The Intermediary – March 2025 - Flipbook - Page 25
SPECIALIST FINANCE
In focus
Product transfers
in brokers’ toolkits
I
f we were to poll our sales
team or business development
managers (BDMs) about the
top requests from brokers,
there’s no doubt that a
product transfer offering
would be near the top of the list.
Aer all, product transfers offer
a straightforward alternative to a
traditional remortgage, with less cost,
paperwork and time taken.
Up until very recently, our answer
to those requests was always ‘not yet’.
In truth, it’s well known that offering
product transfers is more complex in
the specialist buy-to-let (BTL) space.
Nevertheless, there is absolutely a
need and demand for it – both from
landlords looking to minimise stress
and expense when refinancing, and
from brokers looking to protect the
long-term client relationship when
choosing a lender to place their
case with.
While brokers want a lender that
can meet their clients’ needs and
deliver an efficient service at the
outset, they also need to know options
are available on the backend, too.
It’s something we’ve been very
conscious of in our efforts to support
brokers and their landlord clients.
That’s why, behind the scenes, our
team has been working hard to
develop and launch a product transfer
offering, which is now live. With the
help of our in-house technology, we’ve
been able to overcome those inherent
challenges to offer product transfers
without compromise.
Product transfer benefits
With a product transfer, brokers can
start the process of helping clients
switch to new deal up to 90 days before
their current product ends. Rather
than a full remortgage application,
brokers can apply for a product
transfer in just a couple of minutes,
making the process much more
efficient and hassle-free for all parties.
At Landbay, this is helped by a fully
digital and automated application
process, further minimising the need
for excessive paperwork.
In a buy-to-let market where
timing is everything – particularly as
landlords come to refinance – access
to a streamlined solution is more
important than ever.
Given the cost pressures facing
landlords, too, the ability to save
some money is also hugely valuable.
Unlike standard remortgage options,
which involve a conveyancer and legal
expenses to transfer the mortgage
from one lender to another, a product
transfer eliminates legal fees.
Through Landbay, landlords can
also choose between automated
or Royal Institution of Chartered
Surveyors (RICS) valuation
options, with the former avoiding
valuation fees.
ROB STANTON
is sales and distribution
director at Landbay
There is a healthy
number of lenders that are
not just open for business,
but are actively trying
to innovate”
Expanding the toolkit
Product transfers are not just
important for a lender’s retention
strategy, but for a broker’s, too. It is
a really valuable way to help brokers
expand their toolkit and ensure they
are providing their customers with a
broad range of options.
Given the demands of the market
and the diverse range of landlords,
brokers absolutely need a competitive
and comprehensive range of products
at their disposal.
This must be the approach of all
lenders to make sure they best serve
their broker partners. For example,
providing a product that is not limited
to standard buy-to-let properties, but
extending to landlords with houses
in multiple occupation (HMOs) or
multi-unit freehold blocks (MUFBs)
– this is not something that is readily
available, but it supports those who
can oen face additional hurdles when
coming to refinance.
Looking ahead
As long as the buy-to-let market
prioritises speed, convenience and
cost savings, there’s no question that
product transfers will continue to
play an important role in the mortgage
mix. That is especially true given the
high levels of mortgage maturity we
can expect to see in the coming 12
months or so.
That’s not to say it should go live
and be le alone, though. Alongside
ensuring rates remain competitive to
support both brokers and landlords,
any product transfer proposition has
to be alive to the challenges of the
market and deliver real value.
We see our launch into product
transfers as the beginning, leaving
the door open to develop and expand
the range as soon as the opportunity
presents itself.
It’s yet another reminder to those
that want to talk down the buy-to-let
market to think again. Yes, there are
obstacles, but there are also massive
opportunities far beyond investment
properties up and down the country.
Just as important is the fact that
there is a healthy number of lenders
that are not just open for business,
but are actively trying to innovate
and help landlords in their efforts
to build, expand or refinance their
rental portfolios. ●
March 2025 | The Intermediary
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