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Funding your projects when your usual lenders can’t help

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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.

Add Value to Property Through Bridge-To-Term Product

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Adding value to your property: How can a bridge-to-term product help you? 

What an amazing week we’ve had – we are still flying high from Wednesday night!! Roll on Sunday now…

This week I want to talk about bridge-to-term products specifically. Last week we covered bridging and why it is so important to add value to your property, but there is more to it – and there are ways to reduce your overall cost and this is a big one!

What is a bridge to term? 

It is a product that allows you to use the same lender for the bridge to purchase the property and then use it as an exit onto a term mortgage as well.

How does it work? 

There are two types:

  • You can have it as ONE product, which means that you have two offers at the beginning (one for the bridge and one for the term) and the valuation with cover both products too, so you have certainly over the end value and what you can work towards.
  • You can have it as 2 products, so you apply for them separately and have two valuations and offers (the term gets started once works have been finished). This allows a valuation to take place once works are completed so you often get a more favourable figure, it can also take into consideration the finished property, which really can help. As with the same lender it has the advantage of lower arrangement and legal fees.

What are the differences between this and a standard bridge?

From a cost point of view, you can save on valuation costs (in some instances), legal fees, and arrangement fees. This will help to reduce your finance costs and increase your ROI. As bridging can be very expensive, this is a good way to bring it down.

It also offers you some certainty around the exit for your bridge. The lender will underwrite the case for the exit as well as your initial loan, so any issues with the property should be picked up on before you buy the property. There’s never a guarantee with these things, but it does mitigate some of the risks.

How much can I borrow and what work can be carried out? 

This depends on the type of product.

We have a lender who will look at both parts as one product, as mentioned earlier. This is ideal for light refurbishments before letting out as a single let. For example where the EPC isn’t good enough, or it needs a new kitchen or bathroom. We will know the end value from the schedule of works and the valuer will confirm this. You can borrow up to 65% for the purchase, and then 75% for the refinance. This is a low-cost option and offers some security but does mean you are putting more in the upfront.  The 2nd valuation is only a revisit, to confirm the works have finished – it cannot change the GDV. You have to complete and refinance by 6 months maximum.

For more complex refurbishments, ie conversions from commercial to residential or to HMOs we have another product. This is set up as two products, a bridge to start and moving to a term facility when it’s finished.  The initial valuation will include GDV expectations from the valuer. For light refurbishment projects we can lend up to 85% of the purchase price (subject to some restrictions) and for heavy refurbishments, we can go up to 75%. Heavy refurbishment would also include anything requiring planning or building regulations. You also have up to 18 months to do the work.

For the term exit, we can generally lend up to 75% of the new value.

For both options, we do not need to wait 6 months from the purchase.

As always, give me a call to discuss individual cases and how we can make it work. Have a fantastic weekend and come on England!

Adding value to your property: bridging options

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This week we’re talking practical solutions to adding value to property. I’m often asked about bridging when clients have not used it before – the fear is that it is expensive and not necessary, mainly due to not understanding it or trying to do things without it.

The benefits of bridging?

Let’s start with why you would use bridging:

  • it allows you to buy property which is otherwise unmortgageable – you effectively become a cash buyer. Properties without kitchens or bathrooms, in need of renovations or where the planning or usage needs changing, can be bought.
  • It allows you to move quickly – this may or may not be important, but we can complete in a few days or a few weeks without too many issues. This means if you have a distressed sale, auction or the vendor wants a quick completion then you can offer that (to hopefully negotiate a lower price too!)
  • It allows you to buy property to complete works to then move onto another mortgage (at a higher value) within a quick period of time,  without the need to pay early repayment charges 
  • It allows you to borrow 75% of the purchase price even if the rental figure doesn’t get you to this on a standard BTL mortgage.
  • It allows you to free up your cash for other opportunities that may come along while this one is in progress.

