Landlords often don’t like paying for things they can avoid. There is something hard wired into us that says 'why pay for it when we can get it for free?'
This is also very true of mortgage finance advice. There are thousands of pages of free advice on buy-to-let finance across the old ‘interweb’. Moneyfacts one of the better sources for mortgage data has recently reported that the number of buy to let mortgages has breached the thousand mark for the first time since the 2007 financial crisis.
I've just asked myself this very question when looking for finance on a slightly unusual property, (a modern conversion – with metal frame and timber cladding). Is there any mortgage company out there that’s going to lend on such an unusual building?
Now as a tight fisted landlord my immediate reaction was to grab the ipad and start searching some of the better mortgage broking websites. I have listed some of the better ones below with an overview of my initial thoughts. Please feel free to add in some of your suggestions or thoughts.
Property Hawk Mortgages
Founded on the same principles of our free website. You do have to sign up for the service; but then you are presented with a market wide range of BTL mortgages. The search allowss you to filter the results and also shares useful information on the rental surplus and additional borrowing. Not only that; but we give you a £100 cash back for every deal that goes through.
Access to best rate products and free phone number with nice summary of the mortgage products so you can see at a glance essential stuff like LTV. To make an application you are directed to the individual buy-to-let mortgage companies contact centre. Free phone number, call back facility but limited choice of products although they are conveniently displayed by category. The nice thing about this site is that you don’t have to add any data to see their info meaning that you can start browsing for a mortgage immediately.
One of the historic market leaders; who do let you see a selection of mortgage products. They have a brief selection of mortgage products but the website does not allow you to search under any given criteria. Clearly, as mortgage brokers they are keen to get you to contact them and no doubt incur a brokers fee.
Money Super Market
The Internet powerhouse has poured 1Os of millions into marketing and buying the well respected advice site Money Saving Expert. It does have a useful search facility searchable by type of mortgage, repayment period, initial offer period. To make an application it appears that you get fired off to the mortgage provider direct (no doubt MSM will get a referral fee for this).
Mortgages For Business
Again, one of the buy-to-let mortgage brokers that have been around from the start. The website has a very useful facility to allow landlords to search products on their database by LTV, product type and gives costs for lender fee and interest costs. To go further you have to submit an enquiry form. The company is also strong on commercial mortgages and development finance.
So having trawled the free mortgage brokers sites, they still hadn't answer my question, as to which mortgage companies were going to lend on an unusual construction type of steel frame and wooden cladding.
There was really no way of telling looking at the free data to hand.
This is where a little bit of inside expertise comes in handy. A good mortgage brokers will know which lender will lend on unusual buildings, high LTV are which are more flexible on rental cover. This is the service a landlord is paying for.
I really don’t have the time to phone a whole bunch of mortgage companies to find the one that might be able to lend on my ‘unusual’ lending criteria. This is where a mortgage broker comes in. All lenders are tightening their lending criteria.
For landlords that are self-employed they need to be able to provide a lender 3 years SA 302 and the tax calculation over view forms. This is new, but apparently all lenders require them. Things like this a landlord wouldn’t know, so having a good broker to hold your hand through the process is invaluable.
If I was back working for the Council as a PAYE employee then obtaining a standard mortgage on a standard buy-to-let property it should be fairly easy to find a mortgage yourself and go direct to a lender.
However, if you are looking for finance on a non-standard property or lending scenario then paying an expert broker £250 – 500 is well worth the investment to ensure you get the investment you want.
FORMS FOR LETTING PROPERTY
FINANCE AND TAX ON RENTAL PROPERTY
RENTAL PROPERTY REGULATIONS
FURNITURE AND FURNISHINGS
HMO (HOUSE IN MULTIPLE OCCUPATION)
TENANCY DEPOSIT SCHEME (TDS)
ENERGY PERFORMANCE CERTIFICATES
COMMUNAL HEATING REGULATIONS
INVESTING IN BTL PROPERTY
A GUIDE FOR NEW LANDLORDS
WHICH PERIOD OF PROPERTY
BUYING OFF PLAN
KNOWING THE RISKS
PROPERTY INVESTMENT CLUBS
MANAGING RENTAL PROPERTY
GIVING NOTICE TO LEAVE
NON - PAYMENT OF RENT
GETTING YOUR MONEY BACK
THE TENANT WONT MOVE OUT
THE TENANT DOES A BUNK
RAISING THE RENT
REDUCING THE RENT
REPAYING THE TENANCY DEPOSIT
FAIR WEAR AND TEAR
MOULD AND CONDENSATION
MAINTENANCE OF A RENTAL PROPERTY
LETTING RENTAL PROPERTY
TEN STEPS TO LETTING
WRITING A LETTING ADVERT
FURNISHING A PROPERTY
LETTING AGENT OR DIY
SELECTING A LETTING AGENT
TENANTS ON BENEFITS
LETTING TO STUDENTS
PREPARING AN INVENTORY
RIGHT TO RENT GUIDANCE
TERMS OF A TENANCY
LENGTH OF A TENANCY
RESPONSIBILITY FOR REPAIR AND MAINTENANCE
TENANCIES IN SCOTLAND
LETTING TO TENANTS WITH PETS
LANDLORDS' WATER RESPONSIBILITIES
LEGISLATION OF LETTING PROPERTY
TENANCY DEPOSIT DISPUTES
ALTERNATIVE DISPUTE RESOLUTION
HOUSING ACT APPEAL DISPUTES
THE LANDS TRIBUNAL
RIGHTS OF LIGHT APPLICATION
APPEALS FROM LEASEHOLD VALUATION TRIBUNALS (LVT's)
POSSESSION - SECTION 8 NOTICE
POSSESSION - SECTION 21 NOTICE
SECTION 21 TIMETABLE AND PROCESS
GROUNDS FOR POSSESSION
PREPARING FOR A POSSESSION HEARING
HARASSMENT BY LANDLORDS
RENT DISPUTES BETWEEN LANDLORD & TENANT
FAIR RENT (RAC)
MARKET RENT UNDER AST
LEASEHOLD VALUATION TRIBUNALS
MODIFICATION OF RESTRICTIVE COVENANTS