As part of its ‘Mortgage Intermediaries – The Regulated Environment’ study, Charterhouse has been tracking the intermediary market in the face of regulatory changes since ‘Mortgage Day’.
Findings from July’s research revealed nearly 90 per cent of intermediaries now claim to be active in the buy-to-let sector. However, for almost a third of these respondents, buy-to-let accounts for just 5 per cent or less of their business mix. In contrast, it makes up over 25 per cent of the business mix for 15 per cent of intermediaries.
The research also showed distinct differences between low and high producers of buy-to-let business which are reflected in their attitudes towards future sector performance, with 39 per cent of the higher producers (handling five or more cases per month) optimistic their buy-to-let business will grow, against only 16 per cent in the wider market.
Any buy-to-let market growth is expected from existing buy-to-let clients such as professional landlords and property investors building their portfolios or remortgaging existing properties.
Julie Irwin, director at Charterhouse Research, said: “As more lenders enter the buy-to-let market, the sector is set to become even more competitive, particularly as the focus is likely to be on remortgages and new loans for the more astute and demanding professional landlords. Customer retention is going to become an increasing challenge as it is in the residential housing sector.”
