Orla Costello, Senior Director – Property Development, United Trust Bank, answers the who, what, why and how of property finance
Property Finance is a complex world with numerous sources of funding in a variety of guises across the capital stack. There’s a wide range of lenders including the traditional high street banks to the largest pension and insurance companies looking for ways to invest their money either directly or through a range of asset, investment and fund managers. There are debt funds, family offices, a few peer-to-peer lenders and, of course, the ever-growing number of specialist and challenger banks.
However, despite the myriad choices, developers can rationalise their options through a simple ‘’Who, what, why and how?’’ question and answer process and in this Ask the Expert feature, Orla Costello, Senior Director – Property Development at United Trust Bank, talks us through it.
Tell me about United Trust Bank.
United Trust Bank (UTB) is an award-winning specialist bank which has been lending to house builders since the 1950s. We have over 300 staff, five lending divisions and a balance sheet of around £2.5bn.
The Bank has grown by supporting a variety of businesses through all market conditions and remained open for new business throughout the pandemic and last year’s mini-budget crisis.
What do UTB do?
UTB provides development, structured, bridging and asset finance plus a range of mortgages funded largely by our competitive fixed term and notice deposit accounts and ISAs. Our borrowers include housebuilders, developers, SMEs and individuals to whom we provide bespoke financial solutions which enable them to complete a wide variety of projects, acquisitions and investments.
In property development our customers tend to be established housebuilders and entrepreneurial developers operating throughout England and Wales with demonstrable track records in predominately residential led developments. Facilities range from around £1m to £30m per scheme and at UTB we follow our customers’ hard-earned capital and in doing so lend on the right properties in the right places.
Our lending proposition centres on our speed and consistent approach to delivering tailored finance solutions supported by a team of knowledgeable and approachable property professionals. We make quick and reliable decisions which give customers the certainty they need to commit to new schemes.
We draw upon decades of collective experience gained through periods of high growth, stable markets and recession and are committed to supporting our customers through the ups and the downs of the economic cycle, ensuring that they can protect their existing investments and take advantage of new opportunities.
In uncertain times, customers want to be confident that lenders are going to deliver the service and funds they’ve promised. UTB has always been a dependable and adaptable lender. We estimate that the Bank’s loan commitments support the delivery of in excess of 6,000 homes at any one time.
Do you engage with other organisations in the industry?
Yes. UTB is a highly respected stakeholder in the development and housebuilding industry. We work with property associations, trade bodies – such as the Home Builders Federation, the property press and government agencies such as the British Business Bank and Homes England as well as the established professional practices offering real estate services. We are frequently invited to speak at property conferences and attend all the key industry trade shows and events, including MIPIM.
We publish regular articles and comment on issues which impact our customers and distribute case studies outlining how we have financed unusual or complex development projects to inspire and encourage the industry to bring us their proposals, whatever their nature.
So why does UTB do what it does?
Great question, and the answer will set apart the lenders who want to build long term sustainable relationships within the house building sector from those which have little regard for the wider impact on our local communities.
I could say that UTB like to finance the right properties in the right places where people want to live, work and play. However…
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