I think we’ve all now recovered from the excitement of the Euros and now summer has arrived! I hope you’ve all had a good week. This week I am talking about funding that’s a bit more outside the box. As you know, we can look at all sorts of scenarios, and one of our lender’s has really upped their game recently so I wanted to run through what they can help with.
Buy to lets when you don’t have enough experience for standard lenders
We often see clients come to us with a great project, and external experiences which means we are confident it will work – this is usually where they have carried out works in their day job, so not for themselves. This doesn’t count as experience for most lenders though. This can cover HMOs (of any size), multi-unit blocks of flats or semi commercial buildings as well as single lets.
We can now help with mortgages up to 75% LTV for these scenarios, at a really reasonable interest rate. The products are fixed for 2, 3 or 5 years, allowing you to gain the experience you need to move on to a lower interest rate and longer term product. Its important to balance the lender’s risk and your experience with the rate – and also remember that you aren’t spending time or capital on projects you don’t really want to do before jumping into bigger ones!
Foreign Nationals and Ex-Pats
This is another area which is tricky to fund at the moment, so this lender allows you an easy way in to the UK market. We can raise up to 65% LTV and the minimum loan size is £50,000 so it is available for smaller properties. Again, the loans are for 2, 3 or 5 years and the rates are reasonable so with a good yield it is an accessible way in. you don’t need any experience, or property in the UK at all, which is often a sticking point. Most counties are covered under this product, and it can be in a personal name as well as limited company.
Slight credit issues
This is another potential barrier to lending at the moment. Many lenders have become more stringent with their credit rules, meaning that even a slight blip can prevent loan approval. Having a short term solution for first time buyers and investors is lacking in the market
This lender will allow a small amount of adverse credit, which means that a past issue which has now been resolved will be disregarded. Some examples could be a satisfied CCJ under £5000 in the last 2 years, or one missed mortgage payment in the last 3 years.
This would cover all scenarios, so buy to lets, HMOs, multi-unit blocks and semi commercial up to 75% loan to value at the same 2, 3 or 5 year terms. This allows you to build your experience while time is passing on your credit file to allow you to move to a more mainstream lender afterwards for a slightly lower rate and longer term.
As always, give us a call if you want to run through a particular scenario then give us a call.