The Intermediary – March 2025 - Flipbook - Page 24
SPECIALIST FINANCE
In focus
Strong relationships
will be essential in
the weeks ahead
T
he property market has
enjoyed a bullish start
to 2025. Major house
price indices all present
upward trends, with
Halifax showing that
the average property price hit a record
high of £299,138 in January.
Political and economic stability – at
least comparatively, following several
years of turbulence – have allowed
confidence back into the market.
More than that, the decline in the
cost of borrowing over the past six
months, and expectations that this
will continue to fall throughout the
coming year, is a shot in the arm to
prospective homebuyers and buy-tolet (BTL) investors.
Building on this momentum was
the first base rate cut of 2025. That
said, speculation remains as to how
many times the Bank of England will
repeat this during the rest of the year.
Predictions that there will be
four or five cuts over the year ahead
seem overly optimistic at this point.
According to the central bank’s own
forecasts, the headline rate of inflation
will rise to 3.7% later this year, and
remain above the 2% target until 2027.
That could slow down the speed at
which the base rate is lowered.
The heat is on
Nevertheless, the market has turned
a corner in recent months. More
favourable economic conditions
have been compounded by an added
degree of urgency among buyers – as
many brokers and lenders will have
seen in recent weeks, there is a rush
to complete on purchases before 1st
April, when Stamp Duty Land Tax
(SDLT) bands change.
As of April, the nil-rate band will
be halved, meaning buyers will
now also have to pay the duty on
24
The Intermediary | March 2025
everything over £125,000. In real
terms, any property bought for more
than £250,000 will be subject to an
additional £2,500 in SDLT.
The reforms are not significant
enough to suggest that deals will be
abandoned, nor is there likely to be a
drop in buyer demand as we move past
the deadline. But the savings to be had
have been enough to turn the heat up
on brokers and lenders – and certainly
on agents and conveyancers.
A more buoyant market, coupled
with the urgency brought about
by the incoming changes, brings a
sharp focus on the services of lenders
and brokers, placing even greater
emphasis on the need for both parties
to work together.
Honesty and speed
What does this all mean in practice?
Whether working with homebuyers
or landlords, there is no time to be
wasted as brokers seek the right
products. This underlines the value
of three vital qualities from lenders:
honesty, speed and communication.
These values are always imperative,
but when time pressures become more
commonplace in the applications
landing on a lender’s proverbial desk,
then the importance is heightened.
First, honesty. Decades of
experience in the specialist market
have taught me that there are few
things that annoy brokers as much as
being messed around by lenders that
lead them on, suggesting they will be
able to handle a case, only to then pull
out later. Days, maybe even weeks are
lost, and relationships sour.
Even if a lender must be frontup and say it cannot take on an
application for whatever reason, being
honest as soon as possible will be
respected. Brokers want that as they
face pressure to support clients at pace.
DARRELL WALKER
is director of sales and
distribution at ModaMortgages
Next, speed. When the answer is
‘yes, we can lend to this client’, lenders
must still be able to act quickly.
Experienced and talented personnel,
slick processes – with best-in-class
technology – and availability of capital
will all precipitate a quick drawdown.
Brokers will likely know which
lenders are efficient and which are
not, but again, lile spikes in activity
such as the one we are seeing now
are a great opportunity to underline
these credentials.
Finally, clear and proactive
communication must underpin the
entire broker experience – from
confirming whether an application
will be taken on right throughout the
underwriting and delivering process.
No one wants to be le in the dark.
Lenders must, ideally, have multiple
channels open to support brokers, be it
telephony, email, or even live chat.
Embracing the challenges
The property market is alive with
activity, in the buy-to-let market
just as much as residential. It is
in periods like this that the cream
typically rises to the top. This is an
opportunity for lenders and brokers
to form stronger relationships by
successfully completing on deals in a
pain-free way; those lenders that let
brokers down will risk longer-term
reputational damage.
At ModaMortgages, our mantra is
that we’re the home of ‘smarter, faster,
simpler’ buy-to-let mortgages. We’re
excited to embrace the challenges that
this short-term rush will likely throw
at us, and prove to brokers that we’re
true to our words. ●
