Shawbrook Bank agrees to buy The Mortgage Lender

Shawbrook Bank strengthened its position in its core residential and buy-to-let markets by agreeing the terms of the acquisition of specialist intermediary mortgage business, The Mortgage Lender (TML).

Shawbrook, itself a specialist lender to UK SMEs, has agreed to acquire TML for an undisclosed fee in a strategic purchase that provides the bank with substantial growth opportunities. TML will retain the brand that has helped it become widely recognised as an innovative leader in the mortgage industry.

The acquisition, which has regulatory approval, will extend Shawbrook’s Property Finance product range and significantly increases its distribution network. The enlarged group will focus on the creation of a best in class offering for intermediaries, underpinned by Shawbrook’s retail franchise and substantial commitment to technology. Subject to satisfaction of the remaining conditions to the acquisition, completion of the acquisition is expected to occur in February 2021.

John Eastgate, managing director of Shawbrook Property Finance, said: “The acquisition of TML is an exciting opportunity for both organisations. It positions Shawbrook in front of a much wider intermediary audience and reinforces TML’s growth plans with the strength of a retail savings franchise. It will also allow us to maximise the benefits of our substantial investment in digital and enhance our offering to intermediaries.”

Paragon’s BTL pipeline hits all-time high

Paragon Bank’s buy-to-let pipeline hit a record high of almost £1bn at the end of the first quarter of its financial year, according to the bank’s latest trading update.

Paragon’s buy-to-let pipeline at 31 December 2020 stood at £966.8m, £152.8m higher than for the corresponding period last year.

Paragon expects the pipeline to convert at a faster rate over the coming quarter as landlord customers look to complete ahead of the 31 March Stamp Duty deadline.

Paragon Bank managing director of Mortgages, Richard Rowntree, said: “New business has been strong since the housing market reopened in May last year and accelerated in the three months to the end of December as landlords looked to take advantage of the Stamp Duty holiday. Our focus over the next two months will be on working hard to complete those transactions ahead of the window.”

West One Loans’ Buy-to-let launches with Sesame Bankhall Group

West One Loans’ buy-to-let division has announced its latest distribution partnership as it continues to roll-out growth plans for 2021, through Sesame Bankhall Group (SBG).

PMS Mortgage Club and Sesame Network has appointed West One Loans on to its panel, with more than 8,000 advisers having access to its buy-to-let products and customer-focused end-to-end service.

The launch with PMS and Sesame is part of West One’s ongoing move to widen its distribution to include networks and mortgage clubs, making its buy-to-let offering more accessible.

Managing Director of West One Loans’ buy-to-let division, Andrew Ferguson, said: “Sesame Bankhall Group is one of the UK’s leading mortgage distributors and a great partner for West One to launch with, via their PMS and Sesame brands, particularly when we have a new range of products for their advisers to access.”

Equity release market saw a recovery in Q4

The equity release market experienced a recovery in the final quarter of last year thanks to the release of pent-up demand following the first lockdown and the introduction of lower pricing, according to the Equity Release Council.

Its latest report shows a ‘busy’ year-end with 11,566 new plans being agreed by over-55s in the final quarter of 2020.

Annual lending to new and existing customers was £3.89bn in the quarter as favourable pricing saw the average interest rate drop to 4.01% midway through the three-month period.

The lowest rates were 2.3% which is less than the average 10-year fixed rate mortgage according to the Equity Release Council.

David Burrowes, chairman of the Equity Release Council, said: “Over the last decade, releasing equity to boost your finances in later life has grown from a niche pursuit to a competitive market that has stabilised at £3.9bn of lending activity for the last three years, despite significant headwinds driven by Brexit uncertainty and the Covid-19 pandemic.

“The unusual patterns of activity in 2020 show some customers biding their time before accessing property wealth. New plans were delayed from earlier in the year and fewer customers have made use of drawdown reserves or sought extensions of existing loans.”

Lendlord launches open banking integration

Portfolio management platform, Lendlord, has launched an Open Banking integration that allows landlords to automate their cashflow and bookkeeping.

Lendlord has been approved by the FCA to partner with Open Banking platform, Plaid, and enable users to link an unlimited number of bank accounts to their Lendlord account.

This integration will allow Lendlord users to fully automate their cashflow and rent collection and make it easier to manage their bookkeeping and tax returns.

Landlords will also be able to easily review their expenses breakdown and up-to-date profit and loss position across their entire portfolio.

Aviram Shahar, co-founder and CEO at Lendlord, said: “We have partnered with Plaid to deliver a great enhancement to the Lendlord platform. Landlords who make the most of this Open Banking integration will have greater visibility over the cashflow position of their properties and be able to automate key processes – saving them time and giving greater peace of mind.”

Darlington reduces fixed and discounted rates

Darlington Intermediaries has cut rates on three of its mortgage products, including its local area discount offering.

The 80% loan-to-value (LTV) two-year fix is now available at 2.69% and the 80% LTV five-year fix at 2.99%.

The local area only discount product is set for three years and provides an initial rate of 3.59%.

It is available at up to 90% LTV and is open to borrowers across the North East and Yorkshire.

Darlington has also extended its 70% LTV five-year fix for buy-to-let, the rate for which remains at 3.09%.

In addition, the lender’s residential range is now available on capital repayment, interest-only or, excluding 90% LTV products, on a part and part basis.