Mortgage Investment Company
How to Choose the Best Mortgage Investment Company
A landlord's choice of a mortgage investment company will depend on that landlord's circumstances. However, there are several factors that savvy landlords will look at before settling on a mortgage investment company. To start with, a sensible landlord will look at the lending criteria published by a particular lending company. It makes sense to do this rather than make an application only to find that your circumstances are wrong for a particular lender.
Most BTL lenders publish their lending criteria on their websites, so it is easy for landlords to compare lending rules. For example, some lenders will provide a BTL loan to people over 18, while others have a minimum age of 21 and still others will only lend to people over 25. Knowing this simple fact could prevent you from wasting time with a mortgage company that is wrong for you.
Income requirements also vary with each mortgage investment company. One mortgage company will set a minimum income requirement of £15,000, while another mortgage investment company will require landlords to earn £20,000 a year. Some lenders will require the same proof as residential lenders, while others will accept self certification. Still others may waive the need for proof under a certain loan to value level. And it is worth checking what deals are available for self employed applicants as well.
Impaired Credit BTL Mortgages
For people with impaired credit, there are other choices to be made when it comes to choosing a mortgage investment company. BTL mortgage lenders vary considerably in the level of adverse credit they will accept. For example, with one mortgage company, you might be able to get a buy to let mortgage with arrears, bankruptcies, IVAs and CCJs. With another, only light adverse cases with a couple of arrears will be accepted. Finding this out in advance and matching it to your circumstances can save a lot of time.
Once landlords have looked into basic lending criteria, it is time to delve deeper into the actual deals offered by a mortgage investment company. This is when landlords need to make decisions about whether they prefer capital repayment, interest only or mixed repayment methods. It is also the time to decide on different types of interest rates. Landlords who want the security of knowing exactly what they will have to repay on their mortgage for a set period of time are likely to choose a mortgage investment company with a range of fixed rate deals. Landlords who do not mind fluctuations and want to be able to pay less when interest rates fall are likely to go for a mortgage company with a range of tracker deals. And landlords who want to pay as little as possible at the start of a BTL mortgage will choose a mortgage company with a good range of discounted BTL mortgages.
A final deciding factor will be the number of properties that each landlord can have in the portfolio. This can range from one to unlimited, so landlords have a wide range of choice when it comes to using this factor to decide on a mortgage investment company.
