Mortgage advisers are predicting that adverse credit will rise amongst buy-to-let customers due to COVID-19, according to Pepper Money.
Mortgage advisers are predicting that adverse credit will rise amongst buy-to-let customers due to COVID-19, according to Pepper Money.
In a survey conducted by the firm, it found that 43% of advisers expect to see a rise in adverse cases over 2021.
Advisers outlined that BTL customers are the most apprehensive about arrears, with 29% expressing concern.
In addition, 25% of advisers said that landlords are most concerned about a potential increase in CGT.
Other concerns included mortgage rate increases, falling property prices and property void periods.
Paul Adams (pictured), sales director at Pepper Money, said: “Landlords have not been immune to the financial impact of the pandemic and there have been many reports of missed rental payments and lost income.
“So, it’s unsurprising that so many advisers expect to encounter more buy-to-let customers with adverse credit.
“However, our research also found advisers to be confident about the prospects for the buy-to-let market, with strong demand for both purchase and remortgage business.
“In order to meet this demand, it will be important to work with lenders that are able to take a pragmatic approach to adverse credit and support this with up-to-date, responsive service and consistent underwriting.”
