New research, carried out by Smart Money people, has found that brokers consider complex Buy to Let lenders to be the most flexible with mortgage applications compared to any other mortgage sector.
The financial services customer review and insight website revealed that complex Buy to Let lenders, including Commercial Buy to Let, Portfolio landlords and Limited Company applications were rated 96% for their flexibility by brokers.
In comparison, mainstream Buy to Let lenders were rated 87% for flexibility. Overall, lenders across all categories scored a rating of 79% for flexibility.
When asked what they liked about the lender they had placed a complex Buy to Let application with, one broker commented: “Flexibility and the underwriters look for a way to write the deal and work with you to get the best solutions for the clients.”
Comparing the two types of Buy to Let lending, brokers also rated the underwriting from complex Buy to Let lenders as higher than mainstream Buy to Let lenders, with a rating of 50% compared to 32%. The overall average across all lenders was 51%.
Smart Money People also found there is a marked difference between broker satisfaction with speed for the two types of Buy to Let lender. Complex Buy to Let lenders were rated just 29% for their speed and mainstream Buy to Let lenders were rated 55% for speed. In turn, this shows a difference in how easy a broker thinks these lenders are to place an application with. Complex Buy to Let lenders were rated 67% compared to 80% for mainstream Buy to Let lender applications for ease by brokers.
When leaving feedback for a complex Buy to Let application with a lender, one broker said: “Their service delivery has a lot of scope to improve. Too much time in processing leaves clients on the edge.”
Jacqueline Dewey, CEO of Smart Money People, concludes: “It’s clear that brokers realise and appreciate the complex nature of non-mainstream Buy to Let cases and how lenders approach them, especially when it comes to how flexible a lender is willing to be for these cases. However, a rating of 29% for speed compared to the overall lender average of 58% shows that complex Buy to Let lenders still have room for improvement in their backend processes.”