When it comes to mortgages, there are a lot of different options available to UK homeowners. But with so many choices, how do you know which one is the best for you, particularly if your situation doesn’t quite ‘fit’ what the high street bank expects.
That’s where specialist mortgage brokers come in.
These advisers focus on specific types of mortgages, like holiday let, commercial or self-employed loans. This means that they have a lot of experience and expertise in those areas, which can be really helpful if you’re looking for a mortgage in one of those niche categories.
Some brokers will specialise in certain occupations, or professions. These could include doctors, dentists, teachers and more.
In these examples the mortgage application process can be more complex than a standard residential mortgage.
For instance, if you’re self-employed you’ll need to provide proof of income in order to qualify. This can be tricky to do if your income fluctuates or you don’t have a traditional occupation. But a specialist whole of market mortgage broker will know exactly what paperwork you need and how to present it in the best way to the lender.
What is a specialist mortgage?
A specialist mortgage is a loan that’s designed for borrowers in specific circumstances or with unique needs. The main difference between a standard mortgage and a specialist one is that the application process can be more complex and getting a mortgage usually involves a degree of manual processing by the lender.
As the term implies, a specialist mortgage is a little more niche than a regular mortgage product.
The extra complexity could come from the borrower, the property or perhaps the loan itself.
The borrower
You may have multiple streams of income which is seen as unconventional by many high street banks. Perhaps you are an expat, a pilot or a seafarer on a ship. Or an individual that has extensive assets but an unusual source of income.
Having certain types of bad credit showing on your credit report will exclude many of the high street lenders. But solutions are available via a bad credit mortgage. Having a payday loan will affect your mortgage, as there will be fewer lenders to choose from.
The property
There are many different styles and size of houses. You might need a specialist mortgage if you’re looking to buy a listed building, an office block or a property that’s going to be your main residence and a holiday let investment. A Multi-Unit Freehold Block would be another good example, and depending on its size you may need commercial finance.
Residential properties bought within the last few months could be caught by the six month mortgage rule if you try to remortgage them.
You may need a woodland mortgage if you intend to purchase a piece of private woodland or forest. Or finance to purchase a smallholding so you can quit the rate race.
If the house you are buying is quite run down, the surveyor may comment that it is not suitable to live in, in its current condition. Getting a mortgage on an uninhabitable property is extremely difficult and may involve some short term borrowing to get through the initial purchase phase.
There’s also house that have been underpinned or suffered with some form of subsidence.
Flats can often be tricky, you need to make sure the lease has a good number of years to go and mortgages for flats above a shop can be affected by the type of shop (coffee shop, bar, takeaway etc).
If you come across a property that has a creeping freehold, or a flying freehold, then you will need to speak to your broker about lenders who offer flying freehold mortgages.
The loan
If you’re looking to borrow a large sum of money, you might need a specialist mortgage. Typically large mortgage loans of £2 million and above are best arranged by someone with the right experience.
Maybe you need some money quite quickly but for only a few months. A specialist bridging loan broker can help fix that by arrange a bridging loan.
You need a loan at 75% LTV but it also needs to be on an interest only basis. While interest-only mortgages are widely available, they are harder to find at 75% loan to value.
If you are planning on running a holiday park site, with multiple letting units, then holiday park finance can be used for the initial land purchase.
Specialist advisors have a deeper understanding of their area, and their clients needs, and can offer a tailored solution to your unique circumstances. They will also have access to a wider range of lenders including private banks, some of which you may not be able to find on the high street.
Not on the High Street!
The high street lenders can’t help every mortgage customer and they prefer the simple, low-risk ones.
If your situation is a bit different or needs a more personalised solution then our brokers can help.
Expert advice, for all situations.
Bridging Loans
The most flexible of secured loans and often misunderstood. Bridge loans can be used in so many different ways and can be arranged super fast.
Large Loans
High net worth mortgage brokers understand complex large loans and unique situations and can source bespoke deals from the right lenders.
Let to Buy
Let to buy combines a buy to let remortgage with a residential mortgage. Allowing you to move house while keeping your current home.
Specialist mortgages for the self-employed
Individuals that are self-employed or business owners often find it hard to get a lender to understand their unique income situation. Complex incomes and multiple streams of income are now more commonplace than ten years ago, but often the mainstream lenders are still playing catch up.
CIS mortgages are available for registered subcontractors working in construction. Lots of entrepreneurs now funnel their income through a limited company, but take a modest income while building up their company retained profits for another day.
Fortunately there are plenty of banks and lenders that want these types of borrowers.
Specialist mortgages for professionals
Mortgage brokers often specialise in certain areas of lending, such as loans for teachers, doctors, pilots, dentists and the NHS. This is because these professions often have unique needs that require a different approach.
