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Author: David Sampson

  • Can You Get a Mortgage on a Timber-Built Property?

    Can You Get a Mortgage on a Timber-Built Property?

    Timber-built properties can present unique challenges when seeking a mortgage. While it is possible to secure financing for these homes, the options may be limited depending on the construction type, which can affect interest rates and lender preferences.

    TL;DR: Mortgages for timber-built properties are available but often require larger deposits and may involve specialist lenders; borrowers should consult brokers familiar with non-standard constructions.

    What Types of Timber Construction Affect Mortgage Options?

    Timber properties come in various forms, and lenders categorize them based on construction type. Fully timber homes, such as log cabins, may face more scrutiny than those built with timber frames like Swedish chalets or kit homes. These latter constructions are often classified as ‘non-standard construction,’ which can limit lender options.

    Why Are Lenders Cautious About Timber-Built Properties?

    Lenders have specific concerns when it comes to timber-built homes, including:

    • Fire Risk: Timber can be more susceptible to fire damage compared to traditional brick or stone.
    • Durability & Lifespan: The long-term stability of timber structures can be questioned, impacting the property’s value.
    • Resale Value: If the property is repossessed, selling a timber home may be more challenging, affecting lender confidence.
    • Maintenance Requirements: Timber properties often require more upkeep, which can deter potential buyers.

    What This Means for Borrowers and Investors

    For those looking to buy a timber-built property, understanding the mortgage market is essential. High street lenders may not offer standard rates for these homes, and borrowers may need to turn to building societies or specialist lenders who have more flexible underwriting criteria. Factors such as the surveyor’s report, the specific construction type, location, and the borrower’s financial profile will all play a role in the mortgage assessment process.

    Engaging with a broker who has access to a wider range of lenders can provide a better chance of securing a mortgage on a timber property. They can help navigate the complexities of non-standard constructions and ensure that all necessary documentation, including the surveyor’s report, is in order.

    Frequently Asked Questions

    Can I get a mortgage on a log cabin?

    Yes, but securing a mortgage on a log cabin can be more challenging due to its classification as a fully timber property. You may need to seek out specialist lenders.

    What factors will lenders consider for timber properties?

    Lenders will assess the construction type, fire risk, resale value, maintenance needs, and the borrower’s financial situation, including deposit size.

  • RAW Capital Partners Launches New Bridging Finance Options

    RAW Capital Partners Launches New Bridging Finance Options

    RAW Capital Partners has unveiled a new range of bridging finance products, expanding its offerings to UK residents. This move is significant as it enhances the options available for landlords and investors seeking quick financing solutions in the UK property market.

    TL;DR: RAW Capital Partners introduces bridging finance loans from £100,000 to £4m, targeting landlords and investors needing fast access to funds; terms range from three to 18 months with a maximum LTV of 60%.

    What is Bridging Finance?

    Bridging finance is a short-term loan designed to ‘bridge’ the gap until permanent financing is secured or the property is sold. It’s often used in property transactions where speed is essential, such as auctions or urgent renovations. This new offering from RAW Capital Partners provides a viable option for those looking to act quickly in the competitive UK property market.

    Who Can Benefit from RAW Capital’s New Products?

    The new bridging finance range is particularly beneficial for landlords, property investors, and brokers. With loan amounts ranging from £100,000 to £4 million and flexible terms between three to 18 months, these products cater to various financing needs. The maximum loan-to-value ratio of 60% allows borrowers to use their investments effectively while maintaining manageable risk levels.

    What This Means for Landlords and Investors

    For landlords and investors, the introduction of these bridging loans offers a pathway to secure funding quickly, which is important in a fast-paced property environment. The focus on speed and certainty of execution means that borrowers can expect a more streamlined process, allowing them to seize opportunities as they arise. This is particularly important for those looking to invest in buy-to-let properties or undertake renovation projects.

    Frequently Asked Questions

    What are the typical uses for bridging finance?

    Bridging finance is typically used for property purchases at auction, renovations, or to secure quick funding while waiting for long-term financing.

    How does the loan-to-value ratio affect my borrowing?

    The loan-to-value ratio determines how much you can borrow against the value of the property. A maximum LTV of 60% means you can borrow up to 60% of the property’s value, impacting your equity and potential investment returns.

  • RAW Capital Partners Launches New Bridging Loans

    RAW Capital Partners Launches New Bridging Loans

    RAW Capital Partners, a specialist lender based in Guernsey, has expanded its offerings by introducing bridging loans secured against UK residential property. This move is significant for landlords and investors seeking flexible financing options, especially given the current property market dynamics.

