Getting a mortgage if you have bad credit profile can be very difficult in the current climate however at Niche Advice we specialise in sourcing the right mortgage for you and that includes if you have been bankrupt, CCJs, defaults and people who have come out of IVAs.

In my research for this article on ‘Get a mortgage with bad credit, I looked on Google and too my dismay most of the information presented on websites on bad credit mortgages was outdated plus most of the leading ranked pages were forums with incorrect information being passed on. You only have to take a look at the date of the posting to know that the mortgage world was a much more receptive arena two to three years ago with bad credit or adverse mortgage but things have moved on greatly.

I’m happy to set the record straight and will tell you that since the credit crunch obtaining a mortgage whilst having an historic bankruptcy, default, CCJs or IVAs in the background takes care and attention but can still by achieved. In fact, the good news is at Niche Advice helps mortgage customers with bad credit almost on a daily basis and I am more then happy to talk to you personally to tell you where you stand with obtaining a mortgage based on the level of adverse credit you may have on you credit file.

If you had impaired credit in the pass I’m sure by now you are no stranger to credit agencies such as Experian, CallCredit and Equifax; so one of the first things you should do is get your credit report which will demonstrate all your passed history.

Just to get you started here are a few questions that I regularly get asked by clients who complete the enquiry form on the right hand side.

Frequently Asked Questions

Question 1:
Q: My bank has rejected my mortgage application due to adverse credit showing can I still get a mortgage?
A: Yes

Question 2:
Q: Can I get a mortgage if I have bad credit.
A: Yes. We have access to a number of Adverse mortgage lenders who are willing to lend to people with Bad Credit profile, lending criteria all depends on, level of deposit, stable employment, as well as credit history and the level of adverse.

Question 3
Q: I have been in an IVA in the past few years can you get me a mortgage?
A: Yes if the IVA is conducted satisfactorily. If the IVA has been settled it’s important that you maintained a good credit record since. Best thing to do is email over your credit file after making contact with us.

Question 4:
Q: How much deposit will I need for a bad credit mortgage mortgage?
A: The deposit level has a direct level on your success rate for a mortgage. The larger the deposit the better your chances are. As a rule of thumb I would say the minimum requirement is a 25% deposit but much dependants on your overall case and whether you are looking to buy in sole name or as a joint application with a partner who may have a good credit file. In some cases if you have up to 40% to 50% deposit we can get a mortgage straight away even if you have just been bankrupt or are in an IVA.

Question 5:
Q: I had some CCJs last year on my how does that affect my chances of getting a mortgage?
A: The size of the judgment, number of judgments, whether they have been satisfied, or registered correctly or in error all have a bearing on the acceptance. We have placed mortgages with CCJs of the size of nearly £20,000 but it depends on the rest of your circumstances.

Question 6:
Q: I had some late payments on credit cards and catalogues how does that affect my chances of getting a mortgage?
A: If you have missed more than one payment in the last 12 months it is going to difficult. If the level is higher but more historic than your chances of acceptance improve.

Question 7:
Q: What sort of mortgage rates can I expect for bankruptcy mortgage?
A: Typically, the initial rate will be 2% to 4% higher than standard rates to reflect the extra risk posed.

Question 8:
Q: What are your charges?
A: My fee is 1% on all complex mortgages. I only charge this once the mortgage has completed. This is uncommon as brokers tend to charge fees upfront or on Offer, personally I don’t think it’s a fair system to operate this way. So just to be clear if you don’t get your place I don’t get paid.

Question 9:
Q: What other fees to I need to budget for?
A:  i) Legal fees. This depends on whether the transaction is a purchase or remortgage. On an average case purchase it is anything from £650 to £1000.
ii) Valuation fees. Around £500 but this can depend from to lender to lender s some lenders like to earn more out of this for themselves. I will be able to give you the costs once we have quoted on a deal.
iii) Lenders admin fee. This can vary substantially. The variance depends on the type of adverse credit you have and which lender and product we choose. It could be anything from £999 to £3000 or indeed a percentage of the loan. Most lenders will allow you to add this to the loan to help your cash-flow but in doing so you will raise your overall monthly mortgage payments as interest will be charged. All details will be provided on the quote I will produce.

