NACFB Magazine - December 2018 by NACFB

Issue 65 December 2018

The magazine for the National Association of Commercial Finance Brokers

Association caps off a strong year in style We stage our largest-ever Gala Dinner and Awards Ceremony In this issue

Agricultural finance

Helping the rural economy access funds

Dual Growth Funding

What is it all about?

Shaping the SME regulatory landscape

Working together to influence legislation

Finance for the pace of change

Welcome | NACFB 2

018 has been a bumper year for the Association. I am delighted to have witnessed our membership grow both in terms of size and quality. We remain by far the largest independent and non-profit trade body dedicated solely to the modern commercial finance professional and I believe that we should all be very proud of the tireless work taking place within our community. 2018 also saw the Association stage more regional events than ever before alongside our largest ever Commercial Finance Expo and an extremely successful Gala Dinner, and we have set ourselves a very high benchmark for 2019. We will continue to refine and enhance our membership offering and I hope you will agree that the addition of our SmartSearch functionality, at a discounted broker rate, is of real value to Members – find out more on p. 4. But there are exciting times ahead as the Association continues to influence the direction of regulatory travel to the benefit of our Members, Patrons and ultimately UK SMEs, you will see the fruits of this in our latest compliance update on p. 10.

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Together

01277 892 281 technology@shawbrook.co.uk shawbrook.co.uk/technology

Thank you to all those who have contributed editorial to the NACFB magazine in 2018. Most of you will be aware that this is the last issue in partnership with publisher Medianett. I wish to extend my gratitude to their team who have supported the Association’s magazine for a number of years – we wish them all the very best. Thank you also to those of you joining us on this exciting new chapter of the Association’s development. 2019 is going to be a year of positive change for your trade body, but before any of that can begin, allow me to wish all of those within the NACFB family a very Merry Christmas and a Happy New Year. Graham Toy

Graham Toy CEO NACFB

In this December issue NACFB News 4-6 8

In the news Notes from our sponsor

Compliance Update 10-12 A detailed look at the new FOS rules for SMEs

Commercial Finance 14-15 Essential news bites

Cover Story 16-19 Gala Dinner and Awards Ceremony

Top Story 20

Brokers view tax reform as more important to bridging market growth than Brexit

Ask the Expert 36

Simon Goldie

Special Features 38-39 Why bridging sits well with HMOs 40 Export and trading in a post-Brexit environment

Industry Guides 42-44 Dual funding: part flexible funding, part term loan 46-47 Rethinking commercial securities

Opinion & Commentary 50-51 Helping shape the SME lending regulatory landscape

Introducing 22

Precise launches refurb BTL product

Case Studies 24-26 For British farmers, access to capital is vital 28 Evolving with our introducers 30-31 Is there anything asset finance can’t be used for? 32 Property portfolio remortgage in under two months

Patron Profile 34-35 Amicus Commercial Mortgages

For further information Kieran Jones, communications manager t. 020 7101 0359 33 Eastcheap, London EC3M 1DT Email: Kieran.Jones@nacfb.org.uk

ADVERTISING & EDITING: Medianett t. 0203 818 0163 www.medianett.co.uk DESIGN & PRODUCTION: Carbide Finger Ltd t. 0845 812 8206

THIS ADVERTISEMENT IS INTENDED FOR INTERMEDIARY USE ONLY AND MUST NOT BE DISTRIBUTED TO POTENTIAL CLIENTS SB_BF_TEF_NACFB_201811_01

NACFB Magazine | 3

Finance for the pace of change

Welcome | NACFB 2

Together

01277 892 281 technology@shawbrook.co.uk shawbrook.co.uk/technology

Graham Toy CEO NACFB

In this December issue NACFB News 4-6 8

In the news Notes from our sponsor

Compliance Update 10-12 A detailed look at the new FOS rules for SMEs

Commercial Finance 14-15 Essential news bites

Cover Story 16-19 Gala Dinner and Awards Ceremony

Top Story 20

Brokers view tax reform as more important to bridging market growth than Brexit

Ask the Expert 36

Simon Goldie

Special Features 38-39 Why bridging sits well with HMOs 40 Export and trading in a post-Brexit environment

Industry Guides 42-44 Dual funding: part flexible funding, part term loan 46-47 Rethinking commercial securities

Opinion & Commentary 50-51 Helping shape the SME lending regulatory landscape

Introducing 22

Precise launches refurb BTL product

Patron Profile 34-35 Amicus Commercial Mortgages

For further information Kieran Jones, communications manager t. 020 7101 0359 33 Eastcheap, London EC3M 1DT Email: Kieran.Jones@nacfb.org.uk

ADVERTISING & EDITING: Medianett t. 0203 818 0163 www.medianett.co.uk DESIGN & PRODUCTION: Carbide Finger Ltd t. 0845 812 8206

THIS ADVERTISEMENT IS INTENDED FOR INTERMEDIARY USE ONLY AND MUST NOT BE DISTRIBUTED TO POTENTIAL CLIENTS SB_BF_TEF_NACFB_201811_01

NACFB Magazine | 3

NACFB | in the news Association news and updates for December 2018

NACFB partners with SmartSearch to enhance anti-money laundering checks

he NACFB has teamed up with SmartSearch to provide its members with preferential access to the latter’s award-winning anti-money laundering platform.

