'Speed over substance' for buy-to-lets

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'Speed over substance' for buy-to-lets

Fri 3rd Nov 2006

Buy-to-let mortgage brokers are putting emphasis on the speed of the deal rather than prioritising getting the best value for money for customers, a new study shows.

Of those surveyed by the Mortgage Trust, over half (52 per cent) said that they focused on speed, compared with 28 per cent of brokers who believed securing the most competitive interest rate is the key priority.

The National Association of Estate Agents (NAEA) has put the strong rental market down to rising house prices that are simply pricing-out both first-time buyers and eastern European immigrants.

Nicola Severn, communications manager at Mortgage Trust, remarked: "By nature, landlords will be keen to secure house purchases as quickly as possible and speed to offer is a vital element in allowing intermediaries to provide the best possible service to their clients."

"There is no doubt that product rate and design are still of great importance, but this research confirms that developments such as full online applications, and point of sale offers, are becoming increasingly desired and expected in the buy-to-let market."

Research by the NAEA discovered that the average time taken to seal the letting deal on a property stands at 12.2 days, up from 13.2 days in the first quarter of this year.

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