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
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I never thought that I will be qualify for a loan that Officer Pedro and his loan company granted me which was very smooth and transparent in every conversation that we make through the loan process, I will once again thank him and his loan organization for a job well done by offering me a loan of 22 million Euro with the low rate of 2% annual return they are genuine and loan register company with simple terms and conditions.Contact the loan company through pedroloanss@gmail.com
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