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Membership news
United Trust Bank’s property development loan book has exceeded £1 billion for the first time following a record year of new originations. The NACFB Patron recently expanded the division’s sales team to support housebuilders across England and Wales.
Last year, UTB formed a number of strategic partnerships with government agencies designed to help housebuilders and developers gain access to competitive, higher geared funding.
In February 2021 the Bank announced a five-year lending alliance with Homes England with the launch of the £250 million Housing Accelerator Fund to support SME housebuilders with development finance at up to 70% loan to gross development value. The fund provides construction loans between £1 million and £10 million.
In May 2021 UTB secured an ENABLE Build guarantee via the British Business Bank worth £250 million. The guarantee was the first to be issued under the new programme and will allow UTB to support the construction of over 2,700 units of new housing through the provision of more than £500 million of funding to housebuilders.
Adam Bovington, head of property development commented: “Our aim this year is to further develop our compelling offering and assist the resurgence of the SME housebuilding sector.”
Allica Bank revamps commercial mortgage range
Allica Bank has revamped its commercial mortgage products, reducing interest rates and upping the maximum loan-to-value (LTV). Broker procuration fees have increased from 1% to 1.5% for owner-occupied, commercial, and semi-commercial investment mortgages.
The NACFB Patron has also applied a reduction of 0.25% to interest margins for all loans more than £1,500,000 on both commercial investment and commercial owner-occupied mortgages.
Appetite for most trading property types has also been adjusted, with its maximum LTV for owner-occupied mortgages increased to 80%. This increase applies to loans secured on trading business premises, including children’s day nurseries, professional practices, and convenience stores. For owner-occupied commercial mortgages where clients can demonstrate two-times debt service cover, a maximum LTV of 80% on most property types will be considered.
Allica Bank’s commercial and semi-commercial investment loans also now have a maximum LTV of 75% of vacant possession value across most property types.
Nick Baker, managing director of intermediaries said that the input of its broker community was key to how the bank has developed its proposition: “We have a joint mission at Allica with our broker community to support as many SMEs as possible with the access to the finance they need to achieve their goals.”
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Membership News
Bank North commences lending in the North West
Bank North has commenced lending from its first regional pod in Manchester, hot on the heels of signing a debt facility with Insight Investment in December 2021. The £1 million loan has been used to refinance a South Manchester multi-tenanted industrial estate which is home to a variety of businesses, all playing their part in supporting a vibrant regional economy.
This is the first loan delivered through the NACFB Patronʼs Manchester lending pod, where Bank North’s team of lending experts are now supporting business across the North West region. It was structured and delivered jointly by Michael Thompson and Darren Switzer, two highly experienced banking professionals.
Commenting, Becky Owen, regional managing director at Bank North’s Manchester pod, said: “Our local pod team make a real difference in the marketplace adding value to lending requests and using local knowledge to provide tailored lending solutions to local SMEs and investors.”
Bank North’s goal is to service SMEs looking to borrow between £500,000 – £5 million. Combining technology with face-to-face expertise, the Bank aims to bring empathy back to the lending market, whilst powering UK business by executing transactions locally, at pace and delivering finance which is tailored to the individual borrower’s requirements.
365 Business Finance secures £55m of funding
365 Business Finance has successfully completed a £55 million debt and equity raise, as the fintech lender aims to quadruple its lending to SMEs over the next two years.
The London-based provider of revenue-based finance has already seen significant growth with demand more than doubling from pre-COVID levels. 365 Business Finance’s proprietary technology platform and automatic collections process have enabled it to maintain credit performance and reach record levels of origination.
“Our innovative revenue-based finance product has proven ever more popular with small businesses, to the extent that we’ve been growing at a pace that far exceeds our pre-COVID levels,” said Andrew Raphaely.
Commenting on the capital raise, Andrew Raphaely, managing director at the NACFB Patron said: “This raise will help us meet our goal of quadrupling our lending over the next two years.”
The equity round saw Kendal Capital invest in the business, while the debt facility was concluded with Pollen Street Capital.
Michael Katramados, of Pollen said: “We are delighted to build on our strong relationship with 365 and continue as their main funding partner as they embark on the next chapter of their growth. This facility aligns with our commitment to generating positive impact.”
