As lending to portfolio landlords has become more complex due to the changes introduced by the Prudential Regulatory Authority, MAB is now exploring license for specialist brokers
As lending to portfolio landlords has become more complex following changes to the market implemented by the Prudential Regulatory Authority, the Mortgage Advice Bureau is now exploring a specialist approach to buy-to-let by looking to introduce a new ‘licence’ for specialist BTL brokers likely to be doing higher volumes of more complex buy-to-let business.
The new regulation makes the process complex as BTL lenders require a property portfolio spreadsheet, business plans, cash flow forecasts and potentially providing a tax return to illustrate a client’s portfolio and personal income when conducting underwriting procedures. This means a more specialist approach is required when it comes to assisting landlords.
Now, MAB is profiling its advisers and testing a new BTL ‘licence’ for such brokers. MAB chief executive Peter Brodnicki said, following the PRA changes, MAB has been looking at its processes, procedures and adviser licensing, as it wants to ensure the best advice for its customers, and maximum support for its advisers in an increasingly complex sector. He added that whilst it does not allow its advisers to give tax advice, it is aware there is a need for mortgage advice when dealing with portfolio business and so it is important to MAB that its advisers have the right knowledge and experience to be able to help their customers. He further said that it believes specialisation is key to generating a better customer outcome. As with other specialist areas such as new build, shared ownership and large loans, specialisation is already there.
Advisors who are building their business levels in BTL will be able to benefit from more specialist support under the new license process. Peter said that at present depending on the number of properties and/or type of lending, its advisers may need to refer to a specialist partner. However, MAB is currently profiling its adviser population to establish which of those within the distribution have the necessary skills to be able to advise in this area, with a view to licencing them as specialist BTL advisers who can provide mortgage advice on all aspects of this type of lending. This involves an initial assessment, ongoing training, support and monitoring to ensure they have the required tools to operate confidently in this market. Exactly how far that will evolve is still to be determined.
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