The Revolution Finance Brokers team often receives enquiries asking about the cost of a brokerage service, trying to assess whether the charges will realistically result in a more profitable deal.
In the current market, about 75% of all successful buy to let mortgage applications are processed through a lender, making the chances of approval very low if you forgo support, given the complexity and extent of lending criteria you’ll need to comply with.
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Buy to Let Mortgage Broker Services
Our role is to do much more than sell products! As an independent, whole-of-market buy to let mortgages broker, the Revolution consultants act as intermediaries between applicants and the best-suited lender.
We negotiate terms, advise you on your application, chase progress, manage queries, and ultimately get you a more competitive deal.
Initial buy to let mortgage assessments include a conversion to help us understand:
- How much you’d like to borrow, and why.
- The deposit, credit history and debt to income ratio at play.
- What sort of deposit you’re happy to offer and other security.
- How much rent you feasibly think your investment property could generate.
- Your personal income, tax bracket and financial standing.
A consultation is important because it helps us evaluate the lenders and available rates, narrow down our recommendations, and put together a comprehensive application package that we know aligns with all of the lender’s policies.
Choosing the Right Type of Buy to Let Mortgage Broker
You must choose an authentically independent mortgage brokers who provides a whole-of-market service.
Tiered brokers are tied either to one lender or a lending group – they can’t make bespoke suggestions and can only sell the products within that range, excluding any better deals they don’t have access to.
Independence means that we can advise you according to your circumstances and which products or lenders meet your aspirations while being the most favourable.
Advantages of Working With a Buy to Let Mortgage Broker
Brokers are professional property financing experts, offering a vast range of benefits:
- Negotiating better interest rates – about three-quarters of buy to let lenders only deal with brokers, so if you go direct, you see offers from about 25% of the providers on the market.
- Unbiased application assistance – we’re accredited, regulated experts and ensure you select appropriate products for your circumstances.
- Help to understand the buy to let mortgage process. Revolution will let you know what information you need and give you tips to answer lender questions before they arise.
- Submitting quality applications the first time around. Most applications are rejected due to policy non-compliance, error or incompleteness. A broker will work through your application carefully to point out mistakes before reaching the lender.
- Faster mortgage approvals – a broker will chase up your lender without creating unnecessary pressure to ensure you get your deal over the finish line as quickly as possible.
The key is fostering effective communications, grasping potential pitfalls and creating a friendly dialogue to work together with a lender to overcome any stumbling blocks.
Buy to Let Mortgage Broker Fees Explained
Tied-in brokers are normally paid lender procurement fees, calculated as a percentage of the loan.
You may pay this yourself, or the cost could have been rolled up in product or arrangement fees.
We hear from thousands of clients with vastly varying broker fee structures:
- Fixed fees are agreed in writing and often paid upfront before the application proceeds.
- Percentage charges are added onto borrowing, normally between 0.5% and 1%.
- The lender’s commission is an additional revenue stream for the broker, typically calculated as 0.35% to 0.45% of the total loan.
Some brokerages don’t charge anything above a procurement cost, but balancing out quality advice with affordable charges is essential.
Combination fees can mean that a broker earns commission directly from the lender, so their advice and recommendations won’t cost you anything.
Other brokerage firms advertise zero fees but it’s worth being extremely cautious since zero fees generally mean poor service and a lack of bespoke advice to help you make informed decisions.
What to Look For in the Best Buy to Let Mortgage Brokers
A skilled buy to let broker can make a world of difference in your mortgage prospects, profitability, and access to financing to get started with your new property management plans.
Our focus is on delivering high-quality services and independent advice at a reasonable price; often substantially below the savings you’ll make on your buy to let mortgage.
Please get in touch at your convenience for further information about buy to let mortgages and why a broker can make a notable impact on your eligibility performance.
Give us a call on 0303 304 3040, or email the team at info@revolutionbrokers.co.uk to organise a convenient time to talk.
