Chat to a team member

Press Releases

Octane Capital sees 27% uplift in enquiries from portfolio landlords following Prudential Regulation Authority changes

Octane Capital Octane Capital
Posted on Dec 01, 2017 | in Press Releases

Emphasis on manual underwriting sees balance of power within portfolio buy-to-let shift from high street to specialist lenders

Third generation bridging lender, Octane Capital, today announced a 27% increase in enquiries from portfolio landlords during October and November compared to August and September.

The increased demand is an immediate effect of the new Prudential Regulation Authority rules, which have made the underwriting for landlords with four or more mortgaged properties significantly more demanding.

The majority of the enquiries Octane Capital is receiving are from smaller portfolio landlords who often lack the sophisticated financial management of their larger counterparts — and are therefore less palatable for the banks.

In May, in a UK first, Octane Capital launched without a product sheet, instead opting to structure loans on a highly bespoke basis and price according to risk.    

Jonathan Samuels, CEO, Octane Capital, commented:

"The PRA changes have placed a far greater emphasis on manual underwriting for portfolio landlords, which is something high street lenders simply don’t have in their DNA. The new stress-testing rules mean less box-ticking and more bespoke analysis of the way a portfolio is constructed, which not only requires a greater skill-set but is time-consuming, potentially squeezing margins. This is especially the case for non-standard borrowers, whose circumstances will often add even more complexity. As we see it, the PRA changes will trigger a paradigm shift within portfolio buy-to-let lending, moving the balance of power away from the high street to the growing ranks of specialist lenders who are more at ease with the type of underwriting now required. Just two months in since the new rules came into effect, and we are already seeing a clear uplift in enquiries from portfolio landlords.”

More in this section

Rick Hollingsworth

Rick Hollingsworth joins Octane Capital as Senior Structured Finance Manager

Oct 15, 2018 | Press Releases

Third generation lender, Octane Capital, today announced it has…

Octane Capital
Octane Capital
READ MORE

Donna-Louise House joins Octane Capital as Senior Credit Manager

Oct 12, 2018 | Press Releases

Third generation lender, Octane Capital, today announced it has…

Octane Capital
Octane Capital
READ MORE

Octane Capital hits £100m of redemptions in just 15 months

Sep 12, 2018 | Press Releases

‘Product-less’ lender, Octane Capital, today announced it has…

Octane Capital
Octane Capital
READ MORE
Sections
Archive
Twitter
Follow us @octanecapital

5 days, 17 hours ago
Octane Capital hires senior structured finance manager https://t.co/KN8eQ1fOSl via @MortgageChat

3 months, 2 weeks ago
RT @adaptfinance: Frank keeping an eye on the matchballs #OctaneCapitalCup A great day out for us and for Frank... https://t.co/wuNTCpe1Rp

3 months, 3 weeks ago
RT @CapitalB18: whilst the Bridging Broker market play football this afternoon #octanecapitalcup we are open for any of those deals… https://t.co/FjU7nIcdqg

4 months ago
@TandonHild Delighted although not that pleased with our teams selected #Rigged