‘Productless’ lender Octane Capital comes to market

Mortgage Introducer

May 9, 2017

A short-term buy-to-let and bridging lender that doesn’t offer a product sheet is open for business called Octane Capital.

Octane has pledged to price loans based on the ‘real’ risk they represent, arguing that LTV-based lending is overly simplistic.

Its founder and chief executive Jonathan Samuels also started Dragonfly Property Finance, which has now rebranded to Octopus Property.

What’s the point of conveyancing?

Samuels said: “Loan-to-value clearly has a role to play for any lender, including ourselves, during the assessment of risk.

“But in our industry we believe there is a huge over-reliance on it that can work against lenders and borrowers alike.

“Charging someone X% if they have a 30% deposit and Y% if they provide a 40% deposit is often misguided, as the borrower with the smaller deposit can be less of a risk once you drill down into the detail.

“As a result, we’ve decided to launch without a set product sheet with a list of rates based on loan-to-value.

“Instead, each loan will be priced according to its level of risk. This new blank canvas approach has left some people scratching their heads, but for us it’s a far more sensible way to offer loans.”

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