    TL;DR: RAW Capital Partners now offers bridging loans from £100,000 to £4 million for terms of three to 18 months; this expansion allows UK residents greater access to fast, unregulated financing options.

    What are the key features of these bridging loans?

    The newly launched bridging loans from RAW Capital Partners are available in amounts ranging from £100,000 to £4 million. The loans are unregulated and are secured against residential properties in the UK. Borrowers can choose terms between three to 18 months, with a maximum loan-to-value (LTV) ratio of 60%. Interest rates are tiered based on the LTV, providing a structured approach to financing.

    Who can benefit from these bridging loans?

    These loans are particularly beneficial for foreign nationals, UK expatriates, Channel Islanders, and now UK residents, as RAW Capital Partners has broadened its lending criteria since December 2025. This expansion allows a wider audience to access quick funding solutions, which is essential for property investors looking to seize opportunities in the fast-paced market.

    What this means for property investors and brokers

    The introduction of bridging loans by RAW Capital Partners is a timely addition to the market. With over £220 million in assets under management in the RAW Mortgage Fund, the lender is well-positioned to provide swift and reliable financing. This is important for brokers and investors who require certainty and speed in their transactions, particularly in competitive bidding situations.

    Frequently asked questions

    What is a bridging loan?

    A bridging loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one, often used by investors for quick funding.

    How does the tiered interest rate work?

    The tiered interest rate for bridging loans varies based on the loan-to-value ratio, meaning the higher the LTV, the different the rate applied, allowing for tailored financing solutions.

  • London House Prices Decline Amid Nationwide Stagnation

    London House Prices Decline Amid Nationwide Stagnation

    Recent analysis reveals that London is the only UK region experiencing a decline in house prices, with forecasts indicating an additional drop of nearly £5,000 by the end of the year. This trend contrasts sharply with other regions, where house prices have either remained stable or increased slightly.

    TL;DR: London house prices are projected to fall by almost £5,000 by December 2026, while other regions see modest growth; this impacts buyers and investors in the capital.

    Why Are London House Prices Falling?

    According to the latest data, the average house price in London has decreased by 0.2% per month over the past year. This trend is expected to continue, with forecasts suggesting a drop from £552,655 to £547,889 by December 2026. This decline represents a total loss of nearly £21,000 since the market peak in July 2025, when average prices reached £568,801. In contrast, regions like the North East and Yorkshire have seen positive growth, with average increases of 0.8% and 0.6%, respectively.

    What Does This Mean for Buyers and Investors?

    For potential buyers and investors in London, this decline could present opportunities, particularly for those seeking to negotiate better purchase prices. However, it also signals a challenging environment for current homeowners looking to sell, as they may need to adjust their expectations regarding property values. The stagnation in the broader UK market, with an average growth of just 0.3% across England, means that buyers outside London may also face a more competitive market.

    How Are Other Regions Performing?

    While London struggles, other regions are experiencing varying degrees of growth. The North East has emerged as a leader in house price growth, with an average increase of 0.8% per month. The North West and Yorkshire and the Humber follow closely behind, both showing 0.6% growth. The West Midlands and East Midlands are also performing well, each recording a 0.5% increase. This regional disparity highlights the importance of location in the current property market.

    Frequently Asked Questions

    What factors are contributing to the decline in London house prices?

    The decline in London house prices can be attributed to a combination of stagnation in the overall market, economic uncertainties, and changes in buyer demand.

    How can current homeowners in London adapt to falling prices?

    Homeowners may need to adjust their selling strategies, potentially lowering their asking prices or improving property appeal to attract buyers in a declining market.

  • Buy-to-Let Mortgages: Landlords Face New Challenges

    Buy-to-Let Mortgages: Landlords Face New Challenges

    Buy-to-let (BTL) borrowers are currently facing uncertainty as lender guidance struggles to keep pace with recent legislative changes. Following the introduction of the Renters’ Rights Act on May 1, 2026, significant alterations to tenancy laws have left many landlords in a state of confusion regarding their mortgage conditions.

    TL;DR: The Renters’ Rights Act has eliminated assured short-hold tenancies, complicating the market for BTL borrowers; many lenders have yet to update their guidance, leaving landlords uncertain about compliance.

    What has changed with the Renters’ Rights Act?

    The Renters’ Rights Act has abolished the assured short-hold tenancy (AST) in England and Wales, converting all existing ASTs to assured periodic tenancies. This shift means that landlords can no longer issue fixed-term tenancies, and possession can only be sought on statutory grounds outlined in the Housing Act 1988. This has significant implications for BTL landlords who must now navigate a more complex legal framework.

