How do I raise finance?

The question that is asked all the time by property investors is - how do I raise the finance to begin?  If you are starting from the great perspective of having a good chunk of capital or you are able to release equity from a property to work with when you begin to buy property; then that is great. 

It makes the process much easier as it gives you the confidence to know that any offer you make is backed up by funds in the bank and therefore offers you greater bargaining power.  Coupled with the right knowledge and guidance, it also means that you can start your search sooner rather than later and get going on your chosen strategy.

Raising Finance

If you are trying to raise finance, then it would be a good idea to check your credit rating and mortgage status.  Speaking to a mortgage broker who specialises in lending for investment purposes about your ability to raise a mortgage would be a good place to start to see if you’re at least in the running in this sense. 

Regarding raising finance for the deposit or to buy outright, this can be a tricky subject.  There are a number of ways in which you could pull money together and we have listed them below:

  • Credit Card (short term)
  • Borrow money from relatives or very close friends
  • Borrow money (in the form of a loan) from friends or acquaintances
  • Raise Bridging Finance (in a number of different ways)
  • Bank Loan
  • Angel Investor/High Net Worth Individual/Sophisticated Investor
  • Vendor Finance (in certain circumstances)

 Check out our commercial finance and our mortgage section for more information on raising finance. 

‘Some say buy-to-let is dead – but my portfolio is built on strong foundations’

It’s been a tough few years for buy-to-let property investors. The latest wave of cuts to tax relief on landlords’ mortgage interest was ushered in this month and reports have been rife that landlords are exiting the buy-to-let sector in their droves. However, many believe the death of buy-to-let has been greatly exaggerated. Article provided by our finance expert - Together Money.  If you need any help with Commerical Funding, Bridging Finance or Development Finance please request more details here.  Analysis by research consultancy BDRC on behalf of specialist buy-to-let mortgage lender Together, revealed profitability remains high, with 86 per cent of landlords surveyed saying they were making money, while the average yield remained stable at 5.9 per cent. “We have seen a raft of changes over the past few years but, what is obvious is that there’s a continuing demand for buy-to-let investors looking to make gains in the long-term,”...
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Will your retirement plans withstand Brexit fears?

With the full force of Brexit yet to be felt, those who are saving for retirement need to be wary of the potential impact on their plans. While markets have remained resilient following the initial shock of the Brexit vote, the International Monetary Fund (IMF) has cautioned that the impact of the decision to exit the European Union has continued to weigh heavily on the wider economy. “The employment rate has remained around record highs, but the sharp depreciation of sterling following the referendum pushed up consumer price inflation, squeezing household real income and consumption,” it said, having downgraded its growth forecasts for the UK earlier last year. The IMF’s report comes after the Bank of England warned that Brexit was having a “noticeable impact” on the economic outlook and that the UK’s split from the European Union will probably hamper productivity and slow growth. “Brexit-related constraints on investment and...
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What Have The Recent Tax Hikes Cost The Average Landlord?

At the beginning of the tax year of 2016-17 then Chancellor of the Exchequer George Osborne implemented a 3% hike in stamp duty on houses which are not main residences. A tax mainly effecting landlords which has reportedly raked in over £1.4 Billion, more than double what was expected. Couple this taxation with rising mortgage rates as well as new restrictions on the interest tax relief on them, this is bad news for the net profit of those who buy-to-let. Jeff Djevdet, Director of a ‘we buy any house’ company explores what this means for the average landlord. Firstly, let’s take stock of some of the facts and figures that factor in to what this will be costing those who buy-to-let; According to the Office for National Statistics, the cost of the average property sold in 2016 was around £220,000; up around 50% from the low point of the housing price...
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Seven ages of retirement planning

Research provides insight into the different ages at which people move from one financial phase to another. The division of human life into a series of ages appears to have been a common theme among writers and philosophers through the ages. Indeed, the idea is famously explored in a monologue from Shakespeare’s As You Like It, which compares the world to a stage and catalogues the seven stages of a man's life. Whilst society has advanced somewhat since those words were first put to paper, a similar division can be used to look at the milestones at which people today start to move from one financial ‘age’ to the other. The insurer Aviva asked over-50s who had been proactive in saving for retirement to recall when they started doing so1.  From this it constructed the seven ages of retirement planning (see table below). Starting out Just over a quarter of those questioned said...
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DIY SOS

Recent research shows consumers are increasingly accessing pension drawdown without taking advice.The Financial Conduct Authority says that individuals who access their pension pot flexibly may need extra protection to manage withdrawals effectively, after it emerged that the number of people going without financial advice has risen dramatically.Figures published in the regulator’s July 2017 Retirement Outcomes Review Interim Reportreveal that the proportion of individuals who forgo advice and take a ‘DIY’ approach to managing their pension pot in retirement has risen from 5% to 30% following the introduction of pension freedoms legislation in 2015.Prior to April of that year, savers were faced with restrictions on when and how they could access their pension pot. Consequently, over 90% of pots were used to buy annuities. Today, as a result of the new freedoms, twice as many pots are moving into drawdown than are being used to purchase annuities.1Yet concerns are growing for those who...
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