Hampshire Trust Product Range - Specialist Commercial Finance

Commercial Mortgage & Bridging Finance Product Range

Version 1.5

in association with

CONTENTS l

Page 3

Introduction Introduction of our services by Tony Sutton, MD of Specialist Commercial Finance and a little bit about Hampshire Trust Bank Plc

l

Standard Product Rage

4

Residential Buy To Lets and HMO's £100,000 to £10 million+. Variable and Fixed Rate product range. Lender fees are excluded from LTV.

l

Commercial & Mixed Use Property Product Range

5

Semi Commercial and Commercial products from £100,000 to £10 million. Variable Rate product Range. Lender fees are excluded from LTV.

l

Refurbishment & Pre-Planning Consent Products

6

Refurb products that do away with the need for a separate bridging loan to complete property refurbishment and a Pre-Planning Consent product that allows your client to purchase a property subject to planning permission. Lender fees and accrued interest are added to the LTV.

l

Development Exit Product

7

This product supports developers who have reached 'practical completion' on a development and wish to re-finance or raise additional funds. The target market is experienced developers seeking to refinance small to medium sized residential developments. Terms available to 12 months, LTV's to 70% with lender fees and accrued interest added to the maximum LTV.

l

Bridging Finance Products & Master Broker Exclusive

8

Not just another bridging loan - this really is unique in the market. Terms available to 24 months, with lender fees and accrued interest added to the maximum LTV.

l

Valuation Fee Scale

9

Valuation fees are inclusive of VAT.

l

Legal Fee Scale

10

Lender's legal fees are excluding VAT and disbursements.

l

The Process and Your Earnings

11

Introduced Only or Packaged Service, together with the Hampshire Trust Bank key stage process and the commissions you can earn.

Visit

www.SpecialCommercialFinance.co.uk

Email

[email protected]

call

0800 810 1444 free Page 2

Introduction Welcome to our Hampshire Trust Product Guide, detailing the products currently available to you as an existing or new valued business partner. Hampshire Trust Bank is a UK bank formed in 1977 and up to 2016 had focused on asset finance and property development finance. They also provide competitive Savings accounts to individuals and businesses. Prior to their launch of Buy to Let and Commercial Mortgages, SCF were one of the first companies they approached to become a distributor/packager of their products. Our aim has always been to become their largest introducer of their Buy to Let, Mixed Use, Commercial Mortgage and Short Term Finance product range, something we are proud to have achieved in 2016. Their proposition is aimed at the marketplace currently dominated by Aldermore, InterBay and Shawbrook Bank. In my opinion, with the quality of their staff and service proposition, they will continue to set the Specialist Commercial Lending sector alight. What sets Hampshire Trust Bank apart? l Residential BTL's with a rental calculation that allows you to offer larger loan advances than other lenders. Coverage from just 125% required; l Commercial/Mixed use with rent coverage as low as 125% and NO interest rate loading; l An established UK bank; l Limited packager panel, which allows them to concentrate on providing a fantastic service. About Specialist Commercial Finance (SCF) Established in 2005, SCF is a family run company that has grown to be a major force in the specialist commercial finance market. I personally believe this is the most exciting period for our industry since I began my financial services career with a commercial lender in 1983 and I have tremendous confidence for the future. I look forward to talking to you about your next enquiry in the near future. Tony Sutton Managing Director Specialist Commercial Finance Visit

www.SpecialCommercialFinance.co.uk

Email

[email protected]

call

0800 810 1444 free Page 3

NEW 5 YEAR FIXED RATES LIBOR is

Buy To Let property Loan size £100,000-£499,000 £500,000 + £100,000 +

Rate *3 month LIBOR+ *3 month LIBOR+ 5 year fixed

50% 4.10% 3.45% 4.50%

55% 4.20% 3.55% 4.50%

50% 4.40% 3.75% 4.50%

Loan to Value 55% 65% 70% 75% 4.40% 4.40% 4.50% 4.70% 3.75% 3.75% 3.85% 4.00% 4.50% 4.50% 4.75% 4.75% * 3 month LIBOR is subject to a minimum rate of 0.75%