    How does this impact buy-to-let mortgages?

    The changes brought by the Renters’ Rights Act directly affect the practical experience of being a landlord. Many BTL mortgage conditions were established when ASTs were the norm, and as a result, some lenders have not updated their guidance to reflect the new legal realities. For instance, Lloyds Bank continues to reference ASTs in its customer-facing BTL guidance, potentially misleading borrowers who are now subject to different tenancy regulations.

    What should landlords do now?

    Landlords are advised to consult their mortgage brokers or lenders directly to obtain written confirmation that their periodic tenancies comply with the new Act. This step is important to ensure that landlords are not inadvertently breaching their mortgage conditions due to outdated lender guidance. The inconsistency in lender updates highlights the importance of proactive communication between landlords and their financial representatives.

    What this means for landlords and investors

    For landlords and investors in the buy-to-let market, these changes necessitate a careful review of existing tenancy agreements and mortgage conditions. The shift to assured periodic tenancies may affect rental income stability and the ability to evict tenants. Investors should remain vigilant about lender communications and seek clarity on how their mortgage products align with current legislation. Understanding these changes will be vital for maintaining compliance and optimising rental yields.

    Frequently asked questions

    What are assured periodic tenancies?

    Assured periodic tenancies are a new form of tenancy that automatically applies to existing assured short-hold tenancies following the Renters’ Rights Act. They do not have a fixed term and can only be terminated under specific statutory grounds.

    How can I ensure my BTL mortgage is compliant?

    To ensure compliance, landlords should contact their mortgage broker or lender for written confirmation that their periodic tenancy meets the requirements of the Renters’ Rights Act. This will help avoid potential issues with mortgage conditions.

  • RAW Capital Partners Launches New Bridging Loan Options

    RAW Capital Partners Launches New Bridging Loan Options

    RAW Capital Partners, a specialist lender based in Guernsey, has expanded its offerings by introducing bridging loans. This move is significant for landlords and property investors as it provides additional financing options secured against UK residential properties.

    TL;DR: RAW Capital Partners now offers unregulated bridging loans ranging from £100,000 to £4 million for terms of three to 18 months; this expansion means more opportunities for UK property investors, including foreign nationals and expatriates.

    What are the Key Features of the New Bridging Loans?

    The newly launched bridging loans are first-charge loans available for amounts between £100,000 and £4 million. Borrowers can select terms ranging from three to 18 months, with a maximum loan-to-value (LTV) ratio set at 60%. The interest rates for these loans are tiered based on the LTV, offering flexibility for various borrowing needs.

    Who Can Benefit from These Bridging Loans?

    These loans are particularly beneficial for foreign nationals, UK expatriates, and Channel Islanders who have been investing in UK buy-to-let properties. Following an expansion of its lending criteria in December 2025, UK residents are also now eligible to apply. This broadens access to quick financing solutions for those looking to seize property investment opportunities.

    What This Means for Property Investors and Brokers

    The introduction of bridging loans by RAW Capital Partners enhances the financing market for property investors. With a robust RAW Mortgage Fund boasting over £220 million in assets, the lender is positioned to provide swift and reliable funding. Brokers can expect increased options for their clients, particularly those needing fast capital to secure properties.

    Frequently Asked Questions

    What is a bridging loan?

    A bridging loan is a short-term financing option used to bridge the gap between the purchase of a new property and the sale of an existing one, often used in property transactions.

    How can I apply for a bridging loan from RAW Capital Partners?

    Interested borrowers can apply through brokers who work with RAW Capital Partners, ensuring they meet the lending criteria and can provide the necessary documentation.

  • London House Prices Decline: What It Means for Buyers

    London House Prices Decline: What It Means for Buyers

    London is currently the only region in the UK experiencing a decline in house prices, with forecasts suggesting an additional drop of nearly £5,000 by the end of 2026. This trend is significant as it contrasts sharply with the overall stagnation in house prices across the country, impacting potential buyers, landlords, and investors.

    TL;DR: London house prices are projected to fall by £4,766, affecting homeowners and potential buyers; this marks a continued decline of nearly £21,000 since mid-2025.

    Why Are House Prices Falling in London?

    According to recent analysis, London’s average house price has decreased by 0.2% per month over the past year, a stark contrast to the overall average growth of 0.3% across England. The North East has shown the strongest growth at 0.8%, while regions like Yorkshire and the Humber and the North West have also seen positive trends. This regional disparity highlights the unique challenges faced by the London market, including economic factors and changing buyer preferences.

