From Adviser Guide: Buy-to-let part 1
Q: How can I source the best deal?
Brokers have the option of using sourcing systems or they can go via a network, a mortgage club or a specialist buy-to-let distributor.
Brokers can source buy-to-let mortgages in exactly the same way they source residential mortgages.
They have the option of using sourcing systems such as TrigoldCrystal and MortgageBrain, or they can go via a network if they are appointed representatives, via a mortgage club or via a specialist buy-to-let distributor such as Mortgages for Business.
While every borrower’s situation is individual, a few general guidelines can help ensure the most appropriate deal is found.
This includes ensuring you source from all lenders or from a panel of lenders that includes all those who offer buy-to-let, including new entrants to the market.
Ensuring accurate rental income is entered is vital, according to Phil Cliff, director of retail assets for Abbey for Intermediaries, as this will be compared to lenders’ requirements.
Once a deal is found, Mr Cliff said it is vital to look at the lender’s policy notes to ensure the borrower meets requirements, as not all criteria can be reflected in sourcing results.
As with any mortgage, Mr Cliff said it is important too to look at the overall cost of the mortgage and not just the headline rate.
He said some products also offer added benefits such as a free basic mortgage valuation and £250 cashback on completion so he added it was important to consider these incentives too.
Charles Haresnape, managing director of Aldermore Residential Mortgages, said brokers can also go direct to a buy-to-let lender.
He said: “The buy-to-let market, unlike the residential mortgage market, does not include as many lenders and brokers who regularly place buy-to-let cases quickly become familiar with the various lenders and their differing products and criteria.”