Borrowing
money to invest has become easier over the last several
years, but for little reason, this can be the most frustrating
and complicated area when buying to live or buying to
let.
Mortgage providers seem to go out of their way to make
things complicated and difficult, offering a bewildering
array of products. When looking for finance, it is useful
to bear a couple of simple rules in mind.
First, use a
good broker. There
are loads about and the best way to find one is through
word of mouth, or just phoning them and chatting. If
you are buying to let, choose a broker who specialises
in them - they will all say they do, but most will say
they specialise in everything!. If you have anything other
than
simple requirements (few of us do), then choose a broker
who can
understand
and
not just trawl the broker mortgage lists. Finally, good
brokers should be paid well for their service, poor ones
shouldn't and although obtain fees from the mortgage
providers, some also ask the client to pay a fee. This
is quite correct
IF their service is good. Remember, their job is to take
problems from you and make things go quickly and smoothly
- not an enviable or easy job!
The second rule is to keep things simple. Don't go for
mortgages with tie-ins after the fixed period. Don't pick
a one year fixed rate with a setup fee that works out more
than a simple repayment would have been, and make sure
you know
all of the costs associated with the loan, before you apply.
Finally, decide what type of mortgage you want before
you ask. Fixed, tracker, variable discounted - all offer
benefits but only you can decide what you are looking for.
Don't try to predict the interest rate market - the banks
are better at this than you and have priced this into the
deals they offer. Even so, some banks have different views
and different circumstances which lead to a wide range
of products and rates.
They key is to keep smiling :)
