Many lenders in this area of the market offer loans up to 75% of the property value (sometimes higher if additional security is offered). These types of short term loan are calculated and charged on a daily/monthly basis. Some offer to roll up the interest (no committed monthly payment) and interest rates range from 0.75% per month upwards and are normally arranged over a period of between 1 to 18 months. Most will carry a lender fee and an assessment fee and some will include early repayment charges and possibly an exit fee.
2) Refurbishment – allows you to buy and refurbish property quickly. A loan to support the purchase of a property on which you undertake refurbishment before it is eventually presented to a mortgage company or bank for long term re-mortgage finance, or sold.
3) Auction property purchase – Short Term Loans can be arranged very quickly and can be ideal where there are tight deadlines to meet. A typical 28 day completion from purchasing an auction
property is usually easily achievable. A pre-auction valuation is considered a must.
These are just some examples, there are many others, so do come along to our event on Wednesday and listen to the experts. Places are still available. Please call AToM asap on the number below to secure your seat, or email firstname.lastname@example.org
FINALLY, as I write this column, I’ve just noticed that Nationwide are the latest lender to cap their interest only lending at 50% of the property value on all residential mortgages
(excludes Buy to Lets). This is with effect from Wednesday 21st March and all applications which exceed 50% of the property value will now only be considered on a repayment basis. Long
live interest only…!