How do you finance your properties?
One at a time?
What if there were an easier way?
I’m excited to tell you that my mortgage broker has found a pre-agreed Forward Funding Facility that allows you between £500,000 and £5,000,000 so you can go and look for properties, knowing that you can buy them (as long as they stack-up on the valuation).
What does this mean?
You can have Pre-approved finance (credit)
There’s only 1 application, so once you’re agreed you can go out and spend.
Valuations are instructed on the same day – no waiting weeks whilst the paperwork is processed.
Can be used for purchases in a Ltd Co or in personal names
Interest only, 75% LTV and a variety of fixed rates available.
I’ll explain the basics in the video and I’ll copy the (more detailed) bullets from my mortgage broker below.
If you’d like more details, please email me thepropertyteacher@gmail.com and I’ll put you in touch with my mortgage broker.
Forward Funding Facility – summary:
- Available from £500k to £5m – each property will be valued and assessed by the lender.
- Maximum Loan to Value per property 75% (can be used for purchase & remortgage).
- Product range – currently 2 year fixed rate of 2.89% with 1% lender fee or 3.40% 5 year fixed rate with 2% lender fee per property.
- Lower rates available – 3.80% fixed for 5 years with no lender fee is proving very popular as also includes free valuation.
- Lenders completion fee where applicable – can be added to the loan if required.
- Application fee of £150 payable to the lender on approval waived if funding agreed via Forward Funding Facility.
- First application must be submitted normal application process – £150 lender fee would be charged for 1st property.
- Free Valuation per property & cashback up to £400 per property depending on product.
- Rental cover requirements – dependent on product i.e. 2 year fixed assessment rate is 125% x 5.50% & the 5 year products are assessed on pay rate x 125% for Ltd Companies.
- Minimum value per property £75,000.
- Ex LA flats – not considered (ex- LA Houses will be considered at the lenders discretion).
- No Housing benefit/LHA tenants considered – tenants must be privately funded.
- Setting up fee 0.5% of the facility amount payable on approval – this is payable to my broker and no further broker fee payable for properties acquired via Facility.
- Facility reviewed every 6 months with no additional fees levied – if you don’t access the facility it could be potentially withdrawn from month 6.
Once the facility is approved the process is relatively straightforward to access via “additional property application form” which my broker will complete on your behalf & send to you for review & signature.
If you think this finance is for you, and if you’d like more details, please email me thepropertyteacher@gmail.com and I’ll put you in touch with my mortgage broker.
Here’s to successful property investing
Peter
Peter Jones B.Sc FRICS
Chartered Surveyor, author and property investor