Simret Samra (SS): How easy is it for a broker to join The Buy to Let Business Mortgage Club?

Ying Tan (YT): The initial join up process is straightforward. We have got a registration form on our application but with the world we’re in now there is some due diligence and compliance that we need to go through. It’s very important we maintain the quality and the reputation of our business so we’ll make sure that the right people are associated with us.

 

(SS): What are the main benefits of joining?

 

(YT): First, there are no membership fees. Secondly, our members can have use of our Centre of Excellence broker desk. If you imagine an IFA or a one-man band who does the occasional buy-to-let case a month, given the fast pace of the changing criteria among a whole host of buy-to-let lenders it’s very difficult to keep abreast with the changes. If brokers give us a phone call, we can give them the right information.

Sponsored

Why new-build property investment is appealing to a new generation of landlords

Sponsored by BM Solutions

With brokers using our Centre of Excellence, we believe lenders will benefit from an increased quality of buy-to-let applications.

 

(SS): How quickly do you plan to grow?

 

(YT): First and foremost it’s all about quality. While it would be great to have loads of members on board, I would rather we have a select group of members who produce quality of volume business and who we can build strong relationships with.

 

(SS): How big is the team that will be looking after the mortgage club?

 

(YT): We have up to 20 members of staff, with four dedicated to the mortgage club. We can pull in resources as and when needed if there is extra demand. The head of the mortgage club is Derek Budd, who is a former broker and has a huge amount of expertise in the sector.

 

(SS): Will members profit from enhanced proc fees?

 

(YT): A lot of lenders put caps on proc fees so we can only do as much as we can. We’ve looked at the competition and will try to be competitive.

 

(SS): You have announced details of your partnership with Hinckley & Rugby Building Society. Are there any more partnerships in the pipeline?

 

(YT): There are a number of big lenders that we are in advanced discussions with at the moment.

 

(SS): What type of products will you be offering brokers?

 

(YT): With the Hinckley and Rugby exclusive, you’ve got a lender there that is probably top one or two 75% pay rate, but it has what all brokers are crying out for – a flat fee. It also has a free valuation and no ERCs. To get a 75% LTV sub 4%, I think there are only two or three products on the market like that at the moment and some of those have percentage fees.

 

(SS): Where did the idea come from to put together a buy-to-let mortgage club?

 

(YT): We have a strong reputation as a B2C business and we’re arguably one of the biggest buy-to-let brokers in the country with our established reputation, yet we have only have 0.1% of the business. We’d like to be a more significant player in buy-to-let in terms of overall distribution. 

I think the mortgage club is a natural evolution of the way we are as we look to gain market share. This has always been part of the longer term strategic plan and we’re looking to capitalise on a sector that is booming, and will remain strong for some time.