The simple and easy-to-use system allows brokers to access all this data in seconds, and can even be done remotely thanks to SmartAML, SmartSearch’s fully integrated app.

The partnership comes in response to increased demand from NACFB Members for a simple and effective way to conduct due diligence checks on both individuals and businesses.

The SmartSearch platform also delivers warning email alerts to allow those responsible for AML compliance to keep a watching brief over users and ensures that enhanced due diligence is undertaken if PEPs or sanctions warnings are highlighted.

After scrutinising the market – and consulting with Members – the Association found that SmartSearch’s unique platform was ideally suited to offer a solution. The SmartSearch platform uses data partners Experian, Equifax, Dow Jones and Companies House to conduct searches and checks on individuals and businesses both across the UK and the international markets.

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Graham Toy, chief executive officer at the NACFB, said: “We work hard to ensure our brokers receive a first-class proposition with their membership, including comprehensive compliance support. Through implementing SmartSearch we are able to provide them with a world-class resource for this important element of compliance.

“The feedback from brokers who already use the platform is overwhelmingly positive. These brokers have told us that SmartSearch is an efficient and effective way of conducting background searches. We remain committed to making the lives of commercial brokers easier, and we look forward to continuing to provide innovative solutions like this to do just that.” The Association has negotiated preferential rates for all NACFB Members, who will be invoiced quarterly based on usage. The Association has set-up a dedicated portal for you to get your business registered, this can be found via: www.smartsearchsecurecom/ register/nacfb.

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NACFB | in the news Association news and updates for December 2018

NACFB partners with SmartSearch to enhance anti-money laundering checks

he NACFB has teamed up with SmartSearch to provide its members with preferential access to the latter’s award-winning anti-money laundering platform.

The simple and easy-to-use system allows brokers to access all this data in seconds, and can even be done remotely thanks to SmartAML, SmartSearch’s fully integrated app.

The partnership comes in response to increased demand from NACFB Members for a simple and effective way to conduct due diligence checks on both individuals and businesses.

4 | NACFB Magazine

With all the trimmings. Property finance that brings something extra to the table.

NACFB NEWS

Association teams up with bridging experts for Development Day The NACFB has teamed up with Bridging Finance Solutions (BFS) to support the Patron’s first-ever Development Day.

he free event – held on Tuesday 29th January 2019 at Ashton in Makerfield Golf Club – aims to give people a keener insight into development finance. This includes how to manage their first deal and improve their wider knowledge of the process, while also giving access to specialists in the market for the more experienced developers.

Why join the NACFB? The National Association of Commercial Finance Brokers (NACFB) is the flagship trade body for UK commercial finance brokers. Our Association comprises over 1600 commercial finance brokers covering the whole of the UK. Our Members are required to have FCA Permissions, Professional

Indemnity Insurance and a Data Protection Licence. The Association partners with all Members to foster professional expertise, embracing the highest industry and regulatory standards to help your business prosper.

CODE OF PRACTICE

The day will be an educational experience, helping delegates understand the market and bridging process, presenting the viewpoint of the underwriter, valuer, quantity surveyor (QS) and solicitor. This will provide added insight into the specialist requirements of the professional team involved with an opportunity to ask questions. You can find out more about the day – and register to attend – by visiting the NACFB and BFS websites.

COLLABORATIVE EVENTS

Helping all our Members adhere to a consistent set of principles assuring both lenders and SMEs.

COMPLIANCE & REGULATION Delivering a comprehensive and bespoke compliance support package for all Members.

Hosting the Commercial Finance Expo and CPD accredited workshops alongside regional training and educational roadshows.

PI INSURANCE Competitively priced Professional Indemnity Cover helps keep Members’ costs down and mitigates risk.

BROKER & LENDER ENGAGEMENT Enabling a closer working lender relationship – making processes easier and more time efficient.

INDUSTRY VOICE

BRAND & REPUTATION Promoting a kitemark of quality and trust with clients and lenders, maintaining sector confidence.

w. t. e. a. 6 | NACFB Magazine

nacfb.org 02071010359 admin@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Maintaining an authoritative dialogue on behalf of Members before lenders, regulators and the Government.

@NACFB linkedin.com/in/nacfb

NACFB NEWS

Association teams up with bridging experts for Development Day The NACFB has teamed up with Bridging Finance Solutions (BFS) to support the Patron’s first-ever Development Day.

