"When it comes to buy-to-let, a variety of obstacles have served to shape new offerings and result in the repositioning of existing ones."
Both models – license fee and advertising income - are under intense pressure and, despite its own set of challenges, the subscription model is proving to be a popular one. Streaming services are dominated the airwaves (if they can still be classed as airwaves) and this has forced the hand of traditional TV networks, possibly sooner than originally planned.
Thinking as a marketer, this announcement does appear a little premature, but I guess it helps build demand through anticipation. And I question how this will work practically, on a branding level and how it intends to go about capturing an audience at the right cost point? Putting my consumer hat on, I’m wondering if this will dilute or add to the individual offerings. And a bigger question is – is there such a thing as too much choice?
Innovation, new concepts and the evolution of business models is nothing new. The past decade has seen a rebuilding process take place throughout financial services. When it comes to buy-to-let, a variety of obstacles have served to shape new offerings and result in the repositioning of existing ones.
When it comes to choice, this has always been welcomed - especially when product related. And we are currently seeing some positive trends emerge. Recent data from Moneyfacts highlighted that almost 400 buy-to-let products have been added to the market over the course of the last year, taking the total to more than 2,000 and the highest number since October 2007, when 3,305 deals were available. At the time these figures were released, there were suggested to be 2,162 buy-to-let deals available, up from 1,765 last March and 1,982 in September, including 467 for limited company landlords not using special purpose vehicles.
This data highlights the forward strides being made by the sector, and its not only product choice which is increasing but also the levels of flexibility attached to these. As an intermediary-focused lender it’s vital that we interact with our distribution channels on a regular basis. Choice and flexibility are two words which dominate many of these conversations.
Landlords are constantly evaluating the performance of their portfolios, as well as their own operating methods and future plans, meaning these two elements are integral to financing and future-proofing their investments. Having said this, there is also a strong appetite for some degree of certainly in what remains an uncertain economic environment. After all, nobody can be sure of what the mortgage market might look like in a year’s time let alone five, a factor which is leading many landlords to look for the best of both worlds.
That means they want a highly-competitive long-term fixed rate, but they also the opportunity to remortgage and refinance should their circumstances’, or the market, dictate. This was the thinking behind the recent launch of our ‘Fix to Flex’ product. We also felt it was important to be able to offer this to individual, limited company, first-time and portfolio landlords to bolster choice for all landlord types.
Lenders across the buy-to-let sector are working hard to provide a product range which incorporates the tricky combination of certainty, choice and flexibility for landlords and intermediaries. Whilst I don’t foresee the major players within the industry banding together like the BBC and ITV to create an all-encompassing solution, a common theme remains - finding the right type of solution for the right target audience. And also hoping it turns out more Bodyguard than El Dorado...
