TAB Talk - August 2024
TAB Talk - August 2024 Newsletter
This month we've been avidly watching the Olympics; enjoying 10,500 athletes coming together to compete in the games! There were 17 world records broken in Paris but those are not the only records being shattered.
While Paris felt the heat, summer was hot for TAB as well. Many say August is a quiet month, but our team would beg to differ. We're seeing record numbers of loans in legals and underwriting, with completions in full swing.?Additionally, we're experiencing a high volume of redemptions, which is a positive indicator of the market.
A day after we announced our reduced rates, the Bank of England followed suit (copycats!), bringing even more optimism to the market. This surge has further accelerated our already strong momentum, and we expect to maintain this right through to the end of the year.
Feedback is crucial to us, which is why we're making significant improvements for our investors in the coming months. We're enhancing the investor dashboard for mobile view and working on even more TAB Property investments.
As always, TAB Talk delivers you other updates and happenings, as well as property market insights from Joel Shields of Property Cash Converters, your quick-purchase property company – think 'We Buy Any Car', but for real estate!
Let’s get started:?
TAB slashes mortgage rates
I'm delighted to announce that this month TAB has reduced our mortgage rates, a move that was swiftly followed by a reduction from the Bank of England. As a result, our rates now start at 8.74% pa. This is part of our new three-year discount on our ten-year tracker mortgage, designed to provide property investors with better financing solutions.?
TAB Mortgage offers further reductions to the exit fee for borrowers who demonstrate strong ESG (Environmental, Social, and Governance) performance. Are your clients planning to refurbish their investment properties in line with ESG principles? Perhaps they're upgrading the EPC rating from a D to an A, installing solar panels to generate electricity and feed back to the grid, or leasing to a charity or community-focused organisation. These are exactly the types of initiatives that can benefit from our product. With any one of these improvements, clients can get 25bps knocked off the exit fee. Think long-term for your clients, considering not just their immediate needs but their future sustainability goals as well.
TAB has been making significant strides in enhancing our product suite and operational efficiency. In addition to our mortgage rate reductions, we've embraced cutting-edge technology to streamline our processes. We've made substantial investments in AI to boost our speed and efficiency, allowing us to process applications and make decisions faster than ever before.
This AI integration complements our other recent improvements, such as the introduction of Automated Valuation Models for properties up to ￡1m and 60% LTV, and the use of title indemnity insurance for our residential bridging range. These innovations, combined with our ability to use open market value for residential loans under ￡2.5m at up to 75% LTV, significantly reduce paperwork and accelerate deal completions, while maintaining a prudent risk profile.?
All these enhancements are designed with one goal in mind: to provide our clients with faster, more efficient and more cost-effective property finance solutions.
TAB Property
Let me bring you up to speed on the exciting developments at TAB Property, where we're expanding our portfolio and introducing innovative investment opportunities.
We currently have three properties owned by nearly 100 investors on our platform. Our two Travelodge properties have been producing monthly income for four months now, and all investors have been earning returns without the hassle of tenant or property management, or dealing with estate agents.
In July, we sent an email to our investors regarding a potential TAB Property opportunity, inviting them to sign up for the waiting list. I'm delighted to report that those investors fully funded the new property in just three hours, even before I could share it with the rest of our investor network! This rapid response demonstrates the strong appetite and I'm thrilled to be adding another property to the TAB roster.
For those interested in learning more about TAB Property and the available options, please book a call with head of investor relations, Samuel Leach.
We have a trading functionality in place behind the scenes for buying and selling ownership. While our latest investment opportunity isn't available for trading right now, investors can purchase Travelodge fractions on the TAB Market.
领英推荐
TAB Property
TAB University is our free educational platform dedicated to demystifying the property market and financial landscape. Through a diverse range of resources including articles, case studies, opinion pieces, masterclasses, and our podcast, we aim to empower our audience with valuable insights. The podcast serves as a forum where we engage industry experts on trending topics. Recently, we've explored the role of social media in real estate with Kofi Bartles Kodwo and Shazad Ahmed joined us to debunk myths and share the realities of below-market-value properties.
You can listen to them both online here:
Montfort Conversations podcast
I was a guest on Montfort Conversations, hosted by Montfort Communication’s Neil Craven, former business editor of The Mail on Sunday. The podcast covered a wide range of topics, providing a comprehensive look at the property market and beyond. We spoke about lending and the growing importance of ESG in property. We also discussed fractional ownership and its prospects, as well as the latest developments in Proptech.
The conversation wasn't all business though - we also chatted about my two favourite things outside of TAB: family and cars. It was an enjoyable and insightful discussion, offering listeners a blend of industry expertise and personal passion.
I am looking forward to the episode's release this month, so be sure to keep an eye out for it. This podcast appearance, alongside our own TAB University initiatives, underscores our commitment to sharing knowledge and insights about the property market and financial landscape. Whether you're tuning into our TAB podcast or catching us on other platforms, we're dedicated to providing valuable information to our audience.
Guest feature: Opinions from the market
Property expert Joel Shields offers his perspective on the market:
Interest rates:?I don't think the rates decreasing will have a major impact on the market. These were already factored in by the lenders, the market needs a new incentive ie. stamp duty holiday or reduction but I don't see that happening with Labour looking to bring in higher taxes in the new budget in October
Labour's eviction policy: Potential impact on the rental market:Labour have said they won't bring in rent controls but will stop non fault evictions which will have a major effect for landlords who will start selling off their investments and in effect will have less property on the market to rent
Impact of stamp duty and Help to Buy changesStamp duty cut will have an impact on first time buyers who will have to find in some cases an extra ￡2,500, with the added problem of Help to Buy being abolished the first time buyer market looks to be non-existent.
Thanks to Joel,?for sharing his insightful comments on the current market. Whether you agree or disagree with these views, let me know, get in touch and share your thoughts.
As we wrap up, I hope you enjoy what's left of the summer. Don't forget to catch some of the?Paralympic events now underway. I?look forward to catching up with you next time.?
DK
Founder and CEO?
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