Finance News

Why Buy to Let Landlords Should be Using a Mortgage Broker – Now More than Ever

Andrew Truglia - June 18, 2019

With huge swathes of new legislation and changes to the tax system being introduced, the business of letting property is becoming more costly.

Landlords concerned about their bottom line are being urged to use specialist buy-to-let mortgage brokers to make savings whilst complying with new rules.

Andrew Turner, Chief Executive at Commercial Trust Ltd says: “Renting property is a business, so like any other, landlords want to operate at a profit.

“The changes that have taken place mean that research and meticulous planning are essential to doing so.”

Specialist mortgage brokers have access to a wide range of potentially much lower rates than the average landlord could get their hands on.

According to mortgage sourcing platform Twenty7Tec: “Brokers have access to 12,000 products across the whole mortgage spectrum, while just 2,000 are available directly from lenders.”

This wide range of products reflects an overall upward trend in the number of buy-to-let mortgages available since the 2007 financial crisis. There are currently 2396 available according to a recent Moneyfacts report a 12-year high, boding well for landlords looking for a competitive rate.

A new buy-to-let mortgage doesn’t have to be limited to new landlords either. Legal and General estimate that 69% of homeowners haven’t remortgaged in the last five years, believing that they are on a good enough deal already. Brokers can find better deals for existing mortgage holders that will often be more favourable than the initial deal they signed up to.

With their much wider range of providers and access to potential lower rates and better deals brokers are a legitimate means of making huge savings. Combined with the amount of time a broker could save their client by trawling through the thousands of products available, using a broker begins to look like a very sensible option.