BTL landlords rely on mortgage advice

Buy to let landlords are relying on mortgage advisers to help with brokering buy to let deals. According to research from Alliance and Leicester Mortgages, 74 per cent of landlords find that mortgage advisers are a lifeline, with 28 per cent of those polls relying on their advice a great deal and another 46 per cent saying they relied on mortgage advisers a ‘fair amount’.

Mortgage advisers help 55 per cent of landlords by letting them know about new buy to let deals, advising on buy to let mortgage deals and arranging buy to let mortgages with lenders. The research highlighted three key roles for mortgage advisers: sourcing and arranging new deals and providing new product information. New product information is the factor most valued by buy to let landlords as it is difficult to get that anywhere else.

Many landlords see their mortgage brokers regularly, with 9 per cent seeing their broker weekly and 40 per cent seeing their adviser at least once a month.

Mehrdad Yousefi, Head of Intermediary Mortgages at Alliance and Leicester, said: ‘Landlords need their advisers to obtain information that they can’t easily get hold of themselves as well as helping them get the best mortgage product for their needs. Advisers provide a sounding board which, for many, is crucial in the decision making process and could impact hugely on the landlord’s finances. The fact that half of landlords taking advice (49%) remain loyal to one adviser shows just how much they really do value this relationship.’

The buy to let market is flourishing, with an increasing number of amateur landlords entering the fray. These landlords rely on their brokers’ advice and support to help them make decisions. While Alliance and Leicester predicts that these landlords may approach lenders directly when they gain confidence, the lender says that landlord may still want to source competitive deals which may only be available through a broker.