EXCLUSIVE: Brightstar splits divisions as reaction to BTL upheaval

Brightstar Financial has separated its buy-to-let and residential mortgage divisions in reaction to changes in the BTL market.

The firm has split the current mortgage division into complex BTL mortgages and specialist residential mortgages, prompted by an upsurge in BTL-related enquiries.


The new BTL division is being incorporated with the residential investment team from the commercial division and will also be physically separated from the residential team at Brightstar’s offices.

The move follows changes in the BTL market including underwriting standard expectations issued by the Prudential Regulation Authority and tax adjustments for personal BTL investors.

In April, the Government will begin to phase in the change in the tax treatment of individual BTL investors.

Mortgage interest will no longer be an allowable tax expense and the tax credit available in lieu of this will be limited to the basic rate of 20 per cent, all of which is driving the increase in enquiries for limited company BTL  lending.

“Recent and impending changes have caused the buy-to-let sector to become a more specialist area and we believe these cases require a focused specialist advice process,” says Brightstar Financial chief executive Rob Jupp.

“As buy-to-let mortgages are more of a commercial proposition, it makes perfect sense to merge the two divisions.”