Pointless Buy to Let Survey Offers NothingMake Text Bigger
The latest pointless buy to let survey has hit the news feeds with the headline finding that broker buy to let mortgage applications are up 3.1% during the three months ending September 30.
The problem is the figure is meaningless as the Paragon Mortgages survey gives no idea of the number of brokers taking part in the survey or any hard numbers about buy to let mortgage applications.
This survey is a typical example of a meaningless sentiment survey that is only aimed at garnering column inches to publicise the research sponsor.
What the lender should tell the world is:
- How many buy to let mortgage applications were taken by mortgage brokers in the survey period?
- How many drew down cash from a lender and how many were rejected?
- Do these figures only apply to Paragon Mortgages and/or their subsidiaries or to all lenders?
- How many brokers responded to the survey
The firm cannot or will not do this because the figures will review the true state of their mortgage business, which is assessed from recent assessments of mortgage share from the Nationwide, makes up less than 10% of the market along with around 15 other lenders.
Instead of real figures, the lender puts forward the results of a sentiment survey from brokers – research that reports responses to questions.
The firm says: “The Financial Advisor Confidence Tracking Index gives a snapshot of buy to let business processed by intermediaries and their views on current market conditions.”
The findings return statistics like 12% said business levels rose by more than 10% with 13% stating business was up between 6% and 10%.
Without base figures, a 10% increase in business could mean just one extra buy to let mortgage application for a broker handling 10 a quarter.
Managing director John Heron said: “It is positive to see that buy to let accounted for a growing percentage of intermediaries’ overall business levels during the third quarter.”
He then goes on to urge mortgage brokers to concentrate on offering mortgages to landlords with multi-property portfolios.
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