NACFB growth encourages home-grown Code

Members of the National Association of Commercial Finance Brokers heard last week of the organisation&#39s growth in the last year and of attempts to pass a code of practice for buy-to-let lending.

Membership of the commercial finance body increased by 14% in the last year to 297, providing a significant contribution to the buy-to-let market among other areas. Demand for buy-to-let funding has seen balances for buy-to-let swell to £16bn, with 20% of this total representing new business from NACFB members.

Members were also informed of the NACFB&#39s progress in seeking OFT endorsement for a Code of Practice for residential investment mortgages. Since the introduction of the Enterprise Act in March 2002, the OFT has been able to give its endorsement to self-regulating industry.

NACFB chief executive Keith Heron told members: “The code has been welcomed by the OFT and we hope other IMLA lenders will give their full support. By 2004 we hope the residential investment mortgage code will be as widely recognised as the Mortgage Code. The OFT meetings have been helpful and, because NACFB members transact so much commercial finance and buy-to-let business, our approach will be seriously considered. Through development we will see more stringent vetting and approval of members and not just registration for the Code.”

Heron also warned members of the importance of taking out professional indemnity insurance in spite of price increases since the terrorist attacks of 2001, encouraging them to take advantage of discounted group membership.