Greymax Capital joins The Association of Short Term Lenders

Greymax Capital has become the latest lender to join the Association of Short Term Lenders (ASTL).

Based in London, Greymax Capital offers a return to true relationship bridging, operating with private capital and providing direct access to its principals and underwriters. As seasoned property agents, investors and developers the directors of Greymax Capital understand property and its many intricacies.

Michael Kingsley, Director at Greymax Capital, says: “As a lender with experience on both sides of the transaction, we wanted to bring back true relationship lending, the way it used to be. We are delighted to have been accepted into the ASTL and look forward to continued growth with their valuable support.”

Vic Jannels, CEO of the ASTL, says: “I’d like to welcome Greymax Capital to the ASTL. Like all of our members, by joining the ASTL, Greymax Capital is demonstrating its commitment to upholding the highest of standards and promoting our Code of Conduct.

“The ASTL Code of Conduct is a kitemark of quality throughout the industry and a commitment that lenders will act in a professional manner, with honesty and integrity in their dealings with customers. I would encourage all brokers seeking a short term lending solution for their clients, to look for ASTL membership as a badge of quality.”

PRESS RELEASE:  MONDAY, 11^TH JANUARY 2021

Finding strength in adversity

I had originally written this article prior to the very sad news of the passing of Benson Hersch, who was my predecessor as CEO of the ASTL, a good friend and colleague. I titled the article “Finding strength in adversity” and, if anything that title holds more truth today than it did at the time of first writing.

On behalf of the Board, I can say that Benson is the reason why the ASTL is where it is today. He took the reins of the membership and transformed it into an association that was more representative of the industry, with a clear purpose to improve standards and encourage sustainable growth of the sector. Even after his retirement at the end of last year, he maintained a close interest in the sector and has been of amazing support to me during my tenure. To say that he will be sorely missed is an understatement. He was an incredibly warm and insightful man, and he has played a significant role in the careers of many people within the industry. Benson had been poorly for some time and our thoughts and prayers go out to his wife, Phileshia, and children.

It is important that we take moment to mourn the loss of Benson, but we should also celebrate the life of a man who was such a positive influence on the lending industry. And if this year has taught us anything, it is that we can find strength in adversity.

Benson handed the mantle of CEO to me at the beginning of the year. I have always been up for a new adventure, so I was delighted to accept the invitation and help to build on the fantastic work he had achieved with the Association.

I was pretty certain it would prove daunting but having been a broker, packager, , distributor, lender, choir leader, football manager and school governor, amongst many other things – I have always enjoyed turning my hand to something new and, loving the mortgage marketplace generally, I was ready for a fresh challenge.

The role started at the beginning of January and the year looked like it was starting well for everyone, with the early weeks of activity promising exciting times ahead for the whole of the mortgage market.

My plan was to get to know as many of the ASTL lenders and associate members as early as possible in my term of office and I started planning how best to incorporate members in regional gatherings where we would have the opportunity to discuss the ASTL and their aspirations for its future.

Benson had done a great job in shaping the Association as one of the most respected trade bodies in the whole of the lending industry. Our robust rules and Code of Conduct meant that membership of the ASTL was truly seen as a kitemark of quality. We now needed to review how to take the association further, grow our membership, and to establish a louder voice in dealing with urgent and contentious issues affecting our market.

So, I entered into initial dialogue with our friends at FIBA and the NACFB and also opened a dialogue with Robert Sinclair at AMI, where I had been a co-opted board member around the time of regulation.

Things were very much going to plan – and then Covid-19 arrived, bringing the business of UK Plc to its feet in a short period of weeks.

Under enormous pressure to curtail the virus, the government took the unprecedented step of  effectively closing down the economy, including the mortgage world. This put a ‘pause’ in the housing market, which was understandable, and probably necessary, and it would be unreasonable to criticise any immediate action given the deadly nature of the virus.

Lenders also faced additional burdens such as the moratorium on mortgage payments and the introduction of CIBLS and Bounce Back loans and, while it was important that we were supportive of these measures, it was also clear that there was room for education amongst policy makers about the short-term lending market, its important role in the economic recovery and the impact of a broad brush approach to measures.

