Bob Young, Managing Director of CHL Mortgages

Financial Reporter had a chat with Bob Young, Managing Director of CHL Mortgages about buy-to-let and starting out in the industry.

Related topics:  In The Spotlight
Amy Loddington
31st May 2013
In The Spotlight
FR: What have been some of CHL’s key milestones in the last year?

At the end of April, the number of our borrowers in one-month arrears hit an all-time low and there have also been positive progressions with regards to our repaired accounts and our receiver of rent portfolio rent cover figures. These improvements are testament to the hard work carried out by our collections team in helping borrowers in difficulty to arrive at a satisfactory solution for all parties. Having this facility in-house means we are able to exert far greater control over the process and our borrowers appreciate the resultant personal touch this achieves.  

FR: What does the coming year hold for CHL?

We will continue to help our 42,000 customers and hope to execute some ideas we have been planning to further develop our presence in the buy-to-let sector.

FR: Buy-to-let has seen a strong 12 months – do you think this is set to continue, and why?

It has come as absolutely no surprise to those within the sector that the buy-to-let market has enjoyed a strong year and there is nothing to suggest this growth will be curtailed any time soon. It’s a simple case of demographics and with a burgeoning population and a housing supply not quite keeping pace, there is only likely to be increased demand looking ahead. While taking the first step on to the property ladder remains as hard as it currently is for first-time buyers, these potential homeowners will continue to rent.

Factor in the rising number of those who prefer to rent as a lifestyle choice and the increasing attractiveness and security of property compared to other investments and there is a convergence of reasons why buy-to-let will continue to thrive.  

FR: What advice would you give to anyone looking to start up in the industry?


In terms of lenders making an entrance into the buy-to-let market, it is imperative they carry out their homework and make sure they really know what they're doing. Before the global financial crisis, we had a flood of new entrants who had only the loosest grasp on the concept of risk and return and subsequently didn’t survive to tell the tale.

With regards to individuals looking to begin a career in financial services and the mortgage market in particular, it is a great industry to work in and standards of professionalism are constantly improving. In terms of those looking to get into property investment, I always advise people to look at the long game and not expect instant success. There are a number of factors to consider – it’s not all about how much rent you can make, but about the area and type of property, yields and myriad other factors.

FR: What do you predict for the UK housing market in the next five years?

The current raft of initiatives from the Government will lead to short-term increases in property values and as a result we'll all feel slightly better off, but care must be taken not only that any such growth is sustainable, but that the State has an exit strategy to allow the mortgage, housing and property markets to become self-sufficient again and not in constant need of external stimulation. 

FR: If you weren’t in the financial services industry, what would you be doing?

I think I would probably be a teacher. It was always my plan at school to pursue that path, but commerce got in the way. I would have liked to have been a PE teacher who occasionally filled in on other subjects like history.

Bob Young joined CHL in 1997 as Head of Sales and was quickly promoted to Sales and Marketing Director in 2000 and Managing Director in 2004. Bob has an extensive understanding and impressive track record in financial services developed over 30 years in senior positions with blue chip organisations including Black Horse (Lloyds Bank) and Abbey National.

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