Specialist brokers missing out on £21bn of BTL mortgages

Specialist buy-to-let (BTL) mortgage brokers are missing out on £21bn of purchase and remortgage loans for landlords, according to The Mortgage Lender.

Only four out of 10 landlords consult a specialist BTL adviser, three out of 10 use a general mortgage broker and a quarter search for suitable lenders themselves.

The Intermediary Mortgage Lenders Association (IMLA) estimates BTL lending for purchases and remortgages will be £36bn in 2019, which means brokers are missing out on £21.6bn worth of BTL mortgage transactions.

Peter Beaumont (pictured), deputy chief executive of The Mortgage Lender, said: “The BTL market has undergone so many changes over the last few years that it is only specialist brokers, who understand all of those changes, the impact on different funding options and the criteria of different lenders, that have the knowledge to help landlords secure the most appropriate funding for their investment.

“But that message isn’t getting through to the majority of landlords who are choosing to either do it themselves or consult an adviser that, by their own admission, is not a specialist.

“That means brokers are missing out on millions in procuration fees by not adequately getting the message across that their knowledge and experience can add value to the mortgage process for landlords.”

Only one in eight landlords reportedly consult a specialist tax adviser for help on their BTL investments.

Beaumont added: “It’s clear from our research that some landlords aren’t getting the advice they need to manage their investments in the most cost effective and tax efficient way.

“As the full impact of the changes to mortgage interest relief are felt over the next couple of years, landlords could find themselves on the wrong side of the taxman.”


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