Tuscan Capital has outlined the benefits of its Fast Track process on the one-year anniversary of its launch.
The Fast Track process was launched on 1 July 2022, with the aim of significantly speeding up the application process for most Tuscan Capital cases.
Utilising a new valuation process including greater use of AVMs and desktop valuations, as well as title insurance and search indemnity policies, the short-term lender said the new process had allowed brokers to focus on the key requirements of the deal and not get ‘bogged down with gratuitous underwriting requisitions’.
Over the past year, 75% of all new business cases now utilise either an AVM or desktop valuation, significantly reducing the turnaround time for the property valuation aspect of the process. Fewer cases now require a personal guarantee (PG) element, which requires all parties to take independent legal advice and adds to cost and time requirements. If the case is below 65% LTV, PG’s are not required – as a result, the turnaround times for these cases has been reduced by an average of five days.
Fast Track has also improved the process across specific product types. Since launch, Tuscan Capital’s auction purchase product completion times have dropped to an average of 16 working days, a reduction of eight days – largely down to AVM and desktop valuation usage.
Fast Track allows an AVM to be used as an alternative to a RICS property valuation and inspection, where Hometrack data supports the client’s estimated value or purchase price. Tuscan Capital is able to rely upon an AVM to 70% LTV for purchases and 60% LTV for refinance up to a £750,000 valuation, with a confidence level accepted from 5.
Tuscan Capital’s development exit products – predominantly used by developers needing to refinance their senior funding arrangements or existing investors seeking to reduce finance costs – has also seen average turnaround times reduce from 54 working days in 2021 to 29 working days under Fast Track.
The lender said the key difference in speed in these cases was its ability to utilise Title Insurance under Fast Track, and to take a pragmatic approach to the execution of the legal documentation.
As a result of the process improvements and enhancements, Tuscan Capital said loan enquiries and conversion rates had improved, with 31% of all introduced business now arriving from first-time brokers, as they learnt of the opportunities for speedy completion.
Colin Sanders, CEO of Tuscan Capital, said: “Since we launched Fast Track last July, it has been a 12-month period which has flown by for both ourselves, and I hope, for our broker customers in terms of the process improvements we have been able to deliver, and the turnaround and completion times we are achieving.
“This is without doubt a challenging market, but we are bucking the trend in terms of growing business levels, average industry case times, and by streamlining we have been able to ensure brokers and their customers get the finance they need in the quickest possible timescale.
“With a slick process, certainty of funding, and an approachable and knowledgeable team, we believe we’re firmly on the right track, and as a result, more and more brokers are understanding how Tuscan is different, and what we can achieve for them.
“The significant increase in the number of first-time introducing brokers proves that, and Fast Track is delivering so many benefits, particularly in terms of AVM and desktop valuation usage, but also greater use of Title Insurance, our legal documentation approach and requirements around Personal Guarantees.
“One year on and the successes are obvious, but it would be foolish for us to stand still and we have no intention of doing this. We continue to look at the ways and means by which we improve the Fast Track process, how we can ease that administrative burden for brokers and customers, and how we can continue to deliver the funding they need as quickly as possible.”
