by Mark Johnston
A Buy To Let Sourcing Tool.
Over the last few years, as the property market as a whole has suffered the devastating affects of the credit crunch investors and brokers alike have been crying out for innovation.
The buy to let arena was hit particularly hard as some of the biggest names in the market were forced to retreat.
It does now appear that the market as a whole is now slowly beginning to pick itself up and the buy to let sector is leading the way.
Recent rental industry figures show that buy to let is set to be 2013’s favourite career change.
Also according to the latest Census figures, the proportion of UK households renting has increased in the past decade from 31 per cent to 36 per cent.
Current figures from the Council of Mortgage Lenders (CML) shows mortgage lending to buy to let landlords reached £4.2 billion across 33,500 loans in the first quarter of 2013.
It seems then that buying to let can be a very good money spinner at the moment, but careful sourcing and planning is needed to make it a good investment.
The Buy to Let Business managing director Ying Tan says “a comprehensive sourcing system is long overdue bearing in mind the significance buy to let has in the current market”.
It seems that many brokers have an internal system to source buy to let opportunities but there are many small brokers who do not have a system for what is becoming a larger part of brokers’ and independent financial advisers’ business.
Chris Maggs, national account manager of Accord Buy to Let, said: “Buy to let criteria have become more sophisticated in recent years and sourcing systems have struggled to keep pace with all the changes”.
Recently Mortgages for Business, a leading independent mortgage broker, conducted a survey which revealed that 76 per cent of mortgage brokers perceive ‘access to live data’ to be the most important component of a sourcing tool.
Therefore, Avelo Trigold, a market leading online financial services trading portal, has teamed up with a panel of buy to let lenders to launched a new buy to let sourcing tool to sit alongside its existing sourcing system.
The new buy to let tool provides users with the ability to access live data, to search comprehensive rent to interest and loan to value search criteria and also enables users to comprehensively search borrower, tenant and property criteria.
The enhanced buy to let module claims to be the most accurate and detailed currently on the market.
Avelo head of portal Dave Miller says: “We are exceptionally proud of this new system. The broker is being given a tool which will take all the lender criteria in to account in meeting the needs of a client; this will lead to a better initial fit with the customer requirements, better advice, better use of the adviser’s time, and higher acceptance rates from the lender.”
Some industry experts feel that in this market this new sourcing tool marks a step change in what sourcing systems can offer brokers.
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