More than a third of property investors don’t know about sources of funding beyond the high street, according to a survey by Shawbrook Bank.
Shawbrook has developed a quarterly survey to test the temperature of commercial mortgage brokers on everything from the property investor market to popular product features.
Its latest survey found that brokers feel their property investor clients are positive about the economic outlook – 93% feel confident in the UK economy.
However, when asked specifically about the BTL market, brokers said 32% of property investors have no idea of specialist lenders, meaning that they are unaware of the full range of funding options available to help them take advantage of market conditions.
Rather than being used as a gateway to the entire lending market, brokers feel that they are often approached as a last resort once investors have been turned down by big banks. The brokers said that only 20% of property investor clients consistently understand the value that brokers can bring to securing funding. One broker said, “We tend to get involved when the high street route has been taken. We can when the banks can't or won't”.
Karen Bennett, director of sales and marketing of commercial mortgages at Shawbrook Bank, said: “Banking is changing. People are looking for more than the big banks’ impersonal tick-box approach and appreciate a close working relationship with their lender and financial adviser.
“Property investors need counsel from someone who really understands their sector and brokers provide this level of expertise, as well as in-depth knowledge of the whole market. This includes specialists lenders like Shawbrook, which not only take a more tailored approach to funding but have also proven our appetite to lend. We recently announced that we have lent £1billion in the UK and are still growing.”