Recognise Bank Enters Buy-To-Let Market
Recognise Bank has entered the buy-to-let market with a new product designed for professional landlords and investors with portfolios of at least four properties. It is the Bank’s first new lending product since receiving its full authorisation and the lifting of deposit restrictions in September 2021.
With rates from 3.49%, borrowers can choose a five-year fixed-rate deal or a variable deal linked to the Bank of England Base Rate. With a maximum LTV of 75%, loans are available from £100k up to £5 million on either new acquisitions or for refinancing existing portfolios of four properties or more.
Repayment and interest-only payment options are available for terms of up to 10 years. The loans can be used for single-let residential houses or blocks of flats let on an Assured Shorthold Tenancy (AST) basis, and are open to UK-based individuals, partnerships, Limited Companies and LLPs that meet Recognise Bank’s lending and affordability criteria.
By focusing on borrowers who already have a significant property portfolio, and by offering a range of flexible options, Recognise Bank says it aims to serve reputable and professional landlords, supporting the availability of quality rental properties in the UK.
Angela Norman, Head of Corporate Development for Recognise Bank, said: “We want to do more than just offer borrowers a buy-to-let loan – we want to show them we are interested in their business and to support their success.
“Because we take a personal relationship approach to all our lending, it means advisers and their clients can have a proper conversation about their portfolios, knowing we understand their needs and will be able to offer the right funding solution.”
The proposition has already been trialled with a small number of brokers, with over £20 million in deals either completed or in progress. Norman continued: “We are very excited about the launch of our Professional Buy-To-Let Loan and have been extremely pleased at the response from the handful of advisers and customers we have worked with during the trial period. We thought it was important to gather feedback about the proposition to ensure it was right before launching it to the whole market.”
Recognise Bank was created to serve SMEs that are being ignored by the big banks, already offering Commercial Mortgages, Bridging Loans, Working Capital Loans and Professional Practice Loans. It has a network of regionally-based Relationship Managers who understand the needs of local businesses and their communities, backed by cloud-based technology to provide businesses with quick lending decisions and access to their funds.
The Bank launched its first range of personal savings products in September this year following the lifting of its deposit restrictions, which has enabled it to further increase its lending to small businesses. It plans to launch business savings accounts next year.