Only 37% of BTL products available directly from lenders

Only 37% of BTL products available directly from lenders

11:23 AM, 1st October 2019, About 3 years ago

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Research from Paragon Bank shows that 57% of landlords are most likely to source their next buy-to-let mortgage from their existing broker, while 41% state they would be most likely to go direct to a lender for a buy-to-let mortgage. According to, currently 37% of buy-to-let mortgage products are available directly.

The research from Paragon Bank also revealed that there is little variance in the attitude towards retaining their current mortgage broker between portfolio and non-portfolio landlords, with 59% and 50% respectively saying they are most likely to remain with their current broker. (A portfolio landlord has four or more properties).

Landlords pausing on increasing their portfolios

Only 8% of landlords expect to purchase property in the next quarter, almost reaching the historic low of 6% in quarter four 2018. While those selling properties decreased by only one percentage point from 23% to 22%. In quarter three in 2014, the gap between landlords expecting to sell and those expecting to buy was equal, whereas the current gap now sits at 15%.

An area where portfolio and non-portfolio landlords differ is on the expectation of purchasing a property in the next quarter. Only 1% of non-portfolio landlords expect to purchase, while 10% of portfolio landlords expect to buy.

John Heron, director of mortgages at Paragon, said: “With so much change in the private rented sector (PRS) in recent years, landlords have had to adapt quickly to higher taxation, which has impacted returns on their portfolios. Throughout that time, landlords will have relied more heavily than ever on intermediaries to help them get the very best deals available. Therefore, it is no surprise that, while the future remains unpredictable, landlords are maintaining some stability by reusing the same brokers for their next mortgage.

“It’s surprising, however, to hear that some landlords are considering approaching a lender directly for their next mortgage. This does not match well with the actual behaviour of landlords, particularly in the portfolio segment where nine out of 10 landlords use an intermediary.”

Paragon Bank’s PRS Trends Report for quarter three 2019 was conducted with over 200 buy-to-let landlords, of which the large majority have been renting for over 10 years and are classed as professional landlords with three or more properties.

See the latest PRS Trends report for Q3 2019 in full.

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