Majority of brokers struggle to place specialist BTL cases

28 February 2022

First-time landlords and borrowers with adverse credit most affected by lenders’ automated underwriting approaches

A webinar poll conducted by Mercantile Trust, the intermediary only specialist buy-to-let and bridging lender, has revealed that brokers are facing a number of challenges on a regular basis when placing buy-to-let cases.

Over half (55%) of broker respondents said they regularly come across difficulties when trying to find a solution for first-time landlords, while 50% stated that adverse credit posed problems for buy-to-let applicants.

30% of respondents said they often found it difficult to get cases approved because of affordability issues and/or rental calculations. The same figure (30%) also cited problems when dealing with Consumer Buy to Let (CBTL) applications.

In addition, 25% of brokers raised issues with first-time buyers, while one-fifth (20%) of respondents stated they have had problems with refurbishments for Energy Performance Certificates (EPCs).

These responses emerged during a Lender Spotlight session – held in conjunction with Knowledge Bank - based 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 HMOs and MUFBs. It provides fast and flexible buy-to-let mortgages from £10,000 up to £500,000 over 3 to 25 years.

The lender will also provide buy-to-let mortgages for those with adverse, poor or even bad credit scores.

Maeve Ward, Director of Commercial Operations at Mercantile Trust, commented:

“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.”