The competitive nature of the UK’s residential and commercial real estate markets means that available opportunities can be seized almost as soon as they have been listed. Consequently, increasingly stringent lending measures imposed by mainstream lenders make the process of securing a mortgage time consuming.
The rise of the UK’s specialist finance industry over the last decade has transformed the way property investors are able to secure capital, offering them new loan options that can be individually tailored to their needs. Bridging loans, for example, have become a practical instrument for those seeking to leverage an existing asset for capital. In turn, these loans can be used to quickly complete a property purchase or address more specific scenarios, such as refinancing outstanding debt against multiple investment properties, or taking advantage of an opportunity for business growth.
With so much choice for investors, finding the right type of financial product may seem like an overwhelming challenge at first, particularly for high-net-worths and buy-to-let investors who intend to expand their property portfolio.
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For brokers seeking to support this category of investor, the requisite questions include how knowledgeable are buy-to-let investors about available financial products? And to what extent do they rely upon brokers to make their financial decisions?
To find out, Market Financial Solutions recently commissioned an independent survey of buy-to-let investors to help brokers understand how property investors navigate the growing menu of financial products they have to choose from.
Whether it’s someone purchasing their first house or their 50th, the research shows how instrumental brokers are in guiding property buyers through the financial options available to them. Importantly, property investors are clearly keen to explore options outside of mortgages that might be better suited to their particular circumstances.
It is, therefore, vital that brokers themselves have an in-depth knowledge of things such as bridging loans, so they can provide borrowers with a full range of options and not just different rates for the same product. Being clued up on the latest market trends and leading lenders ensures they are adequately positioned to offer a financial solution best suited to their client’s needs.