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First-time landlord and adverse BTL cases hardest to place

by: Mortgage Solutions
  • 28/02/2022
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First-time landlord and adverse BTL cases hardest to place
First-time landlords and buy-to-let applicants with adverse credit are creating the biggest placement headaches for brokers, according to an adviser poll.

 

Specialist buy-to-let and bridging lender Mercantile Trust said over half of broker respondents regularly come across difficulties when trying to find a solution for first-time landlords, while 50 per cent stated that adverse credit posed problems for buy-to-let applicants.

Meanwhile, 30 per cent of the 100 broker respondents said they often found it difficult to get cases approved because of affordability issues and/or rental calculations. The same figure also cited problems when dealing with consumer buy-to-let (CBTL) applications.

In addition, 25 per cent of brokers raised issues with first-time buyers, while one-fifth they have had problems with refurbishments for Energy Performance Certificates (EPC).

These responses emerged during a seminar held in conjunction with Knowledge Bank with a focus on the specialist buy-to-let lending marketplace which had over 100 brokers in virtual attendance.

Mercantile Trust’s specialist buy-to-let product range is available to first-time landlords, portfolio landlords and limited companies covering a range of buy-to-let investment vehicles including houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB) and landlord applicants with adverse credit.

Maeve Ward (pictured), director of commercial operations at Mercantile Trust, said: “These findings show there is a real need for more specialised buy-to-let lenders out there in the marketplace to help brokers find real solutions for their clients.

“There are many landlord applicants who are underserved by the market due to adverse credit issues, rental shortfalls and background income security types that have capital raising needs but don’t quite fit the automated models of the high street lenders.

“They need lenders to take a more common sense approach. This is achieved through a more human underwriting process that the likes of Mercantile Trust can offer.”

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