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Nathan Cole

Established Member
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About Nathan Cole

  • Rank
    Established member

Contact Methods

  • Website URL
    www.privatefinance.co.uk
  • Skype
    nathan.cole@privatefinance.co.uk

Profile Information

  • Location
    West Midlands & London
  • Areas I invest in
    London, West Midlands, Cheshire, Yorkshire
  • About me
    Mortgage Adviser for Private Finance, working in complex/specialist finance.
  • Property investment interests
    Complex Property and Finance
  • My skills
    Development, Bridging, HMO’s, Limited Companies, Portfolio Landlords
  • My goals
    Helping people achieve their property goals
  • Interests outside property
    Mountain Biking, Family and Travelling

Recent Profile Visitors

1,430 profile views
  1. Hi @markmark There a huge number of bridging lenders in the marketplace and it would be impossible to simply recommend the best lender without knowing the in's and out's of scenario. For example, here are a couple of points which would change the lenders you approach... Does the case fall under regulated or non-regulated bridging? (Different rates and lenders for each option) What Loan to Value is required? (Some lenders cap at 65% LTV, others could go up to 85%) Do you need any additional funds for refurbishment, or is the bridging loan simply for a purchase?
  2. Good afternoon @jacquichall I hope you are well. I am a whole of market broker and work with expats & foreign nationals most days of the week. I would be happy to have a conversation if you would like some advice? Please feel free to send me a message with a couple of suitable times to speak and I will clear my agenda for a discussion. Best regards Nathan Cole
  3. In this week’s mortgage memo, we are discussing the slowdown in the purchase market, lenders hit by a Covid outbreak and a new player in the professional mortgages market.

    Purchase market slowing down… 

    We have seen a significant decline in purchase enquiries in the last couple of weeks. We believe this is due to the end of the SDLT holiday approaching and buyers holding off to see what happens and whether it is extended or not. There are calls from across the industry for an extension as there are fears the end of the holiday could see a cliff edge fall in transactions. However, with prices having risen so significantly and eroded any savings it may not be worth buyers worrying too much about the deadline… 

    • There are other factors at play, including a lack of supply, with the new stock of homes down 12% in the first 2 weeks of 2021 according to Zoopla which will keep prices high for the foreseeable, until people are comfortable with having potential buyers in their homes. 
    • The timescales to beat the SDLT deadline, unless extended, are now too short for most purchasers even with lenders returning to normal processing times… If the holiday is extended, we can expect an increase in purchase enquiries almost immediately.  
    • We believe that the next couple of months will be slow until lockdown eases and people become more comfortable with both putting their houses on the market and in viewing property and with the optimism generated by the vaccine, we expect we will see a boom in purchases in the summer months, very similar to 2020 in terms of a tumultuous year of peaks and troughs in demand. 

    Lender hit by Covid outbreak amongst underwriting staff

    A lender we work closely with has recently suffered from a Covid outbreak within its underwriting team and thus had had to withdraw all sub 80% products on account of reduced capacity. This highlights just how difficult the situation is facing lenders at present as they try to manage an enormous workload with staff safety and is indicative of why we have seen longer processing times in recent months.  

    • We wish everyone involved a speedy recovery. 
    • It remains important that buyers understand that this situation remains fluid and to maintain expectations for increased processing times when making a purchase. 

    Professional mortgages seeing new player with increased loan-to-income ratios 

    Platform, the Co-op’s intermediary lending channel has recently announced increased loan-to-income multiples for newly qualified professionals, i.e., those with professional qualifications such as accountants and the like, to 5.5x income.  

    • Other lenders like Clydesdale and some specialist building societies already do the same, however it is good to have another lender to join them. 
    • This highlights the way in which lenders are competing for the lowest risk propositions available and are rewarding these types of borrowers accordingly. Ultimately, in this post-pandemic lending landscape with employment under greater scrutiny, those who can easily show that their employment is secure in the long term are in a better position.  
    • We believe with rates already low and not much margin to decline further, we will see criteria and product innovation becoming more prevalent in 2021 as lender ease restrictions tightened at the beginning of the pandemic and look for niche areas to operate within and make a good margin.  

    Best mortgage buys for the week  

    Another significant fall this week in the best 2-year discounted variable rate mortgage available, down 0.2% to 1.29%, making it highly competitive with the standard 2-year tracker and 2-year fixed. Some smaller decreases in the 3 and 5-year fixed both down 0.01% to 1.21% and 1.26% respectively. Again, as only a few percentage points more than the 2-year fixed we may see more borrowers opt for these medium-term mortgage types in the coming weeks and months. All other rates and the lenders offering them remain the same.  