CODE OF PRACTICE

COLLABORATIVE EVENTS

Helping all our Members adhere to a consistent set of principles assuring both lenders and SMEs.

COMPLIANCE & REGULATION Delivering a comprehensive and bespoke compliance support package for all Members.

Hosting the Commercial Finance Expo and CPD accredited workshops alongside regional training and educational roadshows.

PI INSURANCE Competitively priced Professional Indemnity Cover helps keep Members’ costs down and mitigates risk.

BROKER & LENDER ENGAGEMENT Enabling a closer working lender relationship – making processes easier and more time efficient.

INDUSTRY VOICE

BRAND & REPUTATION Promoting a kitemark of quality and trust with clients and lenders, maintaining sector confidence.

w. t. e. a. 6 | NACFB Magazine

nacfb.org 02071010359 admin@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Maintaining an authoritative dialogue on behalf of Members before lenders, regulators and the Government.

@NACFB linkedin.com/in/nacfb

NACFB NEWS

Notes from our sponsor L A new invoice finance portal makes Lloyds Bank an even more attractive proposition for brokers and clients alike. We spoke to Ian Dent, head of product transformation, and Lee Baty, head of sales, about how the portal is transforming the client experience.

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loyds Bank’s new invoice finance platform – launched in July this year – is boosting time to decisioning and access to cash for clients. Clients can now benefit from smaller sterling payments faster than with BACS and cheaper than with CHAPS. With its personalised homepage and on-the-move functionality, it’s already gaining positive client feedback on speed, look, feel and ease of use. “This investment in the new invoice finance portal meets clients’ changing expectations of how they wish to manage their facilities and delivers a modern and straightforward client experience,” says Ian Dent. The portal – which is currently available to new invoice discounting clients – combines personalisation and simplification with ease of use: any time, any place and via any device. “Brokers will be looking to try to identify the best solution for their clients,” says Lee Baty. “With its simplification and ease of access to funding, they can have confidence in recommending our invoice finance products to their clients.”

Anytime access Linked to the Faster Payments scheme, the new portal – Invoice Finance Online – accelerates time-to-cash for clients, as well as giving them real-time updates. “At the heart of client requirements is being able to establish funding availability quickly, and then being able to access that funding for the payment of its bills and creditors,” says Ian. “The new portal updates the status of a client’s facility as it happens and offers a Faster Payments option for payments up to £100,000.” Any place, any device Access to the portal via desktop, tablet or smartphone allows clients to manage their facility wherever they are. “As we work in a mobile environment, it’s no longer appropriate that we anchor the client to offices and desktops,” Ian explains. “The ability for them to view and transact in all aspects of their invoice finance facility on the go, is absolutely key as technology evolves.”

Easier management Invoice Finance Online allows clients to self-serve, so they can set up their own users on the platform, including adding authorisers to the account. Clients can personalise their homepage and tailor the display of information most relevant to their business. And management is made easier with online statements and month-end reports sent directly to the portal for them to access, download and print. Invoice Finance Online will also be supported by a new tool to enable clients to opt for automatic sales ledger extraction. Implementation is made as easy as possible with a single click installation routine. Expanding Invoice Finance Online Access to the portal will be rolled out to new factoring clients early in 2019. To speed up the ability to access agreements and documents – and ultimately time-to-cash – Lloyds Bank is also developing a new e-sign capability.

confidence that the bank can respond quickly to market opportunities. “We want to make sure we’re the first port of call for the broker community,” says Lee. “We’re very keen to continually improve and develop our support to the whole broker community. Ultimately it’s a way of supporting the UK economy and our Help Britain Prosper commitment.”

Providing this speedier end-toend process makes Lloyds Bank even more responsive to brokers, giving them the confidence that the bank can respond quickly to market opportunities.

Providing this speedier end-to-end process makes Lloyds Bank even more responsive to brokers, giving them the

NACFB Magazine | 9

NACFB NEWS

8 | NACFB Magazine

Providing this speedier end-toend process makes Lloyds Bank even more responsive to brokers, giving them the confidence that the bank can respond quickly to market opportunities.

Providing this speedier end-to-end process makes Lloyds Bank even more responsive to brokers, giving them the

NACFB Magazine | 9

Compliance | update The latest from our in-house compliance team

A detailed look at the new FOS rules for SMEs From April 2019, UK SMEs will be able to complain about banks and secure compensation via the Financial Ombudsman Service (FOS)—a decision broadly welcomed by the NACFB and our Members. The extension comes after a series of highprofile cases prompted calls for stronger regulation of business banking. James Hinch (AICA) Adv. CERT (Comp) Compliance consultant NACFB Compliance

he Financial Conduct Authority (FCA) said businesses with an annual turnover of below £6.5m and fewer than 50 employees or an annual balance sheet below £5m will be able to access the service, which currently only provides rulings for individuals and micro-businesses. The FCA has said that approximately 210,000 companies would benefit from the extended cover. The FCA first