Question 10:
Q: What is the process of getting a bad credit mortgage?
A: i) Make an online enquiry by completing the form on the top right hand side of this page. I will then get in touch to ask for some more information about the case.
ii) Please supply an up-to-date credit file report. If you do know how to do this then let me know and I’ll provide guidance.
iii) I will email over information about the products, rates and fees. Once you’re confident you would like to go ahead:
· I’ll gather more information about yourself and ask fore supporting documents to help with the mortgage process such as pay-slips, bank statements and IDs to submit to the lender.
· The lender will assess the case and if happy will instruct valuation of the property.
· Upon successful valuation an offer is produced by the lender.
· Applicant will agree with the Offer and will commence the legal work.
· Properties will exchange and then subsequently complete.

For more information on how we can help you get a mortgage if you have had bad credit in the past, please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.

Mortgage with bad credit

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This means that first time buyers benefiting from a £700 discount on their normal £900 product fees position.

Product features:

• £450 for purchase & remortgage clients
• £200 for first time buyers
• A £99 booking fee also applies

The fee sale is available on all 5 year products - including 90% LTV and NewBuy options.

Take a look at some of the highlights below for purchase and remortgage:

• 3.99% (APR 4.2) 5 year fixed to 70% LTV
  £450 product fee / £200 for FTB’s
  £99 booking fee
• 4.29% (APR 4.3) 5 year fixed to 75% LTV
  £450 product fee / £200 for FTB’s
  £99 booking fee

APR based on a £150,000 repayment mortgage over a 25 year term.

My view

Personally I much prefer the way Nationwide processes mortgages. Their initial Decision-In-Principle is much more reliable than their competitors as they ask for supporting documents at the start of the process that way you know exactly where you stand. It also shortens the back-end mortgage application process.

I am also pleased at the news that this product is available on the recently announced NewBuy  scheme which we can also help with.

For more information on how we can help you get a competitive fixed rate mortghage please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.

Related posts:

1. First Time Buyer Mortgages
2. High Investment Returns – Fancy an 11% return per year?
3. Buy-to-let Mortgage Solution

For more infomration on our range of  mortgages please call us on 020 7993 2044 or simply complete the enquiry towards the top right hand side of this page.

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Although this article is titled “How to avoid inheritance tax” this is merely for marketing purposes and actual terminology is should be “How can you mitigate your Inheritance Tax liability (IHT)”, as strictly speaking trying to avoid tax is not legal, but trying to reduce your liability is perfectly within the Law, and is something we can certainly advise on and someone you could undoubtedly benefit from.

In the article below we provide practical solutions on the simple and effective ways to reduce your potential inheritance tax liability.

As unbelievable as it may seem you cannot give away property (footnote 1) to someone else and remove yourself from inheritance tax liability without adhering to a set of rules. Today I will comment on the ‘exempt’ transfers rather than the ‘potentially exempt’ transfer rules i.e. the certainties.

The main point of this article is to demonstrate how ‘gifting / transferring property’, as a concept, can reduce the overall value of your estate for inheritance tax purposes.

When people think of gifts for inheritance tax planning they normally automatically think of ‘gifts to family and tax’ but the reality is the beneficiary does not have to be a member of your family as you will discover as you read on.

When is a ‘gift’ a ‘gift for tax purposes?’

For tax purposes a ‘gift’ or ‘part gift’ must be just that, there cannot be a commercial transaction involved where consideration is received.

Once the property is gifted then the donor (footnote 2) can no longer receive any gratuitous benefit. For example, saying you are giving the residential home to a sibling and then continuing to live there. As another example that would not constitute a gift, would be giving away £15,000 as a deposit for your son to buy a car on the basis the donor will get the money back when the car is eventually sold.

Transfers between spouses and civil partners

In the case of marriage, transfers between spouses or civil partners, during life and death are exempt provided the donor and beneficiary are domiciled in the UK.

