Specialist mortgage brokers
By
HuutiMoney
What are specialist mortgage brokers?
Specialist mortgage brokers are mortgage brokers who deal with special situations. These are situations and cases which most mortgage lenders may classify as “complex”
Specialist mortgage brokers may deal with situations such as:
- Let to buy mortgages
- Bridge loans
- Development finance
- Mortgages for directors
- Expat mortgages
- Interest-only mortgages
- Freelance and self-employed mortgages
- Larger mortgages
- Mortgages for doctors
- Mortgages for new build apartments
- Contractor mortgages
- Second charge mortgages
- Private bank mortgages
- Limited company mortgages
- Portfolio landlord mortgages
What are Let to buy Mortgages?
Let to buy mortgages are mortgages for people with existing homes who are looking to move homes but can’t find a buyer or can’t time the market to sell at the optimal price.
A let to buy mortgage will allow you to essentially convert your existing mortgage to a buy to let mortgage and let you release equity from your current home which you can use as a mortgage deposit on your new home.
You will then have to rent out your current property and use the rental income to cover your existing mortgage costs. This means your new mortgage (which will be given to you by the same lender) will need to be repaid in the same fashion you were paying your previous mortgage by using your disposable income.
Let to buy mortgages will usually have a maximum loan to value (LTV) of 75%. This means you will need to have at least 25% of the equity in your home to be eligible for a let to buy mortgage. The let to buy mortgage lender will also want to see evidence of your next home purchase.
Let to buy mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you such as a let to buy mortgage broker.
What are bridge loans?
Bridge loans are a form of short term finance loans used when you get stuck in the property chain. They could be used when you need to close on a property but are waiting for your current property to sell.
Bridge loans are also commonly used to buy homes at auctions where you have a very short time to exchange contracts. Bridge loans can also be used for renovation or home improvement loans.
Bridge loans are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
What is development finance?
Development finance is a type of mortgage you can use when you want to develop a property or part of a property for investment purposes. This could be a part of your personal house which you want to develop to rent out or a barn which you want to develop for business purposes.
Development finance is classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you
What are mortgages for directors?
Mortgages for directors are a type of specialist mortgage which can be subcategorized under self-employed mortgages. Getting a mortgage for a director is often much more complex than a standard mortgage due to the scrutiny that mortgage lenders will place on the analysis of the mortgage directors mortgage affordability through his financial documents.
Mortgages for directors are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you such as a self-employed mortgage broker.
What are expat mortgages?
Expat mortgages are mortgages for those who used to live in the UK but have taken residence abroad briefly due to a new job or other commitments. You may want to rent out your current property or buy a new property whilst abroad. Mortgage lenders will usually find it hard to lend to these type of individuals and instead offer them buy to let mortgages at higher rates.
Expat mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you such as an expat mortgage broker based in the UK.
What are interest-only mortgages?
Interest only mortgages are mortgages where there is no capital repayment during the term but rather only interest repayment on the capital borrowed. The capital is then repaid at the end of the mortgage term.
For interest-only mortgages to be approved the mortgage lender will usually have t see evidence of how the capital is going to be repaid at the end of the term and will regularly check in to ensure the repayment vehicle is still viable. Interest mortgages are rarely offered these days.
Interest only mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
What are freelance and self-employed mortgages?
Freelance and self-employed mortgages are a specialist type of mortgage due to how mortgages lenders scrutinize the mortgage affordability of the applicants. As self-employed applicants may have varying incomes, the process of accessing what their true monthly disposable incomes have become harder. Different mortgage lenders will accept varying forms of financial documents and different types of self-employed mortgage applicants.
Freelance and self-employed mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you
What are larger mortgages?
Larger mortgages are usually classed as mortgages which go beyond the £1m mark. You will find many properties in the UK and London go beyond this point. There aren’t too many mortgage lenders who lend beyond that price point and hence larger mortgages are specialist mortgages.
Larger mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
What are mortgages for doctors?
Mortgages for doctors are usually difficult because of the LLP status of practices, with a doctors income made up of unpredictable drawings rather than a guaranteed income. Mortgages for doctors fits under the sub-bracket of self-employed mortgages
Mortgages for doctors are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you such as a self-employed mortgage broker.
What mortgages for new build apartments?
Mortgages for new build apartments aren’t always straightforward example if you are buying a new build property which is off plan(hence it hasn’t been built yet) you will need a mortgage lender who will give you a mortgage offer(mortgage in principle) which is still valid by the time the new build property is built.
New build properties tend to be overpriced and hence mortgage lenders will usually value them at their real market rate and offer you a mortgage based on their value and not the price they are being sold for this means you will have to put a larger chunk of deposit to cover the deficit. You may be able to use the government’s first-time buyer help to buy equity loan scheme.
Mortgages for new build apartments are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
What are contractor mortgages?
Contractor mortgages are mortgages for those who have contract based jobs. This could be IT workers, logistic workers etc. Contractor mortgages are a specialist mortgage due to the fact that the mortgage lenders find it harder to analyse and come to a conclusion on what the true disposable income of the contractor is. Contractor mortgages fall under the bracket of self-employed mortgages.
Contractor mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you such as a self-employed mortgage broker.
What are Second charge mortgages?
Second charge mortgages are a type of specialised mortgage. Second charge mortgages are secured loans or mortgages taken out on a property with an existing mortgage. The second charge mortgage is secured on the value of the equity you have in your home.
Second charge mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
Second charge mortgages could be useful when:
- If you have a low rate on your current mortgage and don’t want to remortgage at a higher rate to release equity.
- If you don’t want to extend the term on your current mortgage
- If your credit score is low and you won’t be eligible for a remortgage or a remortgage at a good rate.
- If you need money quickly then a second charge mortgage will likely be faster than a typical mortgage
- If your current mortgage lender is not willing to lend you any further funds
- If you can’t secure any form of unsecured borrowing
- If your mortgage has a high early repayment charge – it may be cheaper for you to take out a second charge
What are private bank mortgages?
High net worth individuals with complex income streams will likely need a specialist mortgage broker who can present their case for borrowing to the mortgage lender in a way that allows them to appear favourably with the private banks who offer a more bespoke mortgage than high street mortgage lenders.
Private bank mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
What are limited company mortgages?
Limited company mortgages are mortgages taken out through limited companies. They fall under the commercial mortgages category. When taking out a limited company mortgage you will want to consider the tax implications as well.
Limited company mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you such as a commercial mortgage broker.
What are portfolio landlord mortgages?
Portfolio landlord mortgages are very complex mortgages and you will need a mortgage broker who has an understanding of the mortgage lenders available in the market to accommodate a landlord with a huge portfolio of various properties. This could be through growing portfolios through normal Buy-to-Let (BTL) properties, holiday lets, student lets, or even houses of multiple occupation (HMO). You may even be in circumstances where using a limited company could be beneficial. Portfolio landlord mortgages are classified as a specialist type of mortgage which may require a specialist mortgage broker to assist you.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.