FR: What can we expect from Fleet Mortgages?
Fleet Mortgages is a new buy-to-let and specialist lender which will only distribute through the intermediary sector – this is where our experience lies and it’s where we have strong relationships which we’re seeking to develop. As you would expect from a team which is steeped in the buy-to-let market we’re initially concentrating our lending efforts here and we’ll be launching a range of products that will be targeting areas which we feel are somewhat under-catered for at present. So, lending to limited companies and on HMO properties, as well as offering something for professional investors/landlords.
Our proposition is all about responsible lending and ensuring we provide a quality service. So brokers shouldn’t expect us to launch with ‘Best Buy’-esque pricing. Instead we’ll have competitive rates and we want to lend to those who can afford to pay us back. There’s no rocket science involved in what we do, and we believe the fact we’ll be honest, transparent and straight-forward with intermediaries will be welcomed. We’re hoping that Fleet Mortgages will become the natural first port of call for any broker looking for a specialist lender to meet the complexities of their clients, because while we will launch with a range of buy-to-let products our intention is to move into other specialist sectors next year such as commercial.
FR: What will set you apart from other lenders active in this market?
We’ll essentially be a ‘does what it says on the tin’ lender which means we won’t be making any stupid promises, there’ll be no poor lending from Fleet, and we will provide consistency for everyone who deals with us. For us, our key differentiator will be the people who work here and the service they provide – this is why we recruit well, train well, manage well and promote a culture of responsibility. We have found over the years that all brokers respect such an offering and they trust lenders who tell them what they are going to do and then deliver it.
Brokers will also find our processes simple and effective – yes we’ll be using automated credit tools but there will also be human beings at the end of the phone/email to communicate with. We have experienced underwriters on board who know this market and can give a straight answer to a straight question. Our focus is on keeping brokers in the loop on their existing cases and ensuring our team of BDMs is available to discuss new and existing cases. As I’ve said above, we’re not attempting to reinvent the wheel with Fleet Mortgages, but our intention is to conduct ourselves in every manner with the upmost respect for our partners.
FR: Do you have specific lending targets you would like to achieve?
Internally we of course have targets that we’d like to achieve within a certain timescale but certainly at the outset we’ll be more concerned with delivering on our promises and ensuring our systems and processes are functioning well. As you might have seen we’ve been working with DPR Consulting on our mortgage servicing system and there has been an incredible amount of hard work put in to getting the system ready within a very tight timescale. At the moment we are testing that system to the nth degree but it is only really when you launch and start placing cases that you become completely comfortable and confident with it.
This is why we will launch fairly softly in November with a small number of distributor partners and this will enable us to ensure everything is running correctly during that ‘soft launch’ period. However, our aim is certainly to open up to the wider market in 2015 and we are having ongoing discussions with other distributors/intermediaries to facilitate this as quickly as possible. At the end of the day, we are an intermediary-only lender and we want to be out there and accessible to everybody.
FR: A number of lenders have upped their procuration fees recently on buy-to-let cases. How will Fleet Mortgages approach this area?
Quite simply, we will be in keeping with the market and I think this is only right. The work level required by intermediaries in order to place a case has always been substantial and this is unlikely to change anytime soon. Therefore it seems quite correct to us that they are rewarded for that work, plus we would probably urge brokers to also look at a fee-charging arrangement with their clients. Being a mortgage adviser is not charity work and we will certainly be paying fair procuration fee levels to our intermediary partners.
FR: Finally, full buy-to-let regulation of the market appears to be growing closer by the day. What are your views on the regulatory changes affecting the sector?
I think my views on buy-to-let regulation are widely known – I continue to think it is unnecessary and there are an incredible number of questions to be answered around who is going to be protected by statutory regulation of the sector. Now, I’m not so naïve as to think that this means full regulation isn’t on the agenda because I know it is even if (in my view) neither the Treasury nor the FCA seems like it wants it.
As we all know much of the regulatory agenda is driven by the European Union and as we have seen with the European Mortgage Credit Directive, home regulators often have to implement measures they ordinarily would not wish to do. The notion of ‘accidental landlords’ being subject to regulation seems like one area which sounds easy to achieve in theory but will come with some practical problems when it is enforced. Not forgetting the extra cost and resources required by all stakeholders whenever there are regulatory changes.
To my mind, certainly since the Credit Crunch, the buy-to-let sector has functioned well and, very importantly, responsibly. There seems no good reason to bring in full regulation but I suspect we are already walking down this road and it will be difficult to stop.