Annual IHT exemption can be used to reduce your IHT exposure

The donor can make a lifetime gift exempt from IHT up to a total of £3,000 in any one tax year. If the whole of the £3,000 is not used in any tax year, the balance can be carried forward to the next year.

For example, if Jayne transfers £1,500 in year one, she can therefore carry forward £1,500 and have a £4,500 exemption in year two.

Any unused balance is lost if it is not used in the next year i.e. if cannot be carried forward to year three.

Small Gifts to reduce your IHT bill

Any number of gifts up to £250 to different persons may be given in one tax year and are exempt from inheritance tax.

The gift has to be outright and cannot be a gift into a trust.

Importantly, it cannot be used as part of a larger gift. For example, if a person made a gift of £3,250 using the £3,000 annual exemption, the £250 exemption could not cover the excess amount over the £3,000.

Normal expenditure can significantly reduce your inheritance liability

This can potentially be the most valuable way of legitimately mitigating inheritance tax.

The IHT rules state the following:

• The lifetime transfer must have been made as part of the donor’s normal expenditure and
• It was made out of income; and
• After allowing for all transfers forming part of normal expenditure, the donor is left with sufficient income to maintain their usual standard of living

To clarify ‘normal expenditure’ has to be habitual or regular to count. The amount does not have to be a fixed amount to qualify as normal expenditure by must have some rationale / pattern to it. For example, a monthly amount based on the surplus to your requirements.

Gifts on marriage or civil partnership for IHT purposes

There are 4 ways gifts limits that apply in respect of a gift in consideration of marriage to those entering into a marriage or civil partnership:

• £5,000, if the donor is a parent of a party to the marriage
• £2,500, if the donor is a remote ancestor, e.g. grandparent, of a party to the marriage
• £2,500, if the donor is to be the bride or groom, and the gift is made to the other prospective spouse
• £1,000, if the donor is any other person

Gifts to children for their education and maintenance can reduce your IHT bill

There are certain payments for a child’s maintenance, education or training that are exempt from inheritance tax:

• The exemption only lasts until the tax year when the child becomes 18 years old, or ends full-time education, whichever is the later.
• Illegitimate, adopted and step-children are included (not grandchildren).
• A transfer for a dependent relative of the donor is exempt, if it constitutes reasonable provision for the relative’s care and maintenance.

Gifts for national benefit are outside of IHT

Certain gifts for the benefit of national interest and benefit are exempt. For example, gifts to museums, libraries, universities and the National Trust.

Also gifts of land to housing associations.

Gifts to charities and political parties are exempt from IHT

Gifts to UK charities and major national political parties are totally exempt.

The Government also offers a reduced IHT rate 36% (rather than 40%) where at least 10% of the net estate is left to charity. For clarity a person’s net estate is that which remains after deducting exemptions, reliefs and the nil rate band.

IHT Help for Heroes

The estates of members of the armed forces are free from inheritance tax should they die because of wounds received or diseases contracted whilst on active service.

To conclude, if you’re one of the thousands of people every month who search on google for answers on ‘How best to avoid inheritance tax’ fair play to you. However, a word of caution: please do not try and implement any strategy until you have sort professional help as inheritance tax mitigation is a highly complex subject and you easily and unwittingly fall foul of the law. Also the economy and law is dynamic and web information can become obsolete or tired very quickly.

Niche Advice are Independent Financial Advisers, and If you think you would benefit from current inheritance tax advice or planning, please reply to this email or complete the contact form on our website www.nicheadvice.co.uk

Footnotes
1: I will refer to ‘property’ throughout this article and to clarify I mean the collective of all possessions and assets and not just bricks and mortar.
2. I also will use the term ‘donor’ which means the person making the gift.

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Cheap Remortgage

An estimated 1.2m mortgage holders are about to receive a payment rise through increases to their Standard Variable Rate. The great news is with the help of Niche Advice this can be avoided. How so? Read on!

