NACFB & PATRON NEWS
Watch: NACFB CEO reflects on British Business Bank milestone
NACFB CEO Jim Higginbotham features in a commemorative video released by the British Business Bank yesterday as part of its tenth-anniversary celebrations. The video showcases insights from prominent industry leaders and organisations, highlighting the Bank’s significant impact over the past decade. Jim reflects on the NACFB’s longstanding partnership with the Bank, the collaboration between their delivery teams, and the future of their joint efforts. In the video, leaders from other key trade bodies, including the Federation of Small Businesses (FSB) and Responsible Finance, also spoke to the Bank’s growing role in improving access to finance for UK SMEs. The video accompanies the launch of the Bank’s Power of 10: 10 Year Impact Report, unveiled yesterday at the London Stock Exchange, at which the NACFB was also in attendance. The Bank’s full impact report can be found online here and partner video can be viewed online here.
NACFB, Industry update
NACFB CEO joins industry leaders at Royal Albert Hall
Yesterday, NACFB CEO Jim Higginbotham participated in the prestigious Leadership Live ’25 event at London’s iconic Royal Albert Hall. The event, hosted by LTi Technology Solutions, was themed around building a resilient culture and sought to navigate the evolving landscape in the asset finance sector. It brought together industry leaders to explore critical challenges in the sector. Jim joined a panel discussion titled ‘What Culture Means’, moderated by Julie Warren of NACFB Patron, Propel Finance. The panel also featured Jen Martin of LTi and Francois Roth of Invigors. Together, the panel shared with delegates insights on fostering resilience and adaptability in a fast-changing asset finance industry.
NACFB, Industry update
NACFB Partner spotlight: mnAi
Multi-award winning mnAi empowers brokers and lenders with accurate, up-to-date financial and non-financial data to help streamline due diligence and onboarding processes. With capabilities extending beyond basic data provision, mnAi allows finance professionals to uncover hidden connections and assess risks within their clients’ networks, helping them to make more informed decisions at every turn. Their solutions save time and resource by pinpointing clients that align perfectly with lending options and risk profiles, from traditional loans to specialist finance. Commenting, Ricky Cowan, managing director at mnAi, said: “Our data and technology can empower Members and Partners in critical areas such as risk mitigation, business development, and strategic planning, ensuring you not only stay informed but also gain a competitive edge in today’s dynamic business landscape.” Further information can be found here.
NACFB Partner, mnAi
Doc2 announces HubSpot integration feature
Doc2 has announced a new feature that allows agreements to be pushed directly into HubSpot, streamlining the management of customer data. This integration enables users to import data from HubSpot into their agreements and automatically push eSigned documents back, aligning perfectly with company and contact records. This ensures all customer interactions are centralised and easily accessible. Brokers are encouraged to book a free discovery call with the NACFB Partner’s experts to discover the benefits for your business.
Doc2, Press Release
Paragon lends £150m to boost Midlands developments
Paragon Bank’s development finance division lent nearly £150 million to developers and housebuilders in the Midlands last year, boosting much needed new homes across the region. The team supported 16 projects throughout the region in the year to 30th September 2024 (Paragon’s financial year), including schemes in Birmingham, Coventry, Derby, Nottingham and Wolverhampton. In terms of the split, £103 million was lent to developers in the West Midlands across 11 schemes, with £45 million financing five projects in the East Midlands. Overall, the NACFB Patron recorded new lending of £511.9 million across the UK during the period. Neal Moy, MD of Paragon’s development finance division, said: “We are committed to support more developers across the Midlands and, with our highly experienced team and the backing of a strong and profitable bank, we have the capacity and appetite to do so.”
Paragon Bank, Press Release
Aldermore reintroduces BTL limited-edition products
Aldermore has announced the reintroduction of several buy-to-let (BTL) limited edition two and five-year products for landlords, available immediately. For new customers, individual and company landlords with single residential investment properties can access a two-year fixed rate at 4.89% up to 75% LTV with a 3% fee. Five-year fixed rates are also available, including 5.99% up to 75% LTV with no fee, 5.69% up to 75% LTV with a 1.5% fee, and 4.99% up to 75% LTV with a 5% fee. For multi-property individual and company landlords with residential investment properties, a two-year fixed rate is offered at 4.84% up to 75% LTV with a 3% fee. Five-year fixed rates include 5.94% up to 75% LTV with no fee, 5.64% up to 75% LTV with a 1.5% fee, 4.94% up to 75% LTV with a 5% fee, and 5.89% up to 75% LTV with a £1,999 fee. Jon Cooper, director of mortgages at NACFB Patron Aldermore, commented: “We’re delighted to reintroduce these limited-edition products back into the market, providing more choice and favourable rates for landlords looking to secure a mortgage in the New Year.”
