Speaking at The Mortgage Event in Bristol today, Whittaker, managing director of Mortgages for Business said that up to 63% of remortgage business is taking place on multi-unit freehold blocks.
“Multi-unit freehold blocks are any freehold properties that are made up of more than one dwelling. Around 63% of this market is refinanced at the moment, compared to 37% purchasing so this is your biggest business opportunity in 2012-13.”
He said freehold property investors have been pushed out into the open mostly by the Irish banks, Royal Bank of Scotland (RBS) and other big lenders.
“As those banks seek to restructure their balance sheets, mortgage brokers will find that a lot of their customers will have exposure to the banks and are being invited to take that debt away.
“If you look at the RBS they’re property lending is sound but Stephen Hester, chief executive officer of RBS has told his team to get back £20bn in three years. They’re one year in and nowhere near hitting their targets. My guess is that they’ve only got back £3bn so far.
“So you as a group will have customers phoning you in the next year, especially when the pressure comes to bear in January/February time and RBS realise how far they are off on their targets.”
Whittaker told delegates expect clients to seek you out in the New Year and these will be seasoned investors with good CVs and good personal credit.
“These will be good people and worth your while to spend your time on. What’s more important about a lender like RBS is that they take a charge on other assets and most of these people they deal with will have a either a house or a flat there. So when you look at the core of the deal you’ll probably find that there are other assets that you might be able to jump on board on, especially if freehold properties are not your thing.”
He added: “You will take calls by the week next year as the pressure comes to bear on RBS/ NatWest book and even Santander. Essentially this is your market and your opportunity to do extremely well next year.”
For Mortgage Solutions’ interview with David Whittaker, click here
