All about Mortgages and Commercial Loans
We are specialist mortgage broker in Manchester. Searching the mortgage markets to find our client the right deal. Our customer’s interests are paramount.
International UK Mortgages For Overseas Investors
We have facilities to offer Buy To Let purchases all over the UK. Our specialist lending facilities are designed for a citizen or British ex-pat or an investor living and working all over the world.
Residential Mortgages
Buying your first home is a huge step. There are many questions to ask and potential pitfalls to avoid. Getting independent mortgage advice is essential.
What does your company offer me as a first timer?
- Shop around the market.
- You get to know your borrowing capacity based on income /expenditure.
- Find out the monthly costs
- How much deposit is required with each lender
- Peace of mind that you are getting sound advice from market specialists with over 50 years’ experience!
Follow our easy steps below as we offer guidance for the whole process.
1) Initial interview – in person, email, or phone to assess your needs and desires.
2) Having your mortgage agreed in principle with a certificate from a lender.
3) Putting your offer forward and getting it accepted
4) Completing mortgage application forms
5) Instruct a solicitor for you, if required, at very competitive rates.
6) Advise and arrange related insurances
7) Guidance, via regular contact, through the whole process until you get your first set of keys!
90% – 95% mortgages are available and have recently reduced in price. Parental/family deposits are allowable. Contact us for details and eligibility! Key to your first homemade easy.
As with all borrowing, it is preferable to put down the biggest possible deposit as rates are cheaper and you will pay less interest over the mortgage term.
“Help to Buy Equity Loan” for new build properties are available on properties up to a maximum purchase price of £600,000 with a minimum deposit of 5%. The equity loan is available up to 20% in England and up to 40% in London.
Contractors / Self Employed / Professional Occupations
Borrowing for any of the above situations can be a lot more complex, and lenders often restrict borrowing or have special underwriting requirements. We have extensive knowledge of these requirements having advised in these sectors for many years.
CONTRACTORS
- This can be fixed-term i.e. 12 months
- Daily pay rate
- Usually required to have a track record in the same line of work or have a contract renewed.
- Usually a minimum of 6 months left on the contract
SELF-EMPLOYED
- Most lenders require a minimum of 2 years’ accounts, but we have access where only 1 year’s accounts are acceptable.
- For sole traders/partnerships – Net Profit figures are used as the income verification
- For Company Directors who are more than 25% shareholders – the director’s remuneration and dividends are normally the verified income used, but some lenders will allow company Net Profit.
PROFESSIONAL OCCUPATIONS
- Clients within the professions i.e. doctors, solicitors, accountants, etc. are sometimes offered preferential rates
- Barrister’s income is remunerated in a specialist way by HMRC and some lenders have difficulty assessing their valid income. We have expertise in this area and are able to liaise with lenders to resolve this.
- Higher income multiples can be obtained for certain professionals.
This is simply refinancing your current mortgage debt to your best advantage, most people do this to take advantage of cheaper rates however it can be for many reasons.
Below are some of the most popular reasons for doing so.
It is important that when “shopping around” for a remortgage that “one size does not fit all”.
We match your individual requirements to the best deal available based on your circumstances.
Finding a cheaper rate! Fixed or Tracker?
We search the market on your behalf to find the right product for you. Why stick with your own bank without checking out the competition? We advise which type of deal suits you – fixed rates or trackers, discount loans.
Most lenders offer attractive incentives such as free valuations and free legal, and some even offer cash back.
Debt consolidating
This is the process of incorporating some or all of your unsecured debts i.e. credit cards, loans, etc. within your mortgage debt.
This is something we would look at very carefully to ascertain it was in your best interests.
Unsecured credit is normally over a shorter term than secured and it is therefore not always in your best interest to do so. All our advice is based on your individual circumstances. There are, however, times when consolidating the credit is perfectly justified, especially if the payments are difficult to maintain. Spreading the loans over a longer period will reduce monthly payments and will normally be at a lower interest rate.
Contact us for a quote or to find out more. We recently refinanced a client paying £ 750/month mortgage and £750/month on credit cards. We added the card debt to the mortgage AND reduced the mortgage term by 3 years for a new TOTAL payment of £ 752!
