There is one last job to do before you start searching for properties in your Goldmine Area. This is to choose your Mortgage Broker.
Why have a Mortgage Broker?
It is better to choose your Mortgage Broker, before you start searching for properties. This is because it will speed up the process of making an offer and getting it accepted, as you will be giving your mortgage broker your details once. They will then scour the market for products on your behalf. Your mortgage broker will be managing all the paperwork for you. This will be a big time and hassle saver, if you are like me and hate filling in forms.
You will have access to more products using a Broker and you may be entitled to discounted rates. The big reason for using a Broker, for me however, was the expert financial advice you will get. From your first interview with the Broker, you should now be clear on what you can borrow. This will show you what properties you can search for.
How to find a Mortgage Broker
Most high street banks and Building Societies will have their own in-house Mortgage Brokers. However, I would suggest looking for an Independent Broker, who has access to Whole of Market.
Some Brokers can be paid by commission via the Mortgage Provider. I prefer to pay the Broker a fee directly, however. This way I know that they will be acting on my behalf. Ideally the Mortgage Broker should know the location where you’ve decided your Goldmine Area will be.
I’ve used the same Broker now for over 15 years, who was recommended by an Estate Agent I knew. You can of course search for independent Brokers online, but for me a word-of-mouth recommendation is more preferable.
Ask the Broker what their fees are. Don’t be reluctant to pay £300 to use a good Broker as they will make you thousands in the long run. You will only pay this fee once the Mortgage Application has been done and you have a Mortgage Offer.
Check if they have any qualifications such as CeMAP (Certificate in Mortgage Advice and Practice). Do also check if they are regulated by the Financial Conduct Authority (FCA).
When you appoint the Mortgage Broker, tell them what property you are looking for, where and for what price. From that they may be able to get you a Decision in Principle.
Finally, decide whether you will be operating your property investments in your own personal name or within a Limited Company. Although there are advantages to forming a Ltd Co., discuss this with your Broker as the rates will be higher.
Now we are ready to start searching for properties in your goldmine area.
Put your searches in place
Once you’ve established your goldmine area, if you haven’t already done so, create an account with Rightmove.co.uk. Read my post on how to find your property Goldmine Area, where I give you a step by step guide to finding the most profitable area for you to search for rental properties. Set up a search for the goldmine area, number of bedrooms and filter out unwanted property types if you have them. Click on Save Search and then choose to receive instant emails for new properties fitting your criteria. I would suggest getting emails in real time so that you can jump on new opportunities quickly, rather than receiving them once every 1,3 or 7 days.
Example: if you are only looking for 2-bedroom terrace houses, then on the search criteria put minimum 2 bedrooms and maximum 2 bedrooms. Then go to the Property Type and select Terrace.
Rightmove makes it easy for you to organise viewings on their website. Within the individual property details, you can click to either Request Details or Call the Estate Agent. If you choose Request Details, you can enter your details and the Estate Agent should call you back to arrange a suitable time for viewing. You will only need to enter your details on the first occasion, as the website will save them for future property enquiries.
Once you have started to view properties you will start to form relationships with the estate agents in your local area. You will be known to them as someone who is looking for investment properties. If you come across professionally, eventually once you have been doing it for a few years, don’t be surprised when they start contacting you directly with potential property deals.