Majority of BTL landlords put their trust in brokers to find the best loan
New research by Hodge has found nearly three-quarters of portfolio buy-to-let landlords prefer to access finance through a broker, rather than go directly to lenders.
Hodge’s research, which asked portfolio buy-to-let landlords and brokers for their views, also found that 71% of larger investors (with portfolios of between £2m – £50m) specified that a broker had saved them money by getting them a good deal.
40% of buy-to-let landlords said they use a broker as they found researching a suitable mortgage product themselves a frustrating task, with annoyances including interest rates (35%), lack of clarity over charges (35%), and mortgage/ loan underwriting (31%).
Mike Clifford, head of commercial propositions at Hodge, said: “Our research shows borrowers clearly value the support of a broker to find them the best deal and trust them to find a lender that suits their needs. With so many borrowers putting their trust in brokers to find them a loan that suits them, brokers are seen as a key link between lenders and investors – with the added benefit of removing frustrations for landlords.
“The residential market is still very buoyant and many buy-to-let landlords are on the look-out for new properties to add to their portfolio. When it comes to lenders they want flexibility, speed and efficiency, something we strive to achieve here at Hodge.”
Hodge has created a portfolio buy-to-let product especially for professional landlords looking for one loan to house their entire residential property portfolio. The portfolio buy-to-let product is designed for landlords with four or more properties, looking for one loan which covers them all, offering a practical solution to help professional landlords stay organised, helping to keep things streamlined and flexible.
Mike added: “Hodge has a small, specialist residential investment team who aim to provide a bespoke and flexible service to both brokers and investors. Getting to know our customers, listening to their feedback and keeping them in the loop when it comes to criteria changes and product enhancements allows us offer greater flexibility and match the right product to the right investor.
“The Hodge portfolio buy-to-let loan allows landlords to control their assets under one loan, with the flexibility to remove and add properties, ensuring a far more streamlined, flexible product, which, according to our research, is just want landlords – and brokers – are looking for.”
