Just 40% of buy-to-let investors consult a specialist broker

Three out of ten use a general mortgage broker and a quarter search for suitable lenders themselves.

The Intermediary Mortgage Lenders Association estimates that buy-to-let lending for purchases and remortgages will total £36bn in 2019, which means specialist brokers are missing out on six out of ten (£21.6bn) buy-to-let mortgage transactions.

The research also found that only one in eight landlords consult a specialist tax adviser for help on their buy-to-let investments while half do it themselves.

Peter Beaumont, deputy chief executive at The Mortgage Lender, said: “The buy-to-let market has undergone so many changes over the last few years that it is only specialist brokers, who understand all of those changes, the impact on different funding options and the criteria of different lenders, that have the knowledge to help landlords secure the most appropriate funding for their investment.

“But that message isn’t getting through to the majority of landlords who are choosing to either do it themselves or consult an adviser that, by their own admission, is not a specialist. That means brokers are missing out on millions in procuration fees by not adequately getting the message across that their knowledge and experience can add value to the mortgage process for landlords.

“It’s clear from our research that some landlords aren’t getting the advice they need to manage their investments in the most cost effective and tax efficient way. And, as the full impact of the changes to mortgage interest relief are felt over the next couple of years, landlords could find themselves on the wrong side of the taxman."