UK landlords tend to use an intermediary or broker when it comes to arranging buy to let mortgages, new research has found.
Some 69% chose this route while 13% arranged their most recent loan directly with a lender face to face, 12 with a lender over the telephone and 5% with a lender online, according to the report from the National Landlords Association (NLA).
The research found the main reason given by 51% of landlords for using a broker was that they felt they were better placed to review products in the marketplace while 42% said that they had established a longstanding relationship with their broker.
Of those who arranged their buy to let mortgage directly through a lender, 35% did so because they had an existing loan with them, and 27% did so because they already bank with them.
‘Brokers will be please to know that a large proportion of landlords chose to use them when arranging a buy to let mortgage and it shows that a good relationship goes a long way in business,’ said NLA chairman Carolyn Uphill.
‘These findings are interesting because, unlike most other products and services, completing transactions online is becoming more and more common. However, the variety of avenues to take when getting a buy to let mortgage can be time consuming and overwhelming and it’s difficult to know whether or not you have covered all bases, especially for those landlords that are new to the market,’ she explained.
‘This is why many put their faith in a broker and it reinforces that they are happy with the service they get,’ she added.