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In part one of our ‘Introducing…’ series, we talk to relationship manager, Jill Woodward, to find out what motivates her and how she can help you. 

Jill is a relationship manager for the Commercial Lending department and, in late 2020, she joined our specialist Portfolio Buy-to-Let team. Here, Jill explains what led her into financial services and how she can help you: 

How did you start out in finance? 

I started out in branch banking with Bank of Scotland. After completing my Chartered Banker qualification, I worked for the Credit Sanctioning department in Glasgow Chief Office, which provided a great grounding in a variety of lending situations. I dealt with all sorts, from salmon farming to fishing, quite different to what I’m doing today! After a spell there, I moved to Newcastle-upon-Tyne, where I joined the Mergers and Acquisitions team. I came to Wales in 2002 and became a member of the Real Estate team at HBOS, which is where I really became interested in property development and investment.  

How did you start your career in Hodge? 

I joined Chester Royal in August 2019 after nearly seven years in a similar role at the Principality Building Society. I felt ready for a new challenge, and Hodge’s growth plans provided the perfect platform to utilise my skills and experience. 

What does a normal day at Chester Royal look like for you? 

We’re a small team of six very different, but like-minded individuals, with a unique balance of skills and experience. We work in a very collegiate way, where peer review is an integral part of how we operate; everyone is keen to contribute and support one another. Honesty and transparency are key, and there are very few subjects, if any, that are off limits! 

As a relationship manager, I really enjoy the fact no two days look the same, it’s great getting to know new clients and building lasting relationships with existing ones. In the Buy-to-Let team, I largely focus on three key areas: 

1. Managing the team and workflow on a day-to-day basis 

2. Transaction management and deal execution – making sure that once we have agreed to make a facility available, all the processes are completed, and the loan is drawn 

3. Business development and broker liaison – we deal with quite literally hundreds of brokers and it’s my role to ensure they’re all kept up to speed with what we can offer their clients. 

What’s your advice for anyone hoping to embark on a career in banking today? 

The world of banking and finance is now much more disparate, with challenger banks and numerous fintech platforms creating wider opportunities. The days of starting your career in branch banking are pretty much consigned to history, so focus on what interests you. 

Be prepared to be flexible, both in terms of role and geographic location; be selective in the challenges and opportunities you accept – you don’t have to say yes to everything! 

Finally, don’t rush your career – take time to learn your subject in-depth, and enjoy the journey. After all, you’ll potentially be working for a greater number of years than any previous generation, so don’t be in a hurry to “peak” too early in life. Accept that sometimes a sideways move is the right thing to do to keep a sense of proportion between career and personal life. Be discerning – building a network of people on LinkedIn is relatively easy, but it’s important to focus on who can offer real support and sound advice that’ll benefit you in your chosen career. 

Finally, what’s your top tip for working from home? 

Be disciplined but retain flexibility – shape your day to suit the business needs of colleagues and clients, making sure you carve out appropriate “me” time; take a proper lunch break, and enjoy the freedom that this opportunity gives us all, be it a morning run, lunchtime swim, or afternoon walk. 

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We’e also introduced a variable rate product which will have a rate of 3.25% over Bank of England base rate, offering an alternative to our five year fixed rate loan. 

Mike Clifford, head of commercial propositions at Hodge, said: “Here at Hodge, we’re always keen to add to the flexibility of our products and develop them in line with what landlords and brokers are telling us. 

“Our recent research into the market found that flexibility is key for landlords and brokers, with 40% of landlords saying that finding the correct mortgage is frustrating. We’ve listened to these concerns, and come up with some changes to our product range that will give landlords greater choice in how they shape their lending; making managing their property portfolios more straightforward.” 

Mike added: “In particular, the variable rate PBTL option will give landlords the option to select a rate that will reduce their early repayment charges significantly in the early years of the loan, while the fixed rate option offers certainty over their interest costs – allowing them to select products that are right for them, depending on what their investment strategy is.” 