Borrowing for refurbishment costs 

Another big advantage is that it allows you to borrow your refurbishment costs in certain scenarios:

Upfront costs towards your refurb

We have a lender that will allow you to borrow 75% towards the purchase of your property and then an additional 10% towards the refurbishment so a total of 85%. You do need to ensure that you stay under 75% of your GDV, and you need to have completed something similar previously,  but this is a great way to maximise your borrowing. 

This works well for light refurbishments where the EPC isn’t right, or the property just isn’t in a lettable condition due to the decor or floor coverings or something similar.

Refurb costs in arrears 

Where the refurbishment is bigger, you can look to borrow these costs in arrears. There are some caveats to this, as the lender needs to get comfortable with the project as they will be funding it. There needs to be some profit in the deal (a minimum of 10% if you are retaining the asset, about 15% if you plan to sell it). The costs need to be a minimum of about £60,000 to make it worthwhile too, as you need to spend some before you get it back to spend it again. You therefore need some working capital.

This is great for larger projects, developments, commercial to residential conversions and HMO conversions where the profit allows.  It allows you to minimise the amount you are putting into the deal and maximise the number of deals you can complete.

So what about the disadvantages? Are there any? 

If you have access to funds with a lower interest rate and cost then it is a consideration to use that instead. This may be from a refinance of another property, or a gift or loan from family or friends. This can work out less expensive, but you haven’t got the security of a mortgage valuation and lender legals to do those additional checks for you – there are pros and cons and it would be up to you to decide what is best. We can talk it through it that would help.

Bridging is the most expensive form of mortgage borrowing, as it is the most risky. You have got to factor that into your costings and ensure you are still making a profit after your finance costs. 

Where I find that clients have had bad experiences, it is usually due to not understanding the full costs involved – whether that is exit fees, monitoring fees or extension fees. Knowing the full picture and ensuring you fully understand what you are getting into is so important. We only work with reputable lenders who are transparent with their costings and deliver on what they say they do – there are still plenty that don’t though, so be careful! 

As always it’s about doing your due diligence and knowing who you are working with and all the costs upfront. Bridging is a means to an end and it’s so important not to loose sight of the prize at the end! 

Adding value to your property: Planning

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This week we’re exploring some more ideas on how to add value to your property. I’ve chosen to talk about planning as it is something that can be used in many different ways.

Planning gain

This is one way which I think is under used, and can be such a great way to add value quickly. Especially in the current market when investors are looking for opportunities and build costs are so high it can be a great alternative to completing the works yourself – it may be just as profitable. It allows you to sell on the asset quicker than if you were completing the works too, meaning that you can move on to your next project.

Finance has to be thought about carefully in this instance, as there always needs to be a back up option which the lender will base their decision on, but as you aren’t completing the works you don’t need to worry about the refurbishment costs. This means you are borrowing less, and the GDV on various options are less important at this stage. When you are completing the works and borrowing the refurbishment costs the lender will always work back from the GDV, and if the option is funding without planning,  there may not be enough profit in the deal to make it work.

This works well for extensions, change of use, commercial to residential (where it falls outside of PD) and conversions to houses and flats.

The added advantage is that you don’t need so much experience as you are not carrying out the works yourself.

Planning to carry out the works yourself…

There always is the opportunity to carry out the works yourself of course.

With a shortage of homes, a relaxation in permitted development rights and a booming housing market, there are always opportunities in this area of the market!

What to watch out for?

  • Land with property to give you options with additional houses or extensions
  • Blocks of flats – looking for options to add units or extend
  • Development of existing dwellings – this could be to knock it down to make better use of the space, extending or splitting into multiple dwellings
  • Floor plans are key to looking at your opportunities!

What experience do you need?

Lenders are becoming more flexible with what they need, and even with ground up sites we have options if you haven’t done one before. You do need some experience with a project that requires planning but it probably isn’t as much as you think, and you can use your residential properties as experience too.

we have had some examples recently of lenders who are happy with quite a jump up from a small renovation to something much bigger.  It does mean that more due diligence will be carried out on the contractor, and a JCT contract will need to be in place but this does open up potential opportunities.