Aldermore, Press Release
Foundation Home Loans launches BTL limited-edition products
Foundation Home Loans has launched two new buy-to-let (BTL) limited-edition products with competitive rates and cash back to support your landlords. The NACFB Patron’s new F1 limited-edition five-year fixed rate mortgages include a 6.09% rate at 75% LTV with a £1,995 product fee, and a 6.34% rate at 80% LTV with the same fee. This new range is particularly suitable for landlords seeking larger loans, thanks to the competitive flat fee structure and the addition of the £350 cashback on both products.
Foundation Home Loans, Press Release
Handelsbanken appoints national head of intermediary business
Steve MacDonald has been appointed national head of intermediary business at Handelsbanken. Having spent the last two years developing the NACFB Patron’s proposition for residential mortgage brokers, Steve will be overseeing the delivery of its work with intermediaries right across the United Kingdom. MacDonald brings a wealth of experience and expertise to the role, having spent 12 years at Handelsbanken, including a decade as a branch manager. Previously, he spent 23 years with NACFB Patron NatWest, working across a number of sectors including management roles within credit, branches, business and corporate centres. Speaking on his appointment, MacDonald said: “In taking up my new role, I plan to bring even greater focus on the importance of the broker channel in the delivery of our ambitious growth aspirations – and, externally, to support our branch network in raising the profile of our intermediary proposition in their local areas.”
Handelsbanken, Press Release
Greg Hussey joins Time Finance as head of risk
Time Finance has announced the appointment of Greg Hussey as head of risk in its invoice finance division. Hussey joins the NACFB Patron with over 30 years of experience, most recently as a consultant working with a niche invoice financier, as well as head of risk at Santago Financial Solutions and managing director at Calverton Finance. In his new position, Hussey will be responsible for overseeing and implementing the group’s risk strategy, managing the risk team day-to-day, as well as finetuning the company’s approach to identifying, assessing, and mitigating financial risks. Speaking of his appointment, Hussey said: “After monitoring the growth and success of the business over a number of years, I am proud to have the opportunity to be part of it and help elevate their risk strategy in 2025 as the company builds on successes achieved to date.”
Time Finance, Press Release
Premium Credit appoints director of external communications
Premium Credit has announced the appointment of Mona Patel as its director of external communications reporting directly to CEO, Tara Waite. Patel will lead the NACFB Patron’s external communications function as the business proudly supports its community of customers and partners in creating opportunities through convenient payments. Patel joins Premium Credit from NACFB Patron Metro Bank where she was head of external communications for over three years, responsible for leading its press office and delivering corporate and financial communications. Tara Waite, Premium Credit’s CEO, commented: “I am delighted to welcome Mona to our senior leadership team in this important role. With significant growth plans over the next four years, it is the right time to make this appointment.”
Premium Credit, Press Release
HTB provides £11.5m facility for converted office building
Hampshire Trust Bank (HTB) has successfully provided a bespoke refinancing facility of circa £11.5 million for a converted office building in West London. The property, which comprises 55 luxury apartments, required expert navigation of its complex ownership structure and title documentation. The transaction involved overcoming significant challenges, including multiple ultimate beneficial owners (UBOs) spread across various jurisdictions, ambiguities in planning consents, and discrepancies in the land registry plans inherited from a previous lender. By working closely with the borrower’s advisers and broker, NACFB Member firm Enness Global, HTB delivered a tailored solution that ensured the client’s long-term investment strategy remained on track. Andrea Glasgow, sales director – specialist mortgages at NACFB Patron HTB, commented: “At HTB, we thrive on challenges like these, which showcase the value of our expertise and commitment to brokers and their clients.”
