Buy-to-Let Mortgages On the Increase

Mortgage brokers are becoming ever-more important within the buy-to-let sector, researchers found, with intermediary-based products becoming even more prevalent. In October 2008 the number of buy-to-let mortgages that were available on the market stood at just 237, whereas this month they had mushroomed to 483. Additionally, in 2008 some 70 per cent of buy-to-let mortgages were broker-only or available via providers and intermediaries, whereas now this figure stands at 86 per cent. During the same three-year period, the number of buy-to-let mortgages that are only available through brokers has shot up from 24 per cent in 2008 to 60 per cent now. Correspondingly, the number of buy-to-let lenders has risen itself from 56 to 63. Of this, some 15 lenders operate solely through intermediaries, 18 prefer direct distribution of their mortgages and the other 30 lenders use both methods. Defaqto insight analyst for banking David Black commented: “The last few years have seen significant growth in the number of buy to let mortgage products on the market.” “The key challenge for brokers is how to convert these opportunities for the benefit of their business. Essentially, they need to play to their core strength: giving advice – and this is particularly important in the buy to let sector where people are likely to need more guidance when selecting a suitable mortgage.”