Sesame Network and PMS Mortgage Club have rolled out a new referral service to help advisers deal with buy-to-let (BTL) mortgage enquiries from portfolio landlords.
The service enables Sesame and PMS members to refer their clients to specialist partners 3mc and Mortgages for Business.
Jane Benjamin, head of relationship management at Sesame and PMS, said the two firms will provide full advice and a recommendation based on their knowledge of the ways different lenders underwrite applications from portfolio landlords.
The move is in response to the final round of rule changes the Prudential Regulation Authority (PRA) brought in at the end of September.
Ms Benjamin said: “It has become clear that lenders are interpreting the new PRA rules regarding portfolio landlords in different ways, which is creating real challenges for mortgage advisers.
“Our latest initiative provides a solution for those advisers who would prefer to refer their buy-to-let portfolio business, in an increasingly complex area of the market."
David Whittaker, chief executive of Mortgages for Business, said: “The new PRA rules are creating challenges not only for lenders, but also brokers. This new service will remove a burden from the shoulders of brokers who only occasionally deal with portfolio landlords, while still enabling them to generate a worthwhile income stream and retain ownership of their client relationship.”
Advisers who refer cases to 3mc and Mortgages for Business will in return receive a percentage of the gross procuration fee on completion.
Sesame and PMS also said that both 3mc and Mortgages for Business will adhere to a strict no cross-sell policy, to reassure advisers the client relationship will not be disrupted.
Robert Sinclair, chief executive at Association of Mortgage Intermediaries, said: “The new portfolio rules and the different ways lenders are needing to interpret them mean that unless you are a specialist it would be more difficult now than it has been in the past.
“It is not usual for people like PMS to help members to come up with a solution. The fact they are doing it on a shared commission basis is a good thing.”
Ima Jackson-Obot is features writer at Financial Adviser