Our portfolio buy-to-let loan is designed for landlords with four or more properties, looking for one loan which covers them all, offering a practical solution to help professional landlords stay organised, helping to keep things streamlined and flexible. You can read more about the portfolio buy-to-let products at Hodge here.  

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We’re delighted to announce that Chester Royal has become the latest lender to plug into Brickflow – the UK’s first search engine for development finance. 

Brickflow connects borrowers with 28 lenders in seconds, and by joining the digital platform, our development finance team will be easily accessible to experienced property developers and prospective borrowers. 

Brickflow was set up to address widely-reported funding access issues, making it simple for developers to partner with lenders who share their ambition and vision.  

Developers make their funding applications online and in real-time, filling out just one digital form for multiple lenders, and the platform returns comparable lending estimates within two minutes, providing much-need market visibility.  

“Working in partnership and providing a great customer experience is crucial to the way we do things, which makes Brickflow an excellent fit,” says Greg Pescott, Senior Development Finance Manager at Hodge. 

“We know it can be difficult for borrowers to find development finance that works for them –  even experienced developers find it a challenge – so we’re thrilled to be part of Brickflow, a platform that’s truly committed to making it as easy and simple as possible.” 

Tim Noble, Lending Director at Brickflow comments: “We’re delighted Chester Royal has joined us. This gives borrowers even more choice when it comes to accessing and securing development finance loans, enabling us to save them time, resources, and money.” 

We offer development finance loans of up to £5m to experienced property developers with a proven track record of success, and takes a relationship based-approach – working to understand developer’s ambitions to help them succeed over the long term. 

Brickflow is the UK’s first search engine for development finance loans, providing instant, 24/7 online access to the development finance market. Brickflow searches the market in real-time, providing property developers with the best loans from trusted lenders in seconds. Brickflow empowers developers to borrow smarter, mobilise quicker and get ahead of the game. 

Find out more about Chester Royal development finance loan here. 

Find out more about Brickflow here. 

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New research by Chester Royal has found nearly three-quarters of portfolio buy-to-let landlords prefer to access finance through a broker. 73% said they prefer to use a mortgage broker while the other 27% go direct to lender. 

Our research, which asked portfolio buy-to-let landlords and brokers for their views, also found that 71% of larger investors (with portfolios of between £2m – £50m) specified that a broker had saved them money by getting them a good deal. 

With so many borrowers putting their trust in brokers to find them a loan that suits them, brokers are seen as a key link between lenders and investors – with the added benefit of removing frustrations for landlords.  

40% of buy-to-let landlords said they use a broker as they found researching a suitable mortgage product themselves a frustrating task, with annoyances including interest rates (35%), lack of clarity over charges (35%), and mortgage/ loan underwriting (31%). 

Mike Clifford, head of commercial propositions, at Chester Royal says:  

“Our research shows borrowers clearly value the support of a broker to find them the best deal and trust them to find a lender that suits their needs.”  

“The residential market is still very buoyant and many buy-to-let landlords are on the look-out for new properties to add to their portfolio. When it comes to lenders they want flexibility, speed and efficiency, something we strive to achieve here at Hodge.”  

We’ve created a portfolio buy-to-let product especially for professional landlords looking for one loan to house their entire residential property portfolio. Our portfolio buy-to-let product is designed for landlords with four or more properties, looking for one loan which covers them all, offering a practical solution to help professional landlords stay organised, helping to keep things streamlined and flexible. 

Mike adds: 

“We have a small, specialist residential investment team who aim to provide a bespoke and flexible service to both brokers and investors. Getting to know our customers, listening to their feedback and keeping them in the loop when it comes to criteria changes and product enhancements allows us offer greater flexibility and match the right product to the right investor.  

“Our portfolio buy-to-let loan allows landlords to control their assets under one loan, with the flexibility to remove and add properties, ensuring a far more streamlined, flexible product, which, according to our research, is just want landlords – and brokers – are looking for.”   

