Specialist Commercial Finance Challenger Banks - a new breed CASE STUDY Need: Refinance of four properties, with an existing mortgage rate of 8.99% p.a. and a remaining term of just two months. Issue: The applicants had experienced recent credit problems and their four properties were used as emergency housing for local councils. Very few lenders will accept properties let on this basis. One of the highlights of what has emerged in the market over the last decade is the emergence of Challenger Banks. Properly capitalised, focused and with no legacy issues like those that went before them, these lenders have brought a breath of fresh air to financial services. However, it was disappointing that many of these new banks all aimed their products at the same market: experienced individuals with a relatively clean credit record and good quality tenants on investment property applications. It was therefore very refreshing when Challenger Banks such as Cambridge & Counties approached the market from a different perspective; looking to offer products that would service sectors of the population who found it difficult to borrow. Circumstances such as investment property with local authority or emergency housing tenants; an absolute red flag to most lenders but warmly accepted by Cambridge & Counties and now several others. They also have a more relaxed attitude to customers credit history, where it isn’t a deal breaker if a customer made a late payment on a credit card three months ago, as it will be with several of the market leading lenders. What is exciting is that 2018 will see more lenders enter into this sector of the market and Specialist Commercial Finance will be at the forefront of offering many of these products. Solution: We arranged a £1.95m remortgage with Cambridge & Counties Bank at a rate of 6.25% over a 20 year term. The applicant’s very successful business was enhanced even further by lower monthly repayments over the term. The result: The very happy customer was able to repay the existing high interest mortgage before expiry of the advance, which would have incurred substantial penalty fees. They also raised extra funds to improve one of their properties. Feedback: The customer gave us five stars and said: “Thank you so much for all of your professionalism and hard work.” Spotlight on Cambridge & Counties Bank Cambridge & Counties Bank is a unique partnership between two established and respected institutions – Trinity Hall and Cambridge & Cambridgeshire Local Government Pension Fund. They specialise in helping customers with their saving and lending needs. At Cambridge & Counties Bank they have created a service that brings back some of the great elements of a traditional bank, combining these with all the speed, efficiency and know-how that’s needed in the modern day. Cambridge & Counties Bank offer a personal service that’s straight-forward, fast and flexible. Since launching the bank in June 2012, they have successfully grown their lending book to an excess of £650m and are proud of their 99% customer satisfaction rate. What our Introducer said... “Fantastic. Difficult case but found a solution and had a lot of patience.” Issac K., Broker What the customer said... “My experience was excellent. It was a pleasure liaising with SHF, they were very helpful and understanding.” Mrs G. www.SpecialistHub.co.uk 7
8 Publizr Home