This would open up fee-charging opportunities, said Santander’s Richard Howes (pictured) at The Buy To Let Market Forum, speaking to an audience of 150 brokers at Villa Park, Birmingham.
National key account manager Howes said brokers should think about changing their business models to profit from the complex tax changes affecting buy to let.
“Accountants and solicitors charge for the time they give advising clients even if no transaction takes place, so why shouldn’t mortgage professionals charge for their intellectual capacity as property experts?” said Howes.
Howes said he was not urging intermediaries to become tax accountants but suggested that they could become facilitators and form a joint venture with an accountancy firm.
“You may already charge an administration fee for the processing of the mortgage and receive a proc. fee from the lender but maybe you could start charging for your knowledge in the complex buy-to-let market and for being a facilitator with other professions regardless of whether they make a purchase from you,” he added.
Attendees at the forum heard how robo-advice could present a threat to the more transactional type of mortgage advice which may be straightforward enough to carry out over the phone or online. By understanding the tax implications of property purchases brokers could differentiate their services, said Howes.
In the first leg of the The Buy To Let Market Forum, a Mortgage Solutions event, high numbers of brokers listened to buy-to-let market analysis, tips on how to maximise opportunities presented by the recent tax changes and how to identify fraudulent buy-to-let applications from leading industry figures.
Follow all the Twitter coverage at #BTL16