The lender’s recent webinar poll of over 100 brokers — conducted during a Lender Spotlight session with Knowledge Bank — showed that 55% of respondents regularly come across difficulties when arranging deals for first-time landlords, while 50% stated that adverse credit poses problems for BTL applicants.

Around 30% of brokers often find it challenging to get cases approved because of affordability issues and/or rental calculations.

The same figure also cited problems when dealing with consumer BTL applications.

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In addition, 25% of intermediaries mentioned issues with first-time buyer cases, while 20% said they’re struggling to arrange refurbishment deals for EPC improvements.

Maeve Ward, director of commercial operations at Mercantile Trust (pictured above), said: “These findings show there is a real need for more specialised BTL lenders out there in the marketplace to help brokers find real solutions for their clients.

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

“They need lenders to take a more common-sense approach, which is achieved through a more human underwriting process that the likes of Mercantile Trust can offer.”