You can read more about the portfolio buy-to-let products at Hodge here. 

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According to new research by Hodge, portfolio buy-to-let landlords are responding to a changing market and are starting to seriously consider the green credentials of homes, along with rental yield and opportunity for capital growth, when making investment decisions. 

Our research asked landlords, investors, and brokers what their top priorities were when purchasing properties, and found that, for 82% of respondents, environmental friendliness and energy efficiency were up there with rental yield in the top three considerations. 

Andy Button, Head of Investment Finance, said: “The buy-to-let market is particularly buoyant right now with demand continuing to grow throughout the pandemic, and it’s interesting to see how the priorities for landlords are changing when looking to add to their portfolio. 

“While rental yield and potential for capital growth are, of course, top priorities our research reflects a change in mood of the market, where sustainability and green credentials are becoming ever more important.” 

“According to a recent Savills report, 26% of people considered the environment the most important issue facing the country and, according to Opinium research, 78% of the public believe they have a personal responsibility to deal with the climate crisis – many of these people will be renters. Therefore to stay competitive landlords can’t ignore tenant preference; they, along with developers and estate agents, are having to provide choice in sustainable housing options.” 

Andy added: “It’s clear that sustainability will feature more and more in new build development design, and more stringent compliance to EPC, and an investment strategy more closely aligned to sustainability could actually improve cash flows in the longer term, as tenants might be prepared to pay higher rents, in exchange for lower utility costs. 

“Our research suggests that investors are very much alive to the longer term benefits that having sustainability credentials in a portfolio can afford.” 

We’ve developed our Portfolio Buy-to-Let product for landlords with four or more properties, who want to stay organised with one loan to cover them all. It offers mortgages of up to £5million for between four and 15 properties and will also loan to those buying multi-unit blocks.  We also offer a Specialised Residential Investment loan, up to £10million, for larger investors with over 15 properties/units, and includes specialist property types, like multi-unit blocks and Houses of Multiple Occupancy. 

We’ve written a guide on how to make your property more environmentally friendly – 5 ways to make your property more environmentally friendly – which you, or your clients, might find useful.  

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We’ve been helping professional landlords meet their residential property investment aspirations for years, and we’ve recently revamped our products so that we can offer the best support possible. From landlords with a small number of properties, to larger investors with more complex portfolios, we offer specialist loans to meet a range of ambitions.

Our team are running a webinar on 21^st July at 11am, where we’d love to invite you to learn all about how Chester Royal can support landlords in the Portfolio Buy-to-Let market. We’ll cover:

• An introduction to Hodge: who we are and how we can work with you
• What our Portfolio Buy-to-Let loan is, who it’s for, and how it works
• The core benefits and features of our PBTL loan
• How to get started with Chester Royal – how it works from application to completion.

To register for the webinar, click here:

#webinar/channel/Hodge-Buy-to-Let

We look forward to seeing you there!

The post Webinar: an introduction to Chester Royal Portfolio Buy-to-Let appeared first on Commercial Finance.

Our recent research showed that portfolio landlords put ‘environmentally friendly’ properties in their top three list of priorities when it comes to purchasing new homes. Being environmentally friendly doesn’t just help landlords contribute to a more sustainable future for everyone, but it can also save them money.  A few tweaks around a property can cut unnecessary costs while making homes more eco-friendly. Here’s our guide on the key things landlords need to do to make an environmentally friendly difference to a property. 

Every house must have an Energy Performance Certificate (EPC), and making improvements to this is the first thing for landlords to tackle. Energy Performance Certificates measure the energy efficiency of a property on a scale of A-G (with A the most effective and G the worst).  

How does the EPC work? 

