Nov

Time to talk? Professional financial advice is more important than ever

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Professional financial advice is more important than ever to help landlords cope with portfolio pressures, advise the experts at Belvoir.

It will not have escaped your notice that rising inflation and interest rates are constantly hitting the headlines, sending ripples of anxiety throughout the nation. This being the case, is it time for landlords to review their Buy to Let (BTL) mortgages and see what can be done to help reduce costs? Michelle Brook is Belvoir’s Financial Services Director and was the founder and Managing Director of Brook Financial Services, which trades as the Mortgage Advice Bureau (MAB) and was bought out by the Belvoir Group in 2017. This month Michelle shares her views on rising interest rates and how this might impact on landlord clients.

“In my view there has never been a more crucial time for landlords to talk to an MAB advisor,” said Michelle. “With interest rates on the rise we are already seeing deals that were available at the beginning of the year and the latter end of last year have now increased and will cost substantially more. It is predicted that interest rates could continue to rise, so clients are advised to talk to us now to see what we can do to help.

“At MAB we are able to shop around and source the right deals to suit a client’s individual circumstances. A mortgage amounts to a big proportion of a client’s outgoings, but of course with other utility bills also on the increase, anything we can do to help people minimise their outgoings will be a real help. There will be clients who are coming to the end of two-to-five-year deals who will be shocked at what deals are looking like now, and by talking to us we can get them the best deal and help them to manage their finances.

“Landlords with BTL mortgages will currently be taking a hit on rate rises, and it will be especially useful for them to talk to us so that we can review their situation. Many landlords are self-employed, and we know how to position self-employed buyers to lenders, putting them in a much stronger position than they would be by going directly to a lender. Lenders will have their own criteria, which the applicant will either fit or not. However, the client will not know how to challenge that whereas we can correctly package the application to lenders.

“Many Belvoir offices specialise in sales as well as lettings and will be organising landlord events to raise awareness of what the government is trying to do in terms of the rental market and how this can impact their business. Look out for news of these events in your local area or call into your local Belvoir office to ask about talking to an MAB broker.

“It is worth noting that lenders are currently looking much more closely at each application from an affordability perspective are taking longer to turn around applications. By talking to us we can help to educate people on what is really going on and ensure they don’t panic. We can also reassure them that whilst rates are rising, they are still relatively low, compared to when they were at a 15-16% high. Fears over the cost of living and other factors going on in the world can deter landlords from making decisions about increasing the size of their portfolio. After speaking to us, and understanding the situation better, they are not as likely to be put off before they even start the process and may well be surprised to discover what they can afford.

“In conclusion, although rates are going up and are higher than they were at the beginning of the year, it is not all doom and gloom. The Government is looking at support packages to help with the cost-of-living crisis, and when these are announced we can talk these through with people and help them to see a way forward. There has never been a better time to talk to MAB.”

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

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