Tag Archives: bridging finance

Remember our background is in BuytoLet and Commercial finance Buy to Let News, Commercial Finance, Latest Articles

PartnersRemember our background is in BuytoLet and Commercial finance Mark, Mike and I met through the common background of BuytoLet and Commercial Finance. Over the years through The Money Centre and now Property118 we have literally helped 10s of thousands of Landlords, developers and investors start and grow their property businesses.

Unfortunately we are now old enough to have seen, done and bought the t-shirt for most things in the property finance industry including Mark and Mike being founder members of the NACFB (National Association of Commercial Finance Brokers) and working with Nationwide Building Society and Paragon Mortgages on the concept of Forward Buying Facilities.

We have been sharing our experiences and strategies for property finance as much as we can with readers, but there is always a time when you just need some help.

To start with we have our own BuytoLet mortgage sourcing system and calculator, which we designed ourselves and I keep updated. This will help you see how much you could borrow, what the costs would be and which are the most popular Lenders and Products.

We have a team of highly experienced NACFB member commercial finance Brokers who can advise you on and source the best Commercial, Development finance and BuytoLet deals.

If you need help with…

Buy to Let mortgages  : info@property118.com

Commercial Mortgages CLICK HERE

Development Finance CLICK HERE

Bridging Finance CLICK HERE

…. or guidance regarding property finance you can email us on : info@property118.com Call Property118 on: 01603 489118

Or contact me directly on npatterson@property118.com.


Shawbrook Bank – Definitely not for “brand new customers only” Commercial Finance, Latest Articles

Shawbrook Bank are now offering a 0.25% discount on the margin or a 0.25% discount in the arrangement fee for clients who have already been party to a completed loan with them.

This makes a very refreshing change from lenders who have traditionally only chased new customers with deals showing they realise the value in repeat business and loyal customers.

Big advantages they have over many other less specialist commercial lenders is their desire to lend with far less onerous stress testing compared to high street banks, Interest Only for commercial and BTL property and lending directly to Limited companies. I have been told many times by our own preferred brokers that they driven by common sense not bureaucracy looking for ways of saying yes to clients and not the often received “computer says no” answer from many lenders.

Shawbrook Bank lend on single investment units, portfolios, multi-units, HMO’s and student lets. They lend to both individuals and Ltd Co’s and do not limit the amount of properties that the client can own or the business activities of the limited company.

However they are not able to offer any direct customer advice or sales, and only accept business from intermediary brokers registered to their panel.

Along with their residential investment products they offer interest only mortgages up to 75% LTV and have a range of Commercial Mortgages and short term loans.

Shawbrook commercial mortgages:

Cover both commercial investment properties and owner occupier trading businesses. Their products go up to 75% LTV and they also offer interest only loans which improves business Cash flow.

Short Term Finance

Shawbrook offer market leading rates on short term finance from 0.65% pm with no exit fees for between 6 and 18 months. This is ideal for auction purchases or a speedy purchase in order to secure a discount.

Short Term Light Refurbishment Finance

Shawbrook will lend up to 70% of the purchase price at 0.73% pm for between 3 and 12 months. This is suitable for clients looking to purchase, or refinance a residential or mixed use property quickly, undertake light refurbishment and then either sell on or hold for rental.

Medium Term Refurbishment Product

They will lend up to 70% of the after works value on an interest only basis. This product is for clients that are purchasing or refinancing property with the intention of completing minor refurbishment before letting the property out.

Obviously there are many other lenders that may be suitable in terms of criteria or lower costs and it this is not meant to be an advert to only use Shawbrook, but it is great to see a lender valuing its existing customers.

For assistance with any property finance requirements please, call us on 01603 489118 or email info@property118.com

If you would like to add your own requirements and search for the most popular available Buy to Let products please click hereShawbrook Bank


Record levels of Bridging Finance used by Landlords Buy to Let News, Commercial Finance, Latest Articles

In the last year Landlords borrowed £640 million on Bridging finance for the purposes of Buy to Let.

The use of Bridging Finance by Landlords has increased significantly in the last few months with a record total for July and August alone coming to £194 million, which is an estimated 36% of all bridging loans drawn down during the same period.

Figures supplied by the West One Bridging Index show that over the twelve months to August, industry gross bridging lending was £1.79bn. Compared to the previous twelve months, to August 2012, this represents annual growth of 26%.

Duncan Kreeger reporting on the index figures said “Landlords don’t just need mortgages. To expand portfolios, landlords are increasingly converting properties from other uses or from a dilapidated state.”

“The trouble is that standard mortgages were never really set up for that sort of loan, and the financial crisis has made lending criteria even stricter. For example, it’s practically impossible to get a high street mortgage on an ex-office – or a flat with no bathroom.

“Working alongside mainstream finance, short-term, secured loans increasingly bridge that gap. There are more and more landlords who want to grow their portfolios in more intelligent ways. Most vitally, this can actually expand the stock of available properties.”

