It seems to be a waiting game in property at the moment – is it the right time to buy?
There’s no doubt that once confidence returns to the potential buyer that their purchase won’t be worth less than they paid for it in the coming months, people will start buying again and the knock on effect will see property prices start to increase and off we’ll in property mania once more. But where will this confidence stem from?
News and figures released still look relatively bleak right now, with the Citizens Advice Bureau (CAB) reporting a 49% rise in secured loan and mortgage arrears enquiries and the CML confirming a 2% gross lending decline in May. Positive headlines such as CHL Mortgages announcing a 15% reduction in their total arrears and Infoserve reporting a 94% increase in internet searches for Mortgage Advisers are still overshadowed by the continuing Banking crisis and global economic downturn.
HM Revenue and Customs figures showed 60,000 completions took place in May, down from 64,000 in April.
It seems highly unlikely that a sudden increase in property sales and prices is on the horizon given the lack of funding within the banking system to supply high demand and recent increases in fixed rate mortgages in the UK only adds to the reasons why many are choosing not to go out and buy…… Bridging Finance Companies have seen their number of completions increase significantly over the previous months with funding lines being reintroduced.
Thursday 25 June 2009
Friday 19 June 2009
Niche Mortgage Lending and Bridging Finance in a troubled financial climate?
We all agree that mortgage lending is not what it used to be and it’s highly likely that the speculative lending that has come back to bite the tax payer the hardest, is highly unlikely to ever return as we knew it…..
So, what does that meant for prospective purchases?
Figures released show that mortgage lending in May 2009 was £10.3 billion, 58% lower (source CML) than the same time last year. There are now a reported 1,265 UK mortgage deals available compared to 11,951 in July of 2007 (source www.moneyfacts.co.uk); a staggering decrease.
There are faint rumours that the property market is on the up, first time buyers are purchasing again and mortgage approvals are increasing month on month (16% in April – source CML), the availability of finance however is still very restricted, if not just in quantity, then by decreased loan to value (LTV) and unfortunately mortgage fixed and tracker rates still continue to be disproportionate to the low bank base rate (BBR) we are currently supposed to be enjoying?
As a Mortgage Broker I have seen an increase in contact from clients, ones I haven’t heard from for a while, now calling to enquire about a property they’ve seen at a ‘good price’ and would like to know what sort of rates and finance are a currently vailable.
Professional Landlords and Investors have continued to purchase throughout the downturn, sourcing below market value (BMV) properties by using structured finance to secure a self supporting asset. A short term decrease in value in a long term self supporting investment that has required no deposit input, to them, is a no brainer, but what finance is out there?
True BMV Bridging Finance has returned. It allows a property purchase to take place with little or no deposit input required. The criteria has tightened compared to the niche Bridging Loans that have gone before, it’s a product aimed at Investors that have the net worth to put a deposit down, but would rather put their funds to better use or make them go further. It’s not a product for people who can’t afford a deposit!
The terms are:
1.5% per month
1.5% arrangement fee
NO exit charges
Legal and valuation fees apply as standard.
The Bridging Loan is written for a term of six months (1 month minimum), allowing the Investor to abide by the minimum ownership criteria imposed by almost all Mortgage Lenders and therefore remortgage at the six month point based on the value of the property at that time.
The product is available for residential, buy to let and commercial property and allows up to 100% of the purchase price to be borrowed providing this does not exceed 70% loan to Open Market Value (OMV).
There are opportunities to refinance the Bridging Finance prior to the six month point with UK and Foreign Lenders making tranche funds available (when they have them…) and for high yielding Investment and Commercial ventures, purchases based on OMV rather than the lower purchase price remain available too.
So, in summary, niche lending is out there, you just have to know where to look…..
Contact us for more information
Ben Randall – aka BTL-GURU
www.benrandall.co.uk
So, what does that meant for prospective purchases?
Figures released show that mortgage lending in May 2009 was £10.3 billion, 58% lower (source CML) than the same time last year. There are now a reported 1,265 UK mortgage deals available compared to 11,951 in July of 2007 (source www.moneyfacts.co.uk); a staggering decrease.
There are faint rumours that the property market is on the up, first time buyers are purchasing again and mortgage approvals are increasing month on month (16% in April – source CML), the availability of finance however is still very restricted, if not just in quantity, then by decreased loan to value (LTV) and unfortunately mortgage fixed and tracker rates still continue to be disproportionate to the low bank base rate (BBR) we are currently supposed to be enjoying?
As a Mortgage Broker I have seen an increase in contact from clients, ones I haven’t heard from for a while, now calling to enquire about a property they’ve seen at a ‘good price’ and would like to know what sort of rates and finance are a currently vailable.
Professional Landlords and Investors have continued to purchase throughout the downturn, sourcing below market value (BMV) properties by using structured finance to secure a self supporting asset. A short term decrease in value in a long term self supporting investment that has required no deposit input, to them, is a no brainer, but what finance is out there?
True BMV Bridging Finance has returned. It allows a property purchase to take place with little or no deposit input required. The criteria has tightened compared to the niche Bridging Loans that have gone before, it’s a product aimed at Investors that have the net worth to put a deposit down, but would rather put their funds to better use or make them go further. It’s not a product for people who can’t afford a deposit!
The terms are:
1.5% per month
1.5% arrangement fee
NO exit charges
Legal and valuation fees apply as standard.
The Bridging Loan is written for a term of six months (1 month minimum), allowing the Investor to abide by the minimum ownership criteria imposed by almost all Mortgage Lenders and therefore remortgage at the six month point based on the value of the property at that time.
The product is available for residential, buy to let and commercial property and allows up to 100% of the purchase price to be borrowed providing this does not exceed 70% loan to Open Market Value (OMV).
There are opportunities to refinance the Bridging Finance prior to the six month point with UK and Foreign Lenders making tranche funds available (when they have them…) and for high yielding Investment and Commercial ventures, purchases based on OMV rather than the lower purchase price remain available too.
So, in summary, niche lending is out there, you just have to know where to look…..
Contact us for more information
Ben Randall – aka BTL-GURU
www.benrandall.co.uk
Tuesday 2 June 2009
Bridging Finance Loans UK
Regardless of today’s financial climate niche Bridging finance is still available to help you complete on your purchase on time. There’s no doubt taking advantage of the low property prices will pay dividends in the long term, all you need is the right finance.
Rates start from 0.95% per month.
Up to 85% loan to value
Funds in 24 hours!
Non status & Bad Credit Bridging Loans available.
Bridging Loan Finance for:
Repossessions
Below Market Value BMV property purchases
Commercial Bridging Loans
Large Loan Bridging Finance
Chain Breaking
Foreign Property Purchases
Capital Raising
Contact us to find out more:
www.benrandall.co.uk
Rates start from 0.95% per month.
Up to 85% loan to value
Funds in 24 hours!
Non status & Bad Credit Bridging Loans available.
Bridging Loan Finance for:
Repossessions
Below Market Value BMV property purchases
Commercial Bridging Loans
Large Loan Bridging Finance
Chain Breaking
Foreign Property Purchases
Capital Raising
Contact us to find out more:
www.benrandall.co.uk
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