MBE: Brokers should target cash landlords

Speaking at MBE in Manchester, Nationwide’s James Chidgey said brokers had an opportunity to advise landlords on how to raise their annual rate of return by mortgaging some of their portfolios.

He said: “three ar a lot of cash landlords out there not being properly advised. I would urgently suggest brokers with lettings and landlord links to speak to landlords and advise gearing if appropriate.”

Chidgey quoted Association of Residential Lettings Agents’ figures for the north west of England that showed cash landlords had earned an annual rate of return of 8.9% over the past five years versus an annual ROR of 21.6% for geared landlords.

Chidgey also revealed that 15% of buy-to-let lending done by Nationwide for Intermediaries in 2010 was at 80% loan to value.