David Whittaker (pictured), managing director of Mortgages for Business, speaking at yesterday’s Financial Services Expo (FSE) at Celtic Manor in Wales, said one buy-to-let lender revealed at a recent event that in Q4 it planned to pay more to brokers doing increased work on managed portfolio cases.
He suggested that when this lender made its proc fee hike, advisers could expect similar changes from others in the marketplace. He added: “That change will force the others to move. When one goes, others will follow. It is good news that the market will be recognising your contribution and will begin paying for it.”
Whittaker said that while predictions for buy-to-let gross lending had been downgraded by the CML recently – to £35bn in 2017 and an anticipated £33bn in 2018 – advisers still had opportunities within the sector, and that the lending figures did not necessarily take into account the value of product transfer business which increasingly lenders were paying for.
Liz Syms of Connect for Intermediaries agreed that product transfers could be a major source of business for advisers. Syms also suggested that in the lead up to the portfolio landlord underwriting changes – due to come into effect on the 1st October – activity levels might increase.
“There is the potential to see a spike in business before the end of September,” she said. “Advisers and clients could get the benefit from the current rules now as we don’t know how the new rules will land.”