The EPC is a legal requirement for a building to be sold, let, or constructed, and landlords need to get an up-to-date EPC every 10 years. In April 2018, the Minimum Energy Efficiency Standards (MEES) came into force. This required all rental properties of new tenancies and renewals to have a minimum EPC rating of ‘E’ or above. Then, in April 2020, it changed again, so that Minimum Energy Efficiency Standards applied to all existing tenancies – not just new ones or renewals. 

The higher the energy efficiency is for a property, the more environmentally friendly it is. Sustainability is a hot topic for most people right now and there are many ways landlords can help improve their EPC rating to make their properties much more environmentally friendly.  

1. Upgrade the lighting to LED 

Let’s start with a simple fix. LED bulbs may cost more than traditional light bulbs, but that shouldn’t put people off using them. LED light bulbs tend to last much longer, so spending a little bit more initially will save money in the long run. LEDs are up to 80% more efficient, lasting longer and emitting more light. 

Landlords can also improve eco-friendliness by installing smart lighting. Motion sensors trigger the lights when someone enters a space and then, after periods of inactivity, switch off. It’s also possible to switch smart lights off remotely, so you don’t need to worry about them being left on for hours if tenants have gone out. 

2. Insulate the walls and roof 

Loft insulation: All properties must have good quality insulation or energy bills will, quite literally, go through the roof. On average, it’s estimated 25% of a home’s heat is lost through the roof. It’s essential then for landlords to check what’s in situ, because insulating the loft or roof is a simple and effective way to reduce heat loss and reduce heating bills. 

Loft insulation is effective for at least 40 years, so it’s well worth the investment. If there’s nothing installed, or the existing insulation is 150mm (6 inches) or less, then add another layer to bring it up to the recommended 270mm.  

Cavity walls: According the Energy Saving Trust, homes built after 1920 generally have cavity constructed external walls, made of two “skins” separated by a hollow space, or cavity, between them. Cavity wall insulation fills the hollow space, keeping the heat in and saving you energy. Filling empty cavity walls with wall insulation could be a very cost-effective way to retain heat in the property and save on energy bills. 

Around one third of the heat loss from most homes is through the walls, so cavity insulation could save you up to £160 a year in heating bills. In fact, according to figures from the Energy Saving Trust, cavity wall insulation could pay for itself within less than five years.

3. Invest in double glazing 

Houses lose lots of heat through their windows and doors. In fact, it’s estimated that about 10% of a property’s heat escapes through glass. Energy-efficient double glazing can help reduce this.  

Double glazing is basically two layers of glass with insulating gas trapped in between them, so that it acts not only as a shield against cold weather, but less heating is required too, which reduces the household bills – as well as helping the planet. 

Other advantages of double glazing include noise reduction, increased security, a higher property value, less condensation, and less fading of objects close to windows and doors, as it reduces the amount of UV radiation that gets into the house. 

Most importantly though, double glazing reduces energy consumption overall, making it much better for the environment. 

4. Install an efficient boiler 

The Energy Savings Trust estimates that heating accounts for about 55% of what you spend in a year on energy bills, so having an efficient boiler in a home makes a big difference. 

Condensing boilers are the best eco-friendly option. Conventional boilers waste a lot of heat energy because they release hot gases through the ‘flue’. A condensing boiler, however, captures the wasted heat vapour and uses it to heat up water returning from the central heating system. It’s made more efficient by requiring less heat from the burner.   

All new, modern boilers are now condensing boilers, and building regulations state that all boilers installed into new, domestic homes should be energy-efficient condensing boilers. 

5. Get a smart meter 

Smart meters record exactly how much gas and electricity is used by individual households and are a must for anyone looking to reduce their carbon footprint and decrease their energy bills. Smart meters accurately record the amount of energy used. 

They can be programmed so that they only turn on at certain times of the day, and visible meters mean homeowners know exactly how much they are spending on what. 

As part of a nationwide roll-out, every home in Britain should be offered a smart meter from their energy supplier by June 2025. Smart meters are part of the nation’s effort to create a smart grid, which is part of providing low-carbon, efficient and reliable energy to Britain’s households and installing one is a great step to making to improving the EPC of a property. 

