Why it pays to use a mortgage broker

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Why it pays to use a mortgage broker

Property Investors in the UK should use a mortgage broker
As a property investor you should always use a mortgage broker when you need a buy to let mortgage.

In this blog we look at the reasons why.

Costly mistakes

Shopping around for the right mortgage can be a complex, time-consuming process. Many novice property investors feel that the quickest, simplest way to deal with the process is to approach lenders directly and negotiate with them themselves.

However, this may often prove to be a bad decision in the long run. By jumping into a mortgage that on the surface may appear like a good deal you may find you have invertible made a rod for your own back.

Brokers have a wealth of professional knowledge and expertise, and can take a lot of the stress and confusion out of finding a buy-to-let mortgage. They will also save you time and money in the long run.

Although you may believe you have found the most cost-effective mortgage available, there may be other factors in the contract that are worth taking into consideration.

A mortgage broker won’t simply look for the mortgage with the lowest interest rate or best incentives, but will closely consider the entire package. They can quickly scout the market and compare and contrast a range of different lenders, saving you a lot of time and work. This is especially effective if your broker understands your longer term investment strategy such as future refinance.

Working for you

The crucial difference between working with a mortgage broker – as opposed to dealing directly with a lender – is that a mortgage broker is on your side. A lender’s sole aim is to make a profit off you. However, a mortgage broker has a duty of care to you, and will shop around for a deal that is tailored specifically to your needs.

Remember, a mortgage broker must be able to justify the choices they have made for you, and won’t be paid until you are satisfied with the contract. This is a strong incentive for them to find you the best possible deal.

Lending options

Using a broker’s services may also open up sources of money that would not have been available to you otherwise. A broker deals with all kinds of lenders – not just banks – and may be in contact with some lenders who only deal exclusively with brokers. By utilising a broker’s services you may discover sources of money that you wouldn’t have known about otherwise.

Don’t create extra work

The paperwork involved in mortgage lending can often be very daunting for a novice. This is where a broker’s expertise can save you a lot of time and stress. A mortgage broker is very experienced in dealing with such paperwork, and can quickly and efficiently guide you through the process.

In short, if you are looking for a buy-to-let mortgage, it is worth investing in the service of a professional mortgage broker. They can take much of the stress and legwork out of the negotiating process, and will help you understand the complex paperwork and legal jargon involved in mortgage lending.

You are much more likely to end up with the best all-round-deal for you, rather than being lured in by low interest rates or incentives that conceal hidden snags in the contract.

Investing in a professional broker is a wise financial decision that could benefit you enormously. Thus leaving you time to focus on the bigger picture and your individual strategy.

What do you think, have you always done your own mortgages or have relied on an expert? Leave your comments below.

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2017-08-02T13:25:07+00:00September 5th, 2011|Blog, Property investment, Property Investment UK|