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How healthy is your mind-set?

mindset Sep 30, 2018

Success in anything is all down to mind-set.  You know that saying ‘you get what you expect’, your mind-set is responsible for where you are now in your property journey.  If that’s not where you want to be then something has to change.  That means adapting your mind-set.

Your mind-set is driven by the beliefs you have about how things are.  A belief that most investors have is that you need to put down a 25% deposit and get a mortgage for the rest.  Is that actually true or is it just your perception of the truth?  The reality is that it’s only true for BTL mortgages, not for other types of finance.

Other types of finance will lend in excess of 75% of purchase price, so the belief that you have to have a 25% deposit is a limiting belief.  That’s stopping you buying properties that you could buy right now if you knew how.

A more empowering belief – 25% of purchase price is the norm, but not the only way to purchase.  There are ways to put down less.

‘I can’t get funding to buy property because my credit record is less than perfect’

Everyone has blips in their life that can have affected their credit, but the history says that you’ve got a poor credit record.  One late payment on a small loan or a credit card in the past can result in a lender declining to give you a mortgage.

There is a hierarchy for the ‘seriousness’ of payments in relation to how it affects your ability to get funding.

  • Missed payment – minor misdemeanour
  • Defaults – a bit more serious
  • CCJs – fairly serious, but not a barrier for the right lender and the right property
  • IVA – tougher, but not a total bar in some circumstances
  • Bankruptcy – providing this has been discharged for a reasonable time, it doesn’t mean you can’t get funding.

Obviously as you move up the level of seriousness, the choice of bridging lenders shrinks substantially, but bridgers are generally willing to lend to people with less than perfect credit.  Bridging lenders have a different mind-set to mortgage lenders.

‘I can’t get a mortgage or finance because my income is low’

The benchmark to get full access to many BTL lenders is an annual income of £25K or more – this income must be unrelated to renting out any property that you own, as these lenders will disregard this as a source of acceptable income (although if you rent-to-rent, they will probably classify you as a letting agent business, although as a sole trader you’ll need to be able to demonstrate £25K net profit for 1-3 years minimum).

The burden of providing proof of income is on you and, if you don’t have a means of providing this your BTL mortgage application will get a big, fat ‘NO’.

You may have assumed that because you can’t get a mortgage, you can’t buy property.  That’s a limiting belief because there are lenders who will lend to you.  That means you can buy property.

the secret is to know how to find these lenders and I teach all about mind-set, strategies for financing property and answer your questions on the Recycle Your Cash Property Finance Masterclass.

You can learn more here:


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