Landlords turning to brokers
In the fourth quarter of 2014 more than a third (36%) preferred getting funding exclusively through intermediaries with just under a quarter (23%) choosing to go through directly through lenders.
John Heron, managing director of Paragon Mortgages, said: “Although the market has seen strong growth this year, many landlords remain cautious, particularly in view of interest rate expectations, the weaker conditions that we have seen in the housing market and the disruption we are likely to see around the general election in 2015.
“When combined with the positive benefits that professional mortgage advice can bring, it is no surprise to see landlords turning more to the intermediary sector in less certain times.
“Landlords, especially those newer to the market, recognise the benefits of using a trusted, experienced and knowledgeable broker to help source their finance.
“Brokers have always been key to the buy-to-let mortgage market and will continue to be, going by this research, for as far ahead as we can see.”
The research found that landlords with more than five properties (40%) are more likely to source their finance via intermediaries compared those with less than five (23%).
Over a third (35%) of small scale landlords prefer to go directly through the lender compared to just under one in five (19%) large scale landlords.
However more than four out of 10 (42%) admitted that going direct is only suitable for simpler buy-to-let deals.