Please read this alongside your mortgage recommendation, lender illustration, product sourcing results and product quote. This guide brings together the key process notes and the important mortgage considerations that sit outside the product comparison email.
Accessing Your Case and Documents
To view your case and documents in the 3mcView portal, please follow the instructions in the registration email you will have received previously. If you have not received this email, or you are unable to log in, please let us know and we will help get access arranged.
- Open your case in 3mcView, click on the Documents step and select the Research folder to view the product sourcing results and product quote.
- Our Terms of Business and Privacy Policy are also in the document section. To ask questions or respond, add a note in the Notes step.
Key Points to Consider Before Proceeding
- Please check the loan amount carefully and cross reference with your current mortgage providers documentation. You may need to request a redemption figure so the loan you have requested covers your current mortgage to redeem them in full and avoid any shortfall.
- Please refer to the product illustration for early repayment charges, including charges that may apply if you repay early or make overpayments above the permitted allowance.
- Most lenders have a maximum age of 80 to 85 at the end of the mortgage term. Selecting a term within these limits helps maximise lender choice. If a longer term is required, I can research this, although lender choice may be reduced.
- Please consider revert rates carefully. These can affect headline sourcing results but may be less relevant if you plan to remortgage or complete a product transfer when the initial product period ends.
- Anticipated legal fees are not included within the total to pay figure because legal costs vary by property and transaction.
Repayment and Interest-Only Mortgages
We always recommend considering a repayment mortgage first, as this is designed to clear the mortgage balance by the end of the term.
However, many buy-to-let investors prefer interest-only to maximise monthly cashflow, with the capital balance remaining outstanding and repaid through a suitable repayment strategy or exit plan. The right option will depend on your wider investment objectives and affordability.
You can find a helpful explanation of the different mortgage types here:
https://www.3-mc.com/types-of-mortgages-available-to-borrowers/
Arrangement Fees Added to the Mortgage
Important cost point
Please bear in mind that if any arrangement fee is added to the mortgage, interest will be charged on that fee over the mortgage term. This can increase the overall cost of the mortgage.
Houses in Multiple Occupation (HMOs)
Where a property is, or may be used as, a HMO, you are responsible for checking whether planning permission, licensing, Article 4 requirements, building regulation requirements, or any other local authority consent is needed.
3mc and the adviser does not accept responsibility for checking or confirming HMO planning or licensing requirements. You should make your own enquiries with the relevant local authority and obtain specialist legal or planning advice where required.
Limited Company Applications
Limited Company applications may require separate legal advice in relation to personal guarantees, usually from a solicitor who is separate from the solicitor acting on the mortgage transaction. This comes at an additional cost, so it is worth shopping around. Some solicitors may quote more than £500, whereas a more typical market rate is often around £200 to £300.
A Limited Company, or Limited Liability Partnership, may be a more tax-efficient way of owning buy-to-let properties. Your accountant or solicitor will be able to advise on the most appropriate structure and the financial implications, including any tax liability. A Limited Company is an independent legal entity responsible for its own finances and obligations, and any after-tax profit belongs to the company and can be distributed to shareholders.
Tax advice note
3mc are not tax advisers and cannot advise on the most suitable legal entity or tax structure for you. Please speak with your accountant or solicitor before making a decision.
Solicitor Considerations
- Before instructing a solicitor, please confirm that the firm can act for the chosen lender. Some lenders operate restricted solicitor panels, and using a firm that is not approved may cause delays or require another solicitor to be appointed.
- Where a property is being incorporated – meaning it is sold or transferred into your Limited Company – separate legal representations may be required for the sale and the purchase. This can result in two solicitors being involved and two sets of legal costs.
- If you would like assistance obtaining conveyancing quotations, 3mc can provide access to solicitor quotes through eConveyancer. Please ask the team if you would like a quotation.
- For products with free or fee assisted legals, additional charges may apply.
Broker Service and Fee Information
Our broker fee covers more than sourcing an initial mortgage product. The service includes professional advice, ongoing product monitoring and support throughout the mortgage process and beyond.
- We review your circumstances and search across our lender panel to recommend a suitable mortgage solution, including comparison with your existing lender where appropriate.
- We continue to monitor available rates through to completion. When a more suitable product becomes available and the lender permits a switch, we will discuss the improved option with you.
- We provide end-to-end case management, including lender liaison, updates and coordination with other parties involved in the transaction.
- We aim to contact you approximately six months before your initial product period expires so that your next mortgage options can be reviewed in good time and the risk of moving onto the lender’s standard variable rate can be reduced.
For full details, please refer to the https://www.3-mc.com/your-mortgage-done-properly/ or ask a member of the team, who will be happy to explain further.
Valuations and Survey Reports
- A lender valuation is arranged primarily for the lender’s benefit to assess whether the property provides suitable security for the mortgage. It should not be treated as a detailed condition survey for the buyer or property owner.
- Not all lenders provide the applicant with a copy of the valuation report. Where a report is not released, 3mc may be unable to obtain or provide a copy.
- Depending on the property type, condition, use or transaction, a lender may require a more detailed or specialist commercial valuation report. This may involve additional cost and can take longer to arrange than a standard residential valuation.
- If you require a detailed assessment of the property’s condition, you should consider arranging an independent homebuyer report, building survey or other specialist report in addition to the lender’s valuation.
Lender Documents and Product Illustrations
Your lender illustration and mortgage offer set out the formal terms of the product, including early repayment charges, overpayment allowances, arrangement fees, valuation arrangements and legal incentives. Please review these documents carefully before proceeding.
Final reminder
This information is general guidance and should be read with your personalised recommendation, lender illustration and mortgage offer. If anything is unclear, please ask before proceeding.
All calls are recorded for training and monitoring purposes. 3mc for intermediaries only.
Your home may be repossessed if you do not keep up repayments on your mortgage. 3mc (UK) Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 302992. Please note: The FCA does not regulate Business Buy to Let Mortgages.