10 | NACFB Magazine

proposed extending the FOS’s remit in a consultation in January, but the near-final rules published in midOctober loosened the requirements for companies to be covered. The regulator also announced a new consultation to examine the feasibility of raising the maximum amount of compensation the FOS can force firms to pay, from £150,000 to £350,000. Demands for better services for small businesses have grown in the wake of scandals involving high-profile lenders. With the possibility of the FOS raising the maximum amount of

NACFB Magazine | 11

Compliance | update The latest from our in-house compliance team

10 | NACFB Magazine

NACFB Magazine | 11

COMPLIANCE

It is worth all introducers checking the limits to their professional indemnity insurance - some policies only cover the holder on claims up to £250,000

NACFB Compliance support is available to all NACFB Members. Our team will provide you and your Brokerage with the guidance, training and support necessary to remain fully compliant with both regulatory requirements and the NACFB Minimum Standards.

25 Years Sector Experience compensation they can force firms to pay – from £150,000 to £350,000 – it is also worth all introducers checking the limits to their professional indemnity insurance. Although not in place yet, some policies will only cover the holder on claims up to £250,000 and is, therefore, a development to closely monitor. In November 2015, the FCA published a discussion paper reviewing their approach to SMEs as users of financial services. From the feedback received, the FCA recognised that some SMEs do not have the means to resolve disputes with financial services firms and have fewer routes to seek redress. This prompted the FCA to propose changes to its rules with the option to allow more SMEs to refer disputes to the FOS. Complaints are part and parcel of modern business culture, even the most cautious and risk-adverse brokers can encounter dissatisfied clients. The NACFB advises its Members to keep robust client and case records; these records enable us to support and back our Members in the few cases we arbitrate. Indeed, of the few cases we receive, 99% of complaints are not upheld. As the largest independent trade body for commercial finance brokers, the NACFB’s remit seeks to ensure that the Association acts as a conduit and a clear industry voice for our Members when it comes to proposed regulatory changes. As such, earlier in 2018 the NACFB submitted feedback from our broker Members

12 | NACFB Magazine

on the proposed changes and expansion of SME access to the FOS. The vast majority of NACFB Members who responded felt that the proposed definition of an eligible complainant was a fair one and, therefore, agreed with the classification. We are pleased to see this reflected in the final proposals. Collectively, NACFB Members felt that the ombudsman is the appropriate body to handle SME complaints, but our Members did express concerns about the level of resource that the FOS currently possesses. During the consultation period, we suggested the establishing of a specialist department to deal with complaints, as often complex B2B matters are usually not best reviewed and considered by the same teams that deal with complaints on personal disputes. Further, the ombudsman is perceived as being largely focused on retail rather than B2B complaints. This will require time to bring on board experienced B2B dispute resolution practitioners with commercial and financial services experience, a process that could take several years and should not be underestimated. Our Members viewed the main risk as one of lack of experience in the early years if the proposed changes are implemented too soon without full FOS office support. It was pleasing then to see that – under the near-final rules – the

ombudsman will create a ringfenced, specialist unit to handle complaints from SME customers under the proposed extended jurisdiction.

Patron Engagement

Promoting a kitemark of quality and trust before the regulator, clients and lenders maintaining sector confidence

The key components – to be in place from day one – include a dedicated team of 20 SME investigators with specialist knowledge and skills, recruited internally, and external teams led and managed by people with specialist SME knowledge and experience, including specialist SME ombudsmen. We were also pleased to see a dedicated legal resource to support SME complaint handling and access to additional expertise with technical advice, for example, forensic accountants or experts on more novel or complex products and services. Further, a panel of external experts will be made available to support the knowledge of the service’s SME teams and provide access to sector expertise and insight.

Members of the NACFB benefit from access to a wide range of bespoke template documents, help-desk support, regulatory updates, targeted workshops and access to our MyNACFB training portal.

Facilitating harmonisation between key stakeholders when new regulation is introduced.

Calendar of Workshops Centralised Personal Support

Hosting bespoke workshops, training sessions and webinars on a diverse range of industry matters.

Delivering high-quality expert insight via email and telephone as well as consultations in person.

Model Office & Pragmatic Support

Others have called for stronger measures, including a public inquiry and dedicated tribunal system to investigate complaints. The FCA has publicly stated its support for a tribunal that could deal with disputes that fall outside the ombudsman service’s remit.

Providing a full suite of the latest customisable working documents for your business.

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nacfbcompliance.co.uk 02071010359 compliance@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Regulatory Dialogue & Future Insight Maintaining a dialogue with the regulator keeping ahead of the curve.

