In fact, given the events of the last few years, I think those of us in the mortgage industry could do with a little less excitement in the years to come.
I was reminded of this a few days ago when looking at a list of mortgage lenders that were active before 2007. Quite a few of the names are no longer around or, if they are, they’ve cut back on their lending since the credit crisis, especially in the buy-to-let sector.
Particularly in the broker market, I think it’s important for lenders to be consistent.
Intermediaries need to know that they’re working with lenders with whom they can build long-term relationships, in the best interests of their clients.
And lenders that remained active in the buy-to-let market have benefited from the experience and trust that they have built up during this time. Brokers tell us how much they value this.
Landlords, both professionals and amateurs, need to know that their advisors have unrestricted access to good value mortgage products. Offering brokers the full range of buy-to-let products, with simple, easy-to-understand charging structures, is really important.
A recent report from Datamonitor on the state of the mortgage market may have made for gloomy reading for those looking at the residential market, but it was much more positive about buy to let. The report claimed that this would be the only sector to see significant growth in 2011.
Other lenders are clearly beginning to see this.
In recent months, we’ve seen a number of them return to the buy-to-let market while others are considering whether to enter for the first time. This should be a good thing for intermediaries and clients alike if it improves competition.
After all, access to a wider range of mortgage products from well-funded lenders, keen to do business, can only be positive for the market.
Having said that, this is where a consistent approach from lenders is so important.
It will be interesting to see if new or returning players will increase the availability of buy-to-let mortgages or whether supply will be affected by lenders limiting the distribution of their products by channel or intermediary relationship.
Time will tell. But while we’re waiting for this question to be answered, experience, reliability and consistency will continue to be boringly beneficial.
Darin Landon, is head of sales at Coventry Building Society
