19th
Apr 2017
Many buy-to-let landlords are being let down by using an inefficient mortgage broker as they are not being advised properly on the best mortgage deal that is available. Some landlords have taken out mortgages, which they have been 'advised on' and are trapped in one that has high standard variable rates, so claims a specialist mortgage broker that has expertise in buy-to-let mortgages.
Those unprofessional brokers, who are in effect 'bone idle' will only bother to deal with lenders that they are used to and opt for the quick return, rather than searching out the best deals around for their clients.
There have been some instances where 'rogue' brokers have lied about their 'clients' income or other pertinent details when applying for a mortgage on their behalf.
Managing Director of a leading mortgage broker, Darren Pescod, said: “We have seen evidence of mortgage brokers securing mortgages for investment properties, which are then inhabited by family members. Or they have arranged a mortgage for an investment property that is either a multi-let, Airbnb or student accommodation, without informing the lender.
“This is highly unprofessional. If a lender finds out, it could withdraw the mortgage and in a worst case scenario, the client could be slapped with mortgage fraud, which will severely affect their ability to borrow funds, or obtain mortgages in the future.
Daines finished by saying: “Some landlords don’t understand the severity of a little white lie to the lender, or understand the implications of not divulging their full intentions with the property, or their personal situation. Lenders are more geared up now to do post application checks and are on the lookout for scheme abuse and mortgage fraud.”
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