Making these improvements to a property’s EPC certificate will go a long way into making the property environmentally-friendly, as well as cutting costs that is being wasted on energy bills. 

If you’re a professional landlord looking for a loan for your residential portfolio, our expert team would be happy to help support your investment ambitions. Take a look at our Portfolio Buy-to-Let and Specialised Residential Investment loans to find out more. 

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We’ve been helping professional landlords meet their residential property investment aspirations for years, and we’ve recently revamped our products so that we can offer the best support possible.  From landlords with a small number of properties, to larger investors with more complex portfolios, we offer specialist loans to meet a range of ambitions. Here’s a guide to our two products – Portfolio Buy-to-Let and Specialised Residential Investment – explaining how they work, how they differ, and who they’re for.  

Portfolio Buy-to-Let

What is the Portfolio Buy-to-Let loan? 

We created our Portfolio Buy-to-Let product especially for professional landlords looking for one loan to house their entire residential property portfolio. It’s a practical solution to help professional landlords stay organised and perhaps release equity for further acquisitions. 

Who is it for? 

Our Portfolio Buy-to-Let loan could be for you if you’re a professional landlord, trading as either a Ltd Company, LLP, partnership, or sole trader. 

It’s for landlords with residential portfolios made up of between four and 15 properties, looking for a loan of up to £5m, with an LTV of up to 70%. We offer a 10-year term and can accept small multi-unit blocks (up to four units) as part of the portfolio. 

To make things easy, we’ve put together a portfolio and landlord checklist that you can use to cross reference criteria and suitability.  

How does it work? 

Our Portfolio Buy-to-Let loan is interest only, meaning you’ll make interest payments each month, and repay the full loan at the end of the term. When you apply for the loan, we’ll agree the amount you can borrow up front. 

You’ll be given a dedicated Relationship Manager, so you’ll always be able to speak to someone who knows the details of your portfolio and understands your situation.  

We understand that lots of our clients are active landlords, so, if you’d like to make any changes to your portfolio after completion, just get in touch with a proposal and we’ll work with you to try and find a solution .  

What are the benefits? 

Landlords tell us that there are two key benefits to our Portfolio Buy-to-Let loan: 

1. You can house your entire portfolio under one loan – keeping things simple and straightforward  

2. We’ll let you swap properties in and out of the portfolio as your ambitions grow and change – meaning you’ve got the flexibility to focus on what’s important. 

Specialised Residential Investment 

What is the Specialised Residential Investment loan? 

Our Specialised Residential Investment loan is similar to our Portfolio Buy-to-Let loan, but works well for larger investors, or those with residential portfolios that are a little more complex. 

Who is it for? 

If you’re a professional investor, trading as either a Ltd Company, LLP, or sole trader, looking for a loan of up to £10m with an LTV of up to 65%, our Specialised Residential Investment loan could be for you.  

We’ll look at portfolios with more than 15 properties, with no maximum portfolio size – making it great for larger investors with ambitions to grow. We can also support you with residential portfolios that’re a little out of the ordinary. We’ll consider multi-unit blocks, houses of multiple occupancy (up to 6 beds in a single property), and a little commercial mixed use (like a small shop).  

How does it work? 

We know you need a repayment plan that suits your business, and are happy to consider both interest only and repayment options. When you apply for the loan, we’ll agree the amount you can borrow up front, as well as agreeing on a monthly repayment plan and a strategy for final capital repayment if you opt for an interest only package.  

You’ll be given a dedicated Relationship Manager, so you’ll always be able to speak to someone who knows the details of your portfolio and understands your situation.  

If you need to borrow more money throughout, we can consider this under our ‘flexible amendments’ feature. On completion, you can get in touch with us to chat through your proposal, and we’ll look at ways we can work together to achieve your ambitions. 

