Over the course of the next two years or so, there are going to be some losers in the property market; those who have to sell up fast, particularly Buy to Let investors who have over “geared” their portfolios, cannot re-mortgage away from a high charging standard variable rate and are forced to sell of part portfolio’s to reduce monthly outlay. However, business is business, and wherever there are losers, there will also be winners!
We have recently be seeing a huge number of these properties coming onto the market, under value, distressed and in need of some tender loving care.
A chance to steal!
We have managed to find a number of mortgage products that will allow a purchase of a structurally sound property, which needs, say a new bathroom, kitchen and decorating “make over”. Providing that the property has an existing usable bathroom and kitchen, however poor the condition, this product seems to fit.
Most ordinary Buy to let products would fail this type of purchase in a key area; rent. Buy to let lending criteria, states that the mortgage loan must be supported by rental coverage, say 125% of the interest only monthly cost.
The lenders surveyor, will state that due to condition, the property will not attract a tenant, therefore no rent, and the application will fail.
These special products are “one off” Buy to Let products, that do not use rental to support the loan, they use self certified personal income from all sources.
What more, whatever your exit strategy they work. If you want to take your profit and run, you can.
If you want to do the property up, and retain as a rental you can. The products are “portable”, which means that you can take them with you to your next project, simultaneously replacing them with a now rental based buy to let product on the re-furbed property.