TMBC, a lender specialising in the buy-to-let market, has announced the launch of new functionality for its sourcing and quotation system.
Intermediaries will now be able to search for products based on their clients' tax status.
The sourcing system, which is free to use, now allows brokers to select between products which are suitable for either basic rate tax paying landlords or additional rate tax payers.
“With the new tax regime and PRA regulations coming into effect, the buy-to-let mortgage market is now more complex than it has ever been and we are keen to take action to help our broker clients navigate this new landscape,” explains Jane Simpson, managing director at TBMC.
“Over the last month, we have seen most lenders adjust their interest coverage ratios (ICRs) in accordance with the PRA recommendations and some now have different ICR bandings for basic, higher and additional rate tax payers as well as for limited companies. This has created a more complicated range of schemes for brokers to source from.”
“So far we have not seen the main sourcing systems adapt to this new scenario and it is not currently possible to filter products according to the tax rate status of the customer,” she adds.
“We think the change in the marketplace relating to ICRs could cause brokers a considerable amount of extra work as they may source a product only to find that a stricter ICR applies to their client and the case no longer fits with the lender.”