Mortgage via broker or go direct

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    Mortgage via broker or go direct

    The last 2 times I bought my BTLs, it was via a mortgage broker. I am on a low income (& both houses are less than £60k), therefore the broker only came up with 2 mortgage companies that could help me with my first 2 BTLs (namely Mortgage Works & BMS).

    So my question is...
    As I know my choice is really limited to just 2 companies with my income being lower, would it therefore be more cost effective for me to go direct with one of my existing mortgage companies for my third purchase, & cut out the broker? Obviously I would check out both MW & BMS and see who offered the best deal at the time. I know sometimes brokers can get preferential rates from the lenders.

    I know different brokers may be able to offer different lenders, but tbh I would be happy to stick with either the MW or BMS, as I already have history with them, so it will be easier from a credit check/affordability point of view.

    #2
    TMW and BM will only deal via a broker.

    Bear in mind the silly restrictive BM criteria of only 3 mortgages across the Lloyds HBOS group.

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      #3
      Ahhhh I thought they dealt with brokers only, but I checked out TMWs website not too long ago and saw that it showed all their various interest rates, so I thought I must have got it wrong and that they must have also sold direct (the broker had preferential rates with BM & no rates were shown on their site). So thanks for putting me straight on that.

      The 3-mortgage-thing with Lloyds HSBC shouldn't be a problem, as I've still got 2 more goes with them. My plan is to only have maybe 6 in total, and then look at different ways to make money, given the tax situation nowadays :-)

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        #4
        BM rates here;

        http://www.bmsolutions.co.uk/products/

        I'd be very wary of the old chestnut of 'preferential rates', IME they are widely available to most brokers and are just used as a come on to entice punters. Particularly with the major lenders.

        That is not to say I don't recommend using a good, all of market independent broker. As you will need to use one for the lenders you mentioned anyway, may as well get them to earn their money checking the whole market.

        Incidentally, don't know when you last took out a mortgage but the checks and criteria are far more stringent nowadays.

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          #5
          Originally posted by boletus View Post

          Incidentally, don't know when you last took out a mortgage but the checks and criteria are far more stringent nowadays.
          Just recently, the BM mortgage was straight forward 6 months ago, but I've just completed on the TMW one, and they asked a lot more questions than BMs, but I'd still be happy enough to use either of them again :-)

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            #6
            Last Autumn when a number of my TMW mortgages were coming to the end of the fixed rate i went on tmwdirect.co.uk and transferred to alternative products at nil or little costs direct with TMW. I have three products with BM with fixed rate finishing at the end of this year, I assume they will have something similar

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              #7
              Twig
              There are more than two lenders who consider applications where the applicant has an income below the normal threshold of £25000, however many do focus their marketing to brokers rather than having a proposition catering for Direct and Indirect submissions.
              TMW make it clear in their criteria that proveability of income is not normally a requirement where an applicant is an established Landlord, however the actual amount of information sought to underwrite a case falls within the domain of the individual underwriter , sometime the same type of case will sail through whilst another underwriter will be quite pedantic. Even BM are now inclined to look at the plausibility of an application , checking out income to meet even domestic outgoings.

              I very much appreciate that for such low value properties the norm brokerage fee can look disproportionate to the amount needed to borrow butin such instances knowing or researching various lenders criteria does take time and like any professional time is money.

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                #8
                Originally posted by neilm View Post
                Last Autumn when a number of my TMW mortgages were coming to the end of the fixed rate i went on tmwdirect.co.uk and transferred to alternative products at nil or little costs direct with TMW. I have three products with BM with fixed rate finishing at the end of this year, I assume they will have something similar
                Unfortunately not, you have to go through a broker with BM.

                You are also limited to their 'product transfer' range which excludes existing customers from the best rates (unlike TMW).

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                  #9
                  Yesterday I had a look at BM product transfer range and it was a bit limited, i was looking for a 5 year fixed rate 65%LTV but they did not have any!

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                    #10
                    Neilm there are some competitive 5 year Fixed rates with Free Basic Valuation, Free Basic Legals ( using their nominated solicitors) and importantly no product Completion Fees. Clearly much rests on the strength of the rental matching the criteria but there is life beyond TMW and BM Solutions.

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