Landlords’ financial profiles revealed

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by Gill Montia

Latest research from BDRC Continental reveals that 28% of landlords own their letting portfolios outright.

Thirty-three per cent own some but not all of their properties and 39% hold their portfolios via one or more buy-to-let mortgages (BTL), with the average number of loans held 7.7.

Of the outright owners, 41% purchased properties using previously invested funds and 29% had BTL mortgages that have been fully repaid.

Twenty three per cent of outright owners used a lump sum (non-invested) and 18% inherited letting property.

Thirty-seven per cent of landlords say that they make a profitable full-time living from letting but with the proportion increasing sharply with the number of properties held.

Eleven per cent of landlords with one property are able to make a profitable living from letting, compared to 38% of those with five to 10 properties, and 72% of those with 20 or more.

Among those who rely on BTL mortgages for some or all of their portfolio, 39% can see no real difference in the products currently available, and 60% believe lenders don’t consider landlords’ individual circumstances.

Seventy four per cent agree that the BTL lending market needs greater innovation and 89% think that the market would benefit from greater competition.

Commenting on the findings BDRC director, Mark Long, says: “BTL mortgage borrowing remains important for the majority of private landlords and our research suggests that there is still room in the market for providers to listen to their customers and provide a product suite better suited to their needs.”