Fleet Mortgages has reported notable quarterly growth in the amount of portfolio landlord applications it has received.
In the third quarter of 2017, the number of portfolio landlord applications received by Fleet Mortgages as a percentage of total applications, stood at 50%; by the end of quarter four 2017 this had risen to 61%.
Fleet Mortgages attributes this increase down to a number of factors, not least its ongoing focus on delivering a simple and effective service specifically for portfolio landlords.
Last year, in light of the PRA underwriting changes, Fleet Mortgages outlined three key commitments to advisers and their portfolio landlord clients. These are:
- No additional work – a standard application form and Property Asset & Liability Statement remains plus no requirement to key in details of the individual property in the portfolio
- No delays for the client due to additional processing.
- Focus on quicker processing times meaning no increases in costs to client.
The lender has also announced that during 2017 it grew its loan portfolio by 45% reaching £1,008m by the close of the year. There are also no mortgage accounts within the loan portfolio currently more than 30 days in arrears.
Bob Young, chief executive officer of Fleet Mortgages, said: “The shifting shape of the buy-to-let market is clearly moving in the direction of greater professionalisation, with more portfolio landlords who are not just investing for the long term but are increasingly likely to be doing this as their full-time day job. This is something of a move away from the days of the ‘amateur landlord’ and is a result of a number of factors, not least the increase in stamp duty and the cuts to mortgage interest relief, which are leading some landlords to consider their future in the sector, while others are committed to growing their portfolios.
“Portfolio and professional landlords continue to be focused on the opportunities available, and we believe that a combination of landlord ambition and the fact that our focus on simplicity appeals to advisers and their clients, are fundamental reasons why we are seeing an increase in applications in this area. We have dedicated, experienced staff who understand this part of the market, and we are not asking for reams of paperwork in order to decide and progress on a case.
“Our product range is fully open to portfolio landlords, and we are looking to replicate the growth we’ve seen in our loan portfolio by helping more portfolio and professional landlords to secure the finance and refinance they need. Fleet Mortgages’ focus is on high-quality business and we are keen to work with any adviser who is looking for the same in the buy-to-let sector.”