HMO property Loan size £100,000-£499,000 £500,000 + £100,000 +

Rate * *3 month LIBOR+ *3 month LIBOR+ 5 year fixed

Loan to Value 65% 4.30% 3.70% 4.50%

Location • England and Wales Term • Minimum term available is 2 years, maximum 30 years. Repayment options • Interest Only - maximum 10 year term. • Capital & Interest - maximum 30 year term • Interest Only option can be taken up to 10 years followed by Capital & Interest for remaining term, maximum term 30 years Larger loans over £1,000,000 • Loans up to £7.5m will be approved by Credit Committee • Loans over £7.5m approved at board level Maximum LTV per title • 75% LTV (plus fees) to £2.5m • 70% LTV (plus fees) to £3m • 65% LTV (plus fees) over £3m Minimum rental coverage required • Variable loans - calculation based on a minimum of 5% • 5 year fixed rate loans - calculation based on pay rate Sector Experience • Minimum of 2 years relevant sector experience at managerial level or similar. HMO Licence Criteria • Licences are required within 12 months of completion for purchase according to local planning rules. • A Licence must be in place at outset for remortgage of HMO. Clients • Loans can be made to individuals, partnerships, limited companies, LLPs, trusts, pension schemes, ex-pats and offshore trusts.

70% 4.40% 3.80% 4.75%

0.75% 75% 4.50% 3.85% 4.75%

Excluded Property Types - please refer to SCF • Bedsits, ex-council flats if block minority owned and poor area, single security with less than 30 sq. metres floor space, freehold single flats Interest Rate • Interest rate is margin plus Libor. • Libor is a minimum of 0.75% and this applies until Libor gets to 3% at which point the minimum Libor rate becomes 3%. The start rate on the individual loan is the lifetime floor for that loan. Arrangement Fee / Booking Fee • Variable loans - 1.50% arrangement fee (of which 0.25% booking fee is payable on acceptance of the offer and is non-refundable.) • 5 year fixed loans - 1.70% arrangement fee (of which 0.25% booking fee is payable on acceptance of the offer and is non-refundable.) • The balance of the arrangement fee can be added to the loan (without increasing the interest rate banding) or can be deducted from the advance. ERC (Early repayment charge) • Variable loans - 3% in the first 5 years and 1% thereafter for the life of the loan (except in the final month). • 5 year fixed loans - 4% in the first 2 years, 3% in years 3 to 5 and 1% thereafter for the life of the loan (except in the final month). • Client may repay up to 10% of the balance of the term loan outstanding in any 12 month period without notice and without incurring any early repayment charge. Ex-pats • 0.25% loading will be added to margin Credit History • At least 2 years with no adverse credit.

Interest Coverage Ratio Calculation Classic (Buy to Let, HMO 4 units) Limited Co, LLP Personal Limited Co, LLP Personal 150% 160% 125% 140% Interest Coverage Ratio Stress Remortgage no capital raise Fixed rate policy Classic Complex Interest only payment against the Interest only payment against the open market rent with a minimum open market rent with a minimum 5% stress rate or pay rate, Interest cover ratio stressed on "Fixed rate of 5.5% or the pay rate, rate of 5.5% or the pay rate, whichever is higher Rate" pay rate whichever is higher whichever is higher

call

0800 810 1444 free Page 4

LIBOR is

0.75%

Semi Commercial / Mixed Use property Loan size £100,000-£499,000 £500,000 +

Rate * *3 month LIBOR+ *3 month LIBOR+

Loan to Value 65% 5.10% 5.10%

50% 5.10% 5.10%

55% 5.10% 5.10%

70% 5.30% 5.20%

75% 5.70% 5.60%

50% 5.25% 5.20%

Loan to Value 55% 65% 70% 75% 5.25% 5.65% 5.85% 6.10% 5.20% 5.60% 5.80% 6.25% * 3 month LIBOR is subject to a minimum rate of 0.75%