@NACFBCompliance linkedin.com/in/nacfb

COMPLIANCE

It is worth all introducers checking the limits to their professional indemnity insurance - some policies only cover the holder on claims up to £250,000

12 | NACFB Magazine

ombudsman will create a ringfenced, specialist unit to handle complaints from SME customers under the proposed extended jurisdiction.

Patron Engagement

Promoting a kitemark of quality and trust before the regulator, clients and lenders maintaining sector confidence

Members of the NACFB benefit from access to a wide range of bespoke template documents, help-desk support, regulatory updates, targeted workshops and access to our MyNACFB training portal.

Facilitating harmonisation between key stakeholders when new regulation is introduced.

Calendar of Workshops Centralised Personal Support

Hosting bespoke workshops, training sessions and webinars on a diverse range of industry matters.

Delivering high-quality expert insight via email and telephone as well as consultations in person.

Model Office & Pragmatic Support

Providing a full suite of the latest customisable working documents for your business.

w. t. e. a.

nacfbcompliance.co.uk 02071010359 compliance@nacfb.org.uk 33 Eastcheap, London, EC3M 1DT

Regulatory Dialogue & Future Insight Maintaining a dialogue with the regulator keeping ahead of the curve.

@NACFBCompliance linkedin.com/in/nacfb

Commercial Finance

Former Lloyds Bank manager joins Growth Street

Growth Street has appointed Gareth Pritchard as its first business development manager covering Wales and south-west England. Gareth joins from Lloyds Bank, where he was a regional manager for business development within the SME division. In his new role, Gareth will be based in Cardiff and educating the Welsh and South West of England markets on Growth Street’s business finance product GrowthLine.

Rural Insurance partners with UKAF

LendInvest names Colchester as BTL hotspot Colchester has been christened as the top buy-to-let area across England and Wales, according to the latest research. The LendInvest buy-to-let index ranked 105 postcode areas based on a combination of capital value growth, transaction volumes, rental yield and rental price growth. Stockport, Manchester, Birmingham and Canterbury completed the rest of the top five in the quarterly report.

Arc & Co arranges £60m of commercial and development loans in Q3 The specialist finance brokerage arranged more than £121m of funding for its clients in the same period across its three core areas (development and commercial, residential, and marine and aviation). Arc & Co arranged 66 loans in the period, with an average loan size of over £1.8m.

Rural Insurance has partnered with UK Agricultural Finance (UKAF) to provide farmers and landowners with access to flexible and secured finance solutions. Harrogate-based Rural Insurance supplies insurance to the agricultural and rural economic sector. It hopes the partnership with UKAF will allow farmers to secure capital in order to grow and innovate their businesses to ensure they remain competitive and profitable.

Together partners with Mortgage Intelligence

iwoca forms Open Banking partnership with Lloyds

Mortgage Intelligence has announced the addition of Together to its panel, as the specialist lender continues to widen its distribution. Together’s buy-to-let range and first charge residential products will now be available to Mortgage Intelligence’s network and club advisers. Mortgage Intelligence members can now access Together’s online portal My Broker Venue, where they can submit cases and receive a full, instant decision-in-principle. Business lender iwoca has released Open Banking for customers with a Lloyds Bank account. By securely linking their Lloyds Bank data, business owners can now provide iwoca up to five years of transaction history in just a few minutes. This will speed up the lender’s application process for Lloyds customers, reducing the time they spend submitting bank information to less than 60 seconds.

UK business borrowing contracts by 1.9%

Borrowing by UK businesses from high street banks contracted by 1.9% over the last 12 months, according to the latest figures. The business finance update for October 2018 from UK Finance revealed that borrowing had decreased to £263bn. However, deposits in high street business accounts increased by 3.4% over the same period to £379.1bn.

Avamore Capital completes its largest loan Avamore Capital has completed its largest loan after providing a £6.3m bridging facility to support a residential development in Southampton. The facility was provided at 61.4% LTV, when the snagging works are complete. The client will use the funding to repay an existing lender and to release working capital to the developer and its shareholders.

Octopus originates £100m of new lending in record month Octopus Property originated £100m of new lending in October, a record for the business.

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14 | NACFB Magazine

NACFB Magazine | 15

Commercial Finance

Former Lloyds Bank manager joins Growth Street

Rural Insurance partners with UKAF

Together partners with Mortgage Intelligence

iwoca forms Open Banking partnership with Lloyds

UK business borrowing contracts by 1.9%

Octopus originates £100m of new lending in record month Octopus Property originated £100m of new lending in October, a record for the business.

Esme is the straightforward business loan. No early repayment charges and no hidden fees. Just a simple, paperless application and competitive rates. £10k - £150k Unsecured from 1 - 5 years

Search ‘Esme loans’ Applicant must be

14 | NACFB Magazine

NACFB Magazine | 15

Cover Story | feature

Association caps off a strong year in style We stage our largest-ever Gala Dinner and Awards Ceremony Over 700 people attended the NACFB’s record-breaking Gala Dinner on 29th November, rounding off a bumper year for the Association in both grandeur and style.

