Is Property Finance Available? This is the first of a series of articles looking at the availability of finance and how to access it in today’s market by Malcolm Jones and Cliff Verrill of Brooklands Commercial Finance.
Lenders have come in for a lot of criticism, some of it deservedly so. However, in realigning their strategies so that they don’t repeat earlier mistakes, they are undergoing a difficult balancing act. On the one hand they have learnt lessons in respect of riskier lending propositions and have rightly curbed activities in these areas and some have pulled out of them altogether. On the other hand, the regulators have imposed stricter controls on bank activities. While the government is saying that banks must lend more, the Basel III accord requires banks to hold more capital to support their lending activities. It also introduced new regulatory requirements on bank liquidity and bank leverage. As a consequence, there are fewer funds to lend as the banks manage their balance sheets to conform to the new regulation. Continue reading Don’t bash the banks
Firstly with this being a milestone edition we have to thank you, our readers, for your valued and continued support. We invite your feedback at the bottom of this newsletter to ensure we continue to bring you the news you want to read.
Mary Latham looks at what the EPC changes mean to landlords, whilst Ben Reeve-Lewis sorts the rogues from the ridiculous and Julie Ford explores buy to let as the only possible option for first time buyers.
Continue reading Property118 Newsletter – our 100th edition!
Buy to let investors looking for money to close deals pushed loan values for short term bridging lenders up 110% to £911 million last year.
Bridging firm West One claims mainstream banks and building societies cannot cope with demand for buy to let finance, which is forcing borrowers to look to other sources of finance.
The buoyant buy to let sector has carried bridging lenders on the crest of a wave – with borrowing expecting to breach the £1 billion barrier in 2013.
Not only was the amount borrowed up last year, but the number of loans surged by 62%, compared with 2010, said the lender.
Average loan-to-value increased from 44% in 2010 to 47%, while average interest rates dropped to 1.41% at the end of 2011 from 1.64% a year earlier. Continue reading Buy to let frenzy leads to 110% rise in bridging finance
… an unencumbered one.
Should finances allow, I commonly suggest that investors obtain or keep an unencumbered property (no loan of mortgage secured on it) as quickly as possible as it’s an incredibly powerful tool to have at your disposal and here’s why.
Firstly it’s always there to fall back on; no matter how low lenders reduce LTVs you’ll nearly always be able to raise cash on it in an emergency. You never know when you may need some quick cash and if your portfolio is geared up and lenders move the goal posts you may find yourself unable to lay your hands on some urgently needed cash. This may be for the deal of a lifetime, it may be to help a friend or relative or it may be for an unexpected bill! Continue reading The Most Powerful Property an Investor Can Own Is…
There has been lots of talk of rogue traders and corrupt, so-called professionals in our industry, especially on the internet forums. What was needed was a platform to allow landlords and their agents to sort the wheat from the chaff. Continue reading Tis the season of goodwill – Landlord’s Log
EU rules that aim to tighten up mortgage lending may have an unforeseen impact on buy to let.
The draft EU mortgage directive covers all mortgages for residential property and sees no difference between buying as a home or buy to let.
The main issue for lenders is the directive makes them more responsible for showing a borrower can afford a loan. Continue reading EU mortgage rules could trap buy to let lenders
Lisa Orme is an experienced property developer, investor and mortgage broker and specialises in property and financial services for new and established property investors. Lisa’s understanding of The Mortgage Works Refurbish Mortgage facility is highly regarded on Property Forums which is why we have asked her to provide some further insight into the mechanics of the scheme. Continue reading Refurb Mortgages. The Property Investors Dream!
It was 1992, we were at the tail of the property crash of the late 80’s and early 90’s. I was still cutting my teeth in the market of providing commercial finance broking facilities to property investors. The phrase buy to let would not be invented for another four years and the internet was in its infancy. Property prices had fallen by 30% and interest rates had soared to 15%.
Continue reading The history of No Money Down and Instant Remortgages since 1992