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|£1.2 billion through Fleet Mortgages' system in first year of lending|
|Monday, 25 January 2016|
Fleet Mortgages, the buy-to-let and specialist lender, has today (25th January 2016) announced that £1.2 billion of business flowed through its system in its first year of lending.
The figure is comprised of its current live pipeline of business, those cases which were either declined, cancelled or unselected, and all completed business.
The lender is currently working at a lending ‘run-rate’ greater than £500 million per year and expects to increase this to £750 million in 2016. Staff numbers at the business have increased to 54 with the anticipation that this will rise closer to 100 by the end of this year.
The lender has also revealed a range of statistics from its 2015 business activities including product mix, product popularity, regional activity, and selected case highlights. For instance:
· Over the course of the year, total lending was split between three areas with 60% of business for individual buy-to-let; 20% for limited company, and 20% for houses in multiple occupation (HMOs).
· In terms of full mortgage applications dealt with, the average LTV for those cases was 69.9%; the average age of the borrower was 50; the average property value was £360k; and the average number of properties owned by a borrower was 11.
· In December last year the average rental cover received by each borrower was 199%, well in advance of the 125% required.
· Throughout the year, Fleet Mortgages’ most popular products by lending value were individual two year fixes at 75% and 65% LTV, followed by a HMO two-year fix at 75% LTV.
· Regionally, Fleet Mortgages conducted most business (by value) in Greater London, the South East, East Anglia and the South West. Although as the year progressed, business levels improved considerably in areas such as the North West and the Midlands, as experienced BDMs were recruited to these areas.
By December 2015 month-on-month completions were 80% up on those of July 2015; similarly, applications received had improved by 53% on the same time period and mortgages offered were up by 30%.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “With a year under our belt we have some very positive figures from high-quality lending to deliver to the market as we prove we are now a settled and major force in the world of buy-to-let lending. To have over £1.2 billion placed through our system during that first year, and to be currently working at a run-rate of £500m-plus and rising is testament to the proposition - criteria, pricing, products and service which has clearly hit the mark for many intermediaries and their clients. The support we have had from the intermediary community and our distribution partners since we launched has been staggering and we continue to listen to them and develop our offering – both product and service – to meet their needs.
“We have an ongoing commitment to keep working on all aspects of the Fleet Mortgages’ offering and throughout the year we will continue upgrading the systems we operate and the processes we run by to ensure they are optimised and working efficiently. We’ve already increased staff resources considerably over 2015 and, as we grow in terms of activity, this will continue. Our use of technology is designed to help our underwriters to be more efficient and there is a considerable focus on this area in 2016, along with continued training and development for the Fleet Mortgages team.
“As a lender, we have gained significant traction in the lending marketplace, but also considerable coverage not just amongst the intermediary press but also the nationals for being one of the leading players in the limited company buy-to-let marketplace, as our recent mention in The Times confirms. This year is all about building on the huge strides we made in 2015, it will be a year of change for the buy-to-let sector but also we believe one of continued opportunity. Plus there are a number of other sectors where we believe the Fleet Mortgages’ model can excel in – we will of course remain true to our core strength of buy-to-let but can also see a time when we expand into other areas.”
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