    As it stands it is important to remember that these rates are only available at low-LTVs and on remortgages for the most partand significantly higher rates if a purchase. For instance, the difference between the best 2-year tracker for remortgage and home mover is 0.3%... 

    It is important to note that lenders across the board have changed their lending criteria, so to get an accurate picture of what is possible in your specific circumstances, please contact us and one of our expert consultants will be more than happy to assist you. 

     

    Mortgage Memo - 3rd February.png

  4. The main talking points in the mortgage market this week are lenders continuing to open-up despite the new lockdown and Santander creating huge restrictions for self-employed applicants…

    Mortgage market continuing to open-up despite the pandemic and new lockdown

    Despite the new National lockdown and surge in cases and deaths in recent days confidence in the property market is continuing to grow, illustrated by further lenders returning to 90% LTV this last week, including HSBC and Coventry Building Society. This comes despite numerous commentators suggesting a fall in prices is coming this year…

    • We have seen the large number enquiries continuing of late despite the current situation and it seems that this lockdown and now talk of restrictions remaining in place for the long term has further entrenched buyers desire to move to have more space both for work and outdoors.
    • With prices having risen so much in the last 9 months lenders have some more wiggle room if prices are to fall, unless they fall in a significant way and moreover, borrowing at this LTV remains relatively expensive and is more a akin to a 95% LTV pre-pandemic.

    Max 60% LTV for self-employed borrowers from major high street lender

    The self-employed have had a tough time when it comes to getting mortgages since the advent of the Covid pandemic. Self-employed borrowers are seen as higher risk for lenders and with the higher levels of scrutiny required for the applications it is taking lenders far longer to process cases, however no lender has gone as low as 60% for a maximum LTV until Santander now - there is good reason though…

    • This highlights just how incredibly long it is taking to underwrite self-employed mortgages – 40 working day average from application to offer for Santander, which has got to be close to the worst in the industry and thus likely to be delaying normal business too. This therefore is not so much a question of self-employed borrowers risk profile increasing, but more of means for Santander to manage their timeframes for processing.

    Over 500,000 people in rent arrears – more bad news for landlords

    According to recent research by Citizens Advice, circa half a million private renters are behind on their rent – this is 11% of all private renters. Moreover, the government have once again quite rightly extended the ban on evictions and thus this could mean some landlords may have seen a rental void approaching a year now…

    • Private tenants have not had any structured way to defer payments in the way that homeowners with mortgages have and thus they have been placed under even greater fiscal pressure given the circumstances.
    • It is a very difficult situation as you do not want to see people being evicted and made homeless, but for landlords this could put them in a very precarious financial position and thus we could see more landlords exit the market in the coming months and this could be accelerated if prices start falling…
    • Many people perceive landlords as very wealthy and can afford to take the losses, but many rely on rental income as their income like a pension. Mortgage holidays taken will have often finished now and merely push a problem down the road as the debt still has to be paid.

    Best mortgage buys for the week

    We have seen one rather significant fall this week, with the best 2-year fixed now at 1.05% (a decrease of 0.09%). We shall see if other lenders follow suit and if this lender will remain at this rate or is simply doing so to drive business levels as they have capacity in the coming days. All other rates and the lenders offering them have remained static.

    As it stands it is important to remember that these rates are only available at low-LTVs and on remortgages for the most part, and significantly higher rates if a purchase. For instance, the difference between the best 2-year tracker for remortgage and home mover is 0.3%...

    It is important to note that lenders across the board have changed their lending criteria, so to get an accurate picture of what is possible in your specific circumstances, please contact us and one of our expert consultants will be more than happy to assist you.

    Mortgage Rates 14th January.png

  5. Good afternoon @carlosdici My first thought is that you need have to remember that the minimum equity/deposit for a BTL would be 25%, so by taking the additional borrowing you would be increasing your existing home up to circa 90-95% LTV, which means that you would need to reduce this mortgage down again when converting the property into a BTL in the future. If you would like to talk through your options in detail, to determine the best route for yourself, then I would be happy to arrange a conversation with you. Please do reach out if you still require some advice. Best
  6. Good afternoon Ally, There are short term products available with no early repayment charges, which you could use if you are only modernising/updating the property...but the majority of lenders do not allowed works to be carried out to the property during the term of the mortgage, which is why people will utilise bridging/development finance whilst the works are carried out. If you would like to talk through your options in more detail, then I would be happy to arrange a conversation. I regularly work with financing refurbishment projects, development sites, etc. Best regards
  7. Good afternoon @devine999 I hope you are well. I noticed nobody has responded to your post yet, and if you are still looking for some advice then I would be happy to arrange a conversation with you to go through your points. The company I work for has access to all of the lenders in the marketplace and we specialise in complex property finance (Bridging, Development, Commercial, High Net Worth etc.) Thanks and I look forward to speaking in the near future. Best regards Nathan Cole
  8. Good afternoon @arjunb I hope you are well. I regularly work with bridging/development finance and would be happy to arrange a discussion if you require some advice. Please feel free to reach out and we can arrange a time to speak. Best regards Nathan Cole
  9. Happy New Year!

