In addition, Defaqto data also indicates that over the last three years there has been a marked growth in the proportion of buy to let mortgages that are available through intermediaries:
* In 2008, 70% of buy to let mortgages were broker only products or available through both intermediaries and providers directly – this has now increased to 86%;
* Over the same period, the number of products only available through brokers has grown from 24% to 60%;
* The number of buy to let lenders has increased from 56 to 63 – 15 lenders only operate through intermediaries, 18 only distribute directly, with the remaining 30 lenders servicing both channels.
David Black, Defaqto’s Insight Analyst for Banking, said: "The last few years have seen significant growth in the number of buy to let mortgage products on the market. This shows that, although the buy to let sector has contracted in terms of lending levels in recent years, the market is certainly becoming more buoyant with buy to let regarded by many as a potential growth area.
"Our analysis also indicates that intermediaries are becoming ever more important within the specialist buy to let mortgage sector, with the number of brokered products increasing rapidly since 2008. The key challenge for brokers is how to convert these opportunities for the benefit of their business. Essentially, they need to play to their core strength: giving advice – and this is particularly important in the buy to let sector where people are likely to need more guidance when selecting a suitable mortgage."
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