21^st Dec 2018

A bridging lender is claiming its research has found in the private rented sector that more than a third of UK landlords are happy to trust brokers to get them the best BTL mortgage deals for new acquisitions.

35% of landlords that took part in the survey opted to use brokers, with 41% saying their prime reason was that brokers had access to much more market information and contacts to secure better rates, which are not available to landlords.

The research also found 33% of respondents had studied numerous mortgage comparison sites to find their best prices, but 66% do prefer to meet brokers and enjoy a bespoke and personal service.

People who had more than two UK residential properties 43% had arranged a mortgage themselves for their latest purchase, whilst 21% preferred using a bridging loan.

The survey discovered that 28% had opted to use a mortgage as it was the quickest route to making sure they did not miss out on securing a property, rather than trying to find better financial alternatives.

However 41% did claim that they were more experienced and knowledgeable of finance options, rather than opting for mortgages, as they were able to find a better suited financial solution.

The chief executive of the bridging lender, Paresh Raja, said:"Whether it’s someone purchasing their first house or their fiftieth, the research shows how instrumental brokers are in guiding property buyers through the financial options available to them.

"Importantly, beyond the historically dominant mortgage providers, there are now many forms of alternative finance that buyers can call upon. And property investors are clearly keen to explore options outside of mortgages that might be better suited to their particular circumstances."

He added:"As such, it’s vital that brokers themselves have an in-depth knowledge of things like bridging loans so they can provide borrowers with a full range of options and not just different rates for the same product."


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