Over a third of property investors are not aware of sources of funding beyond high street lenders, reveals a survey by Shawbrook Bank.
Shawbrook has compiled a quarterly survey to understand commercial mortgage brokers, from the property investor market to popular product features.
Funding Options for Landlords
According to their latest study, brokers felt that their property investor clients are positive about the economic outlook, with 93% confident in the UK climate.
Despite this, brokers said that of their buy-to-let property investors, 32% were clueless of the specialist lenders out there, suggesting that they are uninformed of the wide range of funding options available to them, which will help them make the most of market conditions.
Brokers claim to be used as a last resort, after investors have been turned away by bigger banks, rather than an entrance to the whole lending market.
Brokers stated that just 20% of their property investor clients completely understand the worth of brokers in securing funding. One broker commented: “We tend to get involved when the high street route has been taken. We can when the banks can’t or won’t.”1
Director of Sales and Marketing of Commercial Mortgages at Shawbrook Bank, Karen Bennett, says: “Banking is changing. People are looking for more than the big banks’ impersonal tick-box approach and appreciate a close working relationship with their lender and financial adviser.
“Property investors need counsel from someone who really understands their sector, and brokers provide this level of expertise, as well as in-depth knowledge of the whole market. This includes specialist lenders like Shawbrook, which not only take a more tailored approach to funding, but have also proven our appetite to lend.
“We recently announces that we have lent £1bn in the UK, and are still growing,” she concludes.1
1 http://www.landlordtoday.co.uk/news_features/Landlords-unaware-of-funding-options