However around a third do not know what the portfolio lending changes mean for their business and 13% are unclear on when the changes start, according to the poll from Kent Reliance.
First announced in September 2016, the new underwriting standards will apply to all cases for landlords with four or more properties. Brokers will need to provide detailed information on the buy-to-let borrower’s income, cash flows and costs arising from multiple tenancies.
The survey of over 200 buy-to-let brokers found that 46% still did not understand everything they need to. However, those who are “comfortable” with the changes, which are two and a half weeks away, are excited by the potential opportunities brought by the changes, whereas 14% think overall transactions may fall.
Fewer, slower transactions
A third of brokers expect transaction numbers to fall as changes bed in, and just under a quarter think the additional paperwork will slow processing times substantially. Just 4% think the changes will have no impact.
Adrian Moloney, sales director at One Savings Bank, (pictured) said: “Brokers have had to get to grips a with a huge amount of regulatory change over the past 18 months including seismic changes to mortgage tax relief and Stamp Duty, so it’s understandable that some are still playing catch up, but with the Prudential Regulation Authority deadline looming, now is the time to buff up on the new rules and make sure clients are ready to comply.
“The new standards are business-as-usual for us as a specialist lender, but we know that brokers are going to have a lot more work on their plates, so we’ve done everything in our power to make life easier. Whether that’s through communicating our new lending criteria well in advance of the changes, or developing a dedicated tech-platform, brokers ease of doing business with us remain a key priority of ours.”
One Savings Bank urged brokers to get in touch for help if needed and BM Solutions began a series of 70 educational workshops on the changes two weeks ago and has already seen 1,000 brokers with hopes to see up to 5,000 in the coming weeks.