General (main property discussion here) - Help with mortgage, difficult circumstances.

I would be grateful if anyone could help me. I would like to purchase an investment property I have seen, one in London at 60k with a 10% yield or one in Yorkshire I have seen at 12% 30k. Preferably I would like to purchase the London one but my problems are as follows my age 20, my income low (trainee but in a professional job) and the London flat is not within the 3.5 multiple although does equate with the rent covering their requirement of 125%, it is also ex council. I do not have much to but down but have read that it is perfectly legal to obtain a 95% ltv first time buyers mortgage and then tell the bank I intend to let the property and they then charge a fee of £50 -100 per year.

I just want to note as well that considering the above, i i have very little outgoings as i still live with parents etc.

Alex is your man for that.

check out

www.mortgage-network.co.uk

Remember to tell him Frank sent you :)

there are a few guys advertising on this forum. i haven't taken out a mortgage recently, but i'm trying cms http://www.landlordtrader.co.uk/the_chelsea_mortgage_shop.html. ask around, you can't get too much advice.

John

frank,

see you are getting some referrals. shouldn't they be passed to landlordtrader :) ?

like the innovation though.

tom

Thanks for the info. Keep'em comming.

lee,

60k in London. where?

also it is hard to get mortgages for as little as £30k and at such low value props you tend to find that there is minimal economies of scale i.e. costs associtaed with each purchase are relatively high relative to the property.

tom

If you want to build a BTL property portfolio of properties in the region of £30k - £40k with a view to quickly refurbishing (decorate, new kitchen, new bathroom etc) to achieve a market value of say £50k then I may be able to help depending on your circumstances.

I can arrange finance to build a property portfolio via a facility where you can pool the properties and the equity in them.

Initial purchase at 80% LTV and then drawdown against the increased value (80% LTV new value) for your next property or properties.

Although not as cheap as financing single properties because of the low values, you can build a portfolio relatively quickly without the hassle of say bridging and then arranging longer term finance or starting from scratch each time. Different rates and T&C's will apply depending on which lender is the most appropriate.

Once you have reached your optimum portfolio size you can remortgage one or more properties at the lowest rate possible.

You will need cash and experience for this type of facility and a business plan / strategy document to include a simple cash flow analysis, but you can finance multiple properties in the £30k-£40k area to build your portfolio.

If this is of interest please feel free to contact me via the web site initially outlining your strategy

regards Mark Dalton

http://www.ebslfinance.co.uk

p.s. the facility can be arranged for higher value properties too!

chelsea mortgages are giving away 20% of their broker fees which is neat. http://www.landlordtrader.co.uk/the_chelsea_mortgage_shop.html

tom

Thankyou for the info there Mark and although i would like to adopt that stratgey i work full time and live in London, so for the moment i would only be looking at almost ready to let properties or maybe just a giving them a lick of paint at the most. It is something i would like to consider for the future though.