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  • Mortgages & Finance

    Trouble Raising Finance

    This is a link to an article that I posted on another thread. One of the points it makes is the difficulty facing landlords when trying to arrange finance, old news I know but something that’s affecting me at the moment.
    One of my possible JV partners is having great difficulty arranging a remortgage on his residential property even though he’s an experienced property person with many properties and a successful development/design business.
    The property in question is his main residence, worth about £2m and containing £1m in equity. He wants to remortgage to a drawdown facility of circa £500k. He’s drawn a blank from two well known high street lenders so far and is now looking into other options.
    This is not a request for finance but just me trying to get a better understanding of how widespread this situation is. Questions:
    Is this something affecting all landlords in equal measure, even those with strong established reputations?
    Are there any creative and legal alternatives available that will achieve the desired £500k drawdown?
    Thanks.
    PS: I’ve reduced the figures slightly for simplicity.
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    Hi Marcus
    I'll have a word with our mortgage expert, Ian Hyde from the Epsom BNI chapter, to see if he can assist.
    Regards
    James
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    A great suggestion and offer Roberta.
    John Corey
    https://www.ChelseaPrivateEquity.com/blog
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    John Corey 


    I host the London Real Estate Meet on the 2nd Tuesday of every month since 2005. If you have never been before, email me for the 'new visitor' link.

    PropertyFortress.com/Events

    Also happy to chat on the phone. Pay It Forward; my way of giving back through sharing. Click on the link: PropertyFortress.com/Ask-John to book a time. I will call you at the time you selected. Nothing to buy. Just be prepared with your questions so we can use the 20 minutes wisely.

    James, thanks for looking into it – be interested if he has an opinion.
    Roberta, thanks for your kind offer and for taking the time to respond to my pm query - lots of useful advice and pointers.
    Just had a conversation with my friend about the suggestions made so far and he’s adamant that he doesn’t want to go down the commercial route, citing his reasons as complex. Fair enough, I know he's had a commercial facility before but I don't know what he means by complex, I'll have to ask him.
    Update: All’s not lost as Coutts have just offered him a facility based on the original figures, drum roll please … 7K! That had us in hysterics.
    Next stop for him is his Barclays business manager.
    Enormous thanks for the replies so far.
    Marcus & Friend.
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    Points taken about knowledgeable brokers.
    Thanks.
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    It is very difficult to answer this as the constraint could be Income,Size of Loan ,The actual occupation of applicant.
    Lenders are Cherry Picking and the case in my opinion would have issues that Lenders would find unattractive.
    As always the advice must be go to a Specialist who can look at the whole market and advise on suitable lenders.
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    Welcome to Property Tribes John. Great to have you here and thanks for joining this discussion!
    I think now is a great time to stress that we must all stay in constant contact with our brokers as mortgage products are changing so rapidly. I have about half our portfolio on SVR's now. I am going to leave them like that for the time being, but will be keeping an eye out for some good long term fixed rates. Perhaps you could up-date us with any good new products you hear about?
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    Thanks to you both for adding your comments.
    John, I thought it might be a bit of a difficult one to answer as I haven't been able to elaborate on the 'constraint' issues - something my friend described as 'complex'.
    I'll update the thread with any developments.
    Marcus
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