How do you feel about the regulation of BTL and how do you think it will change the market?
Regulation is not something to be feared by the industry. There is always apprehension over change, however the thrust of regulation, particularly since the FCA took the reins from its unlamented predecessor, has seen a clear effort to listen and understand the lending industry, while wrestling effectively with the plethora of competing and sometimes contradictory EU demands. Overall, I think they are doing a good job. My only concern is that we move to a position that offers clarity and stability to this growing area of the market.
You joined the Brightstar team fairly recently - what are you looking forward to in your new role?
Brightstar Financial is already an important conduit for specialist lending and while there is a growing awareness of the sector among brokers, I see an important part of my role as being a proactive advocate for bringing the specialist lending message to a wider audience in the adviser space. I want to bring my experience of the industry to bear and help remove any lingering doubt in the minds of those who are still reluctant to place clients rejected by the High Street with the growing number of lenders who don't share the same 'box ticking' attitude to underwriting as traditional lenders.
What do you think should or could be done to help mortgage prisoners trapped on an SVR?
The regulator has already stated that many lenders have misinterpreted the MMR in the way in which existing clients who are not increasing their borrowing are currently being treated when they reach the end of their current deals. I am sure there is no deliberate intention to take advantage of them, but effectively these customers are being treated very poorly and the regulator is right to draw attention to it. At Brightstar we are trying to do as much as we can by offering remortgage facilities with lenders who thankfully still recognise the primacy of individual circumstances. We have access to many lenders who can help but brokers need to be more aware that these clients are not in some way tainted because of the way they have been treated by their current lenders.
What challenges do you feel are most affecting brokers in the current market?
The implementation of MMR by lenders has caused plenty of hiccoughs and a lot of work for lenders. However, brokers have been the unlucky ones. Changes to affordability calculations and stress testing have led to processing times becoming unnecessarily long. Extra paperwork and all parties getting used to new procedures are partly to blame, but while some lenders have been planning for MMR and had put most of their systems in place before the deadline, there are many who have been caught out and as a result, the poor broker is made to suffer.
If you weren't in the financial services industry, what would you be doing?
In a perfect world, I would probably have my own livery yard looking after horses and somewhere out in the country.
