BestAdvice (BA): In the last year, Castle Trust Bank has emerged as a serious player in the bridging market. What steps have you taken to achieve this?
Anna Lewis (AL): We launched a dedicated bridging proposition in the summer of 2022, supported by dedicated sales, underwriting and processing teams, and we have continued to build on this ever since.
For example, alongside a number of criteria enhancements, we have launched separate Light Refurb and Heavy Refurb bridging products, as well as a Heavy Refurb bridging product with a drawdown facility. This has quickly become a USP for Castle Trust Bank at 75% LTV with interest able to be added to the loan above the maximum net LTV and is in high demand amongst brokers and their clients.
Most recently, we launched a new ‘Bridge the Gap’ product to provide a flexible solution for borrowers who are approaching the end of a current fixed rate or bridging loan but are reluctant to lock into a new Buy to Let mortgage at this stage of the current interest rate cycle.
The product is also useful for property investors who want to gain a letting track record on the property before committing to a long-term loan, as some lenders will want to see at least 12 months’ worth of borrowing history before offering terms.
BA: What have you done to deliver a service proposition to best serve brokers?
AL: On top of the dedicated sales, underwriting and processing teams, we have re-organised our sales and support team to provide better service for brokers. This has included expansion of the field sales team with the introduction of an additional BDM for East Anglia and South East. Castle Trust Bank BDMs take a relationships-first approach to working with brokers, ensuring consistency of service.
We have also onboarded a new solicitor panel, which has enabled us to increase lending volumes whilst continuing to provide outstanding service throughout the entire application and drawdown process.
And, for every new product launch or change to the proposition, we have implemented daily drop-in sessions for BDMs and underwriters to ensure the whole team has the expertise they need to issue terms to brokers and do the same for the underwriting team. I also have a daily drop-in service with the sales team and credit director to discuss new and pipeline cases to speed up decisions.
BA: What has been the impact of these changes?
AL: As a result of these enhancements, 90% of the overall business at Castle Trust Bank is now bridging. Given that we only pivoted to a ‘bridging first’ strategy in 2022, this is significant progress. We have also won and been finalists in awards for our bridging proposition, which shows how well it has been received by the market.
BA: With a general election around the corner, what measures would you like to see included in the party manifestos?
AL: The Private Rented Sector provides accommodation for nearly a fifth of all households in the UK and it’s becoming ever more crucial as a means of meeting the housing needs of a growing population.
As with any market, the driving force is supply and demand and the number of people requiring housing by the Private Rented Sector continues to exceed the number of available properties.
The consequence of current policies is higher rent and less choice for tenants. With so much pent-up demand from tenants for somewhere to live, the irony is that current polices are acting as a disincentive for landlords who want to invest in their portfolios and help alleviate the problem.
It’s time for the government to recognise the contribution they bring to the economy, and start encouraging investment in private rented housing stock. Encouraging new landlords into the market, and existing landlords to grow their property portfolios will ultimately help renters – easing the financial burden on tenants and delivering a more competitive property rental market with greater choice and increased quality. This could play a vital role in improving the lives of millions of people.