Commercial property Loan size £100,000-£499,000 £500,000 +

Rate * *3 month LIBOR+ *3 month LIBOR+

Location • England and Wales Product details: Term • Minimum term available is 2 years, maximum 30 years. Repayment options Available on all products: • Interest Only - maximum 10 year term. • Capital & Interest - maximum 30 year term • Interest Only option can be taken up to 10 years followed by Capital & Interest for remaining term, maximum term 30 years Larger loans £1,000,000 to £7,500,000 • Loans will be approved by Credit Committee Larger loans over £7,500,000 • Loans approved at board level Maximum LTV per title • 75% LTV (plus fees) to £2.5m • 70% LTV (plus fees) to £3m • 65% LTV (plus fees) over £3m Minimum Debt Service Cover Ratio (DSCR) • Subject to a minimum margin assumption of 4.25% above 3 month LIBOR • Semi-commercial 125% • Commercial 125% Sector Experience • Minimum of 2 years relevant sector experience at managerial level or similar. Credit History • Good credit history is required – at least 2 years with no adverse credit.

call

Excluded Property Types • Heavy industrial, petrol stations, religious property, hostels, equestrian centres, public houses, agricultural properties, catteries, kennels, golf clubs, hospitals, mobile home parks garden centres, telecommunication masts and all other uses within Classes A4, C2, C2A and D2 of the T & CP Use classes Order 1987 or those properties listed as Sui-Generis. Interest Rate • Interest rate is margin plus Libor. • Libor is a minimum of 0.75% and this applies until Libor gets to 3% at which point the minimum Libor rate becomes 3%. The start rate on the individual loan is the lifetime floor for that loan. Arrangement Fee / Booking Fee • 1.50% arrangement fee (of which 0.25% booking fee is payable on acceptance of the offer and is non-refundable.) • The balance of the arrangement fee can be added to the loan (without increasing the interest rate banding) or can be deducted from the advance. ERC (Early repayment charge) • 3% in the first 5 years and 1% thereafter for the life of the loan (except in the final month). • Client may repay up to 10% of the balance of the term loan outstanding in any 12 month period without notice and without incurring any Early repayment charge. Clients • Loans can be made to individuals, limited companies, LLPs, partnerships, trusts and pension schemes. • Ex-pats and offshore trusts are acceptable. Ex-pats • 0.25% loading will be added to margin

0800 810 1444 free Page 5

Rates quoted are on a monthly chargeable basis

Refurbishment & Pre Planning Products Refurb only Loan Size £100,000+ £100,000+

LTV 60% 0.60% 0.65%

LTV 70% 0.65% 0.75%

Refurb to Term - on conversion to term product the standard BTL/HMO rates apply Loan Size Type £100,000+ Refurb Phase £100,000+ Heavy Refurb Phase

LTV 60% 0.60% 0.65%

LTV 70% 0.65% 0.75%

Pre Planning to Refurb Loan Size £100,000+ £100,000+

LTV 60% 0.80% 0.70%

LTV 70% 0.90% 0.80%

LTV 60% 0.80% 0.70%

LTV 70% 0.90% 0.80%

Type Refurb Heavy Refurb

Type Pre Planning Phase Heavy Refurb Phase

Pre Planning Refurb to Term - on conversion to term product the standard BTL/HMO rates apply Loan Size Type £100,000+ Pre Planning Phase £100,000+ Heavy Refurb Phase Refurb Definition

• Internal re-configuration of non-loan bearing nature, replacement windows/doors/flooring, re-siting bathrooms/kitchens. The refurbishment works should not exceed more than £500,000.

Heavy Refurb Definition • Works requiring planning permission, extensions, loft conversion, change of use, or re-configuration of load bearing walls etc. The works should not exceed more £500,000.

