Bridging

Covid Chaos

 

Covid Chaos - Are you ready

 

 

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Covid chaos.

In these unprecedented times, engaging with an experienced Authorized and Regulated Independent finance broker has never been more important. My 27 years of finance experience will often be the difference between a potentially successful outcome, or as I have often seen, failure and disappointment when a customer opts to directly use an online application with a Company of which they know nothing about.

Over the last couple of weeks, we have seen Covid chaos, with many lenders stopping lending altogether, often a combination of volumes of existing customers seeking payment holidays causing internal cashflow issues, plus their own funding lines of credit having more stringent covenants imposed. Others have seen their funding dry-up as private investors withdraw their support, or, the threat of not being able to enable Securitization.

All is not lost, however – there are still many positives in the Personal, Business and Buy-To-Let finance market, with the caveat that if you think you want it, then ask now, whilst terms remain favourable.

So, just what is available during this Covid chaos?

 

First Charge Mortgages:First Charge
Estate Agents – Closed.
Surveyors and Valuers – Pretty much closed.
Removal firms – Closed.
Therefore, the logical conclusion is that the property market has become totally stagnant apart from re-mortgages, re-finance, debt-consolidation, product transfers and those seeking a new lender to replace their existing expensive Standard Variable Rates, some of which are still in the 6 to 8 percent ranges, despite the recent Bank of England Base Rate cuts to just 0.1 percent.
Yes, underwriting has become ever-more cautious, yes, more property equity is needed, but yes, many options and solutions remain available, although more hoops of fire to jump through.

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

Secured Loans:Second Charge
Second charge lenders are still lending, with a desktop or drive-by valuation available for loans up to £200,000 and maximum LTV’s of 80%. Higher limits are possible but at a premium, with tightened underwriting. In certain areas, some surveyors are willing to visit properties and guarantee there is no risk to you, the applicants. Additionally, work and employment circumstances will be looked at both sympathetically and sensibly. A loan is often ideal for the consolidation of escalating unsecured debt into a more manageable payment, particularly if a remortgage, further advance or unsecured loan is inappropriate or unavailable.

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

Bridging Loans:Bridging Finance
Fact – We are about to see a vast reduction in the number of lenders operating in this market, and full-status lending criteria may become bordering upon almost impossible to meet, with only a select few being able to access funding. There is a strong probability that lenders will want to see a higher degree of equity available.
However, non-status loans remain available, meaning that you need not have a perfect credit history behind you in order to achieve your objective.

“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

Buy-To-let:Buy-to-Let
I have not seen these levels of lender attrition and fall-out since the crash of 2008. Knowing which lenders will still be around once the crisis is over is something I have continually monitored and reviewed, building experience and data upon, and calculating likely responses – lenders are a business, they are not immune to what is happening globally. My stance is very easy to explain, never ever, ever go for cheapest, go for what works and who can deliver. It is also helpful during these times to consider lenders who offer desktop and automated valuations, removing the requirement of a surveyor visiting the property.

 

If you think that you may need finance for whatever reason, either Personal, Business, Buy-to-Let, or Debt Consolidation, then please act now whilst channels are open, you can thank me later.

And as always if you need to talk, discuss, enquire or whatever, do give me a call – I’m here to help.

May I wish you, and your families, personal safety during these uncertain Covid-19 times.

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Want more?You may wish to read this Article too – If you want it, do it now

And if you are a Business, you may wish to read this – Stay Safe

 

 

 

Let us say “Yes, we can help” – Covid Chaos

Office Telephone: 01379 644061

Office Mobile:  Call, SMS, Text, Whatsapp, BBM or Viber, 07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

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“For all your Purchase, Remortgage and BTL needs, Fixed Price Conveyancing is available. Click here for your personal illustration 24/7″

 

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Cheaper than bridging

Cheaper Than Bridging

Cheaper than bridging

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Do you ever need short-term finance? If so, there is a fair chance that bridging will immediately spring to mind.
However, a loan may be a lot cheaper than bridging, and massive savings can be made with the correct approach.

Many bridging loans don’t complete – often because the benefits are not great enough to outweigh the costs – it just doesn’t make financial sense.
But a term loan with no early repayment charges could deliver a better result at far lower costs, which would make the whole project viable.

Here’s a recent example – The client saved a massive £10,000 over a 12 month period:
When considering a £150,000 second charge bridge the borrower saved over £10,000 by taking a term loan, and, unlike bridging finance,  it didn’t put them under pressure to refinance after a year.
In this case, the money was needed to complete and sell a development, but the loan was secured on the borrowers’ main residence. Consequently, rather than being forced to refinance, the term loan gave the borrower the required cash flow to roll straight over into the next project without paying another set of fees and costs.
Yes, bridging finance can often happen marginally faster as there is no burden of proving affordability – and there may be no monthly payments to service – But where affordability is not an issue, the interest costs can be more than halved, the need to find an exit is removed, and the costs of refinancing disappear.

On a Regulated term loan, the process is broadly the same but without any involvement by the borrowers’ solicitors, which can so often hold matters up for quite a while – It’s also cheaper than bridging.

So, next time you are thinking of a bridging loan, let me also explore the second charge term options for you.
Remember, second charges can be used for business purpose, tax or for heavy refurbishments – a low-cost second charge facility with the option to settle, or overpay without penalty, could make good sense for you.

Let us say “Yes, we can help” – Cheaper than bridging

Office Telephone: 01379 644061

Office Mobile:  SMS, Text, Whatsapp, BBM or Viber,  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

For your no-obligation quote, click HERE…

Return to Homepage HERE

 

larger loans accessible

Larger Loans Accessible

Larger loans accessible

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Larger loans are becoming more accessible this year and I am hearing about a bigger take-up, as more people realize the benefits of these, and how they may help them.
Loans from £100,000 to £200,000 are more common; here are some recent large loan scenarios where you may consider a Second Charge loan:

£200,000 – For business investment
A client wanted to buy a share of his current company. This would increase his income through dividends and he wanted a lender to use the extra income within the affordability calculation.

£150,000 – Refurbishment – No kitchen or bathroom
This client was considering a bridging loan to bring the property up to mortgageable standards and intended to move in and then refinance.
However, a term lender agreed to take on the case which removed the need for an expensive bridging loan, also saving unnecessary fees. The client also got a far lower interest rate and didn’t have the pressure of exiting the bridge, a win-win situation.

£97,000 – Full consolidation
This client had a combination of credit cards and expensive loans which had built up over the years.
They could afford to make minimum payments but not much more, so the balance was hardly reducing.
A full consolidation loan reduced the outgoings by £1600 per month and immediately started eating into the balance outstanding.
With the ability to overpay, the clients were in a position to make further capital reductions when it suited them.

£110,000 – To pay a tax bill
It’s that time of year where many people start to worry and struggle… HMRC do not take prisoners, there are no excuses allowed when they need their payments. A large loan may provide a very worthwhile breathing space.

These larger loans are more accessible than previously and although deemed as Regulated, they come under a different set of rules when compared to regular mortgages, therefore have underwriting advantages.

I am here to support you and your needs, feel free to speak to me directly or use online contact as below.

Let us say “Yes, we can help” – Larger loans accessible now

Office Telephone: 01379 644061

Office Mobile:  Call, SMS, Text, Whatsapp or Viber,  07951 238527

THINK CAREFULLY BEFORE SECURING ANY LOAN AGAINST YOUR HOME

For your no-obligation quote, click HERE…

Return to Homepage HERE

For Buildings and Contents Insurance, Click HERE