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Found 296 results

  1. I'm looking at purchasing properties using the BRR model, but I will want to refinance them before the so called '6 month rule' of ownership. However, I would rather avoid buying the property using 100% cash through bridging finance if possible (due to the expensive nature of short-term finance). The podcast mentions Day 1 Remortgaging where you buy the property (typically BMV) and the surveyor agrees in principle what the house will be worth when refurbished to a high standard. Using numbers to illustrate: Purchase price: £90k Value once refurbished: £140k Refurb cost: £20k Other costs: £5k Realistically the only other alternative appears to be standard bridging finance or a bridge to let, with the latter looking quite similar to a day 1 remortgage. I will also be purchasing through a SPV ltd company - Can anyone who has actual experience with this shine some light for me please? - Which brokers have you used in the past for these deals? - Failing the above, which lenders understand these requirements? Thanks in advance!
  2. Hello My parents currently have a BTL property, value of £375-400k with no mortgage, yielding £15k gross per annum. They have pension income of approx. £40k on top of this. My wife and I have a plot of land at the side of our house, that could get PP quite easily for a 3 bed detached. Cost to build would be approx. £300k Could my parents get a mortgage on their BTL property for £300k for the build costs? The new build will be in the names of my wife and me. Possible? If so, which bank / broker should we use?
  3. Hello, I am currently in the process of purchasing my first buy-to-let under a limited company and Paragon (the mortgage provider that I am using) have requested that I have a "Certificate of Confirmation of Advice" provided by an independent solicitor which will end up costing £600 in legal fees (two hours work). I have brought this unexpected cost up with my mortgage broker and he assures me that this is a standard procedure for every mortgage under a private limited company and will have to be done whenever I move lender or for any future purchases, although I have personally never heard of it before. Is this something that anyone else has gone through? Many thanks for anyone that can give me some advice, it is greatly appreciated. Nick
  4. Hello all, I hope I've posted this question in the right place. An exciting opportunity has arisen for me to purchase a property with a friend. We currently rent a flat in London but my friend is fortunate enough to have a significant amount of money to invest. I am not quite so fortunate and would need to obtain a mortgage. We are both first time buyers and my questions are as follows.. Does this type of mortgage exist? Would the availability of 70% cash of the property value count towards the deposit of my mortgage or would I need have my own deposit ie 10% of the amount borrowed. Thanks for your time in advance.
  5. Hi, Please can you help I am in need of some advice around mortgages. I currently have a ltd company and I want to purchase a house that needs renovating with a friend, to sell on (not BTL). My friend doesnt have a ltd company but we will need a joint mortgage, is this possible? Thanks in advance Simon
  6. Hi, is there any bank or lender which will allow my parents to become a guarantor on my mortgage, using the property they own as security? the property is 100% freehold.
  7. Hello Hubbers! I hope everyone is safe and well in these weird times. I wanted to see what people thought about leverage, I know this is a bit of a random topic but I wanted to know where people's 'safe zones' are. In my opinion, being able to use the banks money to leverage up on an asset is one of the best things about property as an investment vehicle. What % LTV do you think is safe? I appreciate everyone has different risk tolerances, but it would be great to get an overall picture. I personally don't see an issue with leveraging up to 75% LTV, but would that make you nervous? Do you think that's leveraged too highly? Of course having a property unencumbered is risk free but when you're trying to build a portfolio, this, in my opinion is counterproductive. You sometimes hear about property horror stories when investors have leverages too highly and it all goes bang because of this, but how does that actually happen? The only way I could see this happening from poor money management, an increase in interest rates or empty properties, or perhaps a mix of all three! If you have a portfolio leveraged up to 75% and it's cash flowing nicely and you've got buffer, how can things go downhill so quickly? If you do all the correct DD on your properties and make sure they stay in positive cashflow even if rates get to 5-6%, where are your risks? This isn't really a representation of my own portfolio, more a conversation starter. I'd love to hear from someone that has lost it all from property, and if that's the case, how? (Providing you're comfortable sharing). Thanks for taking the time to read, I look forward to your replies! James
  8. Good day! With us all living in this day of heightened retrenchment risk. Does anyone know if BTL mortgage lenders will lend if your sole means of income is from rental property? Would love to hear of any real life examples. Surely some of those successful enough to have become full time investors still have a need for mortgages? Perhaps the only way is through other investors? I am looking/hoping to make the leap. Many thanks! Wes
  9. Sorry if this has been answered already, I couldn't find anything when I searched but perhaps I'm not searching correctly. Essentially, I'd like to know if the lender stress test of 145% is based on the gross rental income or net, i.e. before management fees and maintenance fees etc are deducted or after?
