Ok, so you have your deposit, or maybe you are wondering what size deposit you require based on the price range of the property you want to buy. It’s time to look for a mortgage!
Now, it is easy enough to look at the types of mortgages that are available by jumping online and searching through Google. There are hundreds of mortgage lenders, who all have a number of mortgage products offering different interest rates, fees and terms, resulting in thousands of mortgage products.
You will see some very attractive interest rates and loan to values (here comes the but), but, it’s not until you drill down to the finer detail that you may find the mortgage will not meet your needs or that you will not be eligible for that particular product. Using a mortgage broker will help elevate these problems.
Instead of shopping for a mortgage, I recommend shopping for a mortgage broker and a broker that specifically deals with Buy to Let (BTL) products and is also an investor themselves. Any broker can tell you that they can find you a BTL mortgage, but if they primarily deal with residential mortgages, they are not going to have the same amount of experience and knowledge as a broker who solely deals with BTL’s, and you may end up with a mediocre product to fit your requirements.
Brokers will receive a commission from the lender for selling their product and they may also charge you a fee, but don’t let this put you off.
I met my broker at a property auction a couple of years ago and her fee is £500 which is paid once the mortgage lender has released their funds and I have control of the property, known as completion. She has years of experience, knows my immediate and mid term plan and is always at the end of a phone or email when I have a question. She is a mentor to me and is worth every penny!
I won’t divulge her information here, but if you are struggling to find a reputable broker, please send me a message and I will give you her contact details.
Once a lender has been matched to your needs, an application in principle (AIP) will be written and it’s time to fine tune your research data before arranging any viewings.
Is there something you would like to know about mortgage brokers which I have not mentioned? Or do you have any feedback about this post? If so, please leave a comment below. Thanks.