Brokers struggle to find loans for first-time homeowners: Mercantile Trust

Most brokers struggle to find loans for new homeowners, according to data from Mercantile Trust.

Broker buy-to-let and bridge lender says 55% of intermediaries regularly experience difficulties when trying to find financing for new BTL customers, following an online survey.

He adds that half of advisors had similar problems obtaining loans for BTL clients with adverse credit.

The survey indicates that 30% of brokers often struggled to get cases approved due to affordability issues and/or rent calculations. Another 30% also cited issues when dealing with consumer BTL applications.

Also, 25% of brokers raised problems with first-time buyers, while 20% of intermediaries said they had problems with renovations for energy performance certificates.

Maeve Ward, Mercantile Trust’s Director of Business Operations, said: “These results show that there is a real need for more specialized BTL lenders in the market to help brokers find real solutions for their clients.

“There are many prospective landlords who are underserved by the market due to adverse credit issues, rental deficits and background income security types who have capital raising needs but don’t quite fit. to the automated models of street lenders.

“They need lenders to take a more sensible approach.”

Mercantile Trust conducted its survey via webinar on February 16 during a lender spotlight session, co-hosted with criteria platform Knowledge Bank, based on the specialist BTL lending market with over 100 brokers attending virtually.

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