    As we are now entering 2021, I thought I would provide an update on the current mortgage market...

    At a glance: 

    • Brexit deal leads to a surge in enquiries from overseas buyers 

    • Big rush expected as buyers look to beat the SDLT deadline… but will they make it through? 

    • With Bitcoin at a record high will more lenders start accepting it as a form of deposit capital? 

    Brexit deal leads to a surge in enquiries from overseas buyers 

    After what feels like an eternity a Brexit deal was finally agreed and is now in action. Whether the deal was good or bad is not particularly relevant in this context, what it does bring is certainty and this has seemingly led to a surge in enquiries overseas buyers, both expats and foreign nationals looking to purchase UK property and thus requiring finance.  

    • From the 1st April 2021 overseas buyers will be subject to an additional 2% SDLT on top of the 3% additional homes surcharge and thus purchasers will want to complete to make savings in this regard.  

    • Whilst certainty is a driver in any economy, the economic repercussions of Brexit alongside the Covid pandemic are likely to hit the housing market which has remained entirely unscathed of late.  

    Big rush expected as buyers look to beat the SDLT deadline… but will they make it through? 

    The Treasury had stated that there will not be any extension to the SLDT holiday, and thus those buyers looking to make savings need to get their skates on. As we have discussed before all parts of the property purchase and sales process are under pressure, from solicitors to lenders and thus the process is taking far longer than usual. We suspect there will be a huge demand in the coming weeks, depending on whether a more stringent lockdown is brought in or not, and we will likely see many buyers missing the deadline.  

    • With the deadline approaching, it is likely many people will miss it and thus if they cannot find or borrow the extra money for the Stamp Duty the transaction is at risk of falling through. With prices already inflated and expected to fall following the end of this holiday could we see buyers hold out in the first quarter of this year to see how the market responds? We suspect now, Tier 4 and the potential for a third even stricter lockdown will likely further entrench the trend for people looking to upsize and benefit from more space. 

    • Despite the Treasury’s statement, given this government penchant for U-turns that could very much mean the opposite and the SDLT holiday is extended until the summer at the least.  

    With Bitcoin at a record high will more lenders start accepting it as a form of deposit capital? 

    Bitcoin has recently surpassed the $30,000 mark and appears to continue to climb as investor seek to diversify and institutional investors look to capitalise on the potential gains in the crypto markets. So, what does this mean for those who hold enough Bitcoin to use as a deposit for a house? Part of  

    Bitcoin’s appeal is that it exists outside of the mainstream, but this is precisely why it is also difficult to use with purchases that require scrutiny such as property transactions. It has historically been linked to nefarious activities due to its difficulty in tracking transactions and the fact you do not need a bank account with the usual verifications to hold the currency and thus lenders are wary of it, and thus there are only a handful that will accept Bitcoin (once sold to pounds of course) as a means of a deposit, but this does include some mainstream names. 

    • We suspect more lenders will begin to accept Bitcoin and potentially other crypto assets as they become increasingly mainstream and given the upward trend in the price may even develop products that utilise this capital growth.  

    • Some investors also expect to be able to use profits from these investments as income, however this is not possible either like with many other investments. 

    Best mortgage buys for the week  

    We have seen falls in the 3 and 5-year fixed rates of 0.04% and 0.02% respectively over the Christmas break and all other rates and the lenders offering them have remained static. 

    As it stands it is important to remember that these rates are only available at low-LTVs and on remortgages for the most part, and significantly higher rates if a purchase. For instance, the difference between the best 2-year tracker for remortgage and home mover is 0.3%... 

    It is important to note that lenders across the board have changed their lending criteria, so to get an accurate picture of what is possible in your specific circumstances, please contact us and one of our expert consultants will be more than happy to assist you. 

    image.png.981fda482fa5b579708152577f97c094.png 

  10. An interesting week in the mortgage market, with the war on rates now beginning as confidence returns to the market... 

