So you quite rightly decide that finding a Holiday Let mortgage is somewhat trickier than a residential mortgage and you try and find a good Broker. But what does a good Mortgage Broker in this field look like?
Here are some tips to help you decide.
There are basically 3 things that you should be looking out for when searching for the right firm.
- Specialist Knowledge
How much Holiday Let business does the firm deal with? Is it enough for them to have a dedicated broker dealing only with that business? How do I know they have the specialist knowledge needed? A specialist Holiday Let Mortgage Broker will have familiarity with the lenders and products available in the market and will know the right questions to ask in terms of property, section 106 restrictions etc. and will be able to confidently present a case to a lender. A specialist broker will not tell you to take out a standard ‘Buy to Let’ mortgage. The lenders active in the Holiday Let mortgage market may well be active in the Buy to Let market as well but they will have different requirements for a Holiday Let mortgage.
- Processing and support staff
A specialist Holiday Let Mortgage Broker will have mortgage processing staff who are well versed in processing Holiday Let Mortgage applications and will be familiar with lenders’ “quirks”.
Good mortgage processors are, to some extent, the power behind all mortgage applications and can mean the difference between success or failure of an application. Always ask the firm you are thinking of using if they employ processing staff. TOP TIP: Avoid call centre type operations for this type of mortgage work, as it’s far too specialised.
- Is the firm that you are considering using an “Independent Mortgage Broker”?
Always ask any Mortgage Broker that you are considering instructing if they are “Independent”. Also ask yourself the question, given the situation is this Mortgage Broker really going to represent my best interests in the marketplace. So for example it’s fairly easy to see that there could be conflict of interest if you used a Mortgage Broker employed by the Estate Agency marketing the property that you are interesting in purchasing.
Most of these tips are common sense, however common sense is incredibly uncommon when people are involved in the emotional experience of a dream property purchase.
Best Advice: Keep it a dream and not a nightmare and use the services of a specialist Holiday let Mortgage Broker.