5 minute read
Membership news
Net zero difficult to reach for period property owners
New research published by Together has revealed that the majority (79%) of British homeowners whose properties were built before 1900 are aware they will need to make changes to dramatically cut their home’s carbon footprint. However, most (57%) don’t know what improvements are needed to increase energy efficiency.
The lender highlighted this huge “awareness gap” following government proposals to decarbonise all sectors of the UK economy to meet net zero targets by 2050. In terms of housing, estimates suggest the drive for a net zero future will impact about five million of today’s period homeowners.
The research also found that the average period homeowner would only be willing to spend £5,480 in total on their sustainable home improvements, even though the actual cost could be more than three times that amount. Installing a heat pump which can reduce a household’s carbon footprint by 2.5 tonnes of CO2 per year can cost up to £18,000.
Commenting, Scott Clay at the NACFB Patron, said: “There is no overnight solution, but there are methods to help turn the tide. Specialist lenders are a huge piece of making this puzzle a lot simpler, offering bespoke financial support to those with more complex properties and financial circumstances.”
12 | NACFB
Allica Bank approved for Recovery Loan Scheme
Allica Bank has been accredited for the Recovery Loan Scheme (RLS), becoming the first bank outside of the original CBILS lenders to be approved for the scheme.
Under RLS, the NACFB Patron will be offering asset finance to begin with, followed by commercial property finance later this year. It will mean even more businesses can benefit from Allica Bank’s relationship and tech-driven service, enabling the Bank to accept applications from businesses who may have fallen outside its standard lending criteria.
Originally due to end in December 2021, the scheme was extended to June this year, providing a boost to the UK’s SME contingent in a time of crucial economic recovery.
Conrad Ford, chief product officer, said: “To be the first non-CBILS lender to be approved for the Recovery Loan Scheme is a real boon for Allica. Our mission, since day one, has been to empower established SMEs with expert human support, backed up with a seamless digital experience. These features have never been more important for business owners than during this pandemic, and we’re pleased that established SMEs affected by it will now have even more choice.”
Allica focuses on the SME market and gained full banking authorisation from the Prudential Regulatory Authority in September 2019.
Set your clients’ asset finance plans free
They can save the £200 documentation fee each time they drawdown from a new or existing credit line during the first three months of 2022.
Credit lines are becoming more popular as they’re a great way of providing fast and efficient drawdowns. Help your clients stay ahead of the game with access to finance for the assets they need, at the exact time they need them.
Whether they’re looking for a new credit line or have an existing agreement in place with us, they can draw from the agreed facility as many times as they like between 1st January - 31st March 2022 and save the £200 documentation fee each time.
Get in touch ccbank.co.uk/credit-lines 0344 225 3940
For intermediary use only.
Cambridge & Counties Bank Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under firm registration number 579415. Our authorisation can be checked at the Financial Services Register at www.fca.org.uk.
Membership News
KSEYE to enter BTL and development finance markets
Bridging lender KSEYE is looking to expand into longer-term buy-to-let products and development finance in the near future.
Jitendra Khagram, director at the NACFB Patron said that, although the firm’s current focus is on short-term property finance with loan terms up to 24 months, it is looking to expand its product suite to become “a one-stop shop for all commercial and investment property-based lending requirements”.
He said that KSEYE and bridging generally had had a good year in 2021 because bridging lenders could be more flexible and act more quickly to get deals done than many longer-term providers.
At the end of last year KSEYE’s loan book was hovering around £120 million consisting mostly of short-term bridging loans with terms of around 12 months. The diversification strategy is part of KSEYE’s plans to strengthen the loan book alongside attracting more lenders and clients, including property developers.
According to Khagram, demand for bricks and mortar has continued despite the pandemic and because supply remains limited meaning significant price growth in the years to come is likely.
To support their plans KSEYE also expects to grow its team up to 30% in 2022. Last year it made several new recruits to both the underwriting and sales and marketing teams.
14 | NACFB
Buy-to-let landlords don’t like being called landlords
The majority of the buy-to-let community say they would prefer not to be called “landlords”, according to research from Mortgages for Business.
Some parts of the US media have reportedly stopped using the word “landlord” due to complaints from the buy-to-let community. When it came to the UK, a majority of those surveyed by Mortgages for Business (59%) said they wanted the British media to stop using the word “landlord”, too.
The NACFB Member firm asked landlords if they thought the term was “dated”; 59% agreed it was. When the poll also asked about their preferred name 43% said “small housing provider”, 36% said they would prefer to remain “landlords”, and 21% suggested other options – including “rental accommodation provider” (7%).
Additionally, almost three-quarters of those surveyed (73%) told Mortgages for Business they felt “unfairly portrayed as this generation’s financial bogeyman”. Only 8% felt that landlords were not “financial bogeymen” at all – while the remainder (19%) accepted that their notoriety might not be entirely unwarranted.
Commenting on the findings, Gavin Richardson, managing director at the NACFB Member firm said: “Sections of the media have vilified the buy-to-let community... The term carries much more baggage than it once did. No wonder the community wants a rebrand.”
