Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
Challenger bank, Aldermore Mortgages, entered the bridging finance market this year although they only offered their proposition via one distribution company.
Their USP’s include bridging rates from 0.64% but they also allow remortgages within 6 months on to their BTL product up to 80% LTV.
Why is this great news for Readers?
CASE STUDY EXAMPLES;
1) If a Client needs to buy a property quickly (eg contract race, or auction?) with an Aldermore bridge loan for £100,000 (75% Loan to Purchase Price), but let’s say the open market value is £120,000, the applicant could re-finance onto a BTL product after 1 month at the higher value (subject to the uplift being supported by the valuer). The bridge would be based on the actual purchase price, but the refinance after just one month would be on the ‘real market’ value.
2) Refurb case – if a Client buys a property with an Aldermore bridge loan for £100,000, and then he carries out say £10k of works to it and the new open market value is now agreed at £130,000, subject to a minimum 1 months ownership and uplift confirmed by valuer, the ‘bridge to let’ scenario would work here too.
…. and the uplifted value can possibly be mortgaged on to a new BTL deal at up to 80% LTV, too!!
* Rates starting from 0.64% per month
* Products available for residential investment, semi-commercial and commercial applications
* Lending amounts up to £3M for residential and £5m for commercial applications
* Flexible terms from 1 to 18 months
* Available with no exit fees and only 1 month’s minimum interest period
* Up to 80% LTV on BTL products
* Available in England and Wales
* Available for individuals and limited companies, including first time landlords.
This week’s news is that Aldermore have offered H D Consultants the privileged position of being appointed as a Preferred Broker – one of just a few in the whole of the UK.
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