Your friend probably shouldn’t be your mortgage broker

By Howard Reuben, Principal, HCH Financial Services

“I spoke to a friend – he told me about his mortgage.”

“My best mate’s got a holiday let mortgage, his lender is great.”

“My residential mortgage broker can sort it for me.”

“I’ll just apply online and save on the broker fee.”

Sound familiar?

Some people do strike it lucky. They find a decent deal, save a few hundred pounds by skipping the broker, and end up with a mortgage that works for them.

But here’s the truth: many aren’t so lucky, and most don’t even realise until it’s too late. What looked like a good deal up front often comes with strings attached – strings that cost far more than a broker’s advice fee in the long run.

A “cheap” product could end up being very expensive. You could be tied into:

• A product that penalises you for overpayments.

• A non-portable mortgage (no flexibility if you want to move it).

• High arrangement fees and sneaky admin charges.

• Age caps that limit long-term options.

• Or simply a mortgage that doesn’t suit your business goals.

So, what does a professional broker actually do? We don’t just “find a rate” – we analyse the fine print of more than 170 lenders, assess your personal and property details, and match you to lenders who can and will lend to you – with flexibility and security built in.

Let me give you a sneak peek into what brokers look at, using just one lender – Monmouthshire Building Society – as an example:

Holiday let mortgage highlights: Monmouthshire Building Society

• Accepts individuals, joint applicants, and limited companies (SPVs only)

• Applicants must be homeowner(s)

• Will lend to first-time landlords

• Up to three holiday lets with them, unlimited with other lenders

• Minimum income: £25k (but not from rental income)

• Age: 21–85

• Maximum 80% LTV

• Maximum 40-year term

• Property must be standard construction, not in a holiday park

• Must achieve at least EPC rating of E

• You can only stay at the property for a maximum of 31 days per year

• Rental income assessment varies for purchases vs. remortgages

• Company applications require personal guarantees, UK SPV setup, and all directors must be homeowners

  
  

Now imagine trying to work all of that out online – or worse, relying on “a mate down the pub” to guide you.

The right advice is priceless

If you’re a 45-year-old first-time landlord, buying through a limited Company with three co-directors, and need an 80% LTV mortgage over 40 years, we know this lender will help. But not every lender will – and it’s our job to know which ones do, why, and how to get the best deal for you.

At HCH Financial Services, we specialise in holiday let mortgages. We’re not just here to secure the first mortgage – we’re here to build a long-term relationship and help you review, refinance, and grow your portfolio over time.

We’re part of a wider financial services group established more than 30 years ago. You’ll get access to expert mortgage and insurance advice – all under one roof.

Call us today on 0333 1234 536 or email advice@hchfs.com.

Let’s take the guesswork out of your holiday let journey.