A majority 55% of brokers have indicated they regularly come across difficulties when trying to find a solution for first-time landlords, research by Mercantile Trust has suggested.

According to a webinar poll by the specialist buy-to-let (BTL) and bridging lender, 50% of brokers also stated that adverse credit posed problems for BTL applicants.

The responses emerged during a session held in conjunction with Knowledge Bank based on the specialist BTL lending marketplace, and had over 100 brokers in virtual attendance.

Mercantile Trust found that 30% of respondents said they often found it difficult to get cases approved because of affordability issues or rental calculations, while the same figure (30%) also cited problems when dealing with consumer BTL applications.

Furthermore, a quarter of brokers (25%) raised issues with first-time buyers, while one-fifth (20%) of respondents stated they have had problems with refurbishments for Energy Performance Certificates (EPCs).

“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,” commented Mercantile Trust director of commercial operations, Maeve Ward.

“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.”

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