Landlords are continuing to borrow and invest despite recent mortgage market disruption, but are placing increasing emphasis on certainty, communication and product stability from lenders and brokers.

New research from Landbay found more than 80% of landlords now view the buy-to-let market as either unstable or unpredictable following a turbulent period across mortgage markets earlier this year.

The survey, published by the specialist buy-to-let lender, showed 55.6% of respondents described current conditions as “somewhat unpredictable”, while 26.3% viewed the market as “highly volatile”. Landbay said the findings reflected disruption seen during March and April, particularly around mortgage pricing and product withdrawals.

Recent market instability has already influenced landlord behaviour. More than a third of respondents said they had reduced activity because of global events and rate movements, while just under 22% had delayed plans altogether.

Confidence around accessing finance has also weakened. Almost half of landlords surveyed said their confidence in securing buy-to-let borrowing had deteriorated in recent months, although 45.1% said confidence levels had remained unchanged.

The findings come against a backdrop of heightened volatility in swap markets during the spring, which triggered a wave of repricing and temporary product withdrawals across the mortgage sector.

Landlords also continue to express concerns about product availability. Nearly 58% described current buy-to-let product choice as “limited”, while a further 24.8% said availability was now “very limited”.

However, the lender noted that conditions had started to improve in recent weeks, with lenders gradually reintroducing products and pricing beginning to stabilise.

ADVISERS REMAIN CENTRAL

Despite ongoing uncertainty, landlord activity remains relatively resilient. Almost half of respondents said they had either completed a buy-to-let mortgage within the last month or were currently progressing one.

The survey also reinforced the continued importance of advisers within the sector. More than 82% of landlords said they used a broker from the outset when arranging their most recent mortgage, while almost 10% initially attempted to arrange finance themselves before later turning to an adviser.

Landbay said increasingly complex market conditions were driving greater demand for professional support and guidance.

The research also highlighted how landlords’ priorities may be shifting beyond headline rates alone. While 66.2% still cited competitive pricing as the most important factor when selecting a lender, 44.4% said certainty once a mortgage offer had been issued was now a key consideration.

More than a third said pricing stability during the application process mattered most, while 34.6% pointed to consistent product availability as increasingly important.

The survey also revealed operational challenges remain common. While almost 40% experienced no issues with their most recent application, 27.8% said they had needed to move quickly to secure products before they were withdrawn, while others reported delays linked to changing market conditions or being forced to switch products mid-application.

Rob Stanton, sales and distribution director at Landbay, said: “What comes through very clearly is landlords remain active and engaged with the market, but they are placing much greater value on certainty, consistency and communication from lenders and advisers.

“While rates remain incredibly important, landlords also want confidence that products will remain available, that cases will progress smoothly and they can rely on lenders to support them through periods of market volatility.

“It is also very telling that almost half of respondents have either completed or are currently progressing a mortgage despite the recent instability. Activity is still very much there, and advisers continue to play an incredibly important role in helping landlord borrowers navigate changing market conditions.

“The fact nearly 10% initially attempted to arrange finance themselves before moving to an adviser also demonstrates the increasing value of professional support in a more complex market.”