Mortgage News
MS Poll result: 30% of brokers would not invest in BTL
The latest Mortgage Solutions poll has revealed that up to 30% of brokers who advise clients on buy to let would not invest their own money in the market right now.
However, 50% of brokers disagreed and said they would put their money into the market, while 20% said they already have a buy-to-let portfolio.
Andy Young, managing director of TBMC, the buy-to-let and commercial mortgage specialist, said that uncertainty over the economic climate has kept some brokers away from the buy-to-let sector.
He said: “There are a number of factors that could prevent brokers from entering the market, such as saving for a sufficient deposit, tenant arrears and product access to capital.
“But one of the key drivers is that when landlords enter the market they usually tie their money for the medium to long term. I imagine that a lot of potential investors would choose not to do this because of the fragile state of the economy.”
Young added that those brokers who advise on buy to let, but refuse to enter the sector themselves, should focus primarily on advising on products.
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“From my experience, brokers are solely qualified to give mortgage advice, not their opinion because they’re not experienced to give their opinion,” he said.
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