A broker that has experience of these professionals will understand their training, pay, promotion path and be more able to determine which lenders are going to be the most receptive.
Specialist mortgages for property investors
Many property investors will find it hard to show proof of a regular income, but may have substantial equity within their portfolio. And those that own four or more properties will be classed as a portfolio landlord and subject to more rigorous mortgage underwriting.
By working with a specialist broker they gain access to lenders and schemes that are suited to property investment. This could include:
- bridging loans
- buy to let mortgages
- finance for multi-unit freehold blocks
- holiday let mortgages
- commercial finance
- semi-commercial finance
- expat mortgages
- day one remortgages
- SPV mortgages
- Woodland mortgages
- Smallholding mortgages
- Finish and exit development finance
- Pre-planning finance
- Portfolio mortgages
- Contractor mortgages
- Mixed use mortgages
- Commercial bridging loans
Specialist mortgages for High Net Worth Individuals
HNW borrowers can often tick all of the boxes above!
A property owning, entrepreneurial ex-pat musician who wants to buy a £5 million property that includes a recording studio, equestrian centre and holiday cottages, for example.
It’s here where you need to speak with someone who knows about sophisticated borrowers, large loans, offshore income structures, private banks and mixed-use properties.
Specialist mortgages for unusual properties
Airbnb has an increasing number of interesting or unusual properties listed. And these can command a high level of rent.
But arranging the mortgage for a windmill or converted church can be a bit time consuming! (but not impossible). Brokers will have access to lenders that offer specialist property mortgages. These aren’t just for holiday lets, but can be used for second homes and main residences as well.
Some common, but unusual property types:
- Old Post Office
- Steel framed properties
- Converted school house
- Chapel
- Converted Church
- Barn conversion
- Castle
- Thatched roof cottage or house
- Windmill
- PRC concrete houses
- Non-standard building design
Finding a specialist mortgage broker
As with any type of mortgage situation, the best option is for you to work with a broker that has experience of people like you and your situation.
Our service can put you in touch with one of the UK’s best known brokers, who have dedicated specialist advisers helping clients with their unique needs everyday. These advisers have direct contact with mortgage underwriters so they can discuss cases in details before an application is made.
They are, of course, an independent whole of market mortgage broker. They can collaborate with specialist lenders and private banks to build tailor made solutions for even the most complex of situations.
CONTACT A MORTGAGE BROKER
If you are ready to take the next step then we can put you in touch with a fully qualified independent mortgage broker.
FAQ
Frequently Asked Questions
Are mortgages available to expats?
Yes, we see many expats buying buy to let and holiday let investment properties.
What is a large mortgage?
In our view a large mortgage is anything over £1 million and often requires a more experienced approach.
Do specialist brokers charge a fee?
Yes, your broker will confirm this with you.
What areas do you cover?
We work with an award winning mortgage broker who has qualified advisers all over the UK.
A wide range of mortgage options
LOOKING AFTER YOUR BORROWING NEEDS
Buy to let
Competitive buy to let mortgages that include options for SPV borrowing, purchase, remortgage or capital raise.
Holiday Let
Specialist advice for UK holiday let mortgages including Furnished Holiday Lets, Airbnb and mixed use properties. Solutions for purchase, remortgage and develop.
Moving Home
Take the stress out of finding a moving home mortgage by letting our brokers arrange that for you.
Second Homes
A second home mortgage will allow you to purchase a UK holiday home for you and your family to enjoy.
Remortgages
Time to remortgage? Switch your mortgage to a new lender and grab yourself a new interest rate at the same time.
Just a small selection
of the 120 banks, building societies and specialist lenders that you could have access to.
Only an independent mortgage broker has the ability to search the whole of the market to get the best mortgage for their clients and their individual situation.
First Time Buyer
All the help you need getting onto the property ladder and buying your first home. Including a cracking mortgage deal, sourced just for you.
Equity Release
An equity release lifetime mortgage can provide a tax-free lump sum or ongoing sums of money that you can spend however you wish.
Specialist Mortgages
Multiple streams of income, employment status, size of mortgage or perhaps an unusual property? Let’s get to work…
Mortgage Guides
Our mortgage guides will help you understand and compare different mortgage products whether you’re starting out, moving, remortgaging or buying to let.
Insurance
Making sure you, your home and your mortgage are protected against the unexpected.
Mortgage Calculators
Our easy to use mortgage calculators can help you at every stage of your mortgage journey. From working out what you could borrow to calculating the Stamp Duty.
SPV Mortgages
Rather than buying an investment property in their own name, many investors are now choosing to do this through a Special Purpose Vehicle limited company, or SPV.