What are the benefits? 

Our expert team have years’ of experience structuring complex residential investment loans, so we’re well placed to understand that each portfolio is different. We’ll work hard to make sure we really understand your goals, and how we can best support them. 

When assessing your application, we’ll try to be as flexible as possible, looking at property quality, location, tenant covenant, and investor experience, as well as property type and sector.  

How do I know which loan is right for me? 

The best way to work out which loan is right for you is to review the criteria carefully, and speak to a trusted broker or financial advisor who’ll be able to guide your decision.  

As a general rule, our Portfolio Buy-to-Let loan is suited to landlords with smaller, more straightforward portfolios, while our Specialised Residential Investment works for larger investors with a more complex mix of properties.  You can find out a little more information on each loan here, as well as finding our contact details when you’re ready to get started: 

• Portfolio Buy-to-Let loan 
• Specialised Residential Investment loan 

If you have any questions or would like to find out any more information, you can also give us a call and speak to our experienced team, who’ll be happy to help run you through the way the different loans work in more detail.  

The post A guide to our Portfolio Buy-to-Let and Specialised Residential Investment loans appeared first on Commercial Finance.

As yet more material shortages affecting the construction industry hit the news this week, Gareth Davies, our Head of Development Finance, shares his thoughts on how developers – big and small – have been tackling the problem

Before the pandemic was even on the horizon, as Brexit loomed and started to take effect, the wider construction industry was conscious of the sheer volume of materials we import – and the impact potential delays and shortages might have on ongoing projects and developments.

So, when Covid hit and the UK went into the first lockdown, it wasn’t long before we started to see real shortages of materials throughout the supply chain.  While many active construction sites were relatively quick to reopen, there was little clarity across Europe, and further afield, in respect of a road map to properly reopening supply markets.  This left us in a fairly uncertain place in the development world. Projects were forced to pause, lenders tightened up their criteria, and developers became more cautious about starting new projects.

But, as we’ve worked through Covid, construction sites in the UK have increased in activity and have widely remained open throughout the second and third major lockdowns, resulting in increased activity across the residential development market. It undoubtedly remains a challenging market but we’re seeing more and more enquiries for development finance, with developers and investors cautiously optimistic about returning to building.

Outside of the development space, we’ve heard lots about the ‘accidental savers’ of lockdown, people who’ve found themselves with surplus cash as a result of international and domestic travel, hospitality and entertainment being closed. Clearly, lots of those have now started to invest in their own homes – having spent so much time there over the past 18 months – and are thinking about putting in a new bathroom or kitchen, repurposing accommodation, extending, or even just redecorating. This is exacerbated further by the explosion in house prices in some areas – where people may feel that it’s better to invest in their existing property, than to enter the process of buying a new home which can both be stressful, and, at the moment, requires the ability to move at lightening speed.

Demand for materials is high, not just in the UK but globally and the pressure on supply chains continues to have an impact on delivery.  For both large scale building projects and developments, and small scale residential improvements that require just one or two contractors (or a brave attempt at DIY), being able to access the right materials is critical – and that’s where it requires some careful thinking, and ultimately, some tricky manoeuvring to plan ahead.

From conversations with our developer clients at Hodge, it’s clear that they’ve been monitoring the availability – and price! – of various materials for some time now, and adjusting plans accordingly. Lead times have frequently been extended, and, as simple economics would dictate when demand exceeds supply, prices rise. Just this week, the Construction Leadership Council has warned that cement, some electrical components, timber, steel, and paints are all in short supply.

Planning for the future has never been more important in development finance. It’s far more difficult now to make a last minute call to a supplier at short notice, as products that previously would’ve been available the next day, might now not even be available the next week, or even month.

For developers, big and small, to continue building successfully and to keep control of costs, managing the build programme, human resource, and supply chain is crucial – and building in space for future delays into project timelines and potential cost increases is sensible practice for the foreseeable future.

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