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eading figures from across the commercial finance industry descended upon the Park Plaza Westminster for an evening of reflection, celebration and, above all, fun. The hotel remains one of the very few venues large enough to fit all guests into one ballroom. The event provides an annual forum for the UK’s most highly regarded lenders and dynamic brokers to engage socially and celebrate the successes of their collaboration. Following a pre-dinner drinks reception sponsored by MFS, NACFB chair Paul Goodman addressed attendees, thanking both lenders and brokers for their continued support and backing as the Association transitions into 2019. Paul welcomed to the stage Andy Bishop, national director of business development SME banking from headline sponsor Lloyds Bank. Andy shared his continued belief in the lender-broker dynamic and its importance – now more than ever – in helping Britain to prosper.

The sell-out event was hosted by the irrepressible veteran broadcaster Gyles Brandreth. Returning to oversee proceedings for a second year, the popular compere shared his experiences from the political and business world. Coupled with his wry wit and affectionate ribbing, Gyles set the tone for a fun-filled evening. The evening featured a silent auction sponsored by Growth Street, with all proceeds going to the NACFB’s charity of the year Tommy’s. From the donations received on the evening, the Association was proud to raise nearly £15,000 towards the charity that helps fund research into stillbirth, premature birth and miscarriage, while providing valuable support for parents-to-be. Graham Toy, chief executive officer at the NACFB, said “We are thrilled the Association’s community was able to raise such an incredible amount towards a deserving charity.” Graham continued:

“Professor Andrew Shennan OBE made the short walk across Westminster Bridge from St Thomas’ Hospital to share with us the moving story of the work both he and the Tommy’s team carry out.”

received the Outstanding Achievement award in a year that has seen him take a step back from the NACFB to focus on his new lending enterprise. The full list of winners can be found overleaf.

The NACFB Awards Ceremony provides an annual opportunity for the Association’s brokers to recognise Patron lenders. What makes the NACFB Awards Ceremony different from others in the industry is that there is no fixed shortlist, so there can often be unexpected results from the voting. The NACFB saw dozens of names put forward for awards in some categories, reminding us that there are many lenders deserving of plaudits.

As with previous years, a wide range of entertainment served as a back drop to the occasion, a live band ensured popular film soundtracks and covers continued well into the night in a lively after party sponsored by Aldermore.

The Association gave special recognition to two industry titans for their dedication and service to the commercial lending community. The Lifetime Contribution award went to Graham Hill, who retires from the board of directors this year after 14 years of service. David Whittaker

Reflecting on the evening, Norman Chambers, managing director at NACFB, said “On behalf of the board of directors – and the executive and head office team – the Association would like to extend our sincerest gratitude to all those who made this year’s Gala Dinner a genuine success.

dinner drinks, the Growth Street team for sponsoring the evening’s silent auction, as well as the Aldermore team for sponsoring the after party.” Norman also offered appreciation to all those who helped contribute to the evening’s success: “Particular recognition should go to all the Patrons who were shortlisted for awards and, of course, those lenders who took one home with them. Finally, the Association is very grateful to all the NACFB brokerages who sponsored an award this year.” Next year’s Gala Dinner is already confirmed, and we hope to build upon the success of 2018. Save the date – 28th November 2019 – as it’s sure to be another sell out, so do book early to avoid disappointment.

“We would also like to say a big thank you to our headline sponsor Lloyds Bank for their ongoing support, the MFS team for sponsoring the pre-

NACFB Magazine | 17

Cover Story | feature

16 | NACFB Magazine

“Professor Andrew Shennan OBE made the short walk across Westminster Bridge from St Thomas’ Hospital to share with us the moving story of the work both he and the Tommy’s team carry out.”

received the Outstanding Achievement award in a year that has seen him take a step back from the NACFB to focus on his new lending enterprise. The full list of winners can be found overleaf.

“We would also like to say a big thank you to our headline sponsor Lloyds Bank for their ongoing support, the MFS team for sponsoring the pre-

NACFB Magazine | 17

The full 2018 NACFB Awards roll of honour isâ&#x20AC;Ś Buy to Let Lender of the Year Sponsored by Mortgages for Business

