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BTL entrants warned to watch out for credit risks

Paragon Group director of mortgages John Heron has warned new buy-to-let lenders they could expose themselves to a higher level of risk if they underwrite BTL loans in the same way as owner-occupier mortgages.

Heron says many new BTL lenders restrict their mortgages to private individuals who have one or two properties or single self-contained properties and use the systems and processes they have in place for owner-occupier business.

He says: “New BTL lenders could be missing an understanding of the customer’s total activity as a landlord and may not be making a fully informed credit decision. That could be bad for lenders and borrowers.”

Skipton Building Society and Norwich & Peterborough Building Society returned to the BTL sector in March and May respectively, while Yorkshire Building Society entered in August.

Abbey for Intermediaries and Metro Bank have also announced their intentions to move into BTL lending.

Mortgage Concepts Associates director Mike Richards says: “Lenders have to treat BTL customers differently and look at their whole portfolio before making a decision to lend.”


MAS says it spent £250k on rebranding websites

The Money Advice Service spent more than £250,000 rebranding the Money Made Clear and Consumer Financial Education Body websites before its launch in April. Labour peer Baroness McDonagh submitted a question to Parliament about how much the MAS spent on its website, including staff costs.In a written answer published last week, Treasury commercial secretary Lord […]


Cicutti: Money Advice Service misses the point

Many years ago, shortly after I began free-lancing as a personal finance journalist, I received a call from a business which specialised in creating lesson plans for teachers. It had been asked to create a set of six lessons for pupils on the subject of money advice and they wanted to know if I would […]

Death of ex-Schroders UK equities chief Jim Cox

Former Schroders head of UK equities Jim Cox died last week. Cox, who was in his early 60s, built up Schroders UK enterprise fund to over £1bn in assets at the end of the 1990s. He retired from Schroders in 2000 and worked on a part-time consultancy basis for Alta Advisors, a private investment office […]

MAM Funds hires former Witan chief executive

Former chief executive of the Witan trust Robert Edwards Clarke will take up the combined positions of group finance director and director of operations at MAM Funds from today. Tony Moore will step down as its chief financial officer from today, although he will work into 2012 to help with the handover of his responsibilities […]


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