Investment Mortgages

Who Provides Investment Mortgages

Fortunately, most large lenders will now consider buy to let propositions. Since the first buy to let mortgage came to the market, in 1996, almost every high street lender is now more than willing to lend cash to investors for the purposes of funding a buy to let investment. As well as the standard high street banks that are now offering investment mortgages, there are also specialist investment mortgage providers that offer a wider range of options especially aimed at investors.

High Street Banks
obtaining investment mortgage from a high street bank has many advantages for the investor. As a buy to let investor, you will want to be able to offer potential vendors the promise of a quick sale. In many cases, raising finance from your main bank will be a lot quicker as they should be confident about your financial credentials and you will have already developed a relationship with personnel within the bank, which will facilitate a quick arrangement. Another benefit is that you can link your investment mortgage with other products such as savings accounts, ISAs and current accounts, allowing you to move financing freely.

High street banks, however, do pose a difficulty for property investors. They offer a wide range of products where investment mortgages are only a small part of this package. Therefore, their ability to deal with difficult or unusual circumstances may be more limited.

Specialist Investment Lenders
When an investor is looking for an investment mortgage that is something off the beaten track, a specialist provider may be the best option. This is particularly true if you are looking at buying land or unusual property such as a large block of flats in need of renovation.

When looking for a specialist mortgage for a buy to let or commercial property, it is often advisable to go through a broker. Specialist lenders are typically centralised companies that do not have the same high street and regional presence as the mainstream banks. For this reason, it of very easy to overlook suitable providers and you may just miss out on the perfect lender for your needs.

In addition, high street banks are beginning to form partnerships with specialist lenders so that they can offer one-stop services to their customers, whilst retaining their high street presence. This can be an excellent half way house for a new investor and is worth enquiring about with your local bank.

Summary
Investment mortgages are now widely available;
most high street banks offer specialist mortgages and have the benefit of knowing your financial credentials;
as well as high street banks, there are specialist lenders, although the assistance of a broker may be required to ensure that you secure the most appropriate deal.