Capital Raising
Raising money against the equity in your property can be done for many reasons.
Divorce is a fact of modern life and many partners would prefer to stay in their current home if they could raise money to “buy out” their ex. We can advise if this is possible or practical.
Home improvements – for example, build that extension or dream kitchen or even double glaze the house, etc.
Buy to Let & Let to Buy Deposits
Raising cash to fund a deposit of another property is also becoming common practice.
If you want to move home but cannot sell your current home consider raising the deposit on the current home and renting it out on a Let to Buy scheme – see our Buy to Let section! Call us to find out if it could work for you.
A Standard Buy To Let deposit is 25%, but as little as 15%
Buy to Let is now big business with thousands of landlords investing in this sector. We offer advice to all landlords both experienced or first timers. This is a specialised sector with specialist lenders and lending criteria differ from residential. Rental yields are the basis for most loans and usually bigger deposits are required, currently 15-30 %. There are lucrative tax breaks available.
For loans over £ 200K, we charge no broker fee at all.
Let to Buy Mortgages London
The Capital’s BTL market is still buoyant, with rental yields rising and prices still holding up. Refinancing your residential home to raise a deposit for a BTL is possible if you have the income/equity. This can get you on the first step to becoming a landlord. Or swap your current home onto a BTL deal if moving and can’t or don’t want to sell your home. You can even raise cash on that home to use as a deposit for the new one. Call us to find out more.
Need to raise cash on your current portfolio to fund further property expansion?
Sitting on a high variable rate with the current lender? swap to a cheaper fix rate while rates are low. BM Solutions offer a Product Transfer option via brokers with some excellent fee-free deals available.
2.14% 2 years fixed rate with only 25% deposit needed.
Please contact us to find out more specific information.
*Buy to let and commercial mortgages are not currently regulated by the Financial Services Authority.
*Your home is at risk if you do not keep up repayments secured upon it.
Let To Buy
Letting out your existing property to buy a new home becomes increasingly popular.
Whether it is to avoid a property chain or with the intention to hold it as a long-term investment it is a viable option in many cases. This is classed as a Consumer Buy to Let and fewer lenders operate in this sector or have restricted caveats.
- Letting the property whilst trying to buy a new residential property avoids the chain and can put you in pole position when making offers on the new purchase.
- You can capital raise, subject to equity, to provide deposit funds towards the new purchase.
- Capital Raise – to pay off debts to help affordability for the new purchase.
- Easy way to get on the Buy to Let ladder without the need to pay Stamp Duty and Solicitors costs.
- Long term investment vehicle to complement retirement planning.
Purchase Guide
When purchasing a Buy to Let property for the first time you would normally need to be a current property owner. A couple of lenders so allow a Buy to Let for first time buyers also.
To outline some key points when purchasing a Buy to Let property:
- Deposit – Generally speaking, a deposit of 20-25% is required.
- Minimum Income – most lenders require a personal income as part of their criteria.
- Stamp Duty Land Tax – will be payable at a higher rate in most instances
- Mortgage Agreement in Principle – Most estate agents will require proof of this in the form of a certificate which we will organise for you.
- Mortgage Property Valuation – this is required by the lenders to assess the value and anticipated rental income of the proposed property.
- Rental Income – most lending is based upon the rental income achieved/expected.
- Personal Income – can also be used to enhance the borrowing if the rental income is low. This is becoming increasingly important in the London market to maximise borrowing.
- Auction Properties – this can be done but a note of caution the property must be in a lettable condition based upon the mortgage valuers’ comments. Normally a 10% deposit has to be paid and completed within 1 month, unless the mortgage is granted the deposit is at risk. Many landlords will buy with cash at auctions and refinance several months later.
- Bridging finance – this can be utilised if you need to buy quickly at auction and the property is in a condition where it cannot be let immediately. The idea is to use the bridging finance whilst the property is refurbished to a standard that it can be let, we would then replace this finance with a conventional Buy to Let mortgage.