    What Are the Current Trends in UK House Prices?

    House Buyer Bureau’s analysis indicates that while most areas in Britain have experienced minimal growth, London stands out with consistent price declines. The average house price in London is expected to drop from £552,655 to £547,889 by December 2026, reflecting a cumulative loss of nearly £21,000 since its peak in July 2025. This stagnation in the capital could lead to a reevaluation of property investments and purchasing strategies.

    What This Means for Buyers and Investors

    For potential buyers and investors, the declining house prices in London may present opportunities for more affordable entry points into the market. However, it also raises concerns about the long-term value of investments in the capital. Landlords may need to reassess rental yields and property values, as a continued decline could impact their profitability. Buyers should remain vigilant and consider the broader economic context when making decisions.

    Frequently Asked Questions

    How much have London house prices fallen recently?

    London house prices have fallen by an average of £21,000 since their peak in July 2025, with a projected further decline of £4,766 by December 2026.

    What regions are seeing house price growth?

    The North East has experienced the strongest growth at 0.8% per month, followed by Yorkshire and the Humber and the North West, both at 0.6%.

  • Recognise Reports 51% Lending Surge in Mortgage Market

    Recognise Reports 51% Lending Surge in Mortgage Market

    Recognise has announced a significant 51% rise in gross lending, with its bridging loan balances more than doubling, marking a pivotal moment in the UK mortgage market. This growth reflects a strategic shift within the lender, aimed at enhancing its offerings and profitability in a competitive market.

    TL;DR: Recognise’s gross lending surged 51%, with bridging loan balances rising from £124m to £303.8m; this growth is important for landlords and investors looking for robust financing options.

    What are the Key Financial Highlights?

    Recognise’s loan book has now surpassed £500 million, with bridging loans comprising two-thirds of this total. The bank’s professional buy-to-let (BTL) lending remained relatively stable, increasing slightly from £88 million to £88.4 million. However, commercial lending saw a decline, dropping from £58.8 million to £49.5 million. Geographically, London continues to dominate, with lending rising from £88.3 million to £153.2 million, while the South East and North West also saw increases in their respective lending figures.

    How Did Recognise Improve Its Profitability?

    Recognise recorded an £8.9 million profit after tax for the year, a significant turnaround from a £5.3 million loss in 2025. This improvement includes £0.9 million in restructuring costs and a £7.1 million deferred tax asset. The bank’s net interest income rose by 31.7% to £20.4 million, with the net interest margin improving from 5% to 5.3%. This growth is attributed to disciplined pricing strategies and ongoing balance sheet optimisation.

    What This Means for the Mortgage Market

    The doubling of bridging loan balances indicates a growing appetite for short-term financing solutions among landlords and property investors. With Recognise planning to introduce regulated bridging loans in FY27, borrowers may soon have access to more flexible financing options. This is particularly relevant for those looking to capitalise on property opportunities quickly. Investors should monitor Recognise’s forthcoming product offerings and the overall trend in bridging finance as they could influence market dynamics.

    Frequently Asked Questions

    What is bridging finance and how does it work?

    Bridging finance is a short-term loan used to ‘bridge’ the gap between the purchase of a new property and the sale of an existing one. It is typically used for quick funding needs.

    How does the increase in lending affect the mortgage market?

    The increase in lending, particularly in bridging finance, suggests a robust demand for property investment, which may lead to more competitive mortgage rates and options for borrowers.

  • Mortgage Market Insights: MAB Reports Growth Amid Challenges

    Mortgage Market Insights: MAB Reports Growth Amid Challenges

    Mortgage Advice Bureau (MAB) has reported a notable increase in first-half revenue and mortgage completions, despite facing a challenging UK housing market characterized by low consumer confidence and fluctuating mortgage pricing. The technology-driven property finance group revealed that mortgage completions surged by 16%, reaching approximately £16.5 billion for the six months ending 30 June 2026, compared to £14.2 billion in the same period last year.

    TL;DR: MAB’s revenue rose by 8% to around £160 million, supported by refinancing; this growth indicates resilience in the mortgage market despite economic challenges.

    How Did MAB Achieve Growth in a Tough Market?

    MAB’s revenue increased by 8% to about £160 million, up from £148.2 million in the first half of 2025. This growth was largely driven by an uptick in property refinancing, contrasting with the previous year’s surge in purchase lending, which was influenced by anticipated changes to Stamp Duty Land Tax relief in 2025. The company’s share of new mortgage lending slightly increased to 8.3%, while its share of product transfers rose to 3.2%.

