Lenders must toe regulatory line to help borrowers exit – Castle Trust

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  • 28/02/2019
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Lenders must toe regulatory line to help borrowers exit – Castle Trust
The growing range of new lenders entering the buy-to-let market should be welcomed but they must keep to within regulatory guidelines to allow borrowers a stable exit, lenders have warned.

 

Speaking on Specialist Lending Solutions Television in association with Castle Trust and Magellan Homeloans, the lenders said it was surprising that high street lenders had pulled away from portfolio landlords.

But they warned that new entrants who came in quickly without enough planning could create troubles for themselves and their clients.

Castle Trust director of sales Marcus Dussard said: “The plain vanilla market is not going to be growing as much going forward so the niche is going to become the norm.

“So therefore there is room for other lenders in the market so long as they are following the rules and doing everything the right way.”

 

No-one else will take it

Dussard continued: “One of the key things is if everyone’s toeing the same line then it’s easier for a client to be able to exit in a year or two years’ time.

“If we as a lender are doing something that we’re not supposed to be doing that client then doesn’t have an exit in two years’ time because no one else will take it on board.

“So it’s down to us to help that scenario by toeing the line and following those regulations that help clients get out from of their short term lends,” he added.

Magellan Homeloans managing director Simon Read added that he felt the majority of lenders were moving in the right direction and were taking the spirit of the regulations.

But he noted there was a danger if lenders entered into the market without enough planning first.

 

 

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