More than half of brokers (52%) said that they have used specialist lenders more frequently since the PRA’s new guidelines for portfolio landlords came into effect in October, according to new research from Kent Reliance.
The data also illustrates that the imposed guidelines from the PRA has influenced many brokers (30%) to either use a specialist lender or consider them in the future, with 11% intending on using them. However, 15% of brokers have not changed the type of lender that they use, whilst 2% have used specialist lenders less following the introduction of the new guidelines.
Kent Reliance suggested that a key reason for the “drive” towards specialist lenders is due to confusion around the complexities that landlords are facing, as they now have to provide detailed financial information on the properties within their portfolio, if they have four or more properties. 44% of brokers have said that their clients are having difficulty adjusting to the changes with 34% saying that those with 4-6 properties are having the most difficulty.
OneSavings Bank sales director Adrian Moloney said: “Specialist lenders are uniquely placed to offer greater flexibility than traditional high street providers, so it’s perhaps unsurprising that many brokers have turned to specialists in the months following the PRA regulation changes.
“Although it was always going to be the case that the administrative burden of the PRA regulation would be most harshly felt by brokers and their portfolio landlord customers, many we spoke to in the lead-up to the changes told us that they felt underprepared for its implementation. That’s why we introduced our Buy to Let Hub, a dedicated submissions platform, which helps simplify the process and ease some of the load for brokers.
“We’ve always put brokers at the heart of our business strategy, and we will continue to do all we can to help them navigate this stricter underwriting criteria as painlessly as possible.”
Subscribe to our newsletter to receive breaking news by email.