When buying to let, the person you should definitely look for prior to anybody else if a mortgage broker. After all you can’t do anything if you don’t have the funds…
I know that a lot of people are really hesitant to use a broker, why? Well they come with fees, and how do you know you can trust them? Well how do you know you can trust anybody? Use your intuition.
It sounds very simple, but I am a strong believer that if you get one well with someone and you get to know their working practice well enough, you know if they are trustworthy or not. You will soon figure it out when a broker is promoting a certain lender, rather than looking at your needs as number one. Take a look at the mortgage market, find out what products are being offered to you the regular customer, and then ask a broker what they can get you. If the broker is genuinely interested in your strategy, motives and your personal circumstance and then goes and finds you a great deal, better than that you have found elsewhere then you know you are set. And hey, you can always change if you aren’t satisfied.
Why do I rate my broker so highly? Every time I have a change in circumstance I bat it across to him, my property has just been valued at £x – I’m looking to re-mortgage here, can I release equity here? Every time I get a very positive and sensible response, here are your options and this is what it will cost you. Furthermore he always works hard to find lenders who will waive fees but who also act quickly for property valuations and then acting on the lending. It is a constant conversation between us (Obviously not daily, weekly or monthly) but he remembers my situation and we pick up where we left off. It’s a great working relationship, once we decide on a direction he acts quickly to get mortgage deals and I work quickly to get him to information he needs (always be prepared that you are going to have to provide things such as pay slips, P60’s and proof of address, inc passport and driving license so just have them handy if you want to enter into a mortgage pretty quickly).
What should my fees be? I pay circa £500 per new mortgage or re-mortgage. This should be roughly the same for other brokers. Shop around see what deal you are comfortable with.
Where did I find my broker? When I first got interested in property I went looking at flats all big eyed, bushy tailed annndd no finance. A couple of agent’s pointed me in the direction of a number of brokers and so I set up 5 meetings and went into the meetings blind. I had never ever looked at mortgage brokers before and I resolved that the person who took their time to explain to me what it’s all about will get my vote and I will allow them to be my advisor. Luckily I found that.
Don’t be scared to admit there are gaps in your knowledge, this is where you learn the most. Asking questions every step of the way allows you to grow and develop as a successful investor. No one can know everything!
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