Mortgages For Company Directors ARE Possible

It’s become widely recognised that since tighter financial regulations came in, triggered by the economic crisis, securing a mortgage has become problematic in general. If you’re self-employed and working as a company director you face even more obstacles when looking for a lender.

No more self-certification

In the days before tighter rules, many self-employed people got self-certification mortgages, where lenders didn’t check their stated income. However, they became known as ‘liar loans’ due to instances of and potential for fraud, and were done away with, dashing the hopes of genuine applicants. A few years on and company directors continue to struggle to get a mortgage, even if they and their businesses are successful.

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Posted in Buy-to-let, Commercial Mortgages, First Time Buyers, Mortgages, Next Time Buyers, Remortgaging

Bridging Finance Not Just for Mega-Rich

It used to be considered to be the preserve of the super-rich or of clients willing to take very high risk positions. However, in recent years, we’ve seen the market for bridging finance expand rapidly.

Bridging finance is usually an interim loan, arranged quickly to cover the gap between expenditure (such as buying a house) and the next stage of financing (such as selling). It is becoming a convenient way of making a deal work. Although the costs are still relatively high, the opportunities it can open up mean we are seeing more enquiries for bridging from people in all sorts of situations.

Traditionally bridging has always been seen as a chain-breaker in property sales. However, more and more we are seeing it used for:

  • Investment purchase
  • Short-term cash flow
  • Home improvements
  • Business use

These days there is a wide variety of bridging products available:

  • Loans from £30k to £5 million
  • Rates from 0.85% pm
  • 1st and 2nd charges available
  • Daily interest, with interest payable monthly or effectively borrowed as part of the loan
  • No exit fees
  • Terms from 1–23 months, with one lender even offering a 3-year bridge

Bridging finance is not for everyone, but is more versatile than it used to be. Why not call us to find out if it could help you with your next property move or development?

Posted in Commercial Mortgages, Mortgages, Next Time Buyers

What’s the Point of Mortgage Brokers?

Ever wondered why you need a mortgage broker?

Can’t you just walk into a high street bank for a loan, or phone the number you saw on the TV?

Of course you can, but your choice will be severely limited. There are thousands of mortgages out there, for people in all sorts of different situations. Fixed rate, variable rate, tracker mortgages, capped and collared…

With interest-only mortgages, you only pay back interest on the loan. With repayment mortgages, you pay back both the interest and the capital that you borrowed over the term of the loan.

Ah yes, the repayment term – how long should that be? And do you want a short term discounted deal or something that you don’t have to look at again in a few years?

What about up-front fees and the all-important deposit question – how much loan-to-value do you need to borrow?

There are other considerations too. Some lenders offer cashback. You might want flexibility in your payment schedule. If you have a decent amount of savings then now might be a good time to offset your mortgage.

The possibilities are vast. You might know what you need and are just trying to find it, or you might not know what – if anything – suits your situation the best.

We know. And that’s the point of mortgage brokers. We understand how all these different mortgages work. We know the different lenders – the ones that are hidden from sight as well as the ones on the high street.

In fact, there are thousands of mortgage products that are only known to mortgage brokers. In the last half a year alone, 3,900 new products have become available to us – products that you can’t get directly as a borrower.

Brokers find the best deal from all of the mortgages available.

So if you want real choice, talk to a broker. We can find the best mortgage for your unique situation, and get it set up as smoothly as possible. We are impartial, and the advice is free. Let us know what you need and we will do our best to help.

Posted in Buy-to-let, Commercial Mortgages, First Time Buyers, Mortgages, Next Time Buyers, Remortgaging

When It Pays to Increase Your Tax Bill

At the end of the financial year, business owners are all doing the same thing: relying on our accountants to reduce our tax bills.

But stop for a moment.

Do you have any remortgaging or borrowing requirements in the next 12 months?

Self-certification is dead. Mortgage lenders are looking at numerous ways to reduce the net profit figure they use. If you want to borrow in the next financial year, you need to make sure that you have the relevant income for the lenders’ affordability calculators. Your net profit needs to be high enough for your future borrowing.

Sometimes it pays to pay more tax.

If you want to know high much income you need to borrow in the coming year, come and talk to us at Limetree. We’ll be happy to advise you.

Posted in Buy-to-let, Commercial Mortgages, First Time Buyers, Mortgages, Next Time Buyers, Remortgaging

Why We Aren’t Celebrating 21% Lending Leap

The Council of Mortgage Lenders indicate that mortgage lending rose 21% in March 2011. On the surface this is welcome news if you are hoping to get a mortgage soon.

However the figure is down 2% compared with March last year, and lending for the whole first quarter of this year was down 11% on the last quarter of 2010. February this year was particularly bad – the second lowest point in mortgage lending in a decade!

The reality is that lenders’ over-cautious restrictions in lending are still holding back the market. At Limetree we meet plenty of people who would like to get a mortgage, or remortgage, but who are prevented because they cannot meet all the lenders’ criteria – some of which are utterly bizarre.

Lending may have risen 21% overall but there is still a pent-up demand. Buyer’s appetite for borrowing is not being met by the banks’ desire to lend.

We hope that lending continues to rise, and that lenders adjust their criteria. That would be the real good news for the market in general – and for first-time buyers in particular.

If you are looking for a mortgage, don’t be put off by the statistics. At Limetree we will do everything we can to help you meet lenders’ criteria and secure the loan you need for your next move.

Posted in Buy-to-let, Commercial Mortgages, First Time Buyers, Mortgages, Next Time Buyers, Remortgaging