Complex loans leave advisors stretched
“For many advisors, working on a ‘vanilla’ mortgage can be a rare event, especially in the more investment-oriented areas of the market and especially in today’s market”
There’s no doubt that for many advisors working on a “vanilla” mortgage can be a rare occurrence, particularly in the more investment-oriented sectors of the market and particularly in today’s market, where portfolio owners have a number of wants and needs and a number of avenues to explore in order to obtain the financing/properties they need.
Of course, this is good news for advisors – in all sectors of the mortgage market – because not only do we have a situation where client needs are much more complex than they have ever been, but the number and the complexity of the products available to them, it is almost impossible to sort out these finances on their own. Plus, if they’re going the direct route, how can they be sure they’re getting the best outcome if they haven’t used the services of an advisor?
This leaves advisers in high demand, particularly in a market where buy-to-let activity has held up incredibly well and many buy-to-let mortgages are coming due, especially those of a five-fixed nature. years of which we saw a large number agreed in 2017.
This combination of factors of course combines the fact that many owners want to use the equity growth of their existing properties to access cash for deposits on their next properties, with an increasing number looking for higher yielding opportunities, especially in HMOs and multi-units. block sectors.
And of course, we currently have a very fluid mortgage market when it comes to buy-to-let financing, given the recent situation with swap rates resulting in an increasing number of price changes across the board.
Again, advisors are relied upon like never before to guarantee rates/products and ensure the borrower is able to maintain that rate, until the point of redemption/completion. Their “inside” knowledge extends not just to rates and criteria, but increasingly to service levels that play a very important role in determining the lender’s path forward.
We have certainly seen these factors peak in recent weeks, and this has resulted in an incredibly busy time for Fleet Mortgages, both for purchase and remortgage, particularly in our more complex sweet spots which, as mentioned, increasingly more owners are finding (and wanting) themselves.
Clearly, many advisors will be able to rely on their network, club, distributor, conditioner to support them in these types of cases which may seem out of the ordinary and of a more complex nature. Advisors should also not be afraid to contact lenders like us directly because, given how quickly things can change, it can be worth having a conversation from the start to get a clear idea of what what we can offer and where the market is headed.
There’s no doubt that complex buy-to-let is a thriving part of the market, but that means the complexity of what’s on offer is also changing and growing, and it’s imperative that advisors ensure their knowledge is up to date. to date in order to be able to serve these types of customers well.
To make sure you’ve mastered this knowledge requirement, don’t be afraid to access all sources of information, including the lenders themselves. Our regional telephone and sales managers are always on hand to lend a helping hand, especially if there is a case that even the most experienced practitioner would find difficult to understand.
Lending solutions won’t always be straightforward in this product space so be sure to take all the expert help you need to get the best outcome for the customer and ensure they come back again and again. Again.