Majority of brokers struggle to place specialist buy-to-let cases

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 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 EPCs.

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.”