The property market is changing. Many people are reluctant to buy in the current precarious situation, and many of those who do want to buy can’t get a mortgage. But there is one sector of the property market that is doing nicely – the rented sector. Because many of those who can’t or won’t buy are renting instead. So this may not be a bad time to look for a buy to let mortgage.
You could of course find one by looking online – or possibly from your bank. But this is a tricky time, and buy to let mortgages are a tricky product. You would be much better advised to find a buy to let mortgage broker.
So why would using a buy to let mortgage broker be beneficial to you? There are plenty of reasons.
- Despite the fact that mortgages are harder to obtain at the moment, and some lenders have discontinued buy to let mortgages, there are actually still some extremely competitive buy to let mortgage deals available. However without a broker these might be quite difficult to track down. In addition, you need to be careful as some of the most attractive looking ones have high fees which cancel out the low rates.
- If you need an interest-only mortgage or a long-term repayment mortgage, in order to keep costs down, and at the same time require a steady cash-flow from your buy to let investment, it is very important to find exactly the right lender. You need to look for a specialist buy to let mortgage broker who can help you balance the requirements of cash-flow versus low-cost mortgage.
- Comparing different plans from large numbers of different lenders can be time-consuming and confusing. Lenders don’t always provide all the information up-front.
- A good mortgage broker will gain an understanding of your financial situation and also of your investment goals and requirements, to make sure of finding the mortgage that is most appropriate for you. For instance: are you a newcomer to buy to let? are you looking at a single property or building a portfolio? is your priority long-term investment or rental income? etc.
- Looking for bargains often means you need to snap up property quickly. Having a relationship with a buy to let mortgage broker makes this much easier, as the broker can find the right lender more quickly and can also reduce delay in obtaining funds.
As many people will tell you, a buy to let mortgage is a specialist type of mortgage that isn’t available from just any lender. Unless you are highly experienced in this field, you would be well advised to seek the services of a buy to let mortgage broker who could save you from losing time or money – or both.