Latest research from specialist buy to let mortgage lender Paragon Mortgages has shown that intermediaries are the most popular choice for investors when it comes to buy to let finances.
Paragon has been conducting the Private Rented Sector Trends survey for over 20 years, tracking patterns in landlord confidence and views on the buy to let market.
The most recent results revealed that during Q4, over a third of landlords (36 per cent) preferred to source their buy to let lendings exclusively from intermediaries. This means an increase of six per cent over the last three months and is up from the 30 per cent of landlords who held this preference in Q3.
During the final quarter of 2014, 23 per cent of landlords said they preferred to find buy to let finance directly from lenders and another 23 per cent sourced them via a combination of intermediaries and lenders – falling from 28 per cent who did the same in Q3.
Large-scale versus small-scale landlords
Landlords with five or more properties, known as large-scale landlords, were more likely to favour sourcing all of their buy to let funds from intermediaries. In fact, 40 per cent claimed this to be true compared to only 23 per cent of small-scale landlords.
However, small-scale landlords (owners of up to five properties) were almost twice as likely to source their buy to lets directly from a lender (35 per cent).
Almost two thirds – 60 per cent – of the landlords questioned also said that intermediaries provided a valuable service in finding the best buy to let deals available with a mere six per cent in disagreement with this statement.
Over four in 10 landlords taking part in the survey claimed sourcing via a lender is only suitable when dealing with the more simple buy to let propositions.
Managing Director of Paragon, John Heron, acknowledged the role of intermediaries in the market, particularly for landlords who are newer to the industry.
“[They] 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.”
If you are looking for a Buy to Let property and want to use an intermediary, look no further; please contact us on 01732471600, Enquire or get us to Call you Back.
Or if you are still unsure, see why you should use us to secure your loan.