  10. Hi All, I'm looking for some advice if anyone can help me I currently own a BTL in Nottingham with 61% LTV. The deal I currently have is a 2.58% repayment mortgage until the 31-12-2023. To exit the current agreement I believe it’s between a £3000-£4000 exit fee given that I originally got the deal on a 5-year fixed. My goal however is to change to an interest only mortgage and I’m looking for some advice on whether this is first and foremost sensible and whether it makes sense financially to do so given what’s available in the market? Because of the corona virus, is there anyway I could have some bargaining power with my current lender and reduce the exit fee if I remortgage with them?If anyone knows any lenders or advisors or has personal experience that could help with this, I'd really appreciate your help. Stay safe everyone. Fabs
  11. Hi All, BLUF: Views on financing mixed use property welcome! We are in the middle of buying property number 3 in our limited company (company turns 1 year old in 2 weeks). So far so good, with 2 single lets running smoothly. The third is mixed use, with a 2 bed property with a shop on most of the ground floor. Purchase price is 95k and the yield is excellent. Tenant in situ upstairs, and tenant secured for retail unit on 6 month rolling agreement. Initial attempts at getting finance on the property have been very tricky, with lenders either not interested in such a small sum, or concerned about the lack of trading time for the business; all of which I understand. In the interim, we have decided to cash buy as we don't want to loose out on what we think is a good deal, but are keen to secure finance fairly soon so we can look for number 4 in the next 3-12 months. Anyone had similar issues with mixed use property? Any tips welcome, along with places to go for finance at a reasonable rate. yours Jim
  12. Hello, I'm currently selling house and the completion was set to this week. The Buyers solicitor requested the money from lender, but the lender declined mortgage application because buyer has just been furloughed. Is there any lender who still gives mortgage to furloughed people? Should I wait until buyer is put back onto full time? Thanks,
  13. Good Morning, I am a UK citizen but currently living in the United Arab Emirates. I would like to buy a property in the UK to rent out. I currently am renting my UK home and have paid off my mortgage. I am unsure whether it would be better for me to remortgage my current house to use funds to buy another property or to take a separate buy to let mortgage. I am looking for a mortgage advisor who specialises in expat mortgages. Can anyone offer me any recommendations? many thanks Sarah
  14. Dear Hubbers, I am in need of guidance on specialist mortgages and risk - very grateful if you could take 5 mins to look at my 3x questions below. Situation Reserved an offplan city centre flat (reservation paid, no deposit paid, not exchanged contracts). B2L mortgage declined by three separate high street mortgage providers. Only 1 of 3 valuers actually conducted a survey. Reasons for rejection centred on: Development being 'too investor led; not enough owner-occupiers' Ground rent being greater than 0.1% of sales price, and Undisclosed issues with cladding Notes on the development: In 2017 the developer and lead contractor went into administration. New developer and builder brought in with strong track record. Previous developer provided a rent guarantee which turned off many lenders. No rent guarantee is provided by the current developer. Ground rent 0.14% of purchase price Cladding is Alsecco brick slip system Investor to owner occupier ratio is 60:40 Mortgage brokers have advised me: High street lenders have low risk appetite and their valuers are likely to have ruled out this development back in 2017 due to the rent guarantee and also that it is an investor led project. Their evaluations are yet to have been updated. The valuers' feedback is likely relative generic e.g. cladding. Specialist mortgage lenders are likely to consider the development and will charge higher fees (extra c£1,500) and higher interest ( extra c1.4%pa). Individual investors would use a specialist lender if they believed a development was purchased at discount and has strong chance of capital growth - thus they are willing to pay higher mortgage costs in order to realise that discount and growth. Developer / my solicitor unable to provide details of mortgage providers for other investors in the development. I can't help but sense that if I purchase this property I am shooting myself in the foot: I have to pay a lot more for the specialist mortgage; run the risk of having to get another expensive remortgage; and the risk of struggling to sell the property as I'm limited to cash buyers or investors with specialist mortgages. Why would I purchase it and pay more mortgage costs when I could just purchase a resale property in the knowledge that I can get a high street mortgage at lower rate and also have lower risks of remortgage/resale? Both the resale and this offplan property are subject to the same house price growth and rental growth rates of that given area. ...And yet individual investors must be using specialist mortgages and seeing financial success - the property investment firms cannot exist solely on cash buyers. What am I missing? Where do I go from here? 1. Continue with purchase + use specialist mortgage lender + risk remortgage and resale. 2. Cancel purchase + look for another offplan 3. Cancel purchase + buy a resale Questions: 1. What will the mortgage availability be like at remortgage, say after 2 years? I assume I would be limited to the same specialist mortgages as I still have the same constraints: > 0.1% ground rent, high number of investors and cladding. And therefore accept higher interest rates. 2. Is my resale market, in say 5-8 years, much smaller if I have taken a specialist mortgage? I assume, as the same mortgage constraints will stand in 5-8 years, that my only resale market will be investors: cash buyers or investors with specialist mortgages. As a result, I will not be able to demand a higher price for the unit, which seems a pretty illogical exit strategy. 3. Why would I use a specialist mortgage, as an individual investor not under a limited company, if it will cost me more and I run the risk of not getting a remortgage or resale? The only rationale I have for doing this would be if I was confident that the unit was purchased at discount and that it was worth paying higher costs to be able to realise this discount in a future sale. However I'd still have the ground rent and cladding issues - if they are indeed the real issues or just generic issues given. A lot of detail there - thank you for bearing with. Look forward to hearing your advice.
