11:45 AM, 15th September 2014, About 7 years ago
85% LTV, low rates and fees AND positive cashflow on new BTL purchases?
Yes it’s true, and it’s available NOW!
The eagerly awaited collaboration between a market leading BTL mortgage provider and the UK’s only provider of BTL equity finance has now been launched – AT LAST!!!
The resultant product allows landlords to purchase properties with a 15% deposit and pay interest only on a mortgage for just 65% of the purchase price for the next 10 years, and no monthly payments whatsoever on the remaining 20% of borrowed money. Imagine what that can do for cashflow!
The product only available to landlords with a portfolio of 5 or more properties.
How it works ….
YOU put in a deposit of 15% of the purchase price.
The mortgage lender provides a 70% LTV mortgage – interest only or repayment and at very competitive rates 🙂
You keep 100% of the rent to pay the mortgage interest and other costs relating to the property.
The equity financier provides the remaining 15% of the purchase price in return for 30% of the capital appreciation in 10 years time or when the property is sold, whichever is earlier. No payments are made to the equity financier until the loan is redeemed.
This is a fantastic deal for cashflow and also a superb way to protect yourself against risks associated with interest rate hikes when gearing up at higher levels.
Just think about it like this; you put in 15% of the capital and get 70% of the capital appreciation and 100% of any rental profit. The equity financier puts in 15% of the capital (the same as you) but only gets 30% of the capital appreciation and 0% of the rental profit. It’s a no brainer!
Low yielding properties stack up – even in London
As there are no payments on the equity loan the maximum lending based upon on rental income applies only to the mortgage element of your borrowing. Therefore, with this product it is much easier to make lower yielding properties stack up, even in London!
Exclusivity and confidentiality
At Property118 we know who both the lender and the equity financier are but we are sworn to secrecy as this is very much a pilot project. Nevertheless, I can give you my personal assurance that both the lender and the equity provider are big names in the buy to let market.
Obviously we want to make some money out of this too so we are charging a fee of for introductions to our panel of professional advisers for advice on this product. By charging for the introductions we, and the advisers we will be referring you to, recognise that only serious enquirers will progress matters. This is a good way to ensure that our advisers are not bogged down answering questions from time wasters and also provides a very a good reason for our recommended advisers to prioritise our referrals.
Our fee for arranging an introduction to a professional adviser, who will visit you to provide face to face advice if that is required, is £200, payable to Innovative Landlord Solutions LLP (the legal owner of Property118.com) either by credit/debit card or via PayPal. This fee is waived for clients of our Consultancy Service.
We have built a forecasting model which allows you to input all the variables you like into a Microsoft Excel spreadsheet and then compare this method of funding to taking conventional mortgages alone. The difference in profits over 10 years can be staggering, even after factoring in the shared appreciation. We are providing this forecasting model exclusively to people who use the referral service to our recommended professional advisers.
To be amongst the first to have access to this truly remarkable method of funding BTL purchases please complete the form below.
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