Only 57 per cent said they were most likely to go back to the same broker for their next mortgage. Some 16 per cent would consider an online mortgage broker service while 10 per cent said they were likely to switch brokers.
There was little difference between portfolio and non-portfolio landlords, with 59 per cent and 50 per cent respectively saying they would stick with their existing broker when choosing a new mortgage.
Sellers and buyers
According to the the Paragon PRS Trends Report for Q3 2019, fewer landlords were expecting to add to their portfolio with just eight per cent looking to purchase property in the next quarter.
This figure is just slightly higher than the six per cent record low cited in the Q4 2018 report. It is also significantly lower than the 15-20 per cent maintained between 2010 and 2015.
The proportion of landlords expecting to sell property in the next quarter also decreased slightly, from 23 per cent to 22 per cent, the first time that both measures have simultaneously slowed since the same time last year.
The disparity between landlords expecting to buy compared with those looking to sell now sits at 15 per cent, as the gap continues to widen since the two were even in Q3 2014.
The proportion of non-portfolio landlords looking to purchase property in the next quarter fell from four per cent to one per cent, while portfolio landlords continued to be more active, with 10 per cent expecting to buy.
The survey of 201 landlords also found that landlord optimism remained low, now at 11 per cent down from 13 per cent in the previous quarter. This is a continuation of what Paragon refers to as a “long-term downward trend” in optimism since the record high of 41 per cent, recorded in Q1 2014.
John Heron (pictured), director of mortgages at Paragon, said: “With so much change in the private rental sector in recent years, landlords have had to adapt quickly to higher taxation which has impacted returns on their portfolios.
“Throughout that time, landlords will have relied more heavily than ever on intermediaries to help them get the very best deals available. Therefore, it is no surprise that, while the future remains unpredictable, landlords are maintaining some stability by reusing the same brokers for their next mortgage.”
He added: “It’s surprising, however, to hear that some landlords are considering approaching a lender directly for their next mortgage. This does not match well with the actual behaviour of landlords particularly in the portfolio segment where nine out of 10 landlords use an intermediary.”