Mortgage advisers expect no decrease in Buy to Let purchase activity once the Stamp Duty Land Tax (SDLT) holiday comes to an end, according to research by Pepper Money.
The impact of SDLT Holiday ending according to Buy To Let Mortgage Advisers
In a recent survey of mortgage advisers active in Buy to Let*, Pepper Money found 65% said they expect no decrease in purchase activity once the SDLT holiday ends, with 61% expecting business levels to remain the same and 4% anticipating an increase.
Taking this into consideration, it has become increasingly important mortgage brokers evaluate prospective lenders service levels, to avoid unnecessary delays or disappointment.
According to the research, 69% of mortgage advisers expect an increase in Buy to Let remortgage business this year as many thousands of 5-year fixed rates are due to expire.
Paul Adams Sales Director at Pepper Money, says: “Set against a challenging economic backdrop, Buy to Let could be in for a booming year. Demand for rental property continues to be high, and landlords are responding to this demand by returning to the market and growing their portfolios. According to our research, this purchase activity is unlikely to subside once the stamp duty holiday ends, and with a spike in the number of landlords’ fixed rate deals due to come to an end, advisers can expect to get involved in a lot of Buy to Let business.
“When it comes to choosing the right lender for their landlord customers, criteria and service are going to be key considerations. Indeed, our research has found that 82% of advisers say service has become a bigger factor in their recommendations in the last six months, while 43% expect to encounter more landlords with adverse credit. At Pepper Money, we continue to prioritise our service and speed of turnaround at every stage of our process and our underwriters are able to take a pragmatic approach to landlords with adverse credit – so we look forward to helping more advisers to help their Buy to Let customers this year.”
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