THE QUESTION
I've seen a lot of adverts recently for Equity Release, does anyone know how it really works?

THE ANSWER

Equity release has two meanings.

For the general public it refers to a specific type of mortgage available only to the elderly who are asset rich, but cash poor.  In effect it means that they can borrow against their property and use the cash to enhance their lifestyle or...

The underwriting standards for buy-to-let lenders now mean much more rigorous background checks for potential borrowers – particularly ‘portfolio landlords’.  The rules state:

“A landlord will be considered to be a Portfolio landlord where they have four or more mortgaged buy to let properties across all lenders in aggregate” 

In reality this will depend...

Most property investors start out using the mortgage system to finance their property purchases, but then your capital is trapped – at least for a while – and your ability to buy more properties is limited.  But not if you’re a Ninja Investor!

Ninja Property Investors have developed a mind-set that isn’t limited to only buying properties through a mortgage. ...

THE QUESTION

At a recent property meet the subject of using an unencumbered property as security for Bridgers came up.  Is it true that you can get 100% finance by using the house you’re buying and your unencumbered house as security to get the deposit money and refurb costs from the bridging?

THE ANSWER

Yes, it is perfectly possible to achieve this using bridging finance.  In...

A Ninja is a person skilled in ninjutsu, a Japanese martial art characterized by stealthy movement and camouflage.  So a Ninja investor is someone who buys property using stealthy movement and camouflage.

The keys to success are knowing things that others don’t and being able to do things that others can’t.  Match these with a positive mind-set and the willingness and...

When you’ve refurbed your property and are looking to remortgage, you have a challenge.  If you’ve bought within the last year or so, the lender’s valuer will be focused on the sum you paid for the property.

It doesn’t matter if you paid 30% less than the identical house up the road went for – they’re only interested in what you paid, not what the...

THE QUESTION

If we were purchasing a property for cash would it be possible to purchase using two bridging providers to provide 100% of the purchase price?

The first one would have the first charge and the second would provide bridging on a second charge basis (such as Precise) and both forwarded amounts would be combined to form a 100% cash purchase.

The intension here isn't to deceive either...

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? ...

Are you looking out for unmortgageable properties with problems that you can solve? They’re lucrative investments if you know how to leverage them – and with smart financing, using bridging they are great opportunities.

These are all great for intelligent investors, but mortgage lenders won’t touch them.

1. A derelict property
2. Properties where part of the building is in severe...

THE QUESTION

If I buy a property for cash through a Limited Company, does the 6 month rule regarding remortgaging apply?

THE ANSWER

Some lenders choose to apply a 6 month restriction, whilst others don’t.  Actually, it isn’t really a rule, just a restriction, but it has commonly become known as ‘the six month rule’.

For those lenders that apply it, the point to get...