Most brokers struggle to find loans for first-time landlords, according to data from Mercantile Trust.

The broker-only buy-to-let and bridging lender says 55% of intermediaries regularly come across difficulties when trying to find funding for new BTL clients, following a webinar poll.

It adds that half of advisors found similar problems obtaining loans for BTL clients with adverse credit.

The survey says that 30% of brokers often found it difficult to get cases approved because of affordability issues and, or, rental calculations. Another 30% also cited problems when dealing with consumer BTL applications.

Also, 25% of brokers raised issues with first-time buyers, while 20% of intermediaries say they have had problems with refurbishments for energy performance certificates.

Mercantile Trust director of commercial operations Maeve Ward says: “These findings show there is a real need for more specialised BTL lenders out there in the marketplace to help brokers find real solutions for their clients.

“There are many landlord applicants who are underserved by the market due to adverse credit issues, rental shortfalls and background income security types that have capital raising needs but don’t quite fit the automated models of the high street lenders.

“They need lenders to take a more common sense approach.”

Mercantile Trust conducted its webinar poll on 16 February during a lender spotlight session, held in conjunction with criteria platform Knowledge Bank, based on the specialist BTL lending marketplace with over 100 brokers in virtual attendance.