Ying Tan, The Buy to Let Business

Helping brokers spot missed opportunities in commercial finance

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24th May 2017

I read an interesting article recently on the missed opportunities in commercial finance.

The gist of the piece was that mortgage brokers still don’t understand commercial finance and as a result are missing out on business in this area. I think you’d be hard pushed to find anyone who disagrees with this. There is a huge amount of potential in the commercial sector but brokers are still fearful of it because they don’t know enough about it.

We are also seeing this happening with second charge loans. It is now over 12 months since MCD came into play and the second charge sector became fully under the jurisdiction of the FCA. And despite the multitude of uses for these products, not least in the buy to let space, seconds still haven’t been embraced by brokers in the way it was hoped.

There is an argument that apathy is to blame - that brokers just don’t care enough about the seconds market and don’t feel they need to. But I would disagree. I think it’s much more likely that brokers are nervous about the products and are fearful of not doing right by their customers.

As mortgage brokers we help people to make the biggest financial commitment they’re ever likely to make. That is an awful lot of responsibility. We’re all well aware of the ambulance chaser firms who are waiting to cash in on any ‘mistakes’. Brokers want to feel confident that they are doing the very best job they can. That’s why we have so many experienced and knowledgeable folk in the sector. It’s understandable therefore that if they don’t feel 100% up to speed with a product or sector, they’re going to be reluctant to get involved.

Opportunities are being missed in the second charge, specialist and commercial lending sector but we can’t blame brokers for this. We need to educate them. We need to support them. And, really, we need to celebrate them because it is that conscientious attitude and desire to do right by their clients that makes this such a fantastic market. 

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