Property investing is an expensive game. Regardless of how big one’s pot of gold might be, eventually, it will run out. The average price of a property in the UK according to Nationwide in July 2016 was £206,145 – if you take a more traditional 75% loan to value buy to let mortgage, that means one would need £51600 plus purchase expenses on average to buy. And then there is the prospect of buying something that needs work – perhaps the price is below the average, but a deposit and funds to carry works are needed.
It is easy to see therefore, why so many investors are turning to innovative ways to purchase and refinance their investment property. And with more lenders entering the residential investment market place, it is easier to refinance a BTL property within six months. Even though many vanilla lenders such as TMW and BM Solutions strictly apply a six month rule; meaning that they will not accept remortgage or further advance applications until six months ownership of the investment property has passed, a host of lenders understand that there are good reasons for a property investor to want to remortgage within that time frame and they allow it.
Important to note however, that this does not apply where a property has been bought below market value (BMV), in fact lenders are cautious of this type of transaction. The formula we speak of for momentum investing is designed around adding value to a property and then refinancing instead of looking at a pure BMV model.
In the video above, Howard Bowes, Managing Director of Harvey Bowes Limited, award winning mortgage brokers specialising in working with property investors, gives some top tips from the momentum investing formula.
For further information, call Howard or one of the team at Harvey Bowes on 029 2175 4150
YOUR PROPERTY MAYBE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE