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What can catch me out?

All brokers and lenders do not share our morals and quite often you will see a very attractive interest rate to hook you in and further on in the process the rate increases when it’s too late to go anywhere else.

Some lenders have lower rates for shorter terms. You need the term to finish what you want to do and then sell or remortgage.

There are also lenders who offer lower rates for the first 3-6 months of the loan but  increase them considerably after that.

It can be quite difficult to buy a property, do a refurbishment and remortgage within this period. Often a longer term with a higher rate at the beginning is better value for you.

Watch out for the method of valuation. It should ideally be Open Market Value (OMV) which does not impose a time restriction on the sale. Some lenders work off 180 day or even 90 day which usually is much lower than the OMV.

Finally what’s the reputation of the broker and the lender like? Some of the smaller lenders may not have the money to complete on the loan.

If your broker is not FCA regulated  they won’t have direct access to all of the more established lower-priced lenders.

You can check the regulation by looking at the bottom of their emails or website and either they or the firm should be on the FCA Register.

Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.