I’m pleased to announce I have access to one of the best remortgage products available in the UK for a long time. The product is from the specialist intermediary division of the Woolwich and it comes complete with a free valuation and free basic legal service so you can enjoy the rate reduction fully. It is directly targeted at people who are on lenders standard variable rates (SVRs), many of which have witnessed hikes in their mortgage payments in recent months, and the product enables a switch with minimum cost or fuss.

The table below (fig. 1) illustrates the potential savings that current SVR customers could make by switching to our 3.89% Great Escape 2 year fixed rate 70% LTV product over a two year period on based on a £200,000 repayment mortgage with a term of 25 years. And, depending on the lender the saving could be greater than £7,500.

Why not look at the table below to see what your lender is charging and whether you could benefit with our help.

Examples of lenders current Standard Variable Rates

Figure 1.

Correct as at 23 April 2012 and products can be withdrawn at anytime. Extract taken from source material provided by Woolwich.

The above table provides a general illustration of the potential savings (figures with a negative return do not provide potential savings). Please call us to arrange your own specific illustration based on your circumstances and status.

For more information on how we can help you Remortgage please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.

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Getting a mortgage after bankruptcy can be very difficult however at Niche Advice we specialise in sourcing the right mortgage for you and that includes if you have been bankrupt.

In my research for this article on ‘mortgages for bankrupts’, I looked on Google and too my surprise most of the information presented on websites on bankruptcy and mortgages was out of date. It could be that sadly those intermediaries have moved on from the industry during this economically tough time leaving their website displaying historic bankruptcy mortgage information for prosperity or they are or simply out of touch. Anyhow, I’m happy to set the record straight and will tell you directly that since the credit crunch obtaining a mortgage whilst having an historic bankruptcy in the background takes care and attention and is generally something that mainstream lenders with their limited funds try to shy away from.

In my dealings and discussions with clients who are ex-bankrupts the whole ordeal of going through the bankruptcy process is a life changing experience with so many obstacles to tackle along the way which undoubtedly changes them as a person. The mortgage lenders do not appreciate that in many instances that becoming bankrupt was the sensible thing to do at the time with decisive action taken to draw a line in the sand, and as such even when you have worked through the discharge period and managed to turn things around and get your life back on track. In fact the default mortgage industry position for lend to bankrupts is to lend after a minimum of 6 years since the discharge has been completed.

The good news is at Niche Advice we can help discharged bankrupts on much more favourable terms with bankruptcy mortgage lenders so why not give us a try?

Frequently Asked Questions

Question one: can I get a mortgage as an ex-bankrupt?

The answer is ‘yes’ you can, we have access to a number of bankruptcy mortgage lenders who are willing to lend to ex-bankrupts, lending criteria all depends on, level of deposit usually being 25% and over, employment statistics, as well as credit history after bankruptcy. I’m sure by now you are no stranger to credit companies such as Experian, CallCredit and Equifax credit agencies; one of the first things you should do is get your credit report which will demonstrate all your passed history.

Question two: how long after I’m discharged from bankruptcy  do I have to wait to get a mortgage?

You would need to be discharged for a minimum of one year to obtain a bankruptcy, with a clean credit file for at least that year, what I mean by this is that, no missed payments, late payments, arrears or defaults within the last 12 months.

Question three: How much deposit will I need for a bankruptcy mortgage?

The deposit level has a direct level on your success rate for a mortgage. The larger the deposit the better are your chances. As a rule of thumb I would say the minimum requirement is a 25% deposit but  it is also dependant on your overall case and whether you are looking to buy in sole name or as a joint application with a partner who may have a good credit file.

Question four: What sort of mortgage rates can I expect for bankruptcy mortgage?

Bankruptcy mortgage rates change almost on a daily basis. I produce a constant stream of mortgage applicants and as such I have managed to place ex-bankrupts with some of the top high street lenders as part of a bulk deal but if the position is more complex then the rates can be two or three percent higher. Again, it largely depends on the whole case, the loan to value and the applicant’s occupation and earnings now. If the rate is higher than the norm we will look to remortgage you away as soon as your credit profile will allow.  And, importantly all the terms will be provided before you commit.

Question five: what is the process of getting a bankruptcy mortgage?