Best Development Lender of the Year Sponsored by Stonehouse Property Finance

Commercial Mortgage Lender of the Year Sponsored by Watts Commercial Finance

Most Innovative Lender of the Year Sponsored by White Rose Finance Group

Small Funder of the Year Sponsored by the NACFB

Specialist Lender of the Year Sponsored by GPS Financial

Shortlisted: InterBay Commercial UK Paragon Shawbrook Bank

Shortlisted: Assetz Capital Octopus Property United Trust Bank

Shortlisted: Aldermore InterBay Commercial UK NatWest

Shortlisted: Aldermore Amicus Commercial Mortgages Octane

Shortlisted: Esme Loans Funding Circle Growth Street

Shortlisted: Aldermore InterBay Commercial UK United Trust Bank

Winner: Precise Mortgages

Winner: Aldermore

Winner: Lloyds Bank Commercial Banking

Winner: LendInvest

Winner: iwoca

Winner: Together Money

Leasing & Asset Provider of the Year Sponsored by Asset Finance Solutions

Business Bank of the Year Sponsored by Stonehouse Property Finance

Factor & Invoice Discounter of the Year Sponsored by Goodman Corporate Finance

Short Term Lender of the Year Sponsored by Century 10 Real Estate Finance

Unsecured Funder of the Year Synergy Commercial Finance

Newcomer/New Entrant of the Year Sponsored by Commercial Mortgages Solutions

Shortlisted: Close Brothers Asset Finance Hitachi Capital Business Finance Lloyds Bank Commercial Banking

Shortlisted: Aldermore Barclays Lloyds Bank Commercial Banking

Shortlisted: Aldermore Lloyds Bank Commercial Finance NatWest

Shortlisted: Aldermore Masthaven Bank Precise Mortgages

Shortlisted: Esme Loans Fleximize Spotcap

Shortlisted: Amicus Commercial Mortgages Mercia Octane

Winner: Investec Asset Finance

Winner: NatWest

Winner: Bibby Financial Services

Winner: Shawbrook Bank

Winner: Funding Circle Lifetime Contribution Award: Graham Hill

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Winner: Esme Loans Outstanding Achievement Award: David Whittaker

NACFB Magazine | 19

The full 2018 NACFB Awards roll of honour isâ&#x20AC;Ś Buy to Let Lender of the Year Sponsored by Mortgages for Business

Best Development Lender of the Year Sponsored by Stonehouse Property Finance

Commercial Mortgage Lender of the Year Sponsored by Watts Commercial Finance

Most Innovative Lender of the Year Sponsored by White Rose Finance Group

Small Funder of the Year Sponsored by the NACFB

Specialist Lender of the Year Sponsored by GPS Financial

Shortlisted: InterBay Commercial UK Paragon Shawbrook Bank

Shortlisted: Assetz Capital Octopus Property United Trust Bank

Shortlisted: Aldermore InterBay Commercial UK NatWest

Shortlisted: Aldermore Amicus Commercial Mortgages Octane

Shortlisted: Esme Loans Funding Circle Growth Street

Shortlisted: Aldermore InterBay Commercial UK United Trust Bank

Winner: Precise Mortgages

Winner: Aldermore

Winner: Lloyds Bank Commercial Banking

Winner: LendInvest

Winner: iwoca

Winner: Together Money

Leasing & Asset Provider of the Year Sponsored by Asset Finance Solutions

Business Bank of the Year Sponsored by Stonehouse Property Finance

Factor & Invoice Discounter of the Year Sponsored by Goodman Corporate Finance

Short Term Lender of the Year Sponsored by Century 10 Real Estate Finance

Unsecured Funder of the Year Synergy Commercial Finance

Newcomer/New Entrant of the Year Sponsored by Commercial Mortgages Solutions

Shortlisted: Close Brothers Asset Finance Hitachi Capital Business Finance Lloyds Bank Commercial Banking

Shortlisted: Aldermore Barclays Lloyds Bank Commercial Banking

Shortlisted: Aldermore Lloyds Bank Commercial Finance NatWest

Shortlisted: Aldermore Masthaven Bank Precise Mortgages

Shortlisted: Esme Loans Fleximize Spotcap

Shortlisted: Amicus Commercial Mortgages Mercia Octane

Winner: Investec Asset Finance

Winner: NatWest

Winner: Bibby Financial Services

Winner: Shawbrook Bank

Winner: Funding Circle Lifetime Contribution Award: Graham Hill

18 | NACFB Magazine

Winner: Esme Loans Outstanding Achievement Award: David Whittaker

NACFB Magazine | 19

Top | story Our pick of the latest Patron news

Brokers view tax reform as more important to bridging market growth than Brexit Over half of brokers (52%) believe that reform to tax legislation for property investors would boost the bridging market. This is twice as many as those view who the outcome of Brexit negotiations (27%) as the most important factor in driving growth in the market, according to a survey of 200 brokers by InterBay Commercial, part of specialist lending group OneSavings Bank. Despite the current focus on Brexit from policymakers as the negotiations reach crunch point, InterBay’s research indicates the need for the government to consider taxation changes to support the domestic property market in its upcoming Budget. Reversing recent tax reform that has hit landlords and the wider buy-tolet market was the top priority for brokers. One in five (19%) felt that the removal of the additional 3% stamp duty land tax for landlords would help to drive growth in the market, whilst, surprisingly, only 16% called for the reversal of the recent changes to the tax treatment of mortgage interest for landlords. Other changes to tax legislation highlighted by brokers included the reduction or removal of capital gains tax, a government subsidy for small scale developers, and a financial subsidy for housebuilding across all tenures. In addition, some brokers believed that greater regulation

20 | NACFB Magazine

Commercial mortgages without the hassle No nonsense, no red tape

in the sector would help to boost growth in the bridging market. In comparison, the survey revealed that just 27% of brokers saw Brexit as the biggest potential support for market growth; 15% of brokers thought that no Brexit at all would be the most beneficial element, one in ten thought a ‘soft Brexit’ would positively impact the sector, while just 3% saw a ‘hard Brexit’ as positive.

