Buy-to-let market - why mortgage advisors are needed more than ever

28 May 2020 37246 Views

The buy-to-let market has grown significantly in recent years as long-term renting becomes more popular and investors continue to see the long-term financial potential of property.

Research by Hamptons International estimates that there were 2.66 million landlords in Great Britain last year, down 8% on the 2017 peak of 2.88 million. Meanwhile, according to the English Private Landlord Survey 2018, 72% of landlords used a mortgage as a source of funding for their first rental property. Some 55% of landlords surveyed said they had a buy-to-let mortgage, representing over 60% of total tenancies in England.

The rise of the buy-to-let sector has also seen a surge in the number of specialist products and lenders on the market. By the end of 2018, there were 628 buy-to-let mortgage products available to landlords, up from just 263 a year previously, according to Mortgages for Business.

By June 2019, Moneyfacts reported that there were 2,396 buy-to-let products available, rising by over 100 products on a monthly basis.

With a huge level of choice and interest rates fluctuating, navigating today's market can be difficult for many investors, who will therefore need expert advice when it comes to mortgages.

What's more, throw in the uncertainty caused by the global coronavirus pandemic and the need for impartial, expert advice in the buy-to-let sector is now greater than ever.

How is the BTL market currently performing?

Due to the spread of Covid-19, the rental market recently experienced a period of shutdown with only absolutely essential moves allowed to take place. However, on May 13 the market was reopened for business.

Normal transactions can now go through, as long as the government's strict guidance on moving home is followed by all parties.

It was expected that the reopening of the market would encourage a release of pent-up activity and the latest data from Rightmove suggests this may be happening already.

The property portal reported that during the first week of the market being reopen, between May 13 and May 20, demand for rental property was up 33% compared to the same time last year.

Meanwhile, Monday May 18 saw the highest level of rental demand ever recorded in one day on Rightmove. The portal also reported that almost 23,000 new rental listings appeared in the first week of the market returning, just 10% down on the same week in 2019.

Further commentary from Mortgages for Business suggests that the market being able to function again will provide property investors with the opportunity to 'hoover up' new acquisitions.

The broker says that investors can benefit from a dip in property prices caused by Covid-19 by targeting vanilla buy-to-let properties and houses in multiple occupation (HMOs).

With the market back up and running, albeit operating under a new normal, many landlords could be considering expanding their portfolios to take advantage of the current situation.

The appetite for mortgage advice designed for the property investment sector is therefore likely to continue growing.

How to become a mortgage advisor

The flexibility on offer and impressive earning potential means that becoming a mortgage advisor - with a particular focus on, say, buy-to-let - can be a fruitful career step.

In order to kickstart your new career, it's likely you'll need a qualification. An industry qualification can help you to learn your trade and provide confidence to consumers that you're a professional.

Mortgage advisors can work across the property sector. You could operate your own business from home, work for a private company or alternatively work in-house for an estate agency or bank.

Here at uAcademy, our mortgage advisor training will help you to gain a professional qualification and become a fully fledged mortgage advisor

It consists of three modules made up of seven units and is a distance learning qualification, meaning you can study online around your existing commitments.

Completing your CEMAP training course within 12 months is very achievable as the recommended study time is a total of 270 hours.

What are the benefits of our CEMAP course?

The mortgage advisor course on offer from uAcademy, which was recently featured on the BBC, is one the most affordable option out there - starting at just £99

Alongside the full range of study materials, there are CEMAP practice tests at the end of each unit to test your knowledge and ensure you're on the right track.

We also offer a property development course which provides buy-to-let investors with the fundamentals on how to get started, with strategies on finding a suitable property, raising finance, renovating, finding tenants and the responsibilities of the landlord.

What's more, all our courses are regularly updated to reflect ongoing legislation and tax changes.

As the buy-to-let market continues to flourish, professional mortgage advisors will be a valuable resource for investors. This means there’s no better time to take the next step in your career with a professional qualification.

CeMap is a trademarked & awarded by the London Institute of Banking & Finance.