  15. Hi, I am about to purchase my first property (First time buyer) in the location that is perfect for my needs, and due to many developments on going in the area including a new underground station, I expect the value of the property to increase over time. I have just received mortgage offer (2 year fixed rate) and the deal is nearly ready to be sealed, but with all this economic uncertainty, I am unsure if this is the right time to go ahead with the purchase. There are several factors for my hesitation: 1. Due to the market crash, my investments are in it's negatives for the first time. I would need to take money out of this investment in order to pay for the deposit. If I take out money now, I will be losing about 2000 GBP. 2. I was hoping to refurbish the property before I move in. Currently there are no workers who is willing to carry out the work. 3. The Bank of England has cut base interest rate to 0.1%. My mortgage offer has come through just before this change in interest rate. I wonder if there would be better rates available with this new interest rate? On the other hand, my job is secure and I don't expect corona virus to impact me financially too much. Can someone give any informed advice/thoughts on how the property/mortgage market would be like in the next few months? Many thanks,
  16. Hi all, Boris said earlier today he expects the Covid-19 Pandemic to last around 12 weeks. I understand it’s early days yet but what (if any) effect do you think it will have on the property sell market? I’m in the process of purchasing a property to move into, renovate over a period of 12-18 months and then sell on. Also I’m purchasing through a 2Year fixed rate mortgage. The application was submitted the day before the BBR fell to 0.25%. Is it worth re-applying/seeing what (cheaper?) products are now available or will lenders be more restrictive of who they lend to? Thanks in advance for any advice! Rich
  17. Hi All, This is my first time posting on Property Hub and I am looking for some specific advice regarding mortgage brokers and buy-to-let mortgages and would appreciate any support out there. I am not a new property investor/developer and have been buying small commercial lock ups, shops and garages for use in a old business that I have now sold. All of these properties were bought with cash since 2006. I know feel it's the right time to move back into residential property investment, so have started to sell off some of these commercial assets as I have wound up the old business. I currently have £150,000 in cash to invest and a further £250,000 in commercial property that will be sold over the next two years to further fund my new residential purchases. I have a good credit history and no debt apart from my own home mortgage that is only 25% of the current value. The problem I feel I may come across is that whilst I am relatively cash and asset rich at the moment I have no provable income. I have spoken with two brokers last week over the phone and received to very different answers to my queries. On hearing the above the first broker (who doesn't charge a fee) told me that the only way I would be able to get a mortgage is to start a new SPV. Once done I would be able to access mortgages for my first residential investments. He explained that because I was asset/cash rich, but had no provable income this was the only option open to me because SPV mortgages did not require any proof of income. The second broker I spoke to (who will charge me a £1200.00 fee) gave completely different advice. Her view on hearing my story was to tell me that there was absolutely no need to start a new SPV. Her opinion was that opening an SPV would only complicate the matter, with extra paperwork and legalities that could be avoided by using a traditional Buy-to-let mortgage. Her view was that she could find me a mortgage without any issues, providing the information I have told her is correct. Please could someone advise me on who is giving the best advice and value? and is a £1200.00 broker fee for a standard buy to let mortgage a good price or not? I live in South Wales, have just requested a Property Hub Goals setting call and have found a property I would like to offer on. I have also opened the SPV in case I need to use it. Thank you in advance Alex
  18. Hi Hubbers First post- happy to be an official Hubber :-) Can anyone recommend any good independant BTL mortgage advisors in Scotland? Thanks Duncan
