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Buy-to-let ups and downs


uy to let lender Platform Mortgages has signalled a lack of confidence in the market by more or less stopping


borrowing for landlords. But another buy to let specialist – CHL Mortgages – has announced trading improvements as more landlords slash mortgage arrears. Platform, a subsidiary of the Co-op Bank


Chris Gardner and Ray Bohringer


T


he property and mortgage market website, Obligo, has launched a new mortgage solution for estate agents – Obligo Pro – that will qualify buyers in minutes, enable


faster mortgage offers and, crucially in the volatile market, generate a healthy bottom line through competitive referral fees. It is an interesting concept that came to


fruition because Obligo directors Chris Gardner and Ray Bohringer had found that many estate agents had been unable to sustain the expense of an in-house mortgage adviser during the recession but still needed to be able to offer mortgage information and facilities. The Obligo Pro web application offers all


the benefits of an in-house mortgage desk with the flexibility of an outsourced service and there is no cost to the partner agent. Chris Gardner told PROPERTYdrum,


“Obligo Pro changes the way estate agencies operate by empowering their negotiators to participate far more in the mortgage application process. Essentially, it takes the in-branch broker desk online, saving not just on cost but on time. Most agents who did have an in-branch broker


has stopped lending to professional, self- employed landlords, reluctant landlords and property developers. The firm is also tightening up terms for borrowers by restricting buy to let loans they can have with all lenders to five, of which only three, up to a total of £1 million, can be with Platform. The move seems to be withdrawing support for professional landlords with portfolios of six or more properties worth in excess of £1 million. Lloyds Bank similarly restricted buy to


let lending in September, whereas professional landlord lender Paragon Mortgages returned to the market after a two-year absence in October. Another lender, CHL has reported that


will have been in a situation when they urgently need to speak to them but he or she is not there; Obligo Pro does away with that dependence once and for all. It puts agents firmly in the driving seat, enabling them to get much more closely involved with the mortgage arrangement process from day one.” Ray Bohringer, Sales Director, added,


“Obligo Pro is also an additional revenue generator for agents, providing competitive fixed fee referral commissions. And even if there is no mortgage suitable for a buyer at a particular time, Obligo Pro will track the market until there is, which enables agents to convert otherwise lost sales. Finally, because we offer access to the whole of market, as well as exclusive deals from the country’s leading mortgage providers, the customer will also see the benefits of using an agent that is registered with us.” If you are wondering where the name


Obligo comes from, the Latin word ‘obligatus’ meaning ‘indebted’.


arrears are falling rapidly – down 22 per cent from their height in February 2009, and on track to fall 40 per cent. The lender also expects the trend to continue into next year. Nigel Terrington, Paragon Group chief


executive, speaking about the buy-to-let gross lending and arrears figures from the Council of Mortgage Lenders (CML), said, “The 12 per cent rise in gross advances is encouraging and reflects an increased level of confidence amongst landlords and lenders in the buy-to-let market. Tenant demand is extremely strong and the private rented sector needs to expand to cope with the increased numbers of people wanting to live in rented homes. “It was pleasing to


Nigel Terrington, Paragon Group Chief Executive


see arrears fall again, the sixth consecutive quarterly fall in the buy-to-let arrears rate and highlights the resilience of the market.”


PROPERTYdrum DECEMBER 2010 41


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