JV or teaming up with other investors to increase the overall experience of the team is a very good idea too. It shares the risk and the rewards

It’s always worth a conversion to see what’s needed and how it could work.

Adding value to your property: What can you do with leases?

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So I’m back! Still no quieter this week but there we go – I don’t think it will get quieter for a while yet!

This week I am starting a blog series on adding value to your property. In the current market where houses are selling so fast, spotting opportunities and acting on them quickly is key.

There are so many ways you can add value to property so I’ll be covering them off over the next few weeks. This week we’re talking leases.

Splitting leases

This is one of the most common ‘tips’ you get from property mentors and courses – buy freehold flats and create leases to add value! It doesn’t always work like that, as the way lenders value property is based on how it is likely to be sold, and if that is as a block then you won’t get the uplift on a revaluation. There are, however, ways you can do this. You could look at smaller blocks, where they could be split off and sold easily.  Generally you need to consider the size of them, demand, split utilities and access.  The ideal would also be to carry out a refurbishment, or wait a period of time before refinancing them as you need the valuer to disregard the purchase price as a comparable.  You can also look at splitting houses into flats; additional flats into blocks and rearranging space to create more units. These can all create value though the sale or refinance of the properties.

Extending leases

There is a large quantity of flats around the country with short leases which struggle to sell. This is due to most people (buying property to live in) not understanding the lease extension process, as well as a need for a longer capital repayment mortgage. When you are basing your maximum mortgage on your income, and the mortgage is capital repayment, you usually need this over a long period of time (age depending!) to make it affordable. Generally you need 55 years left on the lease at the end of the mortgage so if you have, for example, 68 years currently you could only look at a 13 year term.

The difference with an investment mortgage is that you are able to look at it on an interest only basis. This means that the monthly payment is the same if it’s one or 25 years. You do need to find an alternative way to repay the mortgage and be aware that the full balance will remain at the end of the term, but this does give you options. You could, with the example above, take the mortgage over 13 years and in that time increase the lease length and then refinance. This could increase the value and allow you to take some money out of the property. This is a great opportunity as an investor that home owners just don’t have.

Share of freehold

This is another misconception among many potential home owners. Again, they see a short lease and assume it is expensive to extend it, or they won’t get a mortgage on it. The same principle applies as above with your mortgage term, but it can be much easier to extend your lease. All leaseholders have to agree and all leases need to be extended simultaneously, but it is much cheaper than extending a standard lease.

I hope that gives you a few ideas! Next week I will be back with title splits and planning ideas – if you have any questions in the meantime then let me know! Have a good weekend.

Who’s afraid of a vacant commercial property…?

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Hi everyone. And it’s Friday again and so close to lock down ending (fingers crossed).

If you’ve been reading our blogs over the past few months, you will know that I have got involved in a couple of properties for development.  I’d like to talk about the commercial one for this blog.

I’d known about this property for a while, as the buyers are clients of mine.  The property is a D2 usage large building in Salford.  D2 is leisure, as it was a crown bowling social club.  It was also run down and vacant.  As you can imagine this can cause challenges in getting funding.

The property had a 15 month option from February 2020 in order to get planning for residential.  You’d think that 15 months is enough time to get things sorted, which in normal times it would be.  The property stands on an acre of land, the building itself has a footprint of around 320 sq/m – so there are many options for an exit, it was the purchase that was proving challenging!

I got involved end of last year, just to find funding.  This proved rather difficult.  The commercial market has really taken a hit with lenders during COVID.  For a while it simply wasn’t available, then when it did return it was specific to certain professions and whether they had been trading during lockdown.  This fell into neither camp.

The week before exchange I put my hat in the ring to be a part of this.  Thankfully the investors were happy to do that; it spread their cashflow, which is important at the moment.  If you know and trust the investors you get in bed with, then it’s better to share a number of projects than be responsible for it all.

When a property has a lot of options, although it should be a positive it can prove a negative with lenders as it causes uncertainty.  We could go full on development of 36 or so apartments; a mixture of houses and apartments; renovate the house and split off the land; keep the property commercial and split off the land… and the list goes on.