Portfolio
Portfolio lending is primarily professional landlords with 6+ properties.
Many mainstream Buy to Let lenders will only lend to clients with less than 6 properties. However, we have access to broker only lenders who cater to this level of borrowing/portfolio size.
- Post credit crunch there are fewer lenders in this sector.
- Lending can be against the whole portfolio equity and not just individual properties.
- Buying at auction can be easier using the existing portfolio as security.
- Some portfolio lenders will only lend with exclusive rights i.e. to one Ltd Company.
Ltd Company
Buying your property through a Limited Company needs to be via a Special Purpose Vehicle Limited Company (SPV) – which is solely for the purpose of property purchases/rentals. You cannot use your existing Limited Company unless it is set up in this way.
If you already have a LTD Company and are wondering whether this would meet the SPV criteria, this is what the lenders like to see:
• SIC code for letting property
• No sign of any revenue through the company of anything other than letting property
SIC code – The Standard Industrial Classification of Economic Activities (SIC) – used to classify business establishments by the type of economic activity in which they are engaged.
There are pros and cons to this type of purchase highlighted below:
Pros
- Income Tax can be lower as you would take income in the form of dividends which are taxed at a lower rate than personal income taxation. This is mainly beneficial to higher rate taxpayers.
- Profits can be retained within the company to further reduce tax liabilities in any given year.
- Shareholders can be added to the company to spread the tax liability.
Cons
- No personal annual Capital Gains Tax exemption is available.
- Requirements to comply with Company Law/Companies House, which adds extra costs and administrative burdens.
- Fewer lenders in the market and generally higher interest rates.
Refinance Your Buy To Let
Remortgaging your existing property can be beneficial in several ways:
- Cheaper rates – current deal expired? Avoid the variable rate by swapping lenders.
- Capital Raising – this can be for many reasons such as Buy to Let deposits, debt consolidation, home improvements, etc.
- Unencumbered properties – i.e. no mortgage or bought at auction – can be refinanced too.
Let us take away some of the stress of moving home by arranging your perfect loan!
People move house for many reasons such as
- Relocating with work/schooling
- Upsizing/Downsizing
- Divorce/Break-ups
Whatever your reason let us take away some of the stress of moving home by arranging your new loan!
This can be one of life’s most stressful tasks. Why not reduce the hassle of arranging the finance by letting us take care of that for you. We can discuss how much you can borrow, what it costs, and who is offering the best mortgage for you.
- Assess your finances to see what you can afford to buy
- Give you costings on monthly payments
- Reassess your insurance requirements – life cover & buildings and contents
- Give guidance on moving costs – solicitor’s fees, valuation fees, stamp duty
- Early Repayment Charges – check to see if you have any tie in clauses on your existing mortgage, and compare the options of porting the existing deal or taking a new deal with a new lender.
- Bridging finance – this is utilised if you need to buy your new house urgently but haven’t/can not sell your current property quickly. It is a temporary finance option subject to the equity in your current home.
Commercial Loans
PROVIDING FINANCE FOR A BUSINESS OR COMMERCIAL PROPERTY PURCHASE IS A SPECIALISED AREA WITH MUCH FEWER LENDERS THAN IN THE RESIDENTIAL SECTOR.LENDING CAN UNDERSTANDABLY BE MORE RISKY FOR BANKS AS NOT EVERY BUSINESS WILL SUCCEED AND GENERALLY THERE ARE FEWER BUYERS LOOKING TO BUY A COMMERCIAL PROPERTY THAN SAY A RESIDENTIAL HOME OR EVEN A BUY TO LET PROPERTY.
WE HAVE MANY YEARS’ EXPERIENCE IN THIS SECTOR. WE HAVE ACCESS TO A RANGE OF LENDERS AND BANKS AND THEIR SPECIALIST UNDERWRITERS. FROM HIGH STREET NAMES LIKE SANTANDER TO PRIVATE BANKS IN THE CITY OF LONDON.
Some areas we can consider;
- Mortgages up to 70% of property value
- We only loan against property values, not leasehold or business goodwill
- Purchase a going concern
- Development finance
- Bridging finance
