We often hear the term ‘mortgage broker’ in relation to property investment. But what is a mortgage broker and what do they do? They are essentially a go-between, to identify the right lender for the buyer and match them with a mortgage that suits their requirements. Mortgage brokers help in accessing deals and financing when buying a property. They have extensive knowledge of the housing market, meaning their experience can be crucial to the process of investing in property.
What does a mortgage broker do?
Buying a property can feel overwhelming, even if you’re an experienced property investor or a property company with multiple rentals. For those who don’t have an extensive or professional knowledge of the UK housing market, it can seem impossible to navigate, especially if it’s your first time purchasing a property as an investment. A reputable mortgage broker will help you by finding the lender that is right for you and take care of all the complexities. They also handle the paperwork and use their expertise to secure an offer.
A mortgage broker can save you a significant amount of time
What are the benefits of using a mortgage broker for property investments?
Save costs Of course, mortgage brokers do sometimes charge a fee, although here at James Leighton, our mortgage advice is fee-free. If you go directly to the lender, you avoid this expense. However, while this may seem more cost-effective, it can often be less efficient. Mortgage brokers have access to exclusive buy-to-let (BTL) deals and offers (for example James Leighton has access to exclusive deals through being part of the Quilter Financial Planning network), and they can negotiate better terms and interest rates for you. If you don’t use a mortgage broker, you’re unlikely to know about these deals and won’t be able to benefit from them.
Save time Unless you have expertise in securing mortgages for the investment property market, a mortgage broker can save you a significant amount of time. They can pair you with the right lender which means that you don’t have to sift through various options that may not be a suitable match. They also deal with the application process as well as the paperwork. They take responsibility for a large part of the process thus saving you time and stress.
They're working for you When a mortgage broker doesn’t represent a specific lender, it means that they can offer whole of market mortgage advice and recommend a lender that most suits your needs - their sole obligation is to find you the most suitable mortgage deal for your investment property and long-term goals. They also assess your specific situation, making personalised and tailored choices according to your risk tolerance and goals.
They can find mortgage solutions tailored to you
An experienced mortgage broker has in-depth knowledge of the property investment housing market. Having a mortgage broker representing you means that they work to find a mortgage that is tailored to your needs. They can help you navigate different methods of financing and find a lender that aligns with your goals.
Contact us now for whole of market mortgage advice and help to secure your BTL mortgage.
The Financial Conduct Authority do not regulate on some buy-to-let mortgages.
