Why Your Mortgage Adviser Matters Most
Ajay began the conversation by emphasizing the critical role of the mortgage adviser:
The importance of the mortgage advisor is imperative. – Ajay Nayyar
While it’s possible to navigate basic residential transactions without an adviser, those serious about property investment need someone who understands complex lending scenarios.
Ajay pointed out that nearly 40% of the new clients he works with come to him because they need help fixing mistakes made by less experienced advisers. This underscores the importance of working with an adviser who knows the intricacies of property investment and can adapt strategies to fit the ever-changing landscape of lender policies and criteria.
Jordanne elaborated on this point, emphasizing that a mortgage adviser who lacks expertise in property investment can be detrimental to your growth:
If you’re working with the wrong type of adviser who doesn’t understand property investment, you’re going to fall down very, very quickly. – Jordanne Whiley MBE
The right adviser doesn’t just secure a loan—they help build a strategic pathway for your property portfolio’s expansion. This makes selecting the right adviser a crucial step in creating a robust power team.
Accountants: More Than Just Number Crunchers
After the mortgage adviser, an accountant ranks high on the list of essential team members for property investors. But not just any accountant will do.
Ajay explained the critical mistakes that can arise when an accountant doesn’t truly understand the nuances of property investing:
A lot of accountants will say they understand property, but I guarantee you that they don’t. – Ajay Nayyar
One common issue Ajay highlighted is the timing of account submissions. While HMRC allows self-assessment filings until January, mortgage lenders often require them by October.
Failing to meet these earlier deadlines can delay applications and cause deals to fall through. Jordanne underscored the importance of clear communication between the mortgage adviser and the accountant:
They need to understand what works for lending. Anything different isn’t going to work. – Jordanne Whiley MBE
The best accountants are proactive and maintain open lines of communication with mortgage advisers to ensure that financial strategies align with lender expectations.
Ajay praised one accountant who called him before finalizing a client’s accounts, ensuring the numbers were structured in a way that worked for the client’s loan application. This type of coordination is invaluable.
Why Your Solicitor Needs to Be on the Panel
Solicitors are another key component of a successful power team. However, not just any solicitor will do, especially in complex investment transactions. Ajay explained that lenders maintain panels of approved solicitors. If your solicitor isn’t on the panel, you may face delays or incur additional costs:
Never, ever instruct a solicitor before you’ve spoken to your broker and confirmed the lender. – Jordanne Whiley MBE
Ajay shared that some clients mistakenly trust solicitors who promise to get on a lender’s panel, only to waste weeks waiting for approvals that never come. This can derail timelines and jeopardize transactions.
If a major firm like JMW can’t get on a panel, then your one-man-band solicitor won’t either. – Ajay Nayyar
The takeaway here is simple: check your solicitor’s panel status before proceeding, and choose efficiency and experience over cost-cutting.
Sourcing Agents and Project Managers: Their Role and Risks
For investors expanding into regions where they may not have a local presence, sourcing agents can be invaluable. These agents find investment properties, project manage refurbishments, and coordinate with local contractors.
Jordanne shared her experience of using a sourcing agent for her investments in Scotland:
I live in the south and invest in Scotland, so having a sourcing agent there saves me time and effort. – Jordanne Whiley MBE
However, using a sourcing agent can come with its own set of challenges. Lenders may not always understand or approve of properties purchased through these channels, seeing them as riskier than those bought through traditional estate agents. Ajay elaborated:
If a lender knows the property came through a sourcing agent, they might decline the case. – Ajay Nayyar
This adds a layer of complexity, as it narrows the pool of lenders available for financing. Despite this, a good sourcing agent who understands these dynamics can still be a valuable asset to your power team.
Transparency and Communication: Honesty Is Non-Negotiable
One of the most compelling parts of this episode was Ajay’s emphasis on honesty between clients and their power team:
Don’t ever lie to your mortgage adviser. Tell them the truth. There’s always a solution. – Ajay Nayyar
Jordanne supported this, noting that clients often hide details unnecessarily. The result? Delays and complications that could have been avoided. Honesty allows the adviser, accountant, and solicitor to prepare accurate documents, ensuring a smoother process.
Ajay’s message was clear: withholding information only makes things worse.
90% of the time, clients lie because they think what they’re doing is wrong. But most of the time, it’s completely legitimate. – Jordanne Whiley MBE
Why Integration Matters: Communication Among Team Members
A powerful power team isn’t just about having the right members; it’s also about ensuring they work cohesively. Ajay described how seamless communication among advisers, accountants, and solicitors can make or break an investment:
The accountant and mortgage adviser should be in regular communication. It’s essential for things like corporate structures or title splits. – Ajay Nayyar
Jordanne added that bringing all team members onto a joint call with the client can streamline complex processes and preempt issues before they arise. This collaborative approach is key to handling more intricate investment strategies successfully.
Dealing with Conflicting Advice: Who to Trust?
Another challenge investors face is dealing with conflicting advice from different professionals. Ajay expressed empathy for clients caught between differing opinions but stressed the importance of following the adviser who is closest to the lending process:
We have to do what the lender wants. Lending criteria take priority over what an accountant may prefer. – Ajay Nayyar
Jordanne highlighted the importance of gut instinct when choosing team members:
You know when something doesn’t feel right in a conversation. Trust that instinct. – Jordanne Whiley MBE
Finding Your Power Team: Trial and Error
Selecting the right power team members can be daunting, especially for new investors. Ajay likened it to “kissing a few frogs before finding the right prince or princess.”
The best approach is to seek recommendations, interview potential team members, and be prepared to make adjustments as needed.
Key Takeaways
- The mortgage adviser is your first line of support in building a strong investment strategy.
- A property-focused accountant ensures timely submissions and alignment with lender requirements.
- Choose a solicitor who is on your lender’s panel to avoid unnecessary costs and delays.
- Sourcing agents and project managers can offer significant value, but understanding lender policies is key.
- Transparency and honest communication are crucial for effective teamwork.
- Collaborative integration among team members helps manage complex strategies effectively.
- Trust your instincts when assessing new team members, and be open to adjustments.
Ready to build a power team that supports your property investment goals? Contact Hearthstone Mortgages today for expert guidance and seamless integration with experienced accountants and solicitors.
