Using a specialist mortgage broker can make a positive difference in the complex world of buy-to-let.
Buy-to-let investment can offer attractive yields. But, the industry and process of securing a mortgage has become more complex than ever in its history.
The number of mortgage products emerging to respond to the changes adds further intricacy.
The number and type of buy-to-let mortgages available is larger than ever before
According to Moneyfacts.co.uk, there were a record 2,022 buy-to-let mortgages available to investors in May, 2018. This was the first time that the market had surpassed 2,000 products.
The complexities have enhanced the value of talking to an experienced specialist broker.
Many mortgages now have free add ons
The choice for landlords is at unprecedented levels and underlines market competition. Lenders seeking to shine have introduced incentives to entice borrowers. Free valuations, free legal services, reduced product fees and cashback may create allure.
The deposit amount is another important consideration and affects the loan to value. Experienced landlords must have a deposit worth at least 15% of the value of the property. New landlords will need a deposit of at least 20%.
The loan to value will affect the interest rate of your mortgage repayments.
The bigger the deposit you can afford, the less equity that is outstanding in the property. Lenders consider this to be a lower risk and offer lower interest rates.
Interest rates vary among lenders. There is wide choice from standard variable rate and tracker deals to fixed term deals.
So for the uninitiated, looking to get a foothold into the buy-to-let market, the choice can be daunting.
In July 2016, Moneyfacts recorded 929 products tailored to first-time landlords. Two years on, there are now 1,268 – nearly a 40% increase in volume.
How can a specialist broker help?
A specialist buy-to-let mortgage broker like Commercial Trust Limited, can save you time and money. Using our expertise and resources can take all the hassle off your shoulders.
We work with over 45 lenders and can help you with buy-to-let mortgages and bridging loans.
A confidential conversation can help us understand your circumstances and investment aims. Our personalised approach gives you a single point of contact.
Avoid any head-scratching decisions. We will make a single product recommendation that matches your needs. We always aim to exceed expectation too.
Leave all chasing, organising and liaison work with our administration team. We understand that you have other priorities to focus on.
Keeping you informed
Buy-to-let is evolving, there have been many recent rule and tax changes over the past couple of years.
Energy Efficiency Standards, mortgage interest tax relief, stamp duty. Portfolio underwriting, HMO licensing, electrical and gas safety standards. All have hit the headlines recently and could impact landlords and their obligations.
We produce a weekly newsletter to keep landlords informed.
You can sign up for our updates here.
We also share the best rates and latest deals from lenders.
The era of the go-it alone landlord is on the wane. In its place, the need for specialist buy-to-let broker expertise is growing with the market and its changes.