Consumer barometer What do consumers w
Each month Leadbay takes a look at what consumers want. This month: buy-to-let, ASU and Income Protection
The fi gures are taken from Leadbay’s own lead generation data; every person or lead is someone who has turned to the internet to look for information and advice and who has actively decided that they need to speak to a qualifi ed adviser to help them.
BUY-TO-LET The average amount the buy-to-let borrower wanted to borrow in September was £125,600. This hides huge disparities across the country however: average requested borrowing on buy-to-let jumped by nearly 9% in May up to £138,000, before falling back 11% to just £123,000 in June and then continuing in a similar vein, undulating up and down to today’s fi gure. These are not small sample sizes. The
number of borrowers asking for buy-to-let advice frequently exceeds 2,500 people a month. We expected to fi nd that there were more people in the South than the North but the difference is marginal, with typically 55% of prospective borrowers coming from Anglia, London and the Southern regions and the remainder from the rest of the UK including the small market in Northern Ireland. In September almost 20% of enquiries
came from the Northern regions alone, while Northern Ireland was the smallest market with just 1.5% of the UK’s mortgage enquiries followed by Wales with between 2.5% and 5% of enquiries and Scotland typically providing 5.5% of buy-to-let borrowers looking for advice. The rest of the South experienced
borrowers wanting to borrow a signifi cantly higher amount of money than the rest of the UK: the South East and South Central regions had a combined average borrowing
32 MORTGAGE INTRODUCER DECEMBER 2010
of £152,700, up 4% from £146,700 just in the last month. This compares to the two Northern
regions where the average amount people were asking to borrow on a buy-to-let property was £55,000 less than in the South at just £97,500 but still up 9% from £89,500 the month before. This upward trend was not refl ected
everywhere however. Scotland experienced a huge drop in average borrowing over a one month period from £107,600 down to just £87,500, the lowest borrowing amount in the UK by £6,000 and £104,000 lower than in London. Other regions to experience falls in borrowing were the South West, which fell 3.4% over the last month down to £117,000 from £121,000 in August, and London which had experienced an 8.5% drop down from £207,850 back in April and 2.7% lower from August’s average of £196,700. Demand from advisers for clients
needing buy-to-let advice contrasts strongly however. With few lenders lending on buy-to-let properties such mortgages have been hard to place and this has been refl ected in the amount that advisers are willing to pay to speak to such clients. The average an adviser will pay for such a lead is £6.50 contrasting strongly with the £25-plus that advisers will pay to speak to a client who needs advice on a remortgage. As buy-to-let mortgages become easier to place expect this to rise as such clients become more in demand.
£132.947 %
Av mort
1.32 Av price
£5.16 £8.00
2.15 Av price
%
MIDLANDS Demand for ASU/IP from consumers has been consistently highest in the Midlands although, because of the relatively small numbers of enquiries, the other highest yielding regions fl uctuate month by month.
£99,473 %
Av mort
4.88 Av price
£7.09
£117,140 %
Av mort
9.10 Av price
£6.77 £15.14
7.53 Av price
%
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