·      Make an online enquiry by completing the form on the top right hand side of this page, I will then get in touch to ask for some more information about the case.

·      Please supply an up-to-date credit file report. If you do know how to do this then let me know and I’ll provide guidance.

·      I will email over information about the products, rates and fees. Once you’re confident you would like to go ahead:

·      I’ll gather more information about yourself and ask fore supporting documents to help with the mortgage process   such as pay-slips, bank statements and IDs to submit to the lender.

·      The bankruptcy lender will assess the case and if happy will instruct valuation of the property

·      Upon successful valuation an offer is produced by the lender.

·      Applicant will agree with the offer and will commence the legal work.

·      Properties will exchange and then subsequently complete.

For more information on how we can help ex-bankrupt applicants and source a lender who is willing to lend to them after being discharged, please contact us on 0207 993 2044 or alternatively complete the simple enquiry form on the top right hand side of this page.

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We deal with hundreds of mortgage enquires a month and I come across all sort of clients: the pushy client who thinks they know all the rates and criteria; the client who has trawled around dozens of lenders already before they reach me; the client who is also talking to multiple brokers and just wants to reassure themselves of who is the best; the client who has been with the same lender for their whole life and wants a change; people with adverse credit who can’t understand why they cant get finance; couples who I helped buy the first home who are sadly getting divorced; property developers who only look at 5 million plus property portfolios; and so on.

I would say seventy-five percent of my clients at some stage have approached a lender direct and have had a verbal or written approval from them or a broker.

So why are they still trawling around the internet or calling us to look at arranging finance?

When Is A Decision A Worthy One?

Well my point is that a ‘Decision in Principle’ from one lender might be quiet different in terms of surety of acceptance on full application to that of another. Some lenders just run the basic details though a computer to generate a score whereas others ask for supporting documents and physically look at the case. Some processes check affordability others do not. In short, having a Decision-In-Principle can give you a false sense of security and when the application is fully assessed a negative result will ensue. Often this ‘quick decision’ process is a thinly veiled sales ploy often used by estate agents and bank branch staff as they have limited mortgage product choice and need to hook the client in quickly.

For instance: obtaining a getting a decision from HSBC or Santander is relatively instant, conversely, Nationwide ask for more questions asked and documents up front. The Decision-In-Principle certificate will basically say the same thing on all three but I know that most of the underwriting has been done on the Nationwide case and therefore the decision is more reliable and the back-end mortgage application process will be shorter.

There are lenders that literally set their systems to accept nearly everything and when they get the application form, if they don’t like the look of it, they will ask for the impossible to be provided, leading to the case ultimately no where.

So where does that leave the client?

Well, as well as time lost, they might have agreed to paying valuation or booking fees, to get the estate agent off their backs, thinking that everything was going to be alright,

Don’t get me wrong all lenders are fully entitled to operate differently as it is a free market and the final mortgage Offer document is consistent across the industry in terms of its worth, it is just the run up to this document in the ‘Decision-in-Principle’ stage that there is great disparity and caution needs to be observed. Also, importantly the Offer is only available once a property has been decided on therefore does not allow you to shop around first.

Be particularly wary of instance decisions at the point of sale in an office or branch as it is likely to be a gimmick or well rehearsed sales pitch. We at Niche Advice will only make money on arranging your mortgage once the property sale has been fully completed. Furthermore, we are entirely independent so can access the lenders who provide full decisions to help you negotiate and search for properties that are affordable.

Related posts:

1. Why lenders are curbing interest-only Mortgages

Interest only mortgages are becoming a very complex area of home finance. Just a few months ago they were commonplace. All you were required to do was advise the lender of your repayment plan e.g. via saving, downsizing, inheritance or other means. Today it’s a totally different story.

With the Mortgage Market Review (MMR) poised to be implemented in the latter part of the year lenders find themselves scrambling to distance their association with perceived areas of lending risk such as ‘interest only’ mortgages. I share the view along with many other Commentators (and indeed many lenders behind closed doors) that this is another display of a ‘nanny state’ intervening and stifling consumer choice and freedom.