We now had a deadline to exchange by May 10th, but due to planning having been changed (a housing association wanted to buy it with planning) so we still have no planning.  As most of you will have experienced, COVID has caused such bottle necks in so many areas and this is clearly one of those areas! The application went in for an AIP on 7th May and I looked at it as an auction buy.

I approached Shawbrook to see if they would consider it – at the time we wanted to convert the house into 7 flats under permitted development, but could not get it on PD due to D2 usage not allowing it.  We could also not apply to change the commercial usage as planning was already in.  It was all really frustrating.  We decided just to buy as is and landbank it until planning was through.  I can’t praise Shawbrook, particularly Mark Whitburn and Kieran Route enough, for really getting on with this knowing the completion date of 18th June.  They have agreed 60% ltv on Vacant Market Value, which was the purchase price (£500,000) – very reasonable indeed.

The property is a good buy. There is no way that a piece of land of this size in Salford can lose you money, but having to react quickly at the moment can be a challenge.  Sometimes you really need to go with your gut, as properties are in low supply and you can lose out.  Of course there are risks here, but aren’t there in all walks of life? You could argue that doing nothing is the biggest risk of all.

All is set for completion on 18th.  I know I bleat on about the power team – IT IS THE MOST IMPORTANT THING – we couldn’t achieve this without our amazing solicitor (Phillip Adam) and the safe hands of Shawbrook and Laura Nicholl at Pure Law.  They are worth their weight in gold for the stress they alleviate.  Particularly when the completions side of things is really boiling over at the moment.

What have I learnt from this? 

The educational part of this is the change in lender appetite towards properties like this as we have progressed with it.  There has been a realisation from lenders that there are some properties that are worth funding; there is a still a massive shortage of residential properties and the Government is pushing for smaller builders to step up.  I would ask you to consider these when you are looking at your next investment.  If you don’t have enough experience, then bolt onto someone who does; spreading the risk/cash and progressing up the development ladder as well.

As always, we are happy to run through the figures and see what options are available to you.

Thinking outside the box: where can your deposit come from?

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In this current market, we really have a big split in the situation of our clients. On one hand we seem to have plenty with cash available to purchase property and then refinance once works are completed. On the other, however, we have so many people trying to get into the property market but struggling to find the deposit funds.

Before I get to the options, one thing that comes up often is how much money you need to prove and whether credit cards can be used.

You need to be able to show the lender where the deposit is coming from (and it needs to be in your bank account!), as well as any refurbishment costs. This will need to match your schedule of works, and a valuer needs to agree that they schedule and cost match the works needed in the property. For example, if there’s clear evidence of damp then the solution needs to be covered off in your schedule.

How can you use credit cards within this? 

I hear property mentors often speak about using credit cards to pay for refurbishments so that you can refinance and pay it back without putting your own money in but to be honest it doesn’t always work that way! Lenders will want to know that you have the funds to carry out the refurbishment – if you’re not able to finish it then they will be the ones left with it and that’s not what they want!

As with lots of things though, it does come down to experience. If you’ve done it a few times before and got off your bridge successfully then they are more likely to be more flexible with where your money is coming from and we may be able to agree it.

Here’s some ideas for where your funds can come from 

Savings 

This is the easiest one, but often the one that gets used up first! If you’re serious about getting into property then you really do need to think about how you can save money from your day to day expenses to creat funds for it. Especially for your first project when the lender wants to see you’re using your own funds. Look at a budget planner, find a savings account that encourages monthly savings and go from there. There may be some sacrifices that need to be made!!

Refinance of your residential or other property

Refinancing your residential property can be seen as risky by some, but you are moving the equity from one property to another. With residential mortgages back up to higher loan to values and lenders now using bonus and commission again this may be a good time to look at this option.

Remember that your home may be at risk if you do not keep up repayments on it, so look at the overall picture. It’s an idea to explore though.

Gifts

Often when investors are looking for investor funds, family and friends are first on the list. It’s an easier sell, but comes with more pressure! Gifts from family are easier to use for your first few projects (before you build up some experience) and it counts as your own money!

