The Intermediary – July 2025 - Flipbook - Page 52
SPECIALIST FINANCE
Opinion
Six lessons from
the first six months
A
t the start of 2025,
aer more than two
years of hard work,
we officially launched
ModaMortgages
to the whole of the
market – a proud and, in truth,
quite emotional moment. This is an
opportune moment to reflect on the
lessons learned so far.
1 driving up standards
Competition is
According to Moneyfacts, the number
of BTL mortgage products available
across the market reached an all-time
high of 4,144 in June. Upfrom 3,926 in
May and 2,935 last year.
Beyond ensuring rates are
competitive, lenders must focus on
their USPs, and the quality of the
broker and borrower experience.
Our moo at ModaMortgages is to
the home of ‘smarter, faster, simpler’
BTL mortgages. The competition in
the market makes these differentiators
more important – and indeed, such is
the competitive nature of the market
right now, that standards will likely
be driven higher, which benefits
all parties.
2 resilient than many think
The market is more
From regulation and tax to
Government policy and interest rates,
there has never been a time when the
industry has not faced its own unique
set of challenges. When taken at
face value, those challenges are oen
turned into negative headlines.
Despite the negative speculation
about the future of BTL and the fears
of landlords, the sector is in rude
health. There is clearly plenty of good
business to be done.
BTL investing remains aractive to
a significant number of individuals
and companies. The prospect for
long-term capital growth and healthy
rental yields is still there – it is purely
that landlords’ exact wants and needs
52
The Intermediary | July 2025
evolve in line with the economic
climate and regulatory landscape.
Being back on the road, meeting
with brokers and aending events,
I’ve been reminded of just how robust
the sector is – it constantly adapts,
and its resilience should not be
underestimated.
3 will help
Clarity on policy
Brokers and clients are
understandably frustrated about the
lack of long-term clarity around what
touted changes will be exactly, and
when they will be implemented.
The past six months have coincided
with a new Labour Government
wanting to put its stamp on domestic
policy aer 14 years in opposition.
The conversations I have with
brokers are not necessarily about
being pro- or anti-Labour – they’re
calling for detail about new policies
and reforms so they can prepare.
4 broker is more
The role of the
important than ever
There was a spate of stories doing
the rounds in the trade press earlier
this year about brokers being cut
out of deals. Some lenders are
purportedly communicating directly
with borrowers.
This is a serious issue. But more
broadly, it taps into a wider problem
wherein the role of the broker is
underplayed or misunderstood.
With new technologies being
implemented all the time, and more
lenders investing in marketing on
social media platforms, there could
be a temptation to think that brokers
have less of a role to play. Brokers are
still essential in facilitating highquality business and managing the
process smoothly for the borrower.
Brokers can do a huge amount of
heavy liing in working with the
customer throughout the lifecycle
of a mortgage application. The
DARRELL WALKER
is group sales director
at Chetwood Bank
fact that they own the relationship
must be respected, with lenders in
the specialist market focused on
delivering the best possible experience
for the broker.
To communicate directly with
the borrower that an application
has been successful or a product is
coming to the end of a fixed-term
is inappropriate when a broker was
the one to introduce the deal. It is a
worrying trend.
5 more diverse
The industry is becoming
One of the most upliing things I’ve
noticed has been how much more
diverse the industry is becoming.
It’s becoming more diverse
in the events hosted, the people
aending them, the ways people are
connecting and networking, and of
course the teams behind the lenders
and brokerages.
There is still a great deal more
progress to be made, but it has been
lovely to see a much more diverse
collection of people coming together
in different seings.
6 to set in
We cannot allow inertia
One of the most common talking
points in the BTL market this year has
been interest rates – though there’s
nothing new there. We still expect
the Bank to cut the BBR once or twice
more between now and December. It is
crucial, however, that we don’t allow
inertia to creep in – it can be easy for
prospective property investors to sit
tight and wait, resulting in the market
finding itself in a holding paern. The
onus must be on lenders and brokers
to act with confidence, flexibility
and optionality to ensure the market
remains active and fluid. ●
