Tax changes in the buy-to-let market and regulatory upheaval in the second charge lending sector mean advisers need to keep up-to-date on how to advise on specialist lending.
Sponsored by Enterprise Group, this guide to second charge lending and special report on complex buy-to-let is worth 3.5 hours of structured CPD and will keep advisers ‘in the know’.
While high street lenders and challenger banks can serve the needs of clients with more complex lending needs, there is also a role for master brokers and more specialist lenders to play.
The guide to second charge lending explains how regulation has brought these loans in line with first charge mortgages and aims to dispel some of the myths around this space.
As Peter Williams, sales director at John Charcol, explained: “The previous perception of second charges being for people in trouble or being high rates is slowly being shaken off.”
But financial adviser at The Orchard Practice, Joshua Gerstler, has called for further reform of the market.
He said: “I would like to see more regulation in the second charge market and for the process to be as simple as arranging a first charge mortgage.”
But Harry Landy, managing director at Enterprise Group, added: “The MCD [Mortgage Credit Directive] was a huge regulatory change. We don’t expect to see anything of that scale in the near future.”
Meanwhile, the buy-to-let (BTL) market is slowing down and faces a period of uncertainty.
Mr Landy observed: “The changes to tax treatment of mortgage interest costs within personal taxation are having impacts that are still playing out in the market.
“What’s clearest is that, for new BTL purchases in the back-end of 2016, a far greater percentage were being done through limited companies - playing straight into the hands of complex BTL lenders, who have been dealing with those situations for years.”
To read the full specialist lending course and bank 3.5 hours of CPD, click here.
Also covered in the course are commercial mortgages and the rise of bridging loans for residential clients.