Hampshire Trust Bank, Press Release
Cynergy funding boost for recruitment firm
Cynergy Business Finance is providing AM Recruitment with a £2.5 million confidential invoice discounting (CID) facility to support working capital and operational flexibility. The facility will enable AM to enhance its operational flexibility and respond effectively to the needs of the engineering and construction sectors. Based in Billingham, AM Recruitment is a temporary and permanent recruitment firm that places a variety of candidates into the engineering and construction sectors. The CID facility will equip AM with the necessary liquidity to manage fluctuating debtor balances, which can vary significantly due to the reactive nature of their sector. Furthermore, the facility will enhance AM’s working capital, enabling it to focus on expansion over the coming year. Dan Burton, director at NACFB Patron Cynergy Business Finance, said: “We are already engaged in potential plans for the future and how best we can support AM Recruitment in their growth journey.”
Cynergy Business Finance, Press Release
Together finances conversion of abandoned building in Edinburgh
A Scotland-based SME property investment company has converted an abandoned building next to a popular Edinburgh tourist spot, after securing finance from Together. Dubbed ‘Project SVG’, it required the conversion of a derelict storage/office unit in Morningside, Edinburgh, which had laid empty for over 10 years. Shepha Properties was founded in 2018 by Niyi and Elizabeth Oludipe, who both possess a strong background in the financial services. It specialises in converting old properties across Edinburgh and the wider country into high quality homes, before either selling them on or retaining and renting them out. A study from Together, which has a loan book of £7.6 billion, found that currently over 93,000 properties are sat abandoned and derelict in Scotland, which could deliver nearly £18.5 billion in value if redeveloped and planning eased. Steven Clark, corporate relationship director at NACFB Patron Together, said: “At Together, we are dedicated to doing all we can to helping organisations across Scotland access the finance required to deliver the housing we so desperately need.”
Together, Press Release
Elite Lending completes MUFB purchase in 10 days
Elite Lending has successfully completed the purchase of a multi-unit freehold block (MUFB) and provided a loan of £1,766,250 in just 10 days. With a favourable LTV of 70% and a highly competitive interest rate of just 1% per month, faced with a tight purchase deadline, the team stepped up and ensured a smooth and efficient process from start to finish. This quick turnaround highlights the NACFB Patron’s commitment to efficiency and customer-focused approach.
Elite Lending, Press Release
Development Bank of Wales invests in skincare clinic
Canadian-born doctor Sanvir Singh has opened a dedicated skincare clinic in Cardiff Bay that has been part-funded by a micro loan from the Development Bank of Wales. The loan from the Development Bank was used to part-fund the purchase of initial stock and equipment for the clinic. Donna Strohmeyer, investment executive with NACFB Patron Development Bank, said: “From high street retailers to medical practitioners, we help entrepreneurs to start-up businesses throughout Wales with micro loans of up to £100,000. What they all have in common is the ambition to succeed and the need for accessible finance to help fund set-up costs.” The micro loan came from the £500 million Wales Flexible Investment Fund.
Development Bank of Wales, Press Release
COMMERCIAL FINANCE
New bill shields taxpayers from bank failures
The Government’s Bank Resolution (Recapitalisation) Bill aims to protect taxpayers from the financial fallout of small bank failures. Treasury minister Emma Reynolds said: “The Bill creates a recapitalisation mechanism which will ensure that certain costs of managing the failure of banking institutions do not fall to the taxpayer.” The legislation allows the Bank of England to direct the Financial Services Compensation Scheme (FSCS) to recapitalise struggling banks, funded by industry levies. While the Bill has garnered support, concerns remain regarding its application to larger banks, with calls for amendments to prevent FSCS funds from being used for them.
The Independent UK
Time Finance appoints new risk head
Time Finance has appointed Greg Hussey as the head of risk in its invoice finance division. With over 30 years of experience in financial services, Hussey has previously worked as a consultant and held senior roles at Santago Financial Solutions and Calverton Finance. He will oversee the group’s risk strategy and manage the risk team daily. Hussey said: “I am thrilled to be taking on the head of risk role at Time Finance. They have a fantastic reputation… this impression has only been enhanced in the short time I’ve been here.” Lorraine Neyland, group risk director, praised Hussey’s extensive knowledge of risk management, anticipating positive developments in their strategy.