Joint ventures 

This is an alternative where you are relying on the experience of someone else. It means your JV partner has more security over their funds and equally you have more support on the project. You are able to split the shareholding to reflect the funds and experience of all applicants too, so it’s flexible.

One thing to remember is that generally all applicants to the mortgage will need to sign a personal guarantee to be jointly and severally responsible for the loan, so ensure that your JV partner is happy with that set up.

Company loans 

Something we are seeing more of, is where clients have a (non- property) company which is profitable and they want to use these funds to put into property. It is a tax efficient way of doing things, but ensure to check with your accountant. You may have utilised a BBL in the company too, so you will be able to use that. Most lenders will allow you to use company loans as long as they are interest bearing.

Angel investments

Once you’ve built up a track record of projects – usually one or two similar sized projects – you can move on to using other people’s funds!

Loans are an option where you run out of your own money, when you factor in the overall costs. Most lenders will now be able to use investor loans where there is a loan agreement in place and no charge on the security property. There needs to be a clear replacement method and any interest payments need to be taken into account so bear that in mind.

With the right strategy you will be able to recycle some of your funds, so you’re not starting from scratch with each project – although ‘no money left’ deals are hard to come across at the moment!

As always, let us know if you want to run anything past us!

 

 

What is going on with the stamp duty deadline and Jackie’s update

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I keep saying this – but I can’t believe it is Friday again!!

I am starting to venture out and its taking some getting used to… We had one night out for a very belated November birthday this week and I’ve needed a good few days to recover!

We are now at the stage when the last cases will get through for the higher SDLT discounts ending 30th June. 

For the £250k and under purchase prices, there are still a few months to go – but be wary, the conveyancing side is starting to bubble over. We are being asked by clients for solicitors details to take on cases when their own are simply too busy to help.

What’s the best way forward if you get a good opportunity?

I would suggest, if it’s available, going dual representative. This is where the solicitor acts for both the lender and yourself.  I wouldn’t be holding your breath for a speedy completion, but it may knock off a good few days/weeks, which could be vital.

It is also important that you make sure you have a solicitor in the bag BEFORE considering an auction timescale case.

I have recently exchanged on a Manchester property. I has all been a bit quick after a year with an option.  With the planning application taking so long, together with a change of tack due to a Housing Association now wanting the plot, things have not been straightforward.  Planning has had to be resubmitted due to the changes so its now going to take even longer!  When we were ready to proceed, the original solicitor simply couldn’t take the case for completion on the 18th June. That has caused a real headache.  Thankfully my go to solicitor (Phillip Adam) took the case after I begged him! Honestly it was a really kind deed, as I know he is as busy as anyone.

So why have I changed direction with my portfolio?

The reason for going for this property and plot was to expand my portfolio. I have had vanilla buy to lets for some considerable years and although they are lovely and safe, I wanted take a bit more risk to get the higher potential rewards.  I am selling one of my flats as the return on Manchester site is worth the cost of selling the flat.

It’s interesting that your pension pot doesn’t tend to go on the radar… until you realise that your years left to fill it suddenly get very short.  Having had a financially difficult divorce in my 40s, time was short if I wanted the option to retire at a reasonable age.  I try to keep a split between earnings, pension (very tax efficient to put money in from a company) and properties.

Enjoy your weekend and I hope you give yourself time to recover 😊

Top slicing is back.. But how does it work?

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Here we are again on a Friday with more positive news about products returning to the market – always good news!  Not only because it makes our life easier, but also as it’s a great sign that things are improving.  Confidence is such a big part in the future of the housing market and its important we continue with the momentum that the stamp duty holiday has created.

So what is top slicing?

It is when the lender uses your outside income on top of the rental income from your buy to let when it isn’t generating enough itself.  We can use income from your outside portfolio where it allows, or from your other earned income.  There are various stresses on the outside portfolio and your own mortgage payment so you’ve got to check it all works.

What are the benefits of top slicing?

