"Brokers can be left feeling incredibly frustrated by lenders who drag their heels over making a decision, when they know from the onset they won’t be able to take it on"
FR: Tell us a little bit about your background and your role at Hampshire Trust Bank.
I’ve worked in financial services for 16 years. Initially as a financial consultant and the last 10 years have been in specialist lending, and particularly development finance.
I was promoted to the newly created role of head of distribution within the development finance division in January, we have since added two more business development managers, Josh Swaby in the North and Matt Hardy in the Midlands.
That means working closely with our intermediary partners and helping them understand our proposition. It also means working together to identify ways we can evolve our offering to better support a wider range of developers – allowing brokers to place more deals, no matter how challenging they may be.
FR: You’ve now held development finance masterclasses for brokers in 2023 and 2024 - what were the reasons behind this, how was it received, and will you seek to do more of these in 2024?
Definitely. Our masterclass in Manchester earlier this year was a blast, and we just held our third event in London. Our guests enjoyed an educational day and some great conversations with peers and of course the development finance team.
The educational side is very important to us as we don’t believe in transactional relationships. We’re here to support brokers and their clients with their long-term ambitions, whether that’s through development finance, or any of our other offerings. This long-term approach to partnership is clear throughout the bank, and the masterclass is a great example of adding real value through education and engagement.
This market is constantly changing and developing, which is why it’s crucial to have open, ongoing dialogue and collaboration between the various parties involved. Our masterclasses bring together professionals who are active in this sector with brokers and HTB, and covers areas like underwriting tips, construction training and legal due diligence.
The number of registrations we receive for the masterclasses shows how keen intermediaries are to increase their activity in this area of the market, as well as their appetite for education.
We believe that as a lender, it is our job to educate brokers on how to build the best deals possible, and we take that very seriously.
FR: Are there any deals that you are particularly proud of and why?
In June 2024 we had our biggest month ever in development finance, seeing double the credit approvals in one month then we saw over the whole of 2022, which was incredible. We shared a lot of those deals in the press and on our LinkedIn as it was a proud moment for us.
When it comes to single deals, I have to acknowledge the largest single transaction the bank ever carried out earlier this year. That deal, which was a £25m strategic land loan, was a stark indication of how far HTB Development Finance has come in the last three years, in appetite, capability and intent for further growth across project sectors.
It really showcases how strong we are as a team, but also the relationship to our broker partner on the deal; by working so closely together we were able to structure a bespoke deal that suited all parties, it truly is a great example of how we like operating at HTB.
In no small way, it also demonstrates that we are and will continue to be a truly regional lender. Our team live and work in the regions that need housing and being able to pull on their rich local knowledge up and down the country is beneficial for any deal.
FR: What do you think makes HTB different and what do you pride yourselves on as to how you work with brokers and their clients?
I think what really sets us apart is building a ‘yes!’ environment, we look at every angle of a deal to ensure we can get it over the line. We’re transparent about challenges, letting brokers know if there are issues that need to be resolved before we can push ahead - I know that is something brokers value about HTB.
It’s all about solutions for us, we may not be able to do a deal exactly as is being initially proposed, but we’ll always look to offer a workable solution and stay in the conversation to achieve this. Creating a proceedable deal is all about balance, risk, complexity, experience, exit options, there are few straight lines (well, hopefully on the building sites they are!).
If a case isn’t going to work, we’ll also be upfront about it. Brokers can be left feeling incredibly frustrated by lenders who drag their heels over making a decision, when they know from the onset they won’t be able to take it on - if the answer is going to be no, then intermediaries always appreciate getting that response quickly.
The size of our team is another big selling point – we're people heavy by design, as that means we have the capacity to deliver a much higher standard of service to brokers and clients throughout the transaction, from the initial enquiry, credit process and drawdown, through to the completion of the project.
FR: What do you think 2025 holds in store for HTB’s development finance team and the wider new build sector?
We’ve got big plans for development finance, and that is down to the positive prospects for the development market as a whole. There remains a fundamental undersupply of housing across the country, and we’re determined to support SME developers in delivering high quality housing that will meet the needs of potential buyers.
There are certain areas that are likely to have a particularly positive year. We’ve seen a real flight to quality, with those high-quality family homes and luxury flats still very much in high demand. But there are opportunities across the market for the right developers.
Hopefully, after the challenges and uncertainties of the last year or so, we can see a more stable cost environment which will support developer progress and reward them for taking on calculated risks in delivering that housing the UK so badly needs.
