Insurance News Archive

Direct-only mortgages 'more attractive for landlords'

Posted by Michael Brown

A leading financial research company has found that direct-only mortgages are set to rise to more than half of the market, which could interest buy to let insurance policyholders.

Figures published by Defaqto show that this has risen from 2007, where direct-only mortgages accounted for less than 22 per cent of the market.

Kevin Bray, insight analyst for banking at the firm, claimed that 12 of the top 20 best buy fixed-rate mortgage products were only available from their provider.

He said: "The steady growth in direct-only products over the last two years ... leaves consumers with a difficult choice to make. Do they seek the advice of a mortgage intermediary or do they do their own research and approach the provider directly?"

Mr Bray added that mortgage intermediaries are important but it is vital to use those that would provide advice about direct-mortgage deals.

Earlier this month, LSL Property services reported that 28 per cent of buy to let insurance holders are expecting to expand their portfolios in the next 12 months.

30 Apr 2010