There are many, so I’ll go through them:

  • It allows you to buy a property where the yield isn’t high enough. This allows you to take advantage of properties which may have other advantages like a potential capital growth through location, refurbishments (over time) and extending the lease as examples.
  • Where you have a property which was bought before the new higher stress tests, it may not fit on a remortgage now. This allows you to move lender, as well as potentially raise more funds without selling the property.
  • The property may fit on a 2 year fixed, but due to the increased stressed rate of these you only have the option of a 5 year. Top slicing will allow you to have the opportunity you use the 2 year fixed rate if that is a priority for you.
  • If the property is in a lettable condition, but you know that a lick of paint and change of floor coverings will ensure that you get a higher rental, this will allow you to buy it in its current state without using a bridging loan.

How does it work?

The lender will use its usual stress tests to work out what the minimum rental requirement is, based on the loan you are looking to borrow.  We can then look at what the actual rental figure is (which needs to be confirmed by the valuer) and this will give us a shortfall figure.

If you have an outside portfolio, we can use any additional income from this.  We do have to use an artificially inflated interest rate on your mortgages so its not just as case of what is left, but we can use the gross rent.

If you don’t, then we can look at additional income from other sources. Generally, this would be shown through your SA302 or payslips and then last 3 months bank statements to prove the disposable income.

As always, please give us a call if you want to run through any examples.  Have a good weekend!

Personal Guarantees and Associated Costs

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Keeping an eye on the purse – Personal Guarantees…. and associated costs

Pesky costs….

Hi everyone, honestly having a regular blog slot is seriously speeding up the end of lockdown, they come around so quickly!…

Looking at cases recently, I thought I would do a bit of a rant/chat about Personal Guarantees and associated costs that need to be considered when thinking about the overall cost of your mortgage.

Personal Guarantees (PGs)

As most of you will know, these are required 99% of the time for Ltd company applications.  Lenders insist on them as most limited companies paid up capital is so small, it offers a guarantee to the lender from you personally in case anything goes horribly wrong. In the early days of limited company lending a couple of banks were caught out in court, meaning that it became the norm.

Most investors accept that this is just part of the process and just sign and proceed, as do I. It is worth thinking about though as not all lenders have the same rules. If you do have paid-up share capital then that can be negotiator to reduce the amount on the PG.

What we have seen more of recently, is more of the ‘vanilla specialist’ lenders offering funding for HMOs, MUFB and so on. With  lower rates than the more specialist lenders, it can look very attractive to go with them.  Having gone through the process recently for 4 of my properties I can tell you it’s not necessarily the route of least resistance.

It is important to look at what PGs with these lenders actually mean…

Most will want 100% guarantee of the borrowing plus any lender fees. That is jointly and severely between all applicants. What that means is they can come to any or all of the applicants for the full loan (no more than the loan), that may be from one person if they are easier to get hold of or have more assets than the others.

On top of that they will want Independent Legal Advice (ILA) when signing the PG – even though you are in the responsible position of being a Company Director.  This means that you need to pay to receive advice on signing the guarantee with a separate solicitor to the one acting for your limited company. With these lenders, waiving the advice is not possible, even though most of us are of sound mind and under 70 years of age.  Aside the fact I don’t agree with this belts and braces approach, that is how it is.  ILA is a cost consideration, as the minimum price is usually around £400 per person.

I have always tried to challenge the necessity, depending on the applicant but I have only been moderately successful!

Not all lenders want 100% of the loan guaranteed, some will go down to 25% (jointly and severally between all borrowers).  This can be an important factor when making a choice between lenders and should be properly considered.  Rate is not the only factor for choosing a lender as we often discuss.

The more specialist lenders do not require ILA for those in sound mind and under the age of 70.

This is particularly important to consider on smaller properties, these additional costs really make a difference to your return on investment.  Make sure you get as close a breakdown from your solicitor and get as good an idea of total costs for the comparison. We will outline these costs to you when we are looking at options so that you can consider the full cost of the mortgage – as you know we are big on transparency to enable you to make an informed decision.