The new buy-to-let lending rules are finally upon us. It may seem like ages since the former chancellor, George Osborne, first announced his plans for tougher requirements on lending and taxation but I am sure you have all had a busy – and no doubt all-too-quick – summer ensuring your landlord clients have the correct mortgages in place.
Have you also given enough emphasis to protection for your portfolio landlords?
Portfolio landlords are those with four or more mortgaged buy-to-let properties and it is this group of clients perhaps feeling the pinch the hardest. Every property they own will come under the lens each time they submit a new mortgage application.
Just as they need your support to secure a mortgage, they also need your guidance and expertise in terms of protection to ensure the highest levels of viability for their portfolio.
Block insurance policies offer a fantastic opportunity, not only to deliver these clients with fit-for-purpose cover and peace of mind but also with a slightly easier life. One policy, one payment, one renewal; it will be a time-saver I am sure they will thank you for.
A block policy offers protection under a single policy for all properties within a portfolio, regardless of the types of property or tenancies included.
A win-win, they are invariably cheaper for landlords as well as easier to manage and, for insurers, they spread the risk, as they are less likely to receive large claims on several properties under the one policy.
As a first step, speak to your general insurance provider and check that they can deliver block buy-to-let policies. Then speak to your portfolio landlords. They will certainly appreciate the added-value approach and a simple solution to what is fast becoming a complicated sector of the market.
Geoff Hall is managing director at Berkeley Alexander