Posted on Monday, November 7, 2011
The number of buy-to-let products available has more than doubled since 2008 from 237 to 483 reveals research by Defaqto.
70% of buy to let mortgages were broker only products or available through both intermediaries and providers directly in 2008. The proportion is now 86%.
Over the same period, the number of products only available through brokers has grown from 24% to 60%.
The number of buy-to-let lenders has also increased from 56 to 63, a quarter of which operate only through intermediaries.
David Black, insight analyst for banking at Defaqto, said: “The last few years have seen significant growth in the number of buy-to-let mortgage products on the market. This shows that, although the buy-to-let sector has contracted in terms of lending levels in recent years, the market is certainly becoming more buoyant with buy to let regarded by many as a potential growth area.
“Our analysis also indicates that intermediaries are becoming ever more important within the specialist buy-to-let mortgage sector, with the number of brokered products increasing rapidly since 2008.
“The key challenge for brokers is how to convert these opportunities for the benefit of their business. Essentially, they need to play to their core strength: giving advice – and this is particularly important in the buy-to-let sector where people are likely to need more guidance when selecting a suitable mortgage.”
Richard Lowth, Mnaaging Director at Richard Lowth & Co said: “This report shows the huge range of buy to let mortgage product available in the market and confirms the need for landlords and potential landlords to seek good advice when looking for a loan.
Our mortgage advisers have access to a wide range of schemes and will be happy to assist anyone looking for a buy to let mortgage.”
