The firm is profiling its advisers to establish a new buy-to-let licence for those brokers likely to be doing higher volumes of buy-to-let business often with more complexity, and with the ‘necessary skills to advise in this area’.
The group said the move should ensure that the ‘best advice is given to our customers, and maximum support is provided to our advisers in what is becoming an increasingly complex sector.’
The chosen advisers after the initial assessment will have ongoing training, support and monitoring to allow them to operate ‘confidently’ in the market,’ said MAB.
MAB CEO Peter Brodnicki said this is not about barring brokers from doing buy-to-let business but is a way to understand how advisers are coping since the changes.
The national adviser group confirmed all brokers already have an outsourced solution when required, but said those serious about building their business levels in buy-to-let would benefit from more specialist support from MAB to enable them to do so which is what this licensing process delivers.
“We believe specialization is generally a better customer outcome. It’s a logical evolution, not a revolution. As with new build, shared ownership, large loans, and so on, the market sorts itself out and the specialization is already there. Exactly how far that will evolve is still to be determined,” he added.
The Prudential Regulatory Authority’s (PRA) portfolio lending changes have handed brokers a raft of difficulties over the last five months. All applicants with four or more mortgaged properties already are now affordability assessed against their portfolio, bringing a requirement for in-depth paperwork and greater complexity packaging cases.
Post-PRA changes, buy-to-let providers may expect a property portfolio spreadsheet, business plans, cash flow forecasts and brokers need to offer a tax return and also illustrate a client’s portfolio and personal income.
Brodnicki said: “Whilst we do not allow advisers to give tax advice, we are aware there is a need for mortgage advice when dealing with portfolio business and so, it is important to us that our advisers have the right knowledge and experience to be able to help their customers.”