    The war on rates begins now confidence returns to the market  

    While rates are very low for some mortgage types, these are reserved for the lowest risk borrowers, in other words those with large deposits or large amounts of equity and the ability to borrow at lower income multiples. However, with the return of mainstream lenders to the 90% market, it was only a matter of time before competition on rates ensued and there is now a downward trend in this part of the market, with major lenders such as Nationwide and TSB beginning to make cuts, we expect others to follow as lender pitch for these premium rates before they fall. 

    • Currently, despite these cuts, the cost of borrowing at this level remains high (>3%), but it has been falling fast so far. We would suggest that providing there are no major shocks to the economy or housing market, rates will continue to fall, but it will take a while to reach pre-pandemic levels as before the return of 90%, lenders were simply not lending in this bracket anticipating a significant fall in prices and now they are anticipating less of a dramatic fall and more an adjustment so to speak and are in effect pricing for a 95% LTV mortgage. 
    • This change is also linked to a change in demand in the market, leading to lenders having to make these cuts to attract customers and increase the affordability of their products. 
    • The best rate available currently from a mainstream lender is 3.24% and we believe we will see sub-3% in the near future, however for this to happen 80 and 85% rates will likely need to reduce too which we haven’t seen on a large scale yet. 

    Why we believe London property will boom in the New Year  

    There has been a paradigm shift in the property market this year and the home has become, amongst other things, an office, school, and the base for leisure activities… all of which led to people asking big questions about where they live and whether it fulfils their needs. In a lot of cases people answered that question with an emphatic no, and the purchase market has since boomed, helped by the SDLT holiday. This left several people, including us, wondering if cities like London would change in the long term as we saw many clients buying in the countryside to increase their access to space. This has now slowed down, and it was possibly the case that this just pushed moves that were already on the cards forward. The draw of cities is the nexus of labour, social and cultural factors and people have missed out a great deal on the latter two this past year. With the advent of the vaccine and a slow return to normality we believe we will see London property boom as people want to be close to the action again and while the countryside will work for some people it will not for others… 

    • We have already seen an increase in enquiries in London property this past few weeks and a significant fall in people looking to move out, including less let-to-buy mortgages and the like. 
    • Do not just take our word for it, Savills, and Knight Frank both predict London property will increase in value by 12.7% and 15% respectively between now and 2024. 
    • Not all London property is created equally and houses/flats with gardens in central areas (zone 1 and 2) will command an even greater premium.  
    • With people still likely to work from home, not wanting to get public transport and a drive to encourage people to get out of their cars and cycle or walk, we think the biggest gains will be made in Zone 2 and Zone 3 where people can easily navigate the city and access all it has to offer…once it is open… 
    • Regardless of Brexit, London is still a major global city, offering some of the world best culture and entertainment and lifestyle and thus will remain highly attractive to national and international buyers alike. 

    Best mortgage buys for the week  

    While we have seen competition pushing rates downwards at higher LTVs, at best buy level this week we have only seen an increase in the 2-year fixed rate mortgage now at 1.14%, otherwise all other rates remain static.  

    As it stands it is important to remember that these rates are only available at low-LTVs and on remortgages for the most partand significantly higher rates if a purchase. For instance, the difference between the best 2-year tracker for remortgage and home mover is 0.3%... 

    It is important to note that lenders across the board have changed their lending criteria, so in order to give you an accurate picture of what is possible in your specific circumstances, please contact us and one of our expert consultants will be more than happy to assist you. 

     

    image.png

  11. Good afternoon, Welcome to the forum! I regularly work with limited company buy to let applications and would be happy to provide you with some guidance if required. Please feel free to reach out if you are still in need. Best regards Nathan Cole
  12. Good afternoon Mike, It is possible to get an interest only mortgage on a residential property, but the criteria surrounding this varies from lender to lender. As an example, there are usually requirements surrounding income and equity within property. Please do let me know if you would like to discuss this in more detail though, happy to talk you through the options. Best regards Nathan Cole
  13. Good morning Niall, Apologies, Property Hub has an extremely small storage limit on their inbox and I had not realised this was full! Hopefully they will increase this one day and also setup a notification for a full inbox. I have managed to clear some space now, so please feel free to send me a message if you would like to speak. I am always happy to help. Best regards Nathan Cole
  14. Thank you your messages Ollie. Friday works well, I have replied to your private message with my contact details. Best regards Nathan Cole
  15. Hi @oli-t Welcome to the forum! I regularly work with LTD company applications, ranging from first-time buyers to portfolio landlords. I'm happy to speak if you require a bit of advice...please feel free to send me a message and we can arrange a suitable time to speak. Best regards Nathan Cole
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