Virtually all of the clients I speak with are grown up to make their own decisions rather than be dictated to and placed in a ‘one-size fits all’ supposed consumer champion box. Every client is different and plans for retirement can be chalk and cheese. The lender’s are looking for certainty of repayment but life rarely works out like that. Anyone can loose their job for starters!

To make matters harder still Deposit accounts and Cash ISAs are amongst the most safest investments around but many lender’s are refusing to accept these as collateral for interest only loans due to the fact they are normally set up on an easy access basis. That’s right the lender’s believe the temptation to use the money for other things will distract you from repaying your mortgage. I disagree, I have been pleasantly surprised in this recession as to how quickly and prudently my clients have adapted to the harsh economy. They are not ‘carrying on regardless’ they are concentrated on doing the right thing and looking after their families. Therefore if they say they are earmarking money to clear debt why should this not be the case?

Similarly I have a many clients who plan to sell their buy-to-lets or are expecting to inherit the family home from their parents, and at which point they will use the proceeds to pay down their mortgage. It makes sense. Despite this being part of the fabric of their life-plan this would now be deemed by some lenders as ‘uncertain’ because the event might not happen. A little common sense and understanding would go a long way!

So what does it all mean for customers looking to take out a mortgage from a practical sense?

In short, depending on the level of your deposit you may be forced into repaying the capital of the loan within your monthly mortgage payment.

Lenders such as Santander, Woolwich, NatWest and Nationwide now insist on a deposit of between 25% to 50% in order to for you to have the freedom to repay the loan another way.

Being tied to a higher monthly payment will impact on your overall affordability and ultimately the level of which you can borrow at.

For example, you are five years into an investment bond that is going to yield enough to pay off your mortgage. You have therefore allocated part of your monthly budget for the bond. However, as you only have a small deposit for a property, the lenders will require you to repay the capital on the mortgage as you go as well. That’s right you are effectively, accounting for loan repayment twice, unless you cancel the bond mid-term which would undoubtedly result in you being penalised.

MMR is also suggesting that lender’s drill down to the nearest penny when calculating whether the customer can afford the mortgage now and in the future. In recent weeks we have seen lender’s ask for how much a client is likely to spend on Christmas presents each year and another building society, Leeds, succumb to the introduction of an affordability calculation away from the traditional method of income multiples, which has seemingly served them, and industry well. Rationale might suggest this is a good move yet I’m a great believer in the tried and tested, and surely it is not a question of whether income multiples work, they do and have done for many decades, it is just a question of making sure they do not deviate beyond a sensible level.

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1. Why lenders are curbing interest-only Mortgages

Short term loans for property entrepreneurs

Have you wanted access to substantial funds via a loan facility? May be to purchase a property, premises or land? And at the same time you want the autonomy to repay the loan quickly. Unlike mortgages, short term finance is designed to achieve just that, it is a facilitator, provides rapid funds, and enables customers to meet their finance objectives with out being heavily penalised for early repayment like you would be on a personal loan or mortgage.

Once the concept has been used we find our customers start to think differently, become entrepreneurial, and awaken to new opportunities that short term finance provides and use the facility time-and-time again. Interested on how bridging finance could change your lifestyle and make you successful? Then read on.

The opportunities are there to be grabbed with the use of short term finance

To realise a real bargain property purchase you need to arrange a loan secured on a property or across multiple properties or assets within a short time frame. That’s the only way you can complete with the professional landlords who actively seek to buy properties under value such as repossessions or fire sales, through private sales or auctions, with expert short term bridging finance.

Bridging finance is a complex area with many pitfalls but by using this valuable mechanism correctly we can help you become a property guru and provide you with a competitive edge to take on even the hardened of property professionals. How so? Well we have direct access the underwriters at the bridging lender houses that specialist in development finance from the whole of the market. We can also arrange a pre-agreed property funding line, which operates like an overdraft facility, allowing you to effectively write a cheque on the spot to purchase a property that takes your fancy. The vendor is obviously appreciative of a response of this order and this can be used to improve your negotiations to drive the property price still lower.