And so, at the ASTL, we were proactive in engaging with both HM Treasury and the FCA to provide a voice for our members, and our sector. Establishing a channel for open dialogue has not been an easy process. We have needed to show persistence and try different avenues before eventually establishing relationships with the most relevant people at the Treasury. But now we have those relationships we have a platform from which to engage on future policy decisions, I believe that we are in a stronger position on this front than we were at the beginning of the year.

We have shown throughout the year in the bridging industry and at the ASTL, that we are able to find strength in adversity. I have every belief that we will continue to do so and that we can build on Benson’s legacy to grow the size and reputation of our sector. For now, I hope you have a restful festive season and a peaceful new year.

Vic Jannels, CEO of the ASTL
A version of this article appeared in the December digital edition of Mortgage Introducer

ASTL calls for ongoing collaboration with with HM Treasury

The Association of Short Term Lenders (ASTL) has continued its ongoing dialogue with HM Treasury, with a letter proposing collaboration on any potential extension to the enforcement moratorium, following the latest national lockdown.

Within the letter, the ASTL says: “The health of the nation is paramount, and no member would knowingly seek to repossess a domestic residence where health concerns continue. With this in mind, we would like to repeat our assertion that a broad-brush approach to mortgage lending enforcement when it comes to measures such as this is ultimately detrimental to customer choice and access to finance.

“The initial moratorium came to an end in September and, while there have been no physical repossessions since, this has allowed for the progression of actions, where there has been legitimate cause, to a point where repossession might take place subject to the decisions of the court and when the wider health environment improves. Put simply, it has enabled the courts to make decisions on the correct course of action, based on the specific circumstances of an individual case. By enabling the machinery of the process to operate in this way, it has gone some way to allay the long-term liquidity concerns for some lenders and also mitigated against further logjams in the court system in the future.”

Vic Jannels, CEO of the ASTL, says: “The ASTL represents the interests of many of the short-term mortgage lenders in the United Kingdom, which have a collective loan book of more than £4.5bn and are responsible for annual lending of over £1bn. The bridging and development loans advanced by our members are a crucial source of finance for many thousands of SMEs and property developers, as well as private individuals and will be in even greater need following the end of CBILS and BBLS. With this in mind, we believe any extension to the moratorium will significantly slow down the recovery that all stakeholders are working towards.“

Jonathan Newman, Senior Partner at Brightstone Law and member of the ASTL Executive Committee, says:"As we have discussed previously with HM Treasury, short-term lenders are disproportionately impacted by the moratorium given the typical nature of their funding model and any return to a wholescale moratorium would significantly reduce the availability of finance when it is most needed as we emerge from the pandemic. We would very much welcome the opportunity of a further discussion on this matter.”

Press Release – Friday, 8 January 2021

Bridging applications hit record levels and completions bounce back in Q3 

Bridging applications hit their highest ever level in Q3 2020, and completions rose by more than 40% as the market bounced back from the impact of the first lockdown.

This is according to the latest figures compiled by auditors from data provided by members of the Association of Short-Term Lenders. The data shows that applications totalled £7.6bn in Q3 2020, representing an increase of 39.1% over the previous quarter and an increase of 25.7% on the same period in 2019.

Completions in Q3 2020 were £680 million, which is an increase of 44.8%  on Q2, although still down by 27.6% on the same period last year, reflecting the influence of the first national lockdown on the previous quarter’s originations activity.

Loan books showed a small increase of 0.6% on the previous quarter and 5% on the same period last year – remaining at around £4.5bn. While average LTVs increased slightly since Q2, but continue to remain at sub-60%.

The value of loans in default showed a small increase of 3.3% over Q2 2020 but were 23.1% higher than the same period last year, as borrowers continued to feel the financial impact of the pandemic.

Vic Jannels, CEO of the ASTL says: “The Q3 lending figures from the ASTL reflect feedback from the market demonstrating that this has been a hugely  busy period for bridging lending. Applications over the quarter totalled £7.6bn, which is the highest figure we have ever recorded. Completions also bounced back on the previous quarter but remain down on last year as an overhang of the first national lockdown. We’re unlikely to see this overhang again as the market remained open during the second lockdown – but we must still remain cautious about the future, as the road ahead remains full of economic uncertainty.

“That said, if the recent positive news about vaccines come to fruition and lenders continue to underwrite loans sensibly, whilst taking a proactive and collaborative approach to customers in default, then there is no reason why this quarter’s figures should not prove a strong foundation for a robust and sustainable recovery.”