Converting to a HMO? Use the right loan now not later!

This issue comes up time and time again; just today I took two identical calls on the same issue and it's a weekly occurrence otherwise. When you purchase a property to convert to a HMO you MUST use the correct loan to do the conversion. You CANNOT simply take out either a B2L mortgage, do the works then redeem it switching to a HMO mortgage OR take a HMO mortgage on the basis you intend to convert to a HMO. B2L mortgages are ...

Read More

Beware the headlines!

My heart regularly sinks when I read the finance news headlines as I envisage mortgage hopefuls getting excited about the latest offerings. Unfortunately as with most news stories the devil is in the detail and all too often things are not what they seem. Today's heart sinking headline is:- NATIONWIDE LAUNCHES MORTGAGE FOR UP TO 85 YEAR OLDS Sadly the key phrase comes in the sub paragraph:- "Nationwide’s move will mean a 60-year old can take out a 25-year mortgage, provided they could show how ...

Read More

Don't be an ostrich!

While I am totally opposed to the Tenant Tax (reduction of mortgage interest relief) it is so important that each investor does their own calculations. I spoke to a lovely lady today who has spent the last year in total despair about how she will survive in retirement due to the tax changes. She finally plucked up the courage to call me and tackle it head on fully expecting to have to remortgage, sell and restructure at great cost. Ten minutes in I ...

Read More

Base Rate CUT!

The Bank of England MPC have today cut rates to 0.25%, the first move in 7 years... and it's down! Unsurprisingly I have had many clients asking if they should wait to do their mortgage application or switch products if they are in progress. It doesn’t necessarily follow that rates will fall from lenders; lenders own balance sheets are more important. One of the usually cheapest lenders has been increasing rates of late as they have obviously filled their current quota and want to control ...

Read More

Buying your first home as a landlord has a sting in the tail…

I received this email from an existing client today; we assisted her last year by adding her onto the mortgage of a rental property owned by her mother to help mitigate inheritance tax in the future. "As you know I have been saving money towards a house for me which I want to get very soon. I was speaking to mum about this and she seems under the impression that it would be very difficult to get a mortgage for a ...

Read More

You couldn't pay me to buy these!

I thought I'd make a list of the 10 types of properties/locations I'd never buy again - at any price - as its something I'm often asked. In addition many of these are issues I've seen homebuyers and investors have mortgage issues over. I hope its helpful to newer investors and homebuyers if only to carry out a double take on your buying decisions or look more closely at a properties surroundings - I know when I bought some of these I ...

Read More

Are you being forced to use a certain mortgage broker?

I've seen and heard many times about investors (and homebuyers) being told they must use the estate agents or developers chosen or in-house mortgage broker before they'll put forward an offer. This has nothing to do with ensuring the sale completes and everything to do with them earning referral fees off each other. The main issue however is using another broker can cause real problems with your applications and credit profile if different brokers submit different information about you, possibly even leading ...

Read More

The most powerful property an investor can own is … an unencumbered one!

I received a delightful email recently from a lady who wrote:- “I read your blog a couple of years back re the importance of having an unencumbered property and after rethinking my long term strategy I have now achieved this with two properties , one of them being one we converted into 8 flats. This means I was able to retire from my full time business two months ago at the grand age of 50 so once again thank you.” - KM That makes ...

Read More

Serviced Accommodation and Holiday Let Financing 

Firstly don't even consider putting these on B2L mortgages! Lenders do check and I'm even aware of a lender actually booking one to catch the client and broker out post completion! They invariably breach most flat/apartment leases too and you don't want to cross a freeholder; you could lose your property very quickly. There are only a couple of lendersthat offer holiday let mortgages and they typically only lend on one property and don't lend to investors with more than a handful of properties. Should ...

Read More

Our persistence paid off...

We had a particularly difficult residential mortgage application with a host of issues. We did not give in and tackled one issue after another for two months until today when we were delighted to send the clients their mortgage offer. This was their reply:- "This is amazing news! Thank you both so much for your help and for sticking with it. I cannot recommend your services enough - your availability and speed of response is phenomenal. We owe you." In addition we provided the clients with ...

Read More

How to get a speedy mortgage offer...

Here are the Top Five things that we find delay mortgage applications, ensure you tick these off and your mortgage application will go through much quicker and easier:- 1. Middle names; this unbelievably simple thing probably causes more delays than anything. Leaving off your middle name from your documentation, fact find or application can cause all sorts of delays later. Should your offer have been issued without a middle name for example and then your solicitor tells the lender you have ...

Read More

Attention Property Developers - 100% Finance for land and build!

I have access to 100% funding on a JV basis. Will fund land and works. All interest and fees rolled in to the profit split. Typically 60/40 in developers favour. GDV target of £1.5 – £10m. Residential in England and Wales, minority commercial element considered. Only input from developer is valuation costs and broker fees. Get in touch if interested. ...

Read More

How a Utility Bill can spell disaster for your mortgage!

More and more utility companies are reporting to credit reference agencies and I'm seeing an increasing number of clients getting caught by missed payments. Most people know to stay on top of mortgage and credit payments but loads of people think it's no harm to pay your utility bills late but these can have just as bad an affect on your credit file. In a recent case we got the client a mortgage but at 2.5% higher than had they not made ...

Read More

Commercial Lender Requirements

I find investors who are used to doing buy to let mortgages keel over and die when they see the document requirements for the commercial lenders. Indeed the 'I'll go commercial' phrase oft touted believing it to be the easy route is a complete myth! As such I thought it would be useful to post a list of the documents the commercial lenders typically request so you can be prepared and move things along quicker. Added to which it is invariably obtaining ...

Read More

Not keeping an eye on your credit file can be costly!

One of my clients thought they had perfect credit and indeed we had arranged numerous mortgages but they got declined out of the blue. Turned out to be a mistake by NPower. Once it was all sorted the mortgage rate originally chosen had risen and will now cost them £4K more over a 5 year period. More lenders report to Experian and Equifax however we did have a client with a CCJ that only showed on Call Credit! Use Check My File to ...

Read More