Thursday, August 21, 2008
Undaunted by my first apparent buy-to-let mortgage cul-de-sac I set off again in search of my ultimate buy-to-let mortgage.
Having failed initially by going down the DIY route I'd thought I'd enrol some assistance from a mortgage broker. I've used mortgage brokers before and I knew that they are very good at sifting through the various mortgage providers to find ones that meet an individual's circumstances. In my case being self employed and with very little income I needed a mortgage that could be secured entirely against the expected rent from the buy-to-let property. Therefore, adopting the philosophy that gaining advice from 5 brokers rather than one I filled out one of the enquiry forms on Property Hawk's mortgage section. I'll be honest part of the interest was to see if it worked. It did very well.
Where do I go to search for my own buy-to-let mortgage?
Within minutes I had phone and e-mail responses from the brokers I selected. Having used Mortgages For Business before I decided to respond to them first. I spoke to one of their brokers and explained that I needed a lender who was prepared to lend against the property and not based on my personal income. I also didn't want a fixed rate and preferred a tracker or variable.
The broker Andy I think his name gave me a couple of options. I liked the 6.29% tracker partly because it was only for 2 years (after which time surely the mortgage market will be back to normal) and also because the fee at 1.25% (min £875) wasn't silly and could be added to the loan. Details of indicative terms and a letter of engagement were e-mailed within a couple of hours of our chat.
One thing that struck me on receipt of the documentation was MFB were going to charge me for their broking work. Not unreasonable, but £297 is still 297 pounds. I got to thinking was there a way round this?.......