Brokers hold the key to unlocking credit for UK property investors – claim

Brokers hold the key to unlocking credit for UK property investors – claim


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Under half of UK landlords rely on brokers to guide their financial choices for a property purchase, new research by Market Financial Solutions (MFS) has found.

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The bridging lender surveyed more than 2,000 adults who own three or more residential properties to explore the vital role of financial brokers in assisting property investors in the UK.

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It found that in the 12 months to October 2018, more than 1.18 million residential properties changed ownership in the UK, while this year, the number of landlords across the country rose to a record high of 2.5 million.

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The research also demonstrated the significant influence brokers hold in helping property investors make informed decisions. Over a third (35%) rely on brokers to inform their decision, while two fifths (41%) feel that intermediaries can access better deals that a borrower could not get directly.

However, there is a desire for greater awareness of financial products beyond mortgages. More than a quarter (28%) of property investors said they would have explored alternative finance options but felt rushed to press ahead with their purchase. Meanwhile, 41% want a better understanding of non-mortgage products so they can choose a solution best suited to their needs.

“Whether it’s someone purchasing their first house or their fiftieth, the research shows how instrumental brokers are in guiding property buyers through the financial options available to them,” said Paresh Raja, chief executive officer of Market Financial Solutions.

He said, beside the dominant mortgage providers, there are now many forms of alternative finance that buyers can call upon.

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“As such, it’s vital that brokers themselves have an in-depth knowledge of things like bridging loans so they can provide borrowers with a full range of options and not just different rates for the same product.”

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