This week I want to cover a few things as we head into autumn to highlight some great opportunities that we have in the mortgage market. There have been so many changes over the summer as lenders push to write more business in a increasingly competitive market.

Last night at Watford PIN we were talking about what opportunities are around at the moment and changing strategies to adapt to the current market. The key part to that is knowing what finance is available as this is key to pricing . I’m always happy to chat through any ideas you have and how to structure your deals.

First time landlords for HMOs

There has been a few new options for this recently. I’m forever having conversions about whether it’s worth starting with single let’s or to go straight in to HMOs. There’s usually a compromise somewhere and starting with HMOs has meant a slightly higher interest rate. However, we have a new product to the market that allows first time investors to obtain a competitive HMO rate at 70% loan to value. This is fantastic for cash flow, allowing you to maximise your monthly income from your first property.

85% LTV for bridging

I’ve mentioned before that we can can arrange 85% bridging loans for purchases needing a light refurbishment. What has now changed is that you no longer need any experience to do this! This is fantastic for first time investors (who own their residential property) to allow them to put less into a deal and open up new opportunities. There are some caveats as usual, so always best to check with us and we can run through the details.

80% LTV buy to let and HMO products

It’s important to look at the pros and cons of 80% mortgages for investment property. As you start to buy more properties and become a portfolio landlord, lenders will carry out a check on your outside portfolio and it needs to be below 75% loan to value so you need to be aware of this.  Having said that, they do have their place. Where you have a property that you feel has been under valued, an HMO being valued on a bricks and mortar basis, or where you have other properties that you aren’t able to get a high LTV with to balance out your portfolio. Having more 80% options is definitely a good move forward, and as always it drives down the costs when there is more completion.

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