It's evident that landlords need ongoing support when it comes to understanding the regulatory changes that have come into effect in recent years. And it's equally important for lenders to equip advisers with the information and tools they need to better service their client's needs and help them maintain - or potentially grow - their portfolios.
In September 2017 the Prudential Regulation Authority (PRA) implemented new rules for standardising buy to let criteria. However, research by BVA BDRC recently outlined that only 52% of landlords are aware of the changes and how they could be affected. The advice process has always been important for landlords of all types, but this lack of understanding highlights just how vital professional advice has become in the modern BTL arena with its additional layers of complexity. The data also emphasises the wealth of opportunities available for intermediaries to target the significant number of landlords who have not quite come to terms with market changes, especially those with larger portfolios.
Lenders, such as Foundation Home Loans are also doing their bit to help bridge this knowledge gap. In association with Mortgage Solutions, we recently created a broker's guide to portfolio landlords. Within this, we talk about tax changes; limited company buy to let and some interesting facts and figures regarding landlords. Download the guide here for some further insight which we hope you will find useful.
LINK TO GUIDE - https://www.foundationforintermediaries.co.uk/media/1316/foundation-home-loans-broker-portfolio-mini-guide.pdf?utm_source=article-tma-pra-changes&utm_medium=article&utm_campaign=10128-portfolio-guide
The BTL sector remains a challenging one but a number of highly competitive lending options are emerging for portfolio landlords and intermediaries. Many BTL clients are currently looking for remortgage options. Many landlords are also still not aware of the limited company option. And with the concept of taxation and limited companies being client specific, often complex, many intermediaries have developed reciprocal relationships with tax advisers to bolster their BTL business streams.
Lending to landlords using limited companies will prove to be one of the hottest areas of specialist lending in 2019 and become an increased focal point for many providers. As a lender, we have made it even easier for portfolio landlords by introducing a more flexible approach to stress testing. There is now less admin for landlords and intermediaries to undertake. We don't request business plans or asset and liability statements. Not to mention the fact that there is also no maximum background portfolio size.
The market is ever-changing, and lender's offerings are also shifting in-line with regulatory change and landlord demands. A multitude of criteria modifications are being made and new products launching, which means that greater numbers of portfolio landlords will be looking to actively engage with intermediaries who are well-versed on all areas of BTL. This places an even greater emphasis on better understanding how individual lenders such as Foundation Home Loans can supply the kind of solutions to meet the changing needs of portfolio landlords.
So why not visit www.foundationforintermediaries.co.uk or call us on 0344 770 8032 today to find out how we can support you and your BTL clients now, and in the future.