How a Property Investment Broker can help you grow your portfolio

With house prices increasing by more than 10% as of April 2022 in all but one month in the past year, it’s no surprise the property investment market continues to grow rapidly. 

While there are many benefits of property investment, understanding the financial management required to succeed is crucial.

One key way to help you on your journey is the guidance of a broker.

But what is a property investment broker and why do you need one? Keep reading to find out.

What is the job of a property investment broker? 

A property investment broker can be an individual or a company that provides assistance and guidance on funding requirements and loan management. The most reputable are FCA authorised.

In simpler terms, a property investment broker is an expert in all things property funding. They’re on hand to help you manage your financial affairs when it comes to investing in property. They connect the most compatible borrowers and lenders in financial markets to get you the best loans for your portfolio of properties. 

It was reported that 37% of recent homeowners stated that buying a home was one of the most stressful life events they’ve experienced — and this is more the case when you're a professional. A property investment broker can help alleviate this stress and have the expertise to direct you to the best course of action and help you close the deal.


How can a property investment broker help you?

A finance broker can provide guidance so you can effectively manage the funding of your property portfolio. They can be a valuable aid in the long term, as they manage the most complicated aspects of property investment. A broker can also help you achieve your goals by:

  • Helping you determine your strategy: there are many different types of loans in property investment available to property investors. Depending on your requirements, a financial broker can help you pick the right loan.

  • Guiding you in the right direction: brokers can help you build your property portfolio and plan throughout the process. They recommend products and courses of action that appropriately suit your objectives.

  • Managing your finances: to ensure you’re making the right decisions regarding complicated financial specifics, brokers can calculate your borrowing power. This includes recommendations about how to distribute funds for maximum profit.


The main benefits of property finance management 

You may be thinking, ‘What’s so special about a broker?’ There are many reasons why a property investment broker can act as a reliable resource when investing. 

Trained and armed with expertise, property investment brokers are an invaluable source of guidance. Here are some benefits they can bring:

  • Saving time and money: by doing all the legwork, brokers can save you time and thousands of pounds in the long run. Based on their expertise they can help you make the right decisions for successful investments and managing your portfolio. 

  • Brokers come with years of experience: even if you aren’t new to property investment, managing your portfolio can still be challenging. A broker usually has years of practical experience and is aware of the latest products and services available in the market. They have connections to lenders that suit your needs and have the knowledge to point you in the direction of the right deal.
  • Brokers know the property process and how it works: a broker must have extensive knowledge and understanding of UK property processes. With this expertise, you can ensure you have a great network if an issue arises.
  • A broker is on your side: last but not least, you’re working with a broker to receive an impartial and dedicated service that’s in your best interest.


What services do property investment brokers provide? 

There are several high street lenders that offer commercial mortgages and also specialist lenders and private banks which aren’t as well known as traditionally used approaches. If you don’t know about a lender then it's impossible to find out what they offer. 

A good property investment broker should be able to introduce you to a wider range of what is available, both from mainstream lenders and smaller, niche providers. Unique services offered by a broker include: 

  • Access to mortgages across the market: some lenders won’t even consider applications made directly by borrowers as they only go through brokers. Due to this, using a specialist broker will give you a wider range of options. They should be able to find the best deal for you in terms of rates and charges, which on a mortgage, could lead to significant savings over the course of a loan.

  • An up-to-date view of the market: brokers have a strong knowledge of lenders' requirements and can gauge how fast some lenders deal with mortgage applications, which can be useful if there’s a need to get the process moving rapidly.

  • A helping hand through the process: buying and selling properties is a complicated process. A broker will check to make sure you have all the necessary paperwork and have filled out all the relevant documents correctly, providing support throughout the process.

  • An easier way to buy multiple properties: if you’re buying several properties at the same time, a broker can provide the best commercial rates across the whole portfolio.

  • Insight when refinancing: when it’s time to refinance, your property investment broker should be able to recommend the best lender to switch to. After the loan has been arranged, your broker should keep you updated on the current market fluctuations for the lowest possible rate available.

Want to learn more about property investment? 

Check our handy guide to learn more about navigating the best property investment blogs around, our top 10 property investment blogs for 2024.