Pre Planning Definition

Lender Arrangement Fees

• When the project is waiting planning consent before works can start

• The arrangement fee can be added to the loan (without increasing the interest rate banding) or it can be paid on completion. • Any increase of loan amount on conversion to a Term Product will attract a net fee of 0.5% (i.e. net of proc fee). • Refurb only - 2% arrangement fee • Refurb To Term - 3% arrangement fee • Pre Planning to Refurb - 3% arrangement fee • Pre Planning Refurb To Term - 3% arrangement fee Maximum LTV per title • Maximum LTV 70% for advances up to £1m (plus fees and rolled up interest to a maximum of 77% of original value) • Maximum LTV 65% for advances up to £2m (plus fees and rolled up interest to a maximum of 72% of original value) • Maximum LTV 60% for advances over £2m (plus fees and rolled up interest to a maximum of 67% of original value)

Location • England and Wales

Repayment Term • Minimum term 3 months • Maximum term up to 18 months • Term product up to 30 years

Semi Commercial Property • Max 40% of MV can be commercial but must be pre-let.

Interest Roll Up • Maximum of 12 months, monthly repayments thereafter • Max 7% increase in LTV shown above to include interest & fees

Target Market • Borrowers with a demonstrable track record of successfully

Extension Default Fee

undertaking similar schemes.

ERCs

• If refurbishment works are not carried out in the agreed

• Short term products have no ERC but minimum interest charge

timescales or within the initial term, a default charge of 0.25% pcm will be applied (3% p.a.).

is 3 months. For Term Products standard ERC's apply.

Acceptable Security

Key selling point

• Freehold or long leasehold (minimum 55 years unexpired remaining at the end of the mortgage term)

• LTV is for the net loan, both the lender fee and monthly

call

interest are ADDED to the loan

0800 810 1444 free Page 6


Development Exit Product Development Exit Loan Size £100,000+ £100,000+

LTV 60% 0.70% 0.70%

Type Up to 6 months Up to 12 months

LTV 70% 0.70% 0.75%

Development Exit Definition • Secured against completed developments (single units or multiple units) for the purpose of exiting development finance whilst the properties are marketed for sale. Development must have been completed for less than 12 months.

Location

Early Repayment Charge • No ERC (min interest charge 3 months)

• England & Wales

Loan Repayment • 100% of the sales proceeds will be applied in reduction of the loan, until the LTV reaches 50% or less, after which the surplus sale proceeds can be retained by the borrower, provided the loan is still redeemed within the term.

Maximum LTV per title • Maximum LTV 70% for advances up to £1m (plus fees and rolled up interest to a maximum of 77% of original value) • Maximum LTV 65% for advances over £1m (plus fees and rolled up interest to a maximum of 72% of original value)

Arrangement Fee

Extension Default Fee

• 2% - the arrangement fee can be added to the loan; or it can be paid on completion.

• If property is not sold or refinanced within the original term agreed, a default charge of 0.25% pcm will be applied (3% p.a)

Term

Key selling point

• Minimum term 3 months • Maximum term up to 18 months

• LTV is for the net loan, both the lender fee and monthly

Interest roll up

Clients • Loans can be made to individuals, limited companies, LLPs, partnerships, trusts and pension schemes. • Ex-pats and offshore trusts are acceptable.

interest are ADDED to the loan

• 6 or 12 months • Interest can be rolled up or paid monthly. • Max 7% increase in LTV shown above to include interest & fees

call

0800 810 1444 free Page 7


Bridging Finance Bridging Loan Size £100,000+

LTV 50% Min 0.70%

LTV 60% Min 0.75%

LTV 65% Min 0.80%

LTV 70% Min 0.90%

Market leading commercial & semi commercial interest rate. Residential also acceptable Bridging/Refurbishment/Development Exit Loan Size £250,000+

LTV 60% 0.60%

LTV 65% 0.65%

Location

Excluded Property Types

• England & Wales

• Fuel stations • Hostels • Agricultural • Freehold single flat • Heavy Industrial • Bars/Public Houses • Residential Care Homes • C2, C2A, D2 • Places of Worship

Arrangement Fee • 2% - The arrangement fee can be added to the loan; or it can be paid on completion.

