In the 12 months to October 2018, more than 1.18 million residential properties changed ownership in the UK, while this year, figures were released showing the number of landlords across the country had risen to a record high of 2.5 million. For those with portfolios spanning three or more properties, MFS’ research demonstrates the significant influence brokers hold in helping them choose financial products to fund their real estate purchases.
The bridging company found that over a third (35%) of property investors rely on brokers to inform their decision, while two fifths (41%) feel that intermediaries can access better deals that a borrower could not get directly.
However, there is a desire for greater awareness of financial products beyond mortgages. More than a quarter (28%) of property investors would have liked to have taken more time to research alternative finance options but felt rushed to press ahead with their purchase. Meanwhile, 41% want a better understanding of non-mortgage products so they can choose a solution best suited to their needs.
Paresh Raja, CEO of Market Financial Solutions, commented on the findings: “Whether it’s someone purchasing their first house or their fiftieth, today’s research shows how instrumental brokers are in guiding property buyers through the financial options available to them.
Importantly, beyond the historically dominant mortgage providers, there are now many forms of alternative finance that buyers can call upon. And property investors are clearly keen to explore options outside of mortgages that might be better suited to their particular circumstances.
As such, it’s vital that brokers themselves have an in-depth knowledge of things like bridging loans so they can provide borrowers with a full range of options and not just different rates for the same product.”
