Deadlines are something that everyone is used to in the mortgage advice and lending space and we’ve had to become accustomed to them within the buy-to-let market.
Nine months on from the first PRA underwriting changes we await the introduction of the portfolio landlord iteration of the rules, which will make their appearance at the end of September.
In recent days there has been a raft of stories in the mainstream/personal finance media urging existing portfolio landlords to remortgage now before the changes are introduced, amid fears that lending activity will tail off, the administration and information requirements will soar and costs will rise.
I know that a number of advisers are concerned about what will be expected of them by the lenders affected in this new world. I have much sympathy for those who foresee the extra work involved and the greater expectations of lenders and wonder where is the greater level of payment for the additional time and resources these cases will need.
While we wait to see if this is the future that shows itself — and there are clearly concerns about the future appetite to lend from some — it’s important to know that it’s not all ‘Change, change, change’.
For ourselves, and others perhaps, it’s a case of business as usual; indeed, our focus has been on providing greater simplicity rather than complicating the process, and we have recently given some adviser/client commitments around maintaining the status quo in terms of processing, our criteria, pricing and the information we will require from brokers and their portfolio landlord clients.
So, while you may be working through a load of portfolio landlord cases in the hope that they can be signed off before the end of the month, there are lenders whose proposition and offering will not change. This should provide a degree of confidence and clarity before the handover is completed and the theoretical rules are played out in full.
Bob Young is chief executive officer of Fleet Mortgages