Term • Minimum term 3 months • Maximum term up to 24 months • Maximum term up to 12 months on exclusive product

MASTER BROKER EXCLUSIVE

Extension Default Fee • If property is not sold or refinanced within the original term agreed, a default charge of 0.25% pcm will be applied (3% p.a)

Interest • Interest can be rolled up or paid monthly. • Max 7% increase in LTV shown above to include interest & fees

Maximum LTV per title • Maximum LTV 70% for advances up to £1m (plus fees and rolled up interest to a maximum of 77% of original value) • Maximum LTV 65% for advances over £1m (plus fees and rolled up interest to a maximum of 72% of original value)

Early Repayment Charge • No ERC (min interest charge 3 months)

Exit Strategy • Evidence of a satisfactory exit strategy proposal is required at the point of application

Master Broker Exclusive only Fully packaged case submission required on Day 1 • Full DiP & Mortgage Application Form • 3 month's bank statements from borrower/director • Certified address & ID verification • Portfolio schedule • Satisfactory explanation from client/broker of exit strategy • Telephone interview or client meeting (to be arranged during process) • Schedule of works, costings and timeline (to be arranged during process) • Sector experience

call

Clients • Loans can be made to individuals, limited companies, LLPs, partnerships, trusts and pension schemes. • Ex-pats and offshore trusts are acceptable.

Key selling points • LTV is for the net loan, both the lender fee and monthly interest are ADDED to the loan • Advances can be secured on - Residential property - HMO's - Mixed use / Semi Commercial property - Commercial property

0800 810 1444 free Page 8

Valuation Fee Scale The valuation fee is payable by the applicant prior to valuation instruction. The prices listed below are a guideline and may be subject to change. Fees are non-refundable once the valuer has visited the property. All valuations above £1million are subject to negotiation.

Standard Commercial & Semi commercial & Large HMO

Buy to Let Estimated valuation or purchase price up to £150,000 £200,000 £250,000 £300,000 £400,000 £500,000 £600,000 £700,000 £800,000 £900,000 £1,000,000 Over £1,000,000

Estimated valuation or purchase price up to £200,000 £250,000 £300,000 £400,000 £500,000 £600,000 £700,000 £800,000 £900,000 £1,000,000

Total fee (including VAT) £220.00 £270.00 £310.00 £350.00 £420.00 £480.00 £540.00 £600.00 £670.00 £740.00 £820.00 by agreement

Fees for higher value propositions may be subject to negotiation

Small HMO's (3-6 occupants) Estimated valuation or purchase price up to £150,000 £300,000 £400,000 £500,000 £600,000 £700,000 £800,000 £900,000 £1,000,000 Over £1,000,000

Total fee (including VAT) £830.00 £910.00 £1,050.00 £1,160.00 £1,290.00 £1,420.00 £1,540.00 £1,650.00 £1,820.00 £2,040.00

Total fee (including VAT) £500.00 £540.00 £610.00 £660.00 £740.00 £800.00 £910.00 £990.00 £1,040.00 by agreement

£1,250,000 £1,500,000 £1,750,000 £2,000,000 £2,500,000 £3,000,000 £3,500,000 £5,000,000 over £5,000,000

£2,370.00 £2,640.00 £3,030.00 £3,300.00 £3,580.00 £3,850.00 £4,400.00 £4,680.00 by agreement

Re-types * Re-inspections Revaluations

by agreement by agreement by agreement

* Re-types are only considered if instructed by a lender and are subject to time-restraints

The legal fee and valuation fee scale is for mortgage professionals only and not intended for use by the general public. All rates, programmes and pricing are subject to change at any time and without prior notice.

