Mortgage Trust says 64.7% of buy-to-let mortgage brokers believe that the changes allowing residential property to be held in self invested personal pensions will boost the buy-to-let market.Intermediaries surveyed in MT’s September Buy-to-Let Intermediary Forecast predict the changes would lead to an uplift in buy-to-let business volumes of 10.6%. Some 70% of respondents plan to advise on SIPPs buy-to-let mortgages when the new rules come into effect and almost half, 47%, intend to team up with a pension adviser. Although the majority of intermediaries believe the pension reforms will benefit the buy-to-let market, a hesitant 35.3% believe the potential effect on the market has been exaggerated. Andrew Frankish, managing director of Mortgage Talk, believes there is still a lack of knowledge in the industry about SIPPs. He says: “Placing rental property in a pension scheme will only appeal to a limited number of people, namely those who have considerable pension funds at present.” But Martin O’Reilly, mortgage intermediary at Prosperity Wealth Management, says: “The buy-to-let market will remain strong and continue to grow, and the SIPP changes will increase demand further and thus drive up market values.” With many brokers remaining optimistic about the market in light of the pension reforms and the recent cut in interest rates, the number predicting significantly more business over the next three months rose substantially to 11.8% from 5.7% in July. The number of brokers predicting less business fell, while the number predicting stable business levels grew to 37.3%.
- Top trends
The Ombudsman for Estate Agents Company Limited has secured OFT approval for its consumer code of practice. The code is designed to ensure consumers get a fairer deal when using OEA estate agents’ services.The OEA represents around 40% of estate agency offices in the UK.Members of the OEA can now use the OFT approved code […]
Sesame, the leading provider of support services to 8,150 financial advisers, has appointed Paul Rignall as its new mortgage product manager. Rignall joins Sesame later this year and will report to Andrew Oliver, head of product management. He joins from St. James’s Place, where he was mortgage marketing manager and responsible for the management and […]
In recent weeks there’s been media criticism of certain banks and societies for reducing their savings rates by more than the Bank of England reduction. If this is a surprise to anybody, it’s tempting to ask what planet they’ve been on for the past 20 years, which is certainly the minimum amount of time these […]
It is as entrepreneurs rather than middle men that packagers will create real added value for lenders and brokers in the lucrative sub-prime sector, says Frances Scanlan
by Debra Corey, group reward director Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]
News and expert analysis straight to your inboxSign up