Once the property is purchased you may wish to do-it-up and sell it on or keep it and remortgage it to repay the short term loan and potentially release additional capital to expand your property portfolio still further.

We can provide full support and guidance on the whole process from arranging competitive short term property finance to the potential remortgage. With real property bargains you rarely get a second chance so it is important you have expert help and get it right first time.

For Short Term Loan Advice please complete our Contact Form and of course if  your enquiry is of a urgent nature please call me directly on T: 0207 9932044.

Point 1: Finance for properties investment, including unusual property types

Not all property is considered equal in the eyes of lenders. We access the whole of the market and therefore know through first-hand experiences the most suitable provider whatever the project entails, whether it is in finance a renovation, complete a land purchase or take the first steps into a new property investment project.

Bridging loans tend to be a lot more flexible than a mortgage when it comes to both commercial and residential properties and projects. With so many people trying to get into buy-to-let, it can be a great choice for you are already landlords, looking to become a landlord, or if you represent investors looking to build portfolios – and it’s one of the few options left for applicants looking to buy dilapidated properties for full renovation.

Point 2: Secure the property you want with a fast loan

Clients can face the agony of a waiting game when it comes to property purchases, and run the risk of losing out while other potential buyers gain interest in the property; particularly as the buy to let market gets increasingly popular.

But it doesn’t have to be like that. Bridging loans can be used to purchase a property quicker than traditional finance such as mortgages.

It’s a facility that works particularly well for those who don’t wish to miss key investment opportunities.

Point 3: Do you want to be a self-made property entrepreneur?

We admire those who’ve made it on their own. You are your boss, but finding funding to seize a short term business or property opportunity can often be difficult.

Many high street lenders have tightened criteria and procedures in recent years, meaning that traditional loans are not always available to fund a business opportunity.

Bridging finance from specialist lenders is different – it can work for both applicants with or without a good credit rating, and for commercial, semi-commercial or business loans.

So if you are self-employed, sole traders, partnerships or limited companies, you may be surprised at what’s available, even for the least likely clients.

Point 4: Short term funding for the renovation of a property

Thinking of purchasing a property to renovate and need finance? I’m sure you are excited by the prospect of the potential equity you can make.  You do however need to be aware that most mortgage providers will need the property to be habitable from day 1. That’s right have a working bathroom, kitchen and heating – home improvements which often are the difference between buying a renovation or a fully finished property.

A short term loan is the answer and we can oversee the whole process.

Point 5: Pre-agreed funding line for property purchase

If you thinking of buying at an auction you need to know that your finance is in place otherwise you could easily loose the property you want or unnecessary risk your deposit.

Point 6: Finance for Business expansion / Finance for Business opportunities

For today’s businesses, cash is king. If you don’t have the readies, you can’t take up the opportunities – it’s as simple as that.

But at the same time, those opportunities can crop up when least expected and, if finance isn’t to hand, they’ll slip away only to be snapped up by competitors.

It’s in these situations that bridging finance really comes into its own. When that once-in-a-lifetime chance presents itself, clients can get the right amount of money at the right time.

So if short-term liquidity’s an issue, businesses can still generate capital for acquisitions, stock purchases or the latest innovations, keeping them on top of their game and ahead of their rivals.

Point 7: Capital Injection for Business / Finance To Help With Cashflow / Fund A Management Buy Out

No business is without some unexpected hiccups and surprises along the way. You may need urgent finance for a sudden bill, tax demand or to satisfy a short term cash flow requirement.

Instead of re-mortgaging onto long term finance; we can help you take out a bridging loan to cover the short term need. A bridging loan can be provided as a second charge behind a mainstream mortgage to facilitate this.

Bridging finance is also ideal in a management buy out/buy in situation due to short time scales. It can be used in the interim period before traditional funding is put in place. With bridging finance from specialist lenders, your clients have quick solutions to short term problems.

Point 8: Second charge commercial bridging

Most businesses have their first charge with a high street bank, which can make access to extra funding difficult, as they generally don’t offer further advances on their long term business loans.