    What Are the Implications for Borrowers and Investors?

    The rise in mortgage completions and revenue suggests that borrowers are actively seeking refinancing options, particularly in light of ongoing uncertainty regarding interest rates. MAB noted that mortgage applications were 15% higher year-on-year during the first 19 weeks of 2026, driven by customers looking to refinance early. However, a subsequent decline of 13% in applications over the next seven weeks indicates a potential cooling in consumer activity, leaving year-to-date applications 7% higher than the same period last year.

    For landlords and investors, this could signal a window of opportunity to refinance existing mortgages at potentially more favorable rates, especially with 70,000 fixed-rate mortgage maturities expected in the second half of the year.

    What Should Brokers Watch for Next?

    Brokers should pay attention to MAB’s upcoming interim results, scheduled for 22 September 2026, as these will provide further insights into market dynamics and consumer behavior. The stability in adjusted profit before tax, expected to be around £14.6 million, indicates that MAB is managing to maintain profitability despite market fluctuations. Brokers may find opportunities in the refinancing market, particularly as MAB’s increased market share suggests a competitive environment.

    What This Means for the Mortgage Market

    The resilience shown by MAB in increasing its market share and revenue amidst a challenging environment highlights the adaptability of the mortgage market. Borrowers looking to refinance might find advantageous conditions, while brokers can capitalize on the evolving market by offering tailored advice and products. The anticipated increase in refinancing volumes due to fixed-rate maturities could lead to a more dynamic market in the latter half of 2026.

    Frequently asked questions

    What factors are influencing MAB’s growth in the mortgage market?

    MAB’s growth is primarily driven by an increase in property refinancing, which has been significant amidst changing consumer confidence and interest rate uncertainties.

    How can borrowers benefit from the current mortgage market conditions?

    Borrowers may benefit from refinancing opportunities, particularly with a notable number of fixed-rate mortgages maturing, allowing them to potentially secure better rates in a fluctuating market.

  • Recognise’s Gross Lending Rises 51% in Mortgage Market

    Recognise’s Gross Lending Rises 51% in Mortgage Market

    Recognise has reported a significant 51% increase in gross lending, with its bridging loan balances more than doubling. This surge highlights a growing trend in the mortgage market, particularly for bridging finance, which is becoming increasingly popular among borrowers.

    TL;DR: Recognise’s gross lending rose 51%, with bridging balances soaring from £124m to £303.8m; this growth signals a robust demand for short-term financing solutions in the mortgage market.

    What Led to Recognise’s Growth?

    Recognise’s loan book has surpassed £500 million, with bridging loans now constituting two-thirds of its total lending portfolio. The bank reported that professional buy-to-let (BTL) lending remained stable at £88.4 million, showing only a slight increase from the previous year. In contrast, commercial lending saw a decline from £58.8 million to £49.5 million, indicating a shift in borrower preferences towards more flexible financing options.

    How Are Regional Markets Performing in the Mortgage Market?

    Regionally, London continues to dominate, with lending rising from £88.3 million to £153.2 million. The South East also experienced growth, increasing from £54.9 million to £95 million, while the North West saw a rise from £66.2 million to £77.5 million. This regional performance suggests that demand for mortgage products is robust across key UK areas, particularly in urban centres.

    What This Means for Borrowers and Investors in the Mortgage Market

    For landlords and investors, the doubling of bridging loan balances indicates a thriving market for quick financing solutions, which can be advantageous for those looking to seize investment opportunities or manage cash flow. The growth in Recognise’s lending portfolio, alongside a net profit of £8.9 million after tax, suggests a healthy financial outlook for the lender, which may translate into more competitive offerings for borrowers in the mortgage market.

    What Should Brokers Watch Next?

    Brokers should keep an eye on Recognise’s plans to launch regulated bridging products in FY27, pending approval from the Prudential Regulation Authority (PRA). This move could diversify the options available to clients and enhance competition in the bridging sector. Additionally, Recognise’s focus on expanding its commercial mortgage and long-term property lending could present new opportunities for brokers to assist clients in navigating the evolving mortgage market.

    Frequently asked questions

    What impact does Recognise’s growth have on the mortgage market?

    Recognise’s growth reflects a strong demand for bridging loans, indicating a shift in borrower preferences towards flexible financing options, which may influence other lenders to adapt their offerings.

    How can borrowers benefit from Recognise’s new strategies?

    Borrowers may benefit from increased competition and potentially better rates and terms as Recognise expands its product offerings, particularly in the bridging and commercial mortgage sectors.