Copyright 2006 Geoff Morris
Looking to consolidate or even improve the efficiency of your portfolio financially? Geoff Morris, of Property Horizons, discusses some interesting ways in which to finance your investment property portfolio with Suzanna Grey, an Independent Financial Advisor at Beacon Financial Limited.
As a property professional, are you looking for a different approach to your borrowing requirements? There is a company specialising in professional landlords that many are unaware of. They are unique in the market place and approach buy-to-let in a very different way to high street lenders. They are from a commercial background and approach the property investment market from that perspective.
They are one of the UK’s leading providers of residential buy-to-let mortgages, winning the Buy-to-Let Lender of the Year award at the 2002, 2003 and 2004 Business Finance Awards. They made their first specifically targeted buy-to-let mortgage in 1995 and are unique in being the only UK lender to offer a service totally dedicated to the professional residential property investor.
They provide a bespoke professional service, competitive interest rates and a wide range of products designed specifically with the professional property investor in mind. As a centralised lender a good intermediary is vital to ensure the most appropriate product is selected.
As buy-to-let specialists they have a comprehensive understanding of the market and are able to create mortgage solutions to meet your needs. They are an ARLA affiliated lender and carry out regular research into the buy-to-let market.
Many landlords approach me to help ‘tidy’ the borrowing they have on their portfolios. Often they have loans with several different lenders, on a range of different products, devised by mortgage brokers who did not view the portfolio holistically – but from a ‘best rate for that property’ view point.
For those of you who are used to paying high valuation fees, redemption penalties when you remortgage to raise they deposit for the next property, or who are simply frustrated with the onerous administration, I have the solution.
This specialist lender offers a maximum of 20 million to professional landlords. They can pre-underwrite you on the basis of your existing portfolio so your income separate to the portfolio is not considered. This means it is possible to have an offer very quickly without pages of forms to complete. The only item they require will be the valuation, which at a maximum of 125 per property, and with in-house surveyors who understand the investment market, is very competitive.
You no longer need to re-broke your loans if you need to raise capital, simply apply for a further advance. Should your property require updating when you purchase it they are able to pre-underwrite the completed value and will release the additional funds once works have been completed.
The rates are competitive and they understand the professional landlord as this is the market in which they exclusively deal. They will run suitability checks on new areas to ensure they are appropriate for the rental market, free of charge, to help diversify the portfolio geographically to spread the risk. This ensures that you can invest in new areas with confidence.
This type of lender can help you gear your portfolio effectively in order to maximise the available capital and expand your properties. They can also assist you to access the auction deals and special offer properties where fast exchange is crucial.
It makes a refreshing change for a lender to be supportive in your investment strategy, rather than prohibitive.
Suzie Grey is an Independent Financial Advisor at Beacon Financial Limited and can be reached by phone (01480 869466). Beacon Financial Limited is authorised and regulated by The Financial Services Authority. She will be a regular guest on the Property Horizons Teleseminars, and mini-conferences.