call

0800 810 1444 free Page 9

Legal Fee Scale Buy to Let + HMO Loan Size up to £300,000 £500,000 £750,000 £1,000,000 £1,000,000 +

Fees (Excluding VAT & disbursements) £750 * £850 * £950 £1,050 £1,150 or 0.1% of loan (whichever is greater) * Minimum £850 for Limited Company Loans

Standard Commercial & Semi commercial Fees (Excluding VAT & disbursements) £1,250 £1,450 £1,650 £1,950 £2,250 or 0.1% of loan (whichever is greater)

Loan Size up to £300,000 £500,000 £750,000 £1,000,000 £1,000,000 +

Additional Properties Fees (Excluding VAT & disbursements) £350 £650 £950

Loan Size up to £500,000 £1,000,000 £1,000,000 + VAT and disbursements are payable in addition to the above

call

0800 810 1444 free Page 10

The Process We offer two ways of submitting business to us. Introducer Only If Commercial, Specialist Buy to Let and Bridging do not form part of your core business, you can submit enquiries to us on an 'Introducer' basis. You can either provide just the applicant's name and address or alternatively submit a completed Decision in Principle form. Either way you will still earn superb commission for very little work. Packaged Case This service is only available to experienced Commercial and Buy To Let Mortgage brokers. For experienced commercial brokers, Specialist Commercial Finance offers a packager facility that provides you with full access to Hampshire Trust's fantastic product range and enhanced commission. You will have full control over the enquiry and we will not have any customer contact. Our role is to source the best products available from our lender panel and guide you through the process, all the way to completion. This facility is only available to brokers with a proven track record of processing commercial, semi commercial, HMO, specialist residential buy to let and bridging applications. Packaged Process Key Stages

Submit DiP Proposal Form

Decision in Principle received

You request Support items

We Instruct survey

We submit application & other items to HTB

Survey received, Formal Offer issued (FO)

Solicitors instructed

FO received & booking fee paid

Solicitors finalise legal needs

Funds released

Your income is paid to you the same day

Commissions payable Commissions are paid into your nominated bank account on the day of completion. Residential & HMO variable rate product Residential & HMO fixed rate product Commercial & Mixed Use Product Range Refurb Product Refurb to Term Product Pre-Planning Consent Refurb Product Pre-planning Refurb to Term Product Developer Exit Product Bridging Finance

Packaged Cases £249,999

0.60% 0.68% 0.60% 0.80% 1.00% 1.00% 1.00% 0.80% 0.80%

0.75% 0.85% 0.75% 1.00% 1.25% 1.25% 1.25% 1.00% 1.00%

PLEASE NOTE Our Packaged option is only available to experienced commercial brokers, with a track record in commercial finance and proof direct agencies are held with competitors of Hampshire Trust Bank.

Please remember! If you also want to charge a broker fee, this can be deducted from the advance on completion and you receive 100% of the fee charged. We do not make any deductions and there is no cap on the fee.

call

0800 810 1444 free Page 11

Address: Audley House, Northbridge Road, Berkhamsted, Hertfordshire, HP4 1EH

Telephone: 0800 810 1444 or 01442 899130 Fax: 0800 810 1005 or 01442 873847 Email: [email protected] Website: www.SpecialCommercialFinance.co.uk The product guide is for mortgage professionals only and not intended for use by the general public. All rates, products and pricing are subject to change at any time and without prior notice. Mortgages are subject to valuation and underwriting approval. All telephone calls are recorded for training and compliance purposes. Specialist Commercial Finance is a trading style of Specialist Financial Services Limited. Registered in England, No. 5309450. Registered office: 119 The Hub, 300 Kensal Road, London, W10 5BE. Specialist Financial Services Limited is authorised and regulated by the Financial Conduct Authority, FRN 676853. Specialist Commercial Finance and the Specialist Commercial Finance logo are registered trademarks of Specialist Financial Services Limited.

Lender/Hampshire/SCF Hampshire Product Guide 2017-03-22 v1.5