Half of buy-to-let brokers are still in the dark about the PRA's upcoming portfolio landlord application rules and how they will apply to their business come October.
New research from Kent Reliance has shown that 31% are unsure what exactly it means for their business and 13% don't know when the changes kick in.
The changes, which were announced in September 2016, will see a new minimum underwriting standard introduced for landlords with four or more properties as of 1 October 2017. Under the new rules, portfolio landlords, and their brokers, will need to provide detailed information on the cash flows and costs arising from multiple tenancies.
A third (29%) of brokers believe the PRA rules will increase future opportunities compared to 14% who think it will reduce overall buy-to-let transactions.
OneSavings Bank sales director Adrian Moloney, said: “Brokers have had to get to grips with a huge amount of regulatory change over the past 18 months including seismic changes to mortgage tax relief and stamp duty, so it’s understandable that some are still playing catch up, but with the PRA deadline looming, now is the time to buff up on the new rules and make sure clients are ready to comply.
“The new standards are business-as-usual for us as a specialist lender, but we know that brokers are going to have a lot more work on their plates, so we’ve done everything in our power to make life easier. Whether that’s through communicating our new lending criteria well in advance of the changes, or developing a dedicated tech-platform, brokers ease of doing business with us remain a key priority of ours.
“For those that still don’t feel confident in what these changes mean for their business, the time to get on top of it is now and we would encourage them to contact us as soon as possible so we can make the transition into the new landscape seamless for their business.”
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