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Archive for the ‘Lender News’ Category

Fleet Mortgages – More choice

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Fleet Mortgages has announced that they now accept Individuals moving properties to their SPV limited company, providing the purchase falls within its standard lending criteria and the existing owners of the property being directors and shareholders of the limited company.

Fleet Mortgages’ entire range of limited company products is now available for this type of transfer/purchase.

Please speak to your tax accountant first as there are many points to consider before you move any of your portfolio.

 

If you would like to access the competitive range of mortgage deals offered by Fleet Mortgages please call on 01565 654005 or use the form below.

The UK HMO market by Shawbrook Bank

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It has taken several months in talking to Shawbrook Bank to get the material for this report and it’s a must read for any HMO investors and those who are looking to get into the market. Feel free to contact me if you require advice on your next HMO mortgage

New HMO & Limited Company BTL Lender

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Today Precise Mortgages has brought out a new range of limited company and HMO buy to let products for the first time.

Starting from 4.09% the products are available up to a £3 million loan size and through Searchlight Finance an enhanced borrowing of 80% LTV can be secured through our semi exclusive products.

Highlights of these great new products include:

• Semi Exclusive 80% products
• Personal ownership to limited companies will be allowed with equity gifts and capital raising, and newly formed SPVs will also be permitted.
• HMO properties with up to 6 bedrooms accepted.
• HMO property purchases through a limited company considered.
• A competitive range of fixed and tracker rate products are available.
• The maximum age at application is 80 and the maximum term 30 years.
• Unlimited properties with other lenders and up to 10 properties to a maximum of £5m with Precise Mortgages will be accepted.

To access the HMO products you need to have owned at least 2 properties for 2 years. To see if you meet criteria contact us today.

Precise Mortgages

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Good to see Precise Mortgages will be entering into the HMO and limited company BTL market later this week. As a broker the existing HMO lenders I deal with need new competition so looking forward to seeing the rates from a lender who is very competitive.

Foundation Home Loans

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Foundation Home Loans has today announced plans to simplify its buy-to-let product range:

  • Limited Company and personal products at the same interest rate.
  • Minimum valuation now £75,000.
  • First Time Landlords accepted on Limited Company products.

Good news to see more competition. To see if you meet criteria please contact us.

Lenders using the same language

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It’s always been difficult to compare fees when lenders use different words for their costs. By early 2016 most lenders should have a “tariff of charges” in place that will be in a standard format. They will also be in the same order in their promotional literature.

This follows a Which? campaign and will make it easier to understand and compare.

Buy to Let Light Refurbishment Finance up to 80% LTV

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Refurbishment Finance is not for everyone as there is strict criteria but it does show there can be an alternative to bridging.

For a property that requires a level of light refurbishment which doesn’t involve any structural work or change in planning then it’s a very cost effective way of adding a property to your portfolio.

You have to be an existing property owner and with some lenders a landlord. The initial loan is based on the lower of the valuation or purchase price. The valuer also estimates a valuation and rent figure after the work has been completed and the final loan is based on these figures. The difference between the two loans is retained by the lender until the work has been satisfactory completed.

You do the work normally within three months and you need savings to cover the mortgage payments for that period. Once the work is finished the valuer reinspects and if all OK the retention is released.

The minimum property valuation is £100,000 and as with all lenders you need to be in receipt of income that is provable.

If you need to complete quickly or you need help with the refurbishment costs then bridging finance may be the answer.

Refurbishment BTL products

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Anytime I get asked for bridging I ask is there an alternative? If you don’t have to complete quickly and the property has a kitchen and bathroom there may be BTL refurbishment mortgages out there as an alternative.

It is provided in two amounts.  The lender will provide a loan of up to 80% of the lower of the purchase price or valuation. The valuer is provided with a detailed schedule of works and they provide an after works valuation along with a rental figure. The lender will base their end loan on the completed value and rent. The difference between the two is retained by the lender (retention).

The work is completed and the valuer does a re-inspection. If the after works valuation is confirmed then the retention is released to you.

If you are looking to convert a property into an HMO then with experience you have access to a specialist HMO refurbishment mortgage or you use cash or bridging finance.

Shawbrook HMO Refurbishment Product

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This product allows existing HMO landlords to purchase/refinance the property, complete the works and then release the additional capital value that you have created following the refurbishment without any further arrangement fees.
They will lend up to 75% of the after-works value with a retention to 75% of the current value/purchase price. The retention is released once works are completed and a new valuation is provided with confirmation that the property is tenanted.
You have the option of either a 3 or a 5 year term and can have this on an interest only basis or can choose a repayment  option over the term of the loan.
You can release the funds as and when the work is done, so no 6 month minimum. Also you have the security of having a longer term deal and not needing to refinance to access any increase in value.

BTL products we have access to

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We have direct access to lenders that will consider:

  • Limited Company applications
  • Single Freehold split into multi units
  • Multi Lets
  • HMOs of all sizes
  • Portfolio Finance
  • Student Tenants
  • DSS/LHA Tenants
  • Retail with flats above
  • Rental valuations
  • No minimum income
  • Limited Company applications
  • Pension and Trust applications
  • Professional landlords
  • Adverse credit
  • Ex Pat applications
  • Foreign Nationals

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Searchlight Finance Limited is registered in England and Wales No.07929050 Searchlight Finance Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fca.org.uk/register) under reference 743220. The FCA do not regulate Business Buy to Let Mortgages or most Commercial Mortgages and Bridging Finance. ICO Number Z3109319. Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

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