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  • Buy-to-Let

    Benefits of using a mortgage broker for BTL?

    I'm a broker and if you want to go direct then do so. It's easier if you buy personally but if within a limited company then most lenders only deal with brokers. Some brokers don't charge and others like myself do. A good broker and in my experience there are plenty of decent one's talks to you about costs but also service and the process. That is where the value is added and no comparison site does that (yet).

    Be careful with comparison sites as not all lenders are on them. I've recently had a well-known mortgage broker come to me, as they don't have access to the lender their client needed!

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    Regards Simon Searchlight Finance

    Fulfil Your Property Ambitions

    01565 654005

    Searchlight Finance Ltd is authorised and regulated by the Financial Conduct Authority reference 743220.

    HMO Finance I Complex BTL I Bridging Finance I Development Finance

    Buy to Let I Portfolio Finance I Commercial Mortgages


    In my personal opinion, I have always gone with a broker because some cover pretty much whole of market and might have products that you will not find on websites like moneysupermarket.

    You have to think of mortgage brokers similar to how you would view lawyers. They specialise in their field and what you pay, you easily get back plus more. If I needed legal advice I would rather get a lawyer to assist than try and read up on all the different aspects of UK law. Similarly, for mortgages and people's individual circumstances can be complex so it's better to go with a broker. They can tell you who is likely to accept or reject; who are more linient or strict; etc.

    Also whilst brokers might charge circa £500 fee, if they find you a product which is 0.1% cheaper than what you might have found then over 3-5yr product, for a £100k+ mortgage then you already save that money in a reduced rate and you've effectively broken even and the advice becomes free.

    I'm an experienced landlord and I might be personally have my brother who is a broker (https://www.facebook.com/SarangMAB/) I've been using for the last couple of years but I've always used on in my previous 10+ years of experience.

    My brother covers a large market and I would highly recommend him. He's not one of the dodgy brokers who are more concerned about the commission. He prides in service for his client. So feel free to give him a ring if you want some free initial advice. (Sarang Kalelkar - 07878 929733).

    Hope my insight helps others. P.S. welome feedback as this is my first post on this site Smile

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    Saagar

    Disclaimer: I'm not a legal expert or an advisor on any subject. A mere landlord using open forum to share ideas and experiences.


    If it's remotely complicated then yes but for anything straight forward I prefer to do myself.

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    I have had mixed experiences with different brokers over the years.

    I first used one after I bought a very expensive auction property in 2007. They secured a development loan with RBS. I was happy with the service and they were paid direct by RBS.

    When it came to refinancing, we were in the post 2008 downturn and the same broker sadly could not get as good a deal as I managed to get directly with another lender.

    A couple of years ago, a broker (who is highly recommended on forums - I won’t say if it’s here or another! Wink tried to get a deal with BM on one property. He spent a long time on it, as did I getting everything together. But it sadly fell through before the formal offer. He was very apologetic and blamed the communication between the business development manager and their underwriters.

    I then went to another broker (as I was disappointed by the first one) who tried to do the deal with Barclays. Again that stalled and it was clear to me that this second broker was getting confused about the case (it wasn’t that complicated).It was basically about to be refused so I withdrew the application. I was so frustrated by that point that I found a number online for the property head of Barclays in London. I called him up. He said he only dealt with deals over £10million, but said he’d pass it into someone else. It got passed along the chain and in the end I dealt direct and got the offer myself.

    Recently, I have a slightly complex situation that I wanted to refinance to get a better rate than I am currently paying whilst splitting a property intro new leases. I spoke to around 8 brokers. All of whom said they can just about match the current rate with various specialist lenders, but at least it would be fixed rather than variable.

    One said I could get TMW very low fixed rates which everyone else said wouldn’t be possible. To cut a long story short - they were wrong. It was a massive waste of both their time and mine (valuations were done etc). Again they blamed miscommunication between the BDM and underwriters. I even raised a complaint with TMW about this a received a small amount of compensation as they admitted the BDM should have known from the start that they would not lend on my situation.

    So most brokers in this case were right and one was told something wrong by their BDM. In the end ,a chance encounter with someone at a bank has led to me making an application direct with a bank that has just been accepted and is 0.75% lower than I am currently paying on a fixed rate and sorts out my complicated structure so that financing in the future will be easier.

    Not one of those other 7 highly regarded brokers suggested this lender. They are small but not unknown in the market.

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