The key to securing competitive mortgage loans is being in control of your search for the right deal. One of the major attractions of property investing is the opportunity to secure competitive interest rates. Virtual mortgage comparison service providing secure competitive mortgages allows customers to shop around and contrast the various options available to them, allowing them to find the best deal possible for their needs.
Many self-employed people choose to work as a limited company. This can be advantageous in many ways. Firstly, it may give rise to tax advantages. Secondly, it provides opportunities to borrow more money than a sole proprietor would be able to. And thirdly, working as a limited company provides the investor with the ability to build up considerable assets.
But in order to get a secure competitive mortgage deal for properties under this classification, property investors need to be actively involved in the process. This may mean that they choose to employ the services of a property broker. Property brokers are independent financial advisors who purchase property for investors, or individuals, from lenders and then sell it on to customers at reduced cost. They are paid a commission for any sales they negotiate, so it makes sense for them to seek to secure the best deal for their clients.
A property investment banking specialist can offer complete financial planning and portfolio structuring support. Some specialize in commercial and retail property finance, while there are others who offer a full range of secured lending products, including personal loans, overdrafts, mortgages and hire purchase agreement services. A financial planner will use their expertise to assess the suitability of a client’s needs and circumstances to ensure that only the most suitable option is chosen.
It may sometimes prove advantageous for investors to attempt to secure their own specialist finance for secured lending products. Specialist lenders often offer lower interest rates than mainstream lenders for a variety of reasons, including the extra checks and controls a lender has to make when processing secured loan applications. However, there are risks associated with securing your own finance. The most obvious of these is the risk of being approved for an overly high interest rate. If an investor’s interest rate is too high, it may actually cost them money in higher repayments, so it is important to carefully consider the overall cost of taking out the loan.
Some property investors avoid professional broker service by bypassing the professional banks and going straight to the lender themselves. While this may be cheaper up front, in the long term it may be more expensive in terms of avoided repayments and missed payments. A better way to avoid putting your entire budget into the repayments is to talk through your options with the relevant professional broker and then take their advice. A broker is not just an expert in secure competitive mortgages; they will also have industry knowledge and experience in other types of mortgages, with a particular expertise in products set out in the UK mortgage framework called “rooted property investment”. Their advice should be taken on behalf of their client to ensure the best deal for them, as well as being up-to-date on the latest developments in the market.
If you choose to go down the route of mortgage brokers for secure competitive mortgages, it’s essential that your financial plan covers all of your borrowing requirements. A good financial planner will be able to help you work out how much of your overall property portfolio you can afford to protect, whilst setting out a workable budget for all of your needs. This should include setting out what the various costs of covering your borrowing will be, which could include any additional insurance for the property, and also any maintenance costs on your property. Some insurance providers will reward you with an early repayment discount, where up to 25% of your premium can be paid back over five years.
For those of us already owning residential property, securing secure competitive mortgages can be more straightforward, thanks to our lender’s willingness to offer competitive rates. Lenders now offer a range of mortgage products that are designed to suit a range of individual needs. For instance, some lenders will offer secured loans for those borrowers who have an above-average property income and also those who have an above-average credit rating. The increased popularity of high-net-worth individuals looking to purchase property has resulted in a growing number of lenders offering competitive rates for these kinds of borrowers, with many offering additional benefits on top of competitive rates. A broker will have a wealth of knowledge regarding the options available to high-net-worth individuals and will be able to match your requirements to one of the various mortgage products on the market. Enness, a specialist property mortgage broker in the UK, offers a range of mortgages to meet a wide range of individual needs, with competitive rates offered to those with good credit ratings.