The Intermediary – October 2025 - Flipbook - Page 32
I N T E RV I E W
a deliberate choice, and a core strength. Evans
explains: “Internally, that helps us, because we
don’t ever have a ‘computer says no’ moment.
Every single case is manually underwritten,
and it’s a very collaborative team. We work
together to find a solution.
“Sometimes I’ll hear from brokers that
they’ve submitted a case elsewhere and waited
four days, or phoned and not been able to
get through. With us, it’s just about knowing
that we’re available, accessible, and will move
quickly when needed.”
While of course working within the bounds
of its funding agreement, Evans says this
approach allows Mercantile Trust to “look at
things holistically every time.”
This manual underwriting is also key to being
able to handle complex cases while maintaining
a sensible approach to risk.
Evans says: “There’s markers our
underwriting team has to stick within, of
course, but there’s an ability to be flexible
about how we get to that point, and how we
prove it. When you’re manually underwriting,
you’re able to take a step back and find ways to
make things work.
“Sometimes, having a system that does it
all for you can be detrimental to a decision if
you’re not looking at it in more granular detail.
It doesn’t slow us down, and that’s again,
partly due to our size. Maybe this will change
one day, but at the moment we can take a
step-by-step approach.”
CASE ONE
Second charge on
a buy-to-let
Property value: £435,000
Mortgage: £239,689
Net loan: £50,000
Lender fee: £1,500
Term: 120 months
Payment: £483.27
The purpose of this loan was to make improvements
to the security property. The first charge was on a fixed
rate, so the borrower did not want to refinance and lose
the deal or have to pay early repayment charges. They
released equity from the BTL as a second charge.
CASE TWO
Second charge bridge
against a BTL property
Property value: £315,000
Mortgage: £133,162
Net loan: £75,000
Lender fee: £2,250
A full future
Looking ahead, Evans says seconds are
only going to come further into their own
as property investors look to expand their
portfolios by pulling money from elsewhere
and deploying it effectively. This, combined
with the work being done to grow education
and awareness around seconds, could mean
an increasingly positive future for this side of
the market.
For a lender heavily embedded in the BTL
space, issues such as the potential for changes
in the autumn Budget, the upcoming Renters’
Rights Bill, and other market headwinds, are
likely to affect the picture. However, with
Mercantile Trust comfortably in a growth
phase, these market shake-ups are not a huge
concern for Evans. For Mercantile Trust, the
next year is about building on its collaboration
with brokers, landlords and networks, getting
out to events and ensuring that its proposition
is front of mind for those that need it. So far,
despite market headwinds and doom and
gloom headlines, this outreach has yielded
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The Intermediary | October 2025
The customer needed money fast to purchase a property
at auction. This completed in seven days on receipt of
the case. Mercantile Trust provided a rolled bridge on a
12-month term, allowing the customer to do some light
works to the property and rent it out. The exit was onto
refinance once tenanted.
“more positive talk than negative,” which Evans
in part attributes to the value of second charge
in helping landlords, in particular, find creative
solutions, even as the market becomes more
complex. She concludes: “There’s a lot more
opportunity out there. We just need to keep
making the calls and showing people what can
be done, and we’ll continue to grow and find
solutions for the borrowers.
“I want us to be recognised as a small,
accessible lender with fast turnaround on niche
products and capable, motivated people – a
name with brokers, who feel they can ring us
as soon as one of those complex cases comes
across their desk.”
