With autumn now underway and the end of the year getting closer, it will be interesting to see what the next few months bring. For now, we’re taking another look at what’s happening across the market.

Latest NapeX News

We’re happy to share that it’s been a great year so far for NapeX Finance, and having a fantastic team behind the business has played a big part in that. We also know how important it is to keep investing, in our people, our processes and the systems that help us deliver the best possible service for our customers.

Our own internal lending sourcing system now includes up to 400 lenders, giving us even greater scope when it comes to finding the right lender and structuring a deal, whether it’s complex or straightforward.

And that breadth of choice isn’t just for specialist finance. We’re also continue to help with straightforward Buy-to-Let, so whatever your property finance requirements, speak to us.

Market Trends

Shorter Fixes Attracting Attention

One trend we’re seeing particularly within Buy-to-Let is customers opting for shorter-term fixed products. The overall mortgage term may still be 25 or 30 years, but rather than fixing for longer, some borrowers are choosing shorter products to give themselves more flexibility. Will rates be cheaper in two years’ time? Nobody knows, but it’s certainly influencing the decisions being made today.

We’re also seeing lenders introduce one-year fixed products, giving borrowers another option if they would prefer to see what the next year brings before committing for longer.

London

Renewed Interest In The Capital

We’re seeing renewed interest in London from a purchase point of view, with some interesting opportunities emerging for residential property investors.

In particular, we’re seeing clients purchasing investment properties that are achieving good rental yields, which can also make them easier to fund. On suitable cases, we’re typically achieving around 75% Loan to Value. As always with London, location matters, but it’s certainly a market we’re watching closely.

Rental Market

Changes Ahead for Landlords

With the rental reform act bringing changes to the way landlords and agents manage tenants and tenancies, there is likely to be more administration involved, particularly for letting agents. In turn, this could lead to increased management costs for landlords, making it even more important to factor the ongoing management of a property into investment decisions.

Help To Buy

Potential Revived Support For First-Time Buyers

There has also been recent news around a potential new Help to Buy scheme, which could provide first-time buyers with equity support of up to 25%.

If introduced, it could provide a welcome boost for first-time buyers looking to get onto the property ladder, as well as developers across the market by helping to support demand for new homes. We’ll be keeping a close eye on how the proposals develop.

Recent Completions

A Look at our Latest Deals

We’re always proud to share the variety of projects we work on with our customers, and these two recent completions are great examples of the different deals we’re helping to get over the line.

Prime London Investment
We’ve recently completed two facilities totalling £11.625 million on two prime, single-let properties in London. Finance was secured at 75% Loan to Value on an interest-only basis and at a very competitive rate.

These weren’t easy deals to place, but by carefully structuring the facilities and approaching the right lenders, we got them completed. Great result for our customer.

Specialist Retail Refinance
We’ve also completed the refinancing of a specialist food and retail market in Milton Keynes.

Our client purchased the property and split it into a number of smaller units. We have now refinanced these onto a long-term facility, releasing capital and allowing the customer to move on to their next deal.

Current Rates

What We’re Seeing Right Now

There continues to be plenty of activity across both investment and development finance, with a good range of options available depending on the deal.

Buy-To-Let & Specialist Finance
In the traditional Buy-to-Let market, rates are currently starting from around 4.65%, while specialist residential finance, including HMOs, blocks of flats and more complex loans, is starting from around 4.75%.

We’ve also seen the UK 30-year gilt yield move above 6%, its highest level since 1998. While this doesn’t translate directly into mortgage rates, rising bond yields can put further pressure on the cost of borrowing and the rates lenders are able to offer.

So, if you have a deal in mind, now may be the time to act rather than leaving it too long. Products and pricing can move quickly, so speak to us early and we can look at the options currently available.

For loans of £750,000+, we also have access to fee-free products across residential, semi-commercial and commercial finance, with Loan to Value up to 75%, subject to the individual case and lender criteria.

The fee-free offering has now been extended until the end of the year, so if you have an application in mind, now is a good time to speak to us.

Development Finance
For lower Loan to Value requirements, funding is available from around 3.5% over base rate. Within the specialist mid-market, facilities are available from around 4.5% over base, with funding up to 70% Loan to Gross Development Value and 90% Loan to Cost, subject to lender criteria.

And it’s not just traditional housing. We’re seeing finance supporting a growing mix of projects, including student accommodation, industrial developments and new commercial schemes, another positive sign of activity across the market.

Looking Ahead

Take the Longer-Term View

As we head towards the final quarter of the year, we’re encouraging our customers to keep reviewing their investment strategy and to take a longer-term view of property.

Rates may feel high today, but they won’t necessarily remain at these levels forever. Alongside the cost of borrowing, it’s important to consider potential capital appreciation, rental growth and the future value of an asset. Rather than looking only at what an investment costs today, consider what that property could look like in five or ten years’ time.

Get In Touch

If any of the topics listed above are of interest to you, or you simply want to contact our knowledgeable team to discuss your projects and plans, get in touch via our Contact Us page.