Half of advisers not ready for PRA changes

One in eight mortgage advisers are still unsure of when forthcoming PRA changes come into effect, according to research from Kent Reliance.

Some 2 per cent of 200 advisers surveyed by the group had not even heard about the changes for portfolio landlords, which are set to come into force next month.

Only around half of brokers surveyed say they fully understand what the changes entail for customers and for their business.

Under the new rules, portfolio landlords and their brokers will have to provide detailed information on the cash flows and costs from multiple tenancies.

While 29 per cent of advisers think the changes will create opportunities for their business, some 14 per cent it could reduce the number of buy-to-let transactions.

Almost a third think it will lead to more mortgage application rejections in the short term, while a quarter think extra administration involved could slow down the application process.

OneSavings Bank sales director Adrian Moloney says: “Brokers have had to get to grips with a huge amount of regulatory change over the past 18 months. It’s understandable that some are still playing catch up. But with the PRA deadline looming, now is the time to buff up and make sure clients are ready to comply.”

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  • Christopher Gregory 27th September 2017 at 11:22 am

    Running a rental portfolio is a business and advisers should treat lending like any commercial funding – PRA regs are imposing nothing that should not already be adhered to.