  19. Hello all! My wife and I are hoping for a bit of advice around starting our property investment journey, and we want to run a current plan past you all for opinions and advice.... We currently own a house in Hertfordshire, in a London commuter town. We want to use capital in this property to raise cash for a buy to let property. However, we’re currently locked into a fixed term repayment mortgage until December 2022, and as of 03/03/2020, the redemption fee is £9,196. The house has been valued at £450,000 and the outstanding mortgage amount is £306,586 (£315,782 to exit the agreement with redemption fees included). Our initial thinking was just to wait until the fixed term ends in 2 years 7 months, and remortgage without any fees. However, we’re now thinking about taking the £9k hit on the redemption fee, in order to start our property investment journey sooner. Rental income and capital growth should hopefully make this worth it over the 2+ year period we would otherwise be sitting around waiting on. Current thinking: · Re-mortgage our current home to an interest only mortgage with consent to let in place. Ideally at 80% LTV, so £90k down as equity. · 2nd BTL mortgage based on £140,000 purchase price using 75% LTV product (circa £44,000 left over from re-mortgage of home…..£35,000 down as deposit, around £9k left for stamp duty, other fees, etc). The reason for moving onto an interest only for our current house, with consent to let in place, is because within the next year or so, we want to leave our jobs to a relatively low paying job, but it provides accommodation with all bills included - so we would want to rent ours out. Thanks for your time reading.
  20. Hi, it is carlo here from south london. I am new to property hub and still getting my head around on how much is out there. I am also new to property investment/trading. Now, i have a house and quite a bit of equity built with it. I need a independent mortgage broker to provide some scenario on my situation so that i can plan my property investment. The aim is to have the broker on board for ongoing investment when all kicks off Thank you Carlo
  21. Hi there! Just wanted to know whether we are missing something obvious!? Or if someone else is asking this same question? With BTL mortgage borrowing rates at 3.4% in a Limited Company, how is leveraging favourable inside a Ltd company? Compared to 1.4% rates on a personal BTL mortgage? Mortgage rates are significantly different (higher) for Ltd Companies so affects the ability to build a portfolio with basic leveraging? Any insight / thoughts / strategies / lender recommendations would be fabulous! Thank you
  22. Hello, Hope this finds you all well. I attended a talk yesterday on Mortgages. One topic which was touched on was Credit Ratings. The gentleman who was leading the presentation was a mortgage broker himself and informed us that credit ratings are important to gaining a mortgage. He explained that having a no credit rating whatsoever is just as bad as a bad one as the mortgage companies need to see that you can pay back any payments. It was suggested that getting a credit card to gain a good rate would be something to think about. I am 22 and I believe that I do not have a credit rate other than my phone bill. My question is, will it be beneficial for me to get a credit card in order to boost my credit rate. Someone also brought up about certain credit cards which are specifically good for this. Many thanks in advance. Kind regards, Alex
  23. If a parent wanted to sell a property to their child for half of the value of the property, helping them to get onto the property ladder, would the equity in the house be enough to count as a deposit for the mortgage? For example, if the property is valued at £300k but the parent sells to the child for £150k, this leaves £150k positive equity in the house. Does this mean that the child would not need to put a cash deposit down? Thanks in advance for all advice!
  24. Hi everyone, I’m yet to make my first investment. I’ve studied and am at the “jump in or you never will” stage. All this is to say; this is my first post here so apologies in advance if I ask silly questions. Starting with the following: I was discussing my 2020 plans with my accountant recently and he sneered at me when I said I intended to take out capital repayment mortgages on buy-to-let properties. In his words “99% of property investors pay the interest only”. I don’t intend to draw money from my property business for 7-10 years at least. So I thought it would be more beneficial to ‘own’ as much of the properties as possible after point. I’d love to hear from investors who are interest only, and those who are capital repayment, to understand if I need to rethink my plans before I dive in. Thanks in advance - Rich.
  25. Hi all, My stepbrother and I currently jointly own one buy to let property which is slowly (!) building up funds for the next deposit. We are looking at finance for our next property and there's a possibility of an investment from a family member. (They would get a percentage back on their investment each year and at the end of the 5 year fix we would buy them out, returning their original investment). We have looked at setting up the investment as a charge on the property so as to protect the investors money but lenders aren't prepared to lend on this basis. The alternative is 'gifting' the investment but that doesn't protect the investor's money. Are there any other options?? Many thanks, Alex.