel felt that ground-up developments would be a key factor in broker enquiries in the future, though the audience generally preferred conversion of commercial properties to residential.
The panel noted a "strong appetite for conversions" due to the impact of the Covid-19 pandemic on occupancy rates in city centre locations. However, John flagged planning permissions as a major hold-up.
Some urged for more discussion around initiating simple planning projects, with consideration for wider social, economic and local issues and establishing clearer legislation. Roxana emphasised the need for “concrete action plans” to support SMEs.
Overall, there was optimism about market expectations in 2025, after a few subdued years, thanks to declining interest rates and growing certainty.
Key insight from the CPSP panel
Following the launch of the CPSP qualification in May 2023, our panelists behind its development and progression gather to share their experiences to date.
PANELISTS:
• Adam Tyler, executive chairman at FIBA
• Karen Rodrigues, head of national accounts at Market Financial Solutions
• Tanya Elmaz, director of intermediary sales at Together
• Vic Jannels, CEO at the BDLA
• Gordon Reid, BDM for learning and development at the LIBF
• Charlotte Rutter, head of marketing and comms at Roma Finance
• Gillian Tait, managing director at Competent Adviser
MAIN TAKEAWAYS:
• Over 850 people have registered to take the qualification
• So far, approximately 300 have completed it
• There are 40 hours of self-completed learning within 11 topics, ranging from lending structures to loan types
• The pass rate currently stands at 88%—around 34 out of 300 enrolled participants did not pass
• The highest pass grade is 68 out of 70 marks, and it has only been achieved by one person so far
Attendees have up to 12 months to complete the course. The panel recorded the quickest turnaround time as six days from registration, with the longest being 11 months.
Gordon told the panel: "Someone said they completed the program while on the train to events like this!"
Tanya said it was the best qualification and "one of the simplest ways to get coverage of the industry". She confirmed that it is now mandatory at Together.
Gillian’s advice for tackling challenging sections:
During the multiple-choice questions, put your hand over the answer options. Think about the answer first and uncover when you’re ready.
“If you can think about how you would answer that question if someone asked it to you face-to-face—that’s most likely to be the right answer,” she says.
April Boyes
‘It’s all about relationships and how you treat your clients and customers’
In October, April Boyes was welcomed as BDM of the commercial sales team at Together. With diverse expertise in the property market, including the establishment of her own business, April prepares to cultivate key relationships head-on and shares the importance of teamwork and succeeding in specialist lending.
Congratulations on your new role! What attracted you to join Together?
I was immediately attracted to its commonsense approach to lending and impressed with its reputation in the industry. My team is also excellent and there is a real chance for me to grow and develop at Together.
What will you be focusing on in your new role?
I will be arranging short-term finance for property-buying companies and housebuilders who offer part exchange. I’m looking forward to developing relationships with existing clients and cultivating new opportunities for our team.
Are you bringing in any different strategies as BDM at Together, as a former lettings negotiator?
That was 12 years ago and the market has changed a lot, but the experience I gained from this and from being self-employed for the past two years is useful. There are a lot of similarities in terms of building relationships, referring business, and putting the customer at the heart of what we do. Focusing on these areas is the best strategy to take—it fits well with Together’s ethos of helping our customers achieve the best outcomes.
What challenges do you foresee in the property market over the next 12 months?
Affordability, especially for first-time buyers and landlords acquiring capital to upgrade their properties to meet EPC requirements. The Autumn Budget saw a rise in stamp duty on second homes, which could have a negative impact on the number of landlords choosing to enter the market and invest in property.
However, the funds allocated to housebuilding are most welcome and should be positive.
You've mentioned the importance of teamwork. Why is this important in the specialist lending sector?
With specialist lending, you often find yourself working on complex cases with tight deadlines. We recently funded a client in just 48 hours—that came down to working together to get it done efficiently.
If you could change one thing about the property industry, what would it be?
It’s difficult; the industry has plenty of opportunities for investors. I have worked through a number of economic cycles in my career to date, and no matter how bad the outlook may be, there have always been opportunities there for those who take them. However, I would like to see it easier for working professionals to get on the property ladder. Lenders like Together can help aspiring homeowners take advantage of schemes such as Shared Ownership and Right to Buy to purchase their first property.
You used to run a property consultancy business. Can you share a golden piece of advice regarding business ownership?
It’s all about relationships and how you treat your clients and customers—go the extra mile, don’t get greedy, and always have a long-term vision. This is what attracted me to Together—it’s a business celebrating its 50th birthday and built entirely on its relationships with customers, partners, and colleagues. It’s the key to running a successful business.
What opportunities do you foresee in the bridging market in 2025?
Across the UK, there are 700,000 derelict homes in need of extensive renovation to meet the current housing demand. I expect our team will be assisting investors with finance to purchase these properties to renovate and sell. With ongoing discussion around EPC, I anticipate a trend in landlords obtaining bridging finance to improve their property’s rating.
Tell us about your blog, BeyondtheBoyes!
In my spare time, I love sailing and have sailed across the Atlantic a couple of times. I’ve also helped deliver sailing yachts around the world—it’s a real passion of mine and one I am very proud of. I wanted to share my experiences with others, and so the blog felt like a great way to do this.
Which artist do you currently have on repeat?
I always have Coldplay on repeat!
If you could choose only one restaurant to dine in London, which would it be and why?
I am a big fan of Asian fusion food and have heard great things about Novikov—that is definitely on my list to visit.
What is the secret to success in the bridging finance industry?
Having a clear objective for the finance and a clear exit strategy. From a lending POV, we want our customers to succeed, so making sure we are supporting them and educating them every step of the way. Together is one of the UK’s largest bridging lenders—a result of building strong personal relationships with customers. The team takes the time to learn about their personal circumstances and offers a bespoke approach to every case.
Expertise: whenever (and wherever) you need it
Live updates on every application, direct access to underwriters and live chat facilities with our experts; we’re here to make every mortgage simple, whatever your customer needs.
For intermediaries only Search LendInvest Mortgages
Unregulated lending is provided by LendInvest BTL Limited (Company No. 10845703) and LendInvest Bridge Limited (Company No. 11651573), which are wholly owned subsidiaries of LendInvest plc. LendInvest plc is a limited company registered in England No. 08146929. Registered office at: 8 Mortimer Street, London, W1T 3JJ. Borrowing through LendInvest and its affiliates involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.
Product and criteria information correct at time of print (13.09.2024) 04-09-11 (1)