BestAdvice
BBB – Celebrating a decade of impact
As the British Business Bank marks its tenth anniversary, chair Stephen Welton reflects on its significant achievements in supporting smaller businesses. The Bank has aided over 200,000 entrepreneurs, contributing an estimated £43bn to the UK economy and supporting more than 2m jobs. Welton recalls that when the Bank was launched by Sir Vince Cable, its mission was to enhance access to finance for growing businesses. Looking ahead, the Bank aims to establish the British Growth Partnership to attract more institutional investment into innovative firms, ensuring continued economic growth.
City AM
Pluto Finance backs housing project
Pluto Finance has finalised a £15.4m loan to Backhouse Housing for Phase 2 of a new build development in Highworth, Wiltshire, which will provide 40 open market houses and 13 affordable homes. The deal includes a peak debt facility of £8.4m, allowing Backhouse Housing to optimise leverage for the project. Jonathan Scott, lending director for the South West & Wales at Pluto Finance, stated: “We are proud to support Backhouse Housing in delivering much-needed homes in Highworth.”
BestAdvice
REGULATION & COMPLIANCE
FCA: Easing controls could lead to more fraud
UK lawmakers have been asked by the head of the Financial Conduct Authority, Nikhil Rathi, to define an acceptable level of harm to consumers in return for looser regulations. The FCA last week responded to government calls for regulators to support growth in the mortgage market, outlining a series of regulatory changes it plans to introduce in 2025. But speaking at the House of Lords financial regulation committee on Wednesday, Mr Rathi warned that relaxing the rules could result in an increase in defaults and repossessions. Easing requirements for banks to check identities could also lead to more fraud, Rathi warned, predicting an increase in money mules getting through the system.
Financial Reporter Financial Times The Daily Telegraph
ESG rules are ‘destroying the European defence industry’
The general secretary of NATO has warned that ethical investing rules are hampering efforts by European defence firms to raise capital. Mark Rutte told an event at the World Economic Forum in Davos, Switzerland: “We still are not able to explain to the pension funds, to the banks, the difference between illicit drugs and pornography on the one hand and spending on our collective defence on the other. And somehow it’s all the same basket. This is crazy.” Mr Rutte was supporting remarks made by François Michel, chief executive of Belgian defence manufacturer John Cockerill, who claimed that ESG risked “destroying the European defence industry.”
The Daily Telegraph
LENDING CONDITIONS
Nationwide tightens lending for first-timers
Nationwide has announced an increase in the minimum income required for its Helping Hand mortgages, raising it from £35,000 to £40,000. The change aims to ensure responsible lending within government regulations but poses challenges for first-time buyers, particularly in high-cost areas like London. Critics argue that the decision could hinder young buyers’ chances of entering the property market. Graham Cox, Director at Bridging Hub, explained: “Someone on £35,000 per annum doesn’t have a lot of discretionary spending wiggle room,” highlighting the risks of high borrowing against modest incomes. Conversely, Jack Tutton, Director at SJ Mortgages, referred to the increase as “an additional challenge” for individuals attempting to purchase independently, as it now necessitates earnings exceeding the UK’s average salary. The move has sparked debate among brokers, with some viewing it as prudent while others see it as detrimental to potential homeowners.
Express.co.uk
London property prices slashed drastically
The London property market is experiencing significant price reductions, with discounts reaching up to 50% in some cases. According to Becky Fatemi, partner at Sotheby’s International Realty: “London currently offers the biggest ‘January sale’ the real estate market has seen in a long time.” The median discount has increased from £2,000 to £5,000 in just a few months, reflecting a shift in seller expectations. Factors contributing to these reductions include unrealistic pricing, high interest rates, and increased supply, with 10.7% more homes on the market compared to last year. While some properties are seeing drastic cuts, others in desirable areas remain stable. Fatemi notes that motivated sellers are adjusting their prices to attract buyers, remarking: “The lower a seller dares to go, the higher their chances are of attracting more interest.”
