When you need a new buy-to-let mortgage, of course you can go directly to a lender yourself. But if you do, you might not be getting the right deal over the lifetime of your investment, so is it sensible?
There are five very good reasons why you should speak to a mortgage broker for the financing of your buy-to-let property. Each of which can really benefit you and the profitability of your property investment:
If you’re not a mortgage broker, it’s highly unlikely that you’ll know of every aspect when applying for, and progressing, a mortgage. This could lead to you wasting a lot of time and effort trying to work your way through your options, only to end up with a deal that a broker could easily better.
More importantly, there’s a possibility that you might not provide all the necessary information to the lender in the correct way. You may also unwittingly leave out things that are critical to securing the right mortgage.
Lenders typically have varied criteria and regulations based on how you intend to let the property. Specialised mortgages are necessary for properties like HMOs. Also if you intend to let to tenants on benefits, you’re likely to be restricted in your choice of financing.
Access to a wide range of mortgage deals
A mortgage broker will have access to a vast range of products available in the market. They will work to effectively source the most suitable one for your specific circumstances.
Speed on limited-time deals
Certain deals are only available for a very limited time. Often only those with a buy-to-let specialist broker may have the opportunity to secure them. In these cases, it’s essential to work with someone who is experienced and knows exactly what to do and when, so that the administration is done correctly from the outset.
Working with underwriters
If you work with an experienced mortgage broker who has been handling buy-to-let cases for a number of years, they will have created relationships with underwriters and other key people who can help progress your application as quickly as possible.
They’ll be able to get answers to your questions quickly, and a well-connected broker can be the determining factor in successfully obtaining the necessary financing as opposed to a deal falling through.
A qualified mortgage broker will keep up-to-date with all the latest regulations and new deals. They will also let you know about the optimal times to consider switching your mortgage. Many brokers are also happy to work with your financial adviser to help ensure your investment keeps delivering the best returns.
Looking for a buy-to-let mortgage broker?
At CR Real Estate, we work with a local Kent broker who are buy-to-let specialists. Their friendly team are always happy to speak to landlords about their mortgage borrowing. If you’d like a review of your portfolio, or have any other questions, please get in contact with The Residential Mortgage Hub.
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There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage. Your property may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.