We’ve got commercial mortgages covered. We’re breaking through barriers to give your customers a decision in principle within 24 hours. Loans from as low as 5.9%.

Darrell Walker, Head of Sales, InterBay Commercial said, “The swathe of tax changes in recent times have left an indelible mark on the bridging and wider buy-to-let market. Some landlords have been forced to recoup higher tax costs through higher rents, others no longer have the funds to refurbish properties, and many amateurs have left the market altogether. “At a time when the supply of affordable property across all tenures remains a key economic challenge across the country, taking steps to encourage, rather than deter investment into the sector would go some way to alleviating our current housing crisis. Taking a second look at the tax burden investors must shoulder is a good place to start. Whilst Brexit is understandably top of the Government’s to do list as the Chancellor prepares for the Budget, supporting the property market cannot and must not be forgotten.”

Welcome to fast, flexible finance

Reversing recent tax reform that has hit landlords and the wider buy-to-let market was the top priority for brokers

Find out more at assetzcapital.co.uk/borrow or call 0800 470 0432 Assetz SME Capital Ltd is a company registered in England and Wales with company number 08007287. Assetz SME Capital Ltd is authorised and regulated by the Financial Conduct Authority (Reg No: 724996). ‘Assetz Capital’ is a trading name of Assetz SME Capital Ltd. Assetz SME Capital Ltd is registered with the Oﬃce of the Information Commissioner (Reg No: Z3338899) for data protection purposes.

Top | story Our pick of the latest Patron news

20 | NACFB Magazine

Commercial mortgages without the hassle No nonsense, no red tape

We’ve got commercial mortgages covered. We’re breaking through barriers to give your customers a decision in principle within 24 hours. Loans from as low as 5.9%.

Welcome to fast, flexible finance

Reversing recent tax reform that has hit landlords and the wider buy-to-let market was the top priority for brokers

Introducing New and refreshed offerings for NACFB brokers on behalf of Patrons and Members

Precise launches refurb BTL product Tom Belger Senior reporter Bridging & Commercial

he product targets landlords looking to maximise their rental yields by refurbishing a property before renting it out, as well as enabling them to take value from the property to reinvest elsewhere. The specialist lender’s new product will give customers access to bridging finance rates, while knowing that they have an exit on to a long-term BTL mortgage already in place once the work has been completed.

one application form will produce two offers – one for the bridge and one for the BTL dedicated team of expert underwriters to provide help every step of the way the same valuer for both the initial valuation and the reinspection (where possible) one conveyancer and discounted legal fees two procuration fees – one for the bridge and one for the BTL

The proposition is only available through mortgage intermediaries and is suitable for personal, limited company and HMO applicants.

an exit already in place and the price of the BTL at offer will be the price they get on completion, providing there is no change in circumstances and the property meets the expected valuation following refurbishment

However, customers must be confident that they can complete any refurbishment work within the BTL offer validity period.

landlords can borrow up to 75% LTV on the bridge and 80% of the post-works valuation on the exit BTL to help optimise cash flow.

Precise has also designed a streamlined process which includes:

Alan Cleary, managing director at Precise, said that this product gave landlords a new way of increasing rental yields. “Landlords have traditionally faced difficulty in securing finance to refurbish a property before letting it out.

Our bridging loan helped Sue to buy a rundown house at auction in 28 days. Now she’s sold it for a tidy profit. Lending for the new normal.

“This product enables them to do so, and it is backed up with a host of features which are designed to make applying for it as easy as possible.” Crystal Specialist Finance helped Precise during the piloting of the product and completed a refurb BTL case in 17 days from start to finish. “We have a very happy client, a positive outcome and a good experience,” said Jo Breeden, managing director at Crystal. “We have plenty more of these cases to send to Precise Mortgages.”

Bridging rates start from 0.49% per month and no mortgage repayments are required while the refurbishment works are being completed.

At Together our experience spans over decades and tens of thousands of bridging loans. So no matter the circumstances our flexible approach to lending means that it’s perfectly normal to us.

Find out how we do things differently at togethermoney.com/bridging or call 0333 455 1787 For professional intermediary use only. ‘Sue’ has been used for illustrative purposes only.

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