"Advisers will know only too well that the nature of buy-to-let investment has changed, and continues to do so."
FR: As head of underwriting, what does your role involve and what does a typical day look like?
I’m responsible for the management and operational performance of the residential lending operation on a day-to-day basis, driving the optimal balance between quality, risk and operational efficiency, whilst always focusing on putting the customer first and the engagement of department members.
There is no typical day as such because my role is so varied. I do of course spend a lot of time in meetings but I see this as a positive as it allows me to work collaboratively across different teams, sharing best practice and ideas and most importantly driving change. This means that the service we deliver to our intermediaries is constantly being considered and improved.
FR: With growing numbers of landlords purchasing through a limited company, how does the criteria and underwriting differ from an individual application?
Each case is considered on its own merits and assessed by a skilled underwriter. While there are some differences to consider with limited company applications, in essence these are mainly around ensuring you understand the company structure and directors/shareholders.
However the basic principles of underwriting remain – what is the creditworthiness of the borrowers (in the case of the limited company application this is both the directors and the company itself) and what is the quality of the asset being offered as security for the loan?
FR: What makes a good underwriting team and what do advisers most need?
It’s very much about working together to support each other in order to proactively engage with customers to help them during the mortgage journey. Being able to apply their in-depth knowledge and expertise of the lending criteria, taking into account individual circumstances overlaid with a common sense approach.
Advisers want certainty of outcome through clarity of the application process, knowing exactly what documents are required up front, and then flexibility and speed to get the mortgage offer sent to their clients.
FR: What are the biggest issues facing advisers in the current economic environment and what should they be aware of when dealing with clients?
From a buy-to-let client perspective, we’ve obviously seen landlords having to deal with a range of regulatory and taxation-based changes which have clearly had an impact. Advisers will know only too well that the nature of buy-to-let investment has changed, and continues to do so.
It’s clearly unfortunate that the impact has been somewhat negative, particularly when it comes to landlords adding to their portfolios. Add in various other factors, such as Brexit and the potential impact this could have on the economy and it’s perhaps no wonder that landlords are cautious about their next steps.
That said, we deal with a lot of portfolio and professional landlords who are utilising vehicles like limited companies in order to increase their property numbers. And of course there’s no doubting that the numbers who need the private rental sector to fulfil their housing needs are not going to fall back anytime soon.
For those who can take a long-term approach, property investment remains a solid opportunity, and advisers who are able to tap into the finance needs of those landlords are going to have their services in demand for a long time to come.
FR: If you could see one headline about the mortgage market in 2019, what would it be?
‘Mortgage market maintains momentum despite Brexit mayhem’.
