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  • Hi I have just joined and I am looking for advice on how to go forward with my 5 property portfolio. I have one star performer three steady eddies and one problem child

    I have a lot of equity but cannot release easily due to complex issues - low rate of interest ( good choice) Bank of Scotland ( bad choice - no equity release flexiblity).

    I cannot find any mainstream advice out there that can assist me other than a delayed payment second charge product.

    I have a high six figure equity but do not want to sell. I need to make up a shortfall on income in order to stop my day job.

    can anyone assist me?.

    happy to travel etc for the right advice

    Chris
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    Hi Chris,

    Welcome to Property Tribes.

    You need to speak to a reputable mortgage broker as you may be able to secure bridging finance against the equity you have.

    Have a read of Large equity - how can I get it out for BTL?

    With the broker, you could review your portfolio as well, making sure that it is running as efficiently as possible.

    There are options open to you, and a broker will be able to guide and advise.
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    Hello Chris

    Over the years we have worked with many portfolio landlords in a very similar situation and after a full review the 'way forward' is never quite a 'one size fits all' recommendation.

    For some people, keeping the low rate mortgage and either adding a further advance or a second charge loan, can be the right thing. For others who also have a low rate mortgage, if capital raising is an absolute must, then sometimes, with all second charge interest rates and punitive exit penalty charges to pay (which for the new breed of 'equity release second charge deals' can be substantial) the overall 'total to pay' far exceeds the cost of a simple remortgage on to a new deal at current rates.

    I did a similar cost comparison exercise only last week with a Client who came to my office adamant that they wanted this new equity release second charge product on top of their 2.5% BTL mortgage. Using our Broker calculators and systems, the facts spoke for themselves - and with all info in 'black and white' to consider, the remortgage option was by far the best way forward.

    So, it's all down to your own personal approach for your short and long term financial 'net benefit requirements' and this can only be determined by a Fact Find discussion with a relevant mortgage adviser.

    Hope that helps.

    Howard
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    At Property Tribes Financial Services, you can access tailored options for bridging, short term lending, commercial mortgage & BTL solutions, sourced from a huge range of banks, building societies and specialist lenders, via a team of industry award winning Advisers. We also provide a full financial planning service for life cover, wills and estate planning.

    T: 01206 654 444
    E: advice@PropertyTribesFinancialServices.com
    W: www.PropertyTribesFinancialServices.com

    Hi Chris - how did you get on with speaking to a good broker.

    I know 1-2 banks that could help give a facility potentially. P2P might lend second charge too and I know 1-2 people also here. rates are generally higher than high street banks of course.

    might simply be worth selling one, paying a little capital gains tax (or less if you live in it first and structure correctly).

    2 key property strategies are buy cheap, improve value refinance and keep or sell and pay tax (although often you'll release more equity to do more trading thus making more to make up for the tax paid).

    feel free to give an update or feel free to get in touch too.

    andy
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    regards Andrew Peers - property investor / sourcer - 07912674181

    a.peers@seamlessproperty.co.uk

    Property Redress Scheme Number 011436     NLA member 174404