Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Landlords Report Uncertainty in Buy-to-Let Lending, Survey Finds
A recent survey by Landbay has found that landlords are increasingly uncertain about the buy-to-let (BTL) finance market, with many describing it as unstable or unpredictable. Over 80% of landlords surveyed characterised the BTL market as either unstable or unpredictable, according to the report.
The survey revealed that 55.6% of landlords described the market as ‘somewhat unpredictable’, while 26.3% said it was ‘highly volatile’. As a result, 35.3% of landlords reported reducing their activity, and 21.8% said they had delayed plans in response to current market conditions.
Nearly half of respondents (49.6%) said they had less confidence in their ability to access BTL finance. However, 45.1% indicated their sentiment around lending had not changed, suggesting that some landlords still believe funding is accessible despite the uncertainty.
Landbay noted that product availability had improved in recent weeks, with many lenders reintroducing product ranges and offering more stable pricing. The lender also highlighted the important role of advisers in helping landlords navigate the market, especially regarding product choice.
The survey found that more than half (57.9%) of landlords considered BTL product choice to be ‘limited’, and 24.8% described it as ‘very limited’.
Landlord Activity and Adviser Use Remain High
Despite the uncertainty, landlord activity levels remain significant. The survey showed that 25.6% of landlords had completed a BTL mortgage in the last month, and 24.1% were progressing with a case, indicating that nearly half of respondents were recently or currently engaged in the market.
Mortgage advisers continue to play a key role, with over 82% of landlords using a broker from the outset when arranging their latest mortgage. Nearly 10% of respondents initially tried to arrange finance themselves but later sought a broker’s guidance.
Demand for Certainty and Consistency
The survey found that landlords are increasingly seeking certainty, consistency, and communication from lenders, rather than focusing solely on competitive pricing. While 66.2% still said competitive rates were most important, 44.4% wanted certainty once a mortgage offer had been issued. Additionally, 36.1% sought stability in pricing during the application process, and 34.6% looked for consistent product availability.
Regarding recent mortgage applications, 39.8% of landlords experienced no issues. However, 27.8% said they needed to act quickly to secure products, 19.5% faced delays due to changing market conditions, and 18.8% had to switch products during the application process.
Source: Mortgage Solutions