The buy-to-let (BTL) market differs significantly from residential mortgages, involving unique considerations such as rental yield calculations, background portfolio stress tests and understanding structures such as limited companies.
Advisers must be aware of regulatory challenges, lender policies and market trends.
An administrator supporting a BTL adviser must also grasp the differences of this market to perform their duties effectively.
Administrators enable advisers to focus on clients
One of the primary responsibilities of an administrator is managing the client documentation process tailored to the BTL market. This includes gathering documents such as proof of rental income, the existing tenancy agreement, a portfolio of detailed property information and a landlord’s experience profile.
By handling these tasks, administrators enable advisers to concentrate on client interactions and advice.
BTL applications can be particularly complex. Customers often have multiple incomes, and there can be clients with offshore companies, trusts and other complicated structures. Expats and foreign nationals frequently look for BTL loans.
Administrators must compile and prepare applications with precision, ensuring all lender-specific requirements are met.
Value all around
Although the administrator is not an adviser, the greater the knowledge they hold, the more valuable they are to both the mortgage adviser and the customer.
When progressing the application, this includes ensuring that the property valuation contains a rental assessment, and that both the property’s value and its rental income are sufficient to meet the lender’s requirements for the loan requested.
An administrator supporting a BTL adviser must grasp the differences of this market to perform their duties effectively
An administrator may get involved with instructing the valuation for some firms and will need an understanding of the different report types. For example, a more experienced valuer will need to be instructed for a large house of multiple occupation, compared to a standard BTL property.
An administrator can invest time understanding the differences between lenders’ applications systems. An adviser may gather the client’s portfolio on a standard template, but most lenders require this information to be transposed to their own format.
For some lenders, the administrator will need to extract the information and put it on a different form; for others, they must upload it into the BTL Hub — a portal some lenders use for portfolio underwriting. The latter system can speed up the application process.
Statistics show that an increasing number of advisers are starting to add complex BTL products to their offering. This is unsurprising as a report from Together earlier this year found that a third of landlords planned to grow their portfolio in 2024. Advisers will naturally need administrators with that additional knowledge and expertise.
Administrators must compile and prepare applications with precision, ensuring all lender-specific requirements are met
Administrators looking to expand their knowledge in this area have access to the same network of BDMs as that of advisers. These BDMs are willing to help with training on systems and criteria.
Administrators can also access industry media articles and magazines, and attend events and training sessions traditionally targeted at advisers but still relevant to their role.
Working closely with BTL advisers enhances an administrator’s knowledge and career prospects. Playing a key role in successful approvals also provides a sense of professional fulfilment and opens up opportunities for career advancement.
Clients benefit significantly from the support of administrators. The process becomes more streamlined with administrators managing the logistics, ensuring a smoother and more efficient application process.
More and more lenders are recognising administrators’ role in the mortgage application process. Many have created a specific agency type for administrators, enabling them to log in and support multiple advisers.
Although the administrator is not an adviser, the greater the knowledge they hold, the more valuable they are to both the mortgage adviser and the customer
There is also increased scrutiny on the sharing of log-in information between advisers and administrators. Barclays, BMS, Coventry, Foundation, Kensington and Leeds, to name a few, insist that administrators have their own log-in to submit an application.
Advisers using administrators to assist with pre-sales support may also wish to consider separate log-ins for tools such as research software.
The support of an administrator brings significant benefits to BTL advisers, clients and administrators themselves.
For advisers, increased efficiency enables them to focus on strategic planning, client consultations and business expansion. Client satisfaction is enhanced, with more personalised and attentive service.
Liz Syms is chief executive of Connect for Intermediaries
This article featured in the July/August 2024 edition of Mortgage Strategy.
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