Technology must ease broker buy-to-let burden
30 Aug 2017
Standardisation within the lender market has always been something of a tricky ask, certainly when it comes to the introduction of new regulatory rules.
Over the years, lenders have often chosen to interpret new rules very differently – as is their right – however widely varying approaches does mean that advisers need to get to grips with multiple systems, processes and requirements.
You might have read recently about our concerns around the different lender requirements that will come into force post-30th September when the PRA’s underwriting changes for portfolio landlords are introduced.
We are talking a potential greater level of work on a large scale, and (I hate to say it) but one of the unintended consequences of these new rules is that some brokers might well, at least temporarily, step back from advising in this area.
Behind this we now have the detail from most lenders in terms of how they’re approaching the changes, and it’s clear that the greater level of work involved in garnering all the information they will now need to judge affordability and make the loan decision is going to test the most resilient and experienced of buy-to-let lenders.
As with Mortgage Market Review, the onus will be placed firmly on the broker side to ‘make it happen’ and this extra work is (for the most part) not going to be rewarded with greater procuration fee levels, although I understand that some lenders have said they’ll introduce this in order to match fee level to work.
That’s to be applauded, but again it’s not by any means a ‘standard’ response and, while there are of course some buy-to-let lenders not regulated by the PRA and therefore able to offer (one would hope) no changes, the bulk of market players will deliver the required changes.
It has been said that portfolio landlords should act before the end of September in securing finance in order to miss the changes, but we are almost past the point when this is feasible, and therefore we would like to see lenders attempting to make this transition as simple as possible.
Thankfully, technology solutions will emerge to help with these new, demanding and costly requirements – in fact one such system is currently being trialled by Paradigm firms… To me, it seems imperative that all affected lenders buy into such time-savers.
It’s in all our best interests to get this process right, to use the technology available and while there are bound to be teething troubles, one would hope that they are not numerous or cause brokers to look elsewhere for alternative business sources.

Blog Archive
Supply needs to match
02 Mar 2021
Don't overlook product transfers
19 Feb 2021
Stamp duty debate a black hole
05 Feb 2021
Industry wide levy is a head scratcher
02 Feb 2021
Long-term imposter product may finally become relevant as a high LTV option
29 Jan 2021
Uncertainty continues into 2021
07 Jan 2021
Stay ahead of the fraudsters
21 Dec 2020
Industry change starts with what we do ourselves and within our businesses
11 Dec 2020
Second lockdown will keep lender resource focused on payment deferrals
09 Nov 2020
Is now the right time to add to property portfolios?
08 Sep 2020
Advisers have duty of care as fraudsters step up scam activity
17 Aug 2020
IFAs and mortgage advisers – two sides of the same coin
12 Aug 2020
Brokers need fair play from lenders in high LTV space
31 Jul 2020
Are you ready for lock-stalgia?
03 Jul 2020
Show your clients what you can do
19 Jun 2020
Specialist lenders may need end to self-cert payment holidays to survive
16 Jun 2020
Reading the signals
15 Jun 2020
Is the FCA really in this with us?
28 May 2020
Self-employed people must not be locked out of future mortgage borrowing
11 May 2020
I wish I could say the worst is over
07 Apr 2020
Looking for scintillating letters of recommendation
11 Mar 2020
FCA must answer why it is promoting execution-only
25 Feb 2020
Goodbye doesn’t have to be forever
17 Feb 2020
FCA changes could have harmful consequences
07 Feb 2020
This could be the year of economic stimulation
03 Feb 2020
Putting the cart before the horse
17 Jan 2020
The start of a new decade
15 Jan 2020
The importance of advice
12 Dec 2019
Keep in touch with clients or lose them for good
06 Dec 2019
Later life market still needs work to be fit for purpose
22 Nov 2019
Helping mortgage prisoners
04 Nov 2019
Combatting mortgage fraud
20 Sep 2019
Upping demand for green mortgages
17 Jul 2019
Tory leadership hopefuls are right to be focused on social care in later life
01 Jul 2019
Responding to political messages about the housing market
20 Jun 2019
Promoting execution-only is not treating customers fairly
10 Jun 2019
Changing regulatory permissions can be the making of your business
14 May 2019
If we don’t talk up the market, then who will?
02 May 2019
Deeper product transfer data would show lenders’ market shifts
29 Mar 2019
Mortgage Market Study inconsistencies make for frustrating read
27 Mar 2019
The relationship between lender, broker and borrower
18 Feb 2019
Advisers must not leave mainstream mortgage market to lenders
28 Jan 2019
Let’s not blow Fleet and Secure Trust Bank out of proportion
17 Jan 2019
‘Regulation should not be reworked purely to support automated advisers’
04 Jan 2019