London Evening Standard
UK BUSINESS NEWS
Major supermarkets call for rethink of IHT raid on farmers
Tesco has warned that Labour’s tax on farmers is putting the UK’s food security at risk and should be halted. The supermarket’s chief commercial officer, Ashwin Prasad, wrote in a blog: “This is not just a debate about individual policies – the UK’s future food security is at stake.” Asda and Morrisons have already made their backing of farmers public while Sainsbury’s has urged ministers to “listen to the concerns of farmers.” Mr Prasad said: “After years of policy change, it has been harder than ever for them to plan ahead or to invest in their farms. It’s why we’ll be supporting the National Farmers Union’s calls for a pause in the implementation of the policy, while a full consultation is carried out.” Meanwhile, the Office for Budget Responsibility has cast doubt on how much revenue would be raised from the measure since farmers are likely to reduce investment because of the tax raid.
Financial Times The Daily Telegraph The Times City A.M. Daily Express Daily Mail The Independent
Wetherspoons pushes for fair VAT on food
Tim Martin, the chairman of JD Wetherspoon, has urged Sir Keir Starmer to cut pub food taxes, highlighting a projected £60m increase in labour costs due to rising national insurance contributions and minimum wage. Martin said: “The VAT distortions that exist today will inevitably create more supermarkets and less pubs,” advocating for equal VAT rates on food sold in pubs and supermarkets. The company saw a 5.1% rise in like-for-like sales over 25 weeks to January 19, driven by a 5.6% increase in food sales, although hotel room sales fell by 6.5%. Julie Palmer from Begbies Traynor noted a shift in sentiment, indicating a “lacklustre Christmas performance” compared to competitors.
Daily Express London Evening Standard The Independent UK The Scotsman
Thames Water facing bankruptcy as Ofwat refuses to budge
Thames Water has warned ministers that raising bills by more than a third will not be enough for it to avoid bankruptcy. Talks between Britain’s largest water company and Ofwat have broken down after the regulator refused to change its decision last month capping the amount that bills could rise to pay for new infrastructure investments. Thames is expected to appeal its decision to the Competition and Markets Authority. The stand-off has Treasury officials worried that investors will be put off by the regulator’s stance just as the Chancellor is seeking to woo foreign investment.
The Times
Labour’s auto enrolment freeze hits businesses
Businesses are set to incur an additional £2.3bn in costs following Labour’s decision to freeze the threshold for automatic pension enrolment at £10,000 for 2025-26. Torsten Bell, the pensions minister, said the move will lead to more low-earners being included in the pension system due to rising earnings. The private sector’s pension contributions are expected to rise from £49.6bn to £51.9bn. Ian Futcher, a financial planner at Quilter, remarked: “While freezing the thresholds provides stability for both employers and employees, it is still a missed opportunity to drive higher contributions that could secure better retirement outcomes for millions of workers.”
Daily Mail
ECONOMY
Interest on debt pushes up borrowing
Government borrowing exceeded expectations in December, reaching £17.8bn, significantly higher than the £14.6bn anticipated by the Office for Budget Responsibility. This figure marks the third highest December borrowing on record and the highest in four years. Jessica Barnaby, ONS Deputy Director for Public Sector Finances, said: “Compared with December 2023, spending on public services, benefits, debt interest and capital transfers were all up.” Public sector net financial liabilities are now estimated at 84.5% of GDP, while public sector net debt stands at 97.2% of GDP. In response to the rising fiscal pressures, Darren Jones, Chief Secretary to the Treasury, stated that the Government would rigorously review spending, promising to cut unnecessary expenditures to ensure taxpayer money is used effectively.
City AM
Consumer sentiment declines sharply
Consumer confidence in the UK’s economy has plummeted, with the British Retail Consortium’s (BRC) consumer sentiment index revealing a drop to -34 in January, down from -27 in December. The survey indicates that only those aged 18-27 expect improvement, while two-thirds of individuals aged 60-78 anticipate a worsening economy. Helen Dickinson, chief executive of the BRC, said: “On top of this challenging market backdrop, retailers are facing £7bn in additional costs from the budget and new packaging levy.” She added: “To mitigate this, and shore up investment in shops and entry level jobs, the government must ensure that no shop ends up paying a higher business rates bill because of its proposed reforms.” Retailers are now warning of potential price increases and job cuts as they navigate these financial pressures.