Some 69% of landlords arranged their last buy-to-let (BTL) mortgage through an intermediary or broker, according to research by the National Landlords Association (NLA).
The study showed that 13% of landlords arranged their most recent mortgage directly with a lender in branch, while 12% did it directly with a lender over the phone. Only 5% of landlords arranged their BTL mortgage directly with a lender online.
Over half of landlords said the main reason they used a broker was because they felt they were better placed to review products in the marketplace, closely followed by 42% of landlords who said they had established a longstanding relationship with their broker and therefore felt comfortable dealing with them again.
As for people who arranged their BTL loan directly through a lender, 35% did so because they had an existing loan with them, while 27% did so because they already bank with them.
“Brokers will be pleased to know that a large proportion of landlords chose to use them when arranging a BTL mortgage and it shows that a good relationship goes a long way in business,” Carolyn Uphill, Chairman of the NLA, said.
“These findings are interesting because, unlike most other products and services, completing transactions online is becoming more and more common.”
She added: “The variety of avenues to take when getting a BTL 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. This is why many put their faith in a broker and it reinforces that they are happy with the service they get.”