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Specialist brokers missing out on £21bn of BTL mortgages

Posted Friday 13th of September 2019
BIG QUESTIONS DESERVE BIG ANSWERS

Specialist buy to let (BTL) mortgage brokers are missing out on £21bn of purchase and remortgage loans for landlords according to research among investors by The Mortgage Lender.

Research carried out by The Mortgage Lender among a panel of landlords for a special report ‘Buy to Let: The Landlord Experience’  asked those who use mortgages to fund their BTL investments how they access advice on their borrowing.

It revealed only four out of ten consult a specialist BTL adviser, three out of ten use a general mortgage broker and a quarter search for suitable lenders themselves.

The Intermediary Mortgage Lenders Association estimates BTL lending for purchases and remortgages will be £36bn in 2019, which means brokers are missing out on six out of ten BTL mortgage transactions.

The Mortgage Lender deputy chief executive Peter Beaumont said: “The BTL market has undergone so many changes over the last few years that it is only specialist brokers, who understand all of those changes, the impact on different funding options and the criteria of different lenders, that have the knowledge to help landlords secure the most appropriate funding for their investment.

“But that message isn’t getting through to the majority of landlords who are choosing to either do it themselves or consult an adviser that, by their own admission, is not a specialist. That means brokers are missing out on millions in procuration fees by not adequately getting the message across that their knowledge and experience can add value to the mortgage process for landlords.”

The research also found that only one in eight landlords consult a specialist tax adviser for help on their BTL investments while one in two do it themselves.

“It’s clear from our research that some landlords aren’t getting the advice they need to manage their investments in the most cost effective and tax efficient way. And, as the full impact of the changes to mortgage interest relief are felt over the next couple of years, landlords could find themselves on the wrong side of the taxman.

The Mortgage Lender is an intermediary-only mortgage lender. It provides real life lending choices for a wide range of borrowers including employed, self-employed, those with impaired credit, lending into retirement and buy to let investors.

In 2019 it has launched expat buy to let, Help to Buy residential mortgages, its first buy to let fees assisted remortgage product and completed its first UK mortgage-backed securitisation of residential assets for a total notes issuance of £238.5m.

To download the full report here

The research was carried out by OnePoll among a panel of 100 landlords with an average of 2.75 properties between 19.03.19 and 01.04.19.

By Sarah Learoyd , of The Mortgage Lender

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