I got a call earlier today from my Estate Agent’s in-house mortgage broker. He invited me to go into the office to see if I would be interested in taking out a mortgage through a lender they work in conjunction with. I agreed to meet him since getting a few quotes couldn’t do much harm.
From what I understand, every mortgage broker has a list of lenders they work directly with, and they don’t work with any other lender that isn’t on their system. Be aware that some mortgage brokers work with better lenders than others, and some brokers have less options than others.
I thought I would go equipped with a little knowledge, so I started hunting around online for mortgage quotes. At current, the average Buy To Let lender has a 5.5% interest rate. I wanted that vital statistic so I could compare and contrast between the proposals the mortgage broker would put in front of me.
Honestly, the Internet is the most powerful tool in the world for information. People seriously don’t take advantage of all the facilities available.
I arrived at the office early morning, and was introduced to Lee, my potential mortgage broker. We quickly skipped through the formalities and started looking at mortgage deals. I told him I wanted a Buy-To-Let mortgage with a “repayment” plan. There were loads on offer, but most of the figures he threw at me went over my head. It was impossible for me, an amateur, to know if I was being offered a good or bad deal. As expected, he seemed to think every deal was good, at least that’s the impression he gave me.
Remember, Mortgage Brokers work on commission, and earn a handsome lump some from the lender for every mortgage they get approved, so they tend to feed you with any ol’ crap just as long as you sign the dotted line.
The best deal I got offered was a 5.47% Buy To Let Mortgage, for the period of 25years. The lender is called Northern Rock. Everything sounded pretty good. But I must admit, I was so confused by half the stuff he mentioned, anything would have sounded like a good deal. At this point, I began to realise that I would never independently find a decent mortgage policy since I’m so clueless, and every adviser I talk to will tell me I’m getting a great deal.
I decided to work with Lee, and I purely based that on his persona (HOW STUPID, I KNOW), but I genuinely liked his vibe. He seemed like a pleasant man. I know what you’re all thinking; I’m breaking a golden rule- don’t trust anyone that’s selling you something in the property industry!!!
In all seriousness though, the 5.47% deal sounded pretty decent. I mean, I’m sure it’s not the best deal out there, but I know it’s not the worst. The question is, when does one stop looking for a better deal?
He said he would continue looking at policies suitable for me, and would get back to me tomorrow with the most cost efficient deal. In the mean time, I’m going to try and do more research online, and possibly call a few of the bigger banks and building societies for quotes.
Disclaimer: I'm just a simple landlord blogger; I'm not qualified to give legal or financial advice. Any information I share is my opinion based on my personal experiences as an active landlord, and should never be contrued as legal or professional advice. For more information, please read my full disclaimer.