Research by Pepper Money has indicated that brokers expect to encounter more buy-to-let customers with adverse credit as a result of Covid-19.

In a recent survey of advisers active in buy-to-let, Pepper Money found that 43% said they expect to see more adverse in their cases this year.

Advisers say their buy-to-let customers are most concerned about tenant rent arrears in 2021 (29%), with 25% saying landlords are most concerned about a potential increase in CGT.

Other concerns included mortgage rate increases, falling property prices and property void periods.

Paul Adams (pictured), sales director at Pepper Money, said: “Landlords have not been immune to the financial impact of the pandemic and there have been many reports of missed rental payments and lost income. So, it’s unsurprising that so many advisers expect to encounter more buy-to-let customers with adverse credit.

“However, our research also found advisers to be confident about the prospects for the buy-to-let market, with strong demand for both purchase and remortgage business. In order to meet this demand, it will be important to work with lenders that are able to take a pragmatic approach to adverse credit and support this with up-to-date, responsive service and consistent underwriting.”