When you’re buying property as an investment you need capital to put down a deposit – and then it’s locked into your property for six months or more, until you can remortgage.
With this approach you’ll be lucky to manage to add two properties a year to your portfolio, unless you have a very big nest egg. The do you want to lock your capital into a mortgage? You don’t have to, there are creative financial packages specially developed for property investors.
Buy-to-let lenders like their clients to have a nice secure full-time job earning a minimum of £25,000 a year and have their own cash for at least a 25% deposit. If you have too many properties it can make them nervous in case you leave your secure job to become a full-time investor.
They don’t like people who want to remortgage their property after six months when the property has been refurbished and is now worth a lot more.
Serious property investors need to take a different approach to BTL mortgages to really make progress.
Since the flexible mortgage products were withdrawn from the market in 2008 ‘no money down’ strategies are really describing a method of concealing the true purchase procedure from the lender. This is fraud and any legitimate investor or financing company will have nothing to do with it.
However, there are creative means of putting together finance packages that are entirely legal and don’t put the lender, the purchaser or the property at risk. Using bridging finance intelligently gives you much more flexibility – and the potential to make MUCH bigger profits without tying up your capital.
To be successful in bridging finance you need an experienced bridging lender and a solicitor who understands bridging finance and can complete transactions in days, rather than months.
Positive Property Finance has a wide range of investors and will match you up with the right one for your property deal. We can also introduce you to solicitors who understand bridging finance and will get things moving quickly. Give us a call on 01206 586586.