First time or novice buy-to-let landlords often turn to a broker for mortgages or bridging finance to purchase the property. They may not know how to run a buy-to-let business properly, especially when it comes to insurance and legal matters. An inexpert landlord could find themselves having to pay unplanned costs. When they make an insurance claim, the insurance company may not pay out because they did not have the right insurance cover in the first place.
Some landlords are when are known as “accidental”. They may have inherited property without knowing what is involved in renting to tenants. If the property is rundown, they may need assistance on the loans that are available to finance the necessary refurbishment work.
A broker who is an expert on buy-to-let property is there to arrange a good mortgage deal, but they can also advise landlords on aspects of running their business. It is in the broker’s interest that the landlord knows how to create a successful business. When it comes time to expand and apply for another mortgage, a landlord will turn to the broker who has helped them before.