Many landlords in the UK use brokers to try to get a better lending deal
More than a third of landlords in the UK’s private rented sector rely on brokers to help them find the best mortgage for buying a property to let, new research has found.
Overall, 35% prefer to use a broker with 41% saying the main reason for doing so is that intermediaries have access to products or rates not available directly to the borrower.
The research from bridging lender Market Financial Solutions (MFS) also found that 33% have used online comparison sites to shop around for a mortgage but 66% prefer to meet a broker for a more personal, bespoke service.
Some 43% of people with more than two residential properties in the UK used a mortgage to purchase their most recent property and 21% used a bridging loan.
It also found that 28% said that they would have explored alternative options but resorted to a mortgage because they did not want to delay their choice through fear of missing out on the property investment.
And 41% said they want to have a better understanding of finance options outside of mortgages so they can find the best possible finance solution for their needs.
‘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,’ said Paresh Raja, MFS chief executive officer.
‘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 pointed out.
‘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,’ he added.