If you need help with…bridging dinance

Buy to Let mortgages : info@property118.com

Commercial Mortgages CLICK HERE

Development Finance CLICK HERE

Bridging Finance CLICK HERE

…. or guidance regarding property finance you can email us on : info@property118.com

Call Property118 on: 01603 4891181


Switch to a BuytoLet mortgage within six months of purchase Commercial Finance, Landlord News, Latest Articles, Property News

New commercial finance facilities are offering the option to switch bridging finance to a  BuytoLet mortgage within the normal 6 months period other lenders require you to wait.

Borrowers are now able to bridge  70% of initial purchase price and then, within six months, switch to a BuytoLet remortgage based on 70% of the ” new, higher valuation figure.

The best available product is 0.69% per month for the bridging finance and then 4.7% plus Libor for the Buy to Let term facility.

 

Continue reading Switch to a BuytoLet mortgage within six months of purchase


Lending Criteria to Consider when Purchasing a Buy to Let Flat Commercial Finance, Landlord News, Latest Articles, Mortgage News, Property News

I had a question concerning this from our reader Dan today, but many Buy to Let investors I talk to are unprepared when looking to purchase a flat about considering what lenders will take as suitable security. Banks often have a surprisingly vast array of criteria that needs to be considered when lending.

I have compiled a list of questions a lender will ask and factors to consider when purchasing a flat. Although fairly in depth, I would not consider this exhaustive as after 15 years I know it is still possible to run across circumstances not seen before. Continue reading Lending Criteria to Consider when Purchasing a Buy to Let Flat


Newbie Investor would like to pick your brains Landlord News, Latest Articles, Property News

Newbie Investor would like to pick your brainsA Newbie Investor, who wishes to remain anonymous, has submitted the following and would really appreciate any help and guidance you GOOD Landlords and property people can offer.

“I’m 22 and a joiner/carpenter, I’ve done this since leaving school and love it but.  However, recently I was diagnosed with a condition which makes it very hard for me to work for others due to certain working conditions, stress etc. so I am now re-thinking my future and hoping to become a property developer/landlord Continue reading Newbie Investor would like to pick your brains


Development Finance Terms and Criteria update Commercial Finance, Landlord News, Latest Articles, Property News

Property Development FinanceWe are working with a range of dedicated Development finance lenders for our readers to get the best criteria terms and conditions available in the current market.

The Lenders are all long established and recognise that a good development project carried out by an experienced developer deserves consideration based on individual merit, rather than a “computer says no” attitude.

Below is an update of some of the latest examples of Development finance Terms and Criteria that are currently on offer:-

–          Residential and Commercial Development

–          New build or conversion

–          65% day 1 value, 100% build costs

–          Rates from 0.75% per month

–          No exit fees

–          Non-status loans/poor credit history

–          Interest rolled up into the loan or serviced

–          Arrangement fees added to the loan

–          Transparency – No early repayment penalties or hidden charges

–           Interest calculated only on the amounts drawn

–          Available for deals in England, Scotland and Wales

We have witnessed some quite amazing proposals from clients who have identified significant opportunities to either rescue a previously failed development project or to create their own vision of a project.  We also know that no two propositions are the same, each having their own unique profiles.

To discuss any commercial deal with our preferred commercial finance broker please use the relevant links below, call us on 01603 489118 or email info@property118.com

For Development finance please click here.

For Commercial mortgages please click here.

For Bridging finance please click here.

If you would like to add your own requirements and search for the most popular available Buy to Let products please click here

Buy to let auction property finance calculator


Development Finance Story of a very happy Property Developer Commercial Finance, Landlord News, Latest Articles, Property News

Property Development FinanceA Property118 reader has shared this story with us – he’s a Property Developer and was struggling to find the right Development finance.

Our reader first contacted us in the Spring of 2012. He was very frustrated at that time as he had an incredible opportunity to acquire a former riverside warehouse and convert it into modern flats. However, his bank was not interested in funding the project and neither were any other banks he approached unless he could put 50% of the money up himself. Continue reading Development Finance Story of a very happy Property Developer


Shawbrook Bank the common sense lender Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Property News

Our preferred commercial finance broker Cliff Verrill reports that Shawbrook Bank are driven by common sense not bureaucracy looking for ways of saying yes to clients and not the often received “computer says no” answer he gets from many lenders.

Shawbrook Bank lend on single investment units, portfolios, multi units, HMO’s and student lets. They lend to both individuals and Ltd Co’s and do not limit the amount of properties that the client can own or the business activities of the limited company.

All their arrangement fees have recently been reduced, along with interest rates in the past couple of weeks with further reductions announced today. Continue reading Shawbrook Bank the common sense lender


Shawbrook Bank slash arrangement fees and rates Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Property News

Shawbrook Bank specialists in commercial and BTL finance have reduced their arrangement fees to 1.70% a saving of 0.80%, and their rates by up to 0.60% across their term product range.

Big advantages Shawbrook have over many other commercial lenders is their desire to lend with far less onerous stress testing compared to high street banks, Interest Only for commercial and BTL property and lending directly to Limited companies.

Malcolm Jones of Brooklands commercial finance said ” Shawbrook are specialists in good sense not using a tick box appraoch and allow me direct access to discuss cases with underwriters. This is invaluable when trying to get cases through for clients and they also have excellent turn around times.” Continue reading Shawbrook Bank slash arrangement fees and rates


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