Over three in five (63%) brokers have reported increased demand for specialist buy-to-let (BTL) products over the past year, new research by Finova has shown.
The lending and savings software provider said that 75% had seen a particular surge in limited company BTL products.
However, Finova’s study also indicated that lenders are remaining cautious, with 63% suggesting a lack of broker demand was holding back innovation, exposing a mismatch between demand in the market and what lenders are offering.
When asked about barriers to innovation in the specialist BTL market, 38% of respondents said technology challenges, indicating that lenders could still be grappling with legacy systems that slow product development.
With market volatility shaping product design and influencing risk appetite, 36% of lenders also pointed to evolving swap rates as the biggest barrier, while 35% cited low affordability.
Finova CEO, Gareth Richardson, said: “We’re seeing a real shift in the specialist BTL market, with brokers responding quickly to growing investor demand. However, the flip side is that many lenders are still playing catch-up.
“The gap isn’t a lack of ambition, it’s where investment is being directed. Many lenders are focusing on broker portals and other support tools, but the real opportunity lies in investing in the products the market is craving, like specialist BTL, and in the technology needed to accelerate service and product development. There’s huge potential here, and those who can adapt quickly and with confidence will be the ones leading in specialist BTL.”
Business development director at Finova, Hamza Behzad, added: “The specialist BTL market is full of opportunity, fuelled by strong broker and borrower demand, particularly across limited company, green, and commercial BTL. Right now, lenders risk being left behind if they don’t evolve.
“Brokers are looking for faster, more flexible lending solutions that can meet complex borrower needs. The challenge for lenders is bridging that gap and the right technology is key. By moving beyond legacy systems and investing in agile origination platforms, lenders can not only keep pace with broker demand but stay ahead of it.”
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