Landlords prefer buy-to-let finance via IFAs

More than a third (36 per cent) of landlords polled by Paragon preferred to source buy-to-let finance exclusively via intermediaries.

The latest landlord research from specialist lender Paragon Mortgages, revealed that 23 per cent of landlords preferred to source buy-to-let finance directly from lenders, and 23 per cent sourced through a mix of intermediaries and lenders.

Large-scale landlords – those with five or more properties – were more likely to prefer to source all their buy-to-let finance via intermediaries, at 40 per cent, compared with 23 per cent of small-scale landlords – those with up to five properties.

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Small-scale landlords were almost twice as likely to source buy-to-let finance directly through a lender, at 35 per cent, compared with 19 per cent of large-scale landlords.

John Heron, managing director at Paragon, said: “Although the market has seen strong growth this year, many landlords remain cautious, particularly in view of interest rate expectations, the weaker conditions that we have seen in the housing market and the disruption we are likely to see around the general election in 2015.

“When combined with the positive benefits that professional mortgage advice can bring, it is no surprise to see landlords turning more to the intermediary sector in less certain times.”

Mr Heron added: “Landlords, especially those newer to the market, recognise the benefits of using a trusted, experienced and knowledgeable broker to help source their finance.

“Brokers have always been key to the buy-to-let mortgage market and will continue to be, going by this research, for as far ahead as we can see.”