Knowledge Bank is to add six criteria questions to its platform after mortgage brokers raised gaps in information about houses in multiple occupation.
The questions emerged from the latest session in the company’s Criteria Clinic series, which brought together more than 50 brokers and five specialist lenders to discuss HMO cases.
The lenders were Zephyr, LendInvest, Family Building Society, Keystone and Paragon. During the session, they considered client scenarios submitted by brokers and explained whether their lending criteria could accommodate them.
Knowledge Bank said the discussions identified at least six areas in which brokers required further information. Its criteria team is now working to add corresponding questions to the platform, allowing advisers to include them when searching for lenders for HMO cases.
Jason Wilde, head of sales at Paragon, said: “Knowledge Bank’s Criteria Clinics provide an excellent platform for lenders and advisers to collaborate and discuss key topics affecting the market. HMOs continue to represent a significant opportunity for landlords, supported by a diverse range of lending options.
“However, advisers should be aware that the presence of an HMO licence does not necessarily mean a property has the required planning consents in place. These are critical considerations that should be verified before an application is submitted.
“With planning regulations, licensing requirements and Article 4 directions becoming increasingly complex and widespread, it is more important than ever that brokers undertake thorough due diligence and have access to specialist sourcing and expertise.”
The company said the additions demonstrated how feedback from brokers and lenders was being used to refine its search system as specialist lending criteria changed.
Nicola Firth, founder and chief executive of Knowledge Bank, said: “The real value of Criteria Clinic isn’t simply bringing brokers and lenders together for an hour. It’s listening carefully to the conversations taking place and identifying where we can make the platform even stronger.”
Firth said: “Every broker question tells us something about the market. If multiple advisers are asking the same thing, that’s a clear indication that we should be helping every broker find those answers more quickly.
“That’s exactly why our team is already working to introduce six new criteria questions following this session.”
She added: “With the help of KB AssIst (Knowledge Banks built in AI search feature) the new and unique categories will be discoverable and can be added to searches. What matters most with technology is that it’s relevant.
“It has to solve genuine problems, adapt quickly to changing lender criteria and reflect the cases brokers are working on today. That’s where we believe Knowledge Bank adds real value.”
The clinic forms part of Knowledge Bank’s programme of meetings between lenders and mortgage advisers. The company said it would continue using the sessions to identify areas in which brokers needed greater clarity when placing cases.
