Mortgage Advice Bureau is looking at introducing a new ‘licence’ for brokers likely to be doing higher volumes of more complex buy-to-let business.
The network is in the process of ‘exploring a specialist approach to buy-to-let’ following changes to the market implemented by the Prudential Regulatory Authority.
Following the changes to regulation, lending to portfolio landlords has become more complex, with many BTL lenders requiring a property portfolio spreadsheet, business plans, cash flow forecasts, as well as potentially providing a tax return to illustrate a client’s portfolio and personal income when conducting underwriting procedures.
This means that a more specialist approach is required when it comes to assisting landlords.
As a result, MAB has been profiling its advisers and is testing a new BTL ‘licence’ for those brokers likely to be doing higher volumes of often more complex buy-to-let business.
MAB chief executive Peter Brodnicki says: “Following the PRA changes, we have been looking at our processes, procedures and adviser licensing, as we want to ensure the best advice is given to our customers, and maximum support is provided to our advisers in what is becoming an increasingly complex sector.
“Whilst we do not allow our advisers to give tax advice, we are aware there is a need for mortgage advice when dealing with portfolio business and so it is important to us that our advisers have the right knowledge and experience to be able to help their customers.”
“We believe specialisation is key to generating a better customer outcome. As with other specialist areas such as new build, shared ownership and large loans, specialisation is already there.”
The new licensing process will allow those advisers who are building their business levels in BTL to benefit from more specialist support.
“At present depending on the number of properties and/or type of lending, our advisers may need in some cases, to refer to a specialist partner,” says Brodnicki.
“However, we are currently profiling our adviser population to establish which of those within the distribution have the necessary skills to be able to advise in this area, with a view to licencing them as specialist BTL advisers who can provide mortgage advice on all aspects of this type of lending. This involves an initial assessment, ongoing training, support and monitoring to ensure they have the required tools to operate confidently in this market. Exactly how far that will evolve is still to be determined.”