by Doug Hall, deputy
managing director, 3mc
e fuTure’s commercial
coming onto the market there is a supply of property fit for this purpose. Investors certainly have the desire to put money into the market and brokers can help them structure finance that works for them.
Interest-only It’s an interesting time in the sector
at the moment as a lot of lenders are calling in debt or renegotiating terms of loans and we’ve found that commercial lenders are restricting the term they offer interest-only on buy-to-let deals to two to three years. It might be tempting to give up at this hurdle but this is where finding a specialist business partner can make or break the deal. In this market the terms of the deal are as important if not more important than the rate. Between 80% and 90% of investors in this market are looking for interest- only over the term of the product but commercial lenders won’t offer these terms unless you use a packager on their panel.
Help is at hand The opportunity is there but this
“Contrary to some others in the industry
I don’t think this
means residential brokers can’t get in on the action. If you’re unsure where to start
help is at hand. It’s worth thinking about using a
buy-to-let.”
sort of deal is called specialist for a reason. Contrary to some others in the industry however, I don’t think this means residential brokers can’t get in on the action. If you’re unsure where to start help is at hand. It’s worth thinking about using a partner if you want to start doing more specialist buy-to-let. Both Aldermore and WLB have broker panels and often you just don’t
partner if you want to start doing more specialist
get access unless you go via one of their preferred partners. But there are other options aside from signing a client over to a competitor. At 3mc we have various options for brokers wanting to do more commercial buy-to-let. Either we will help them write the business themselves for a 50:50 proc fee share or we can work on a referral basis with an introductory fee. The key is there is money to be made, so don’t walk away from this type of business simply because it’s new to you. There are lenders lending in this market, it just may be that they’re lenders you don’t recognise. With our commercial panel over 85% of the business we do is on specialist buy-to-let and we see this as a strong growth sector for us in the next few years. There are arguments that there is limited money in this part of the market, but I think this is partly driven by broker apathy to try and place these deals. Aldermore is an innovative lender and they adapt the way they work and react well to the market. If they want to make changes to the way
they do things, they do so quicker than most lenders in the market. It’s a difficult chicken and egg scenario but I work on the basis that we should give lenders the opportunity to write the business rather than turning these customers away.
Interview by Sarah Davidson 19
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36