Commercial Mortgage and Development Finance Lenders open for business

Thanks Mark. I tried my own business banker, great bloke but the door remained firmly shut. I have thought about approaching other banks in the manner you suggest  and I may now do this. If all else fails I will probably just let it ride. It does yield 12% so cant complain too much and it is a safety net I guess. Its a nice problem to have so now that I have had my moan i will knuckle down and decide on a way forward. Cheers

From what you have told me Jonathan it's a very doable deal. It's a possibility that Barclays people in your area have simply been told "don't do deals in the Private Rented sector". It happens. Don't take that lying down, shop around, move your banking, you might even get a shock when Barclays realise they are likely to lose your custom. I've seen it many, many times where banks do a u-turn at the 11th hour and offer a better deal than their competitors are offering just to retain customers. They don't like former loyal clients telling everybody they've moved away from them and 'bigging up' their competition. I'm pretty sure that from the list I've provided and the basis I've suggested you present your deal you will attract the funding you are looking for if you decide to go for it.

Right you spurred me into action now! I`ve put this on the back burner for far too long.  I will make some calls tomorrow and let you know how I get on. Thanks 🙂 

I think if a highly successful LL such as Johnathan is struggling to obtain finance for his perfectly viable business model;  what hope is there for us ordinary mortals!?
The banks are pathetic.
What about those rip off loan companies like Ocean Finance, might they be a solution!?
Are they going to start selling apples and pears as they don't seem to be willing to engage in their previous business model of lending money!?

That's the point of this article Paul, some banks are hungry for business but they dont make themselves very obvious, they prefer to deal with their known contacts than to get mobbed.

Are you saying that their known contacts are all they wish to deal with and are sufficient for their businesses.
How are new contacts to be generated if these lenders won't look at them.
Obviously they are playing so safe as to be ridiculous; but I suppose it's their money,  so they can lend it or not to whoever.
But surely they will want new business contacts, the old ones will die off or sell up, then what will the banks do?
It seems that even long established LL are struggling to source finance.
It just seems counter -intuitive to me that they won't even lend to these LL.

Morning all.  Just sent an e mail to my local property manager at Lloyds as a starter for 10. Will see what that turns up!

I think you are still missing the point Paul, the lenders that are open for business will lend to new landlords if the deals make sense and are presented properly by a trusted contact. Lenders are using their broker allies as filters so that they don't get overwhelmed with applications based on expectation levels of terms that were the accepted norm pre credit crunch but are a country mile away from what's avialable in the current market. A well presented application will match exactly what the lender is looking for in terms of LTV's etc. and will be presented with all the information required for a lender to make a decision. That takes skill and it's highly unlikely that a borrower will even know the right people to talk to, never mind how they would like a deal to be presented. Never more have commercial finance brokers been so necessary for businesses to raise funding.

Paul you have a enviable talent of  always seemingly painting an entirely different picture to the reality I see before me!  Either its me not explaining myself clearly or you who do not perhaps understand what is really not that a complex business model. Ive tried to explain it many times to you in other threads. I want you to be successful too.........  Overall  I`m not struggling to raise finance for myself as an individual nor for my business model. Ive just received a mortgage offer on another standard BTL purchase only this month.  I`m struggling with one particular property which represents approx 1% of my business. It wont bring me down if I do not secure the finance I seek.
. The one I was talking about is studio flat was bought more as a buy for my daughter leaving uni. It yields 12% in any case  so if  she doesnt want to live there i will just leave it in there as part of the portfolio earning me 10% more than it would in the bank anyway. I was kinda aware of the potential mortgage problems prior to purchase so I bought it cash as the BMV price and location was irresistable to my needs at the time and I needed to move quick to secure the deal. I did not and do not need to raise finance on it but it would be nice if I could. My business model is not affected by what happens to it. I appreciate this is a fortunate position to be in and I`ve worked hard to get into that position

But you are right to highlight what is in effect a point about cash purchases. If this was perhaps a first investment purchase for someone and they bought cash hoping to maybe refurb and then pull out their cash  6 mths down the line and repeat the exercise  it is imperative that they do all the necessary DD they can BEFORE hand to ensure that .....a) their personally financial position means they could raise a BTL mortgage and also that...... b)  the property ITSELF fits the criteria that lenders consider suitable for a mortgage.  If not they could become unstuck with all their eggs in one basket.  This studios small sq footage, low value etc means it  falls down on several of the criteria that mainstream lenders require so maybe would not be I would suggest be the best 1st time purchase for a novice investor. All investors circumstances are different though so best seek individual expert advice for your own situation