It is for these reasons you should be aware that second charge commercial bridging is an important and viable option. The loan can be secured against land or property, enabling you to take up opportunities where large sums of money need to be raised over a short period of time.

Tip 9: Debt consolidation for Businesses

Managing finances can be problematic, particularly when you have lots of commitments to pay a wide variety of costs. As debts start to pile up, a short term bridging loan can allow you to consolidate outstanding invoices to avoid such headaches.

Debt consolidation may take the form of a second charge commercial bridging loan, which can provide a business with the vital short term security, cash flow and time required to enable it to sort out its finances in the longer term.

This approach will also enable your business to preserve relationships with existing suppliers while restructuring its debts into one straightforward and structured payment arrangement.

The message is simple: short-term debts can be paid with a bridging loan making it easier to resolve and structure your finances in the long run.

Tip 10:  Finance your Business move

Relocating a business can be both stressful and costly – but it doesn’t need to be.  A bridging loan is the ideal finance for companies looking to relocate to new premises.

A short term bridging loan means that you can borrow the right amount of money to cover the duration of the move only.  The loan can also help with the associated costs of the move, in terms of hiring removal firms, setting up I.T or refurbishing the new premises.

This is where bridging finance is particularly beneficial as it can help ensure that you do not need to dip into company cash-flow to fund the move.

With a bridging loan, you can pay back the money when the move is complete and the company starts to reap the rewards for the relocation.

For Short Term Loan / Bridging Finance Advice please complete our Contact Form and of course if  your enquiry is of a urgent nature please call me directly on T: 0207 9932044.

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In the UK for a short time on a Visa and want a mortgage

If you have come to work in the UK and are on a Foreign National Visa you have probably felt disadvantaged when it comes to getting a mortgage. The good news is as we are situated in London so we are accustomed to arranging mortgages for applicants on visas and we specialise in Foreign National Mortgage Advice

Most lending institutions do not like to lend to mortgage applicants on Visas but as we specialist in complex mortgages we have set about to devise a number of solutions with our mortgage lender partners. We have expelled the virtues of Visa applicants and convinced their underwriters to recognise the quality of our mortgage support services for non-UK citizens.

In fact we have several mortgage avenues for applicants on a Tier 1 Visa or Tier 2 Visa including mortgages for those applicants with just a short time left on their current Visa. Yes, that’s right we can place mortgages for applicants with less than 3 months to run on their current Visa.

Sometimes it is not a question of whether the lender says they can help or not. It is simply in the way the information is presented in the most favourable light and this is where our first hand experience of successfully completing on many cases is paramount, as is our affiliation with the decision makers many who we know on a first name basis due to the volume of cases we supply. They trust that we will provide suitable applicants and therefore are happy to process our deals rather than view something as problematic put it to the bottom of the pile or reject them out of plain lethargy.

There are many types of Visas the most common is Tier 1 Visas which are granted to professionals such as doctors, dentists and accountants but we can also help Tier 2 Visa applicants. In recent months we have seen an influx of Non EU IT Consultants wishing to take out a mortgage whilst they are posted in the UK on a Visa to implement systems before returning home.

With UK property prices fairly static, interest rates on mortgages are at an historical low and rents high it makes sense to purchase a property via a mortgage even if the ultimate intention is to return home when the Visa expires. 

Many Non UK Citizens with Visa’s find they want to purchase homes quicker than intended and although lenders can give out good initial vibes for applicants on a Visa in without expert help the reality is the Foreign National Mortgages are unlikely to be successful without the right support and expertise of someone fighting your corner.

For Foreign National Mortgage Advice please complete our Contact Form and save  yourself time and money by getting professional help from the start no matter what type of visa you’re on and of course if  your enquiry is of a urgent nature please call me directly on T: 0207 9932044.

If you have come to work in the UK and are on a Foreign National Visa you have probably felt disadvantaged when it comes to getting a mortgage. The good news is as we are situated in London so we are accustomed to arranging mortgages doe applications on visas and we specialise in Foreign National Mortgage Advice

No related posts.