A survey conducted by short-term finance lender mtf has also revealed that 62% cited affordability criteria as the primary barrier to mainstream funding, followed by age restrictions (20%) and insufficient deposit capital (18%).
Just over two- fifths of respondents (43%) said that they filled the funding gap with other sources of liquidity, with 40% using secured loans and 30% using bridging finance.
- Helping a BTL investor grow their property portfolio
- Five-year fixed BTL rates continue to slide
- 41% of portfolio landlords confident about expanding
Tomer Aboody, director at mtf (pictured above), said: "The results from our Q1 property investor survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.
“However, specialist lenders are stepping in to meet the needs of borrowers and fill the liquidity gap.”
When asked what mainstream BTL lenders could do to improve, 57% of respondents said that a more flexible approach to lending was important.
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