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Why Is It Important To Connect With a Mortgage Adviser To Discuss Your Btl Mortgage?

BTL property purchase with a mortgage is considered one of the most effective investment strategies in the UK. Mortgage advisers play a vital role in the BTL property buying process. They have access to the whole of market mortgage products while not being restricted to any lender. This is where an independent adviser is differentiated from a restricted adviser. Therefore, you have full access to the whole of market mortgage lenders when dealing with an independent adviser.

Is it better to go to a mortgage broker or apply on your own?

If you are someone who wants to save your money and time, the best option would be working with an independent mortgage adviser. An experienced mortgage adviser would first assess your circumstances, then check the lending criteria, loan affordability in line with expected rental income and BTL property value, and recommend you the suitable mortgage product.

For example, if your personal income is below 25,000 GBP most lenders would not consider your BTL mortgage application. However, a mortgage adviser would know the specialist lenders or even the high-street lenders who would still consider your application. Therefore, it is important to connect with a mortgage adviser to get the application right the first time!

Therefore, it is important to find an adviser with the necessary skills, vision, and knowledge who will be able to assist you with the best to suit your requirements. Also, it is important that you find an adviser who works in line with compliance regulations and treats you ethically in all instances.

For example, if there is a cheaper/eligible product directly available from a lender, an independent mortgage adviser would always inform you. Simply, an independent mortgage adviser would act in the best interest of the applicant. When there are cheaper/eligible products available via mortgage intermediaries, borrowers could always benefit by working with the adviser.

Role of the mortgage adviser

A mortgage adviser works as the middle person between the BTL lender and borrower. A mortgage adviser would help you with a fact find completion, compiling all necessary documents, assessing the loan amount affordability, recommendation of suitable mortgage product, and submitting the full mortgage application.

Documents include pay-slips, employment contact, SA302 Tax Calculations, and Tax Year Overviews, Annual Accounts, ID documents, bank statements. Modern-day mortgage advisers are trying to automate the mortgage process as much as possible. The ultimate objective is to reduce the paperwork by increasing digital presence to save time. They assist you with online client portals where borrowers have all the information about their mortgage and the facility to upload documents online. It is more secure and trustworthy.

Mortgage Adviser- Scope of the service

An experienced mortgage adviser would maintain regular communication with you from the first discussion until you purchase the BTL property. It is very important to keep all parties updated on what is happening with the BTL mortgage application and other related parties such as the surveyor, solicitor.

A mortgage adviser with excellent service levels will not stop their service at the stage of receiving the mortgage offer from the lender. They will track the progress of the case with the solicitor and keep you updated on each and every step. Therefore, if there is any delay in the process, they can fix it soon as possible. A mortgage adviser could make your life much easier as they know the whole BTL mortgage process inside out.

Are mortgage brokers free?

Similar to other financial advisers in the UK, mortgage advisers also get paid a procuration fee by the lender. The mortgage adviser submits the full mortgage application on behalf of the client. Also, they provide all the documents and other necessary information to the lender which makes things real, easy for you.

Mortgage advisers have the opportunity to charge a fee from you on the advice they offer. There are some mortgage advisers who don’t charge a fee from you. It depends on the internal policy of the intermediary to decide whether to charge.

Can mortgage advisers help with complex BTL mortgage scenarios?

It is quiet-often that applicants with complex income sources, foreign nationality, and bad credit history get rejected by the lenders. This is where the expertise of a talented mortgage adviser would become important as they know the type of lender to approach depending on your circumstances.

For example, a foreign national who is a resident of the UK for less than 2 years with income from self-employment might find it a little difficult to find a BTL lender on his own. Also, a British national with a poor credit score might get rejected by high-street lenders. Therefore, it is important that you speak to an independent adviser to assess their circumstances first, before applying for a mortgage.

How can a mortgage adviser help you to save on the BTL mortgage?

An experienced mortgage adviser would always keep you posted on changes in the mortgage market and how it affects your mortgage. For example, the implications on the stamp duty with additional BTL property and how to benefit from cheaper rates with low product fees. Also, mortgage advisers would guide you on making repayments towards the mortgage to maintain low monthly payments while reducing the capital balance.

Applicants often ask the question of whether to apply for 2 years fixed deal or 5 years fixed deal. A talented mortgage adviser would do an effective cost comparison between the two options considering the total interest cost, product fees, valuation, and other lending charges and the cost-saving from the outstanding balance as well.

Usually, the 5 years fixed interest rates are higher than the 2 years fixed deals. Further, borrowers have more flexibility with the 2 years fixed deal mortgages as they are not tied into a deal for a longer-term. However, most lenders offer higher loan amounts on the five years fixed deals!  The mortgage adviser would compare the pros and cons of the two options and recommend a suitable deal.

An independent mortgage adviser could be the critical success factor in a mortgage application. The adviser would make sure that you are ready for the process assessing their requirements, finding the suitable lender and mortgage product with expert knowledge, and track the purchase or refinancing process until completion. Therefore, it is important that you connect with a mortgage adviser to discuss your mortgage in detail.

As a mortgage is secured against your home, it could be repossessed if you do not keep up with the mortgage repayments

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Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of our Independent Mortgage Brokers to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisers working for or with Independent Mortgage Brokers are fully qualified to provide mortgage advice and authorised and regulated by the Financial Conduct Authority. All our independent Mortgage Brokers will offer advice specific to you and your needs and circumstances. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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