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. 

Bank of England (BoE) interest rates stay at 0.5%

The Bank of England (BoE) decides to keep the Interest Rate at 0.5% and maintain the size of the asset puchase programme (Quantitative Easing). Both moves where widely expected by financial analysts and the media. The rate dropped down to the record low of 0.5% almost exactly 1 year ago on 5 March 2009 along with the introduction of the aset purchase scheme which was subsequently increased in value. The minutes of the meeting will be published at 9.30am on Wednesday 17 March. For more details view: http://www.bankofengland.co.uk/publications/news/2010/022.htm
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Interest rates remain at 0.5%

Bank of England Maintains Bank Rate at 0.5% and Maintains the Size of the Asset Purchase Programme at £200 Billion The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion.
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Take advantage of £50,000 - Annual Investment Allowance, HMOs and BTLs

Article Archive In April 2009, we saw a new change in the property investment front, a new tax benefit open to all Buy to let owners, commercial investors as well as variants like those with HMOs. If you own a property, you may be able to review your outgoing costs for items which will qualify for Capital Allowances. Previously these allowances have been set at 50% in the first year then 25% of the balance that remained. The property owner used to call me out to review many items that they would buy. The commercial client would have a survey typically to review these items. Since 2009, these costs could be claimed 100% but only up to £50,0000 and then over that level just 20% can be claimed each year. It is expected many HMO and Commercial owners will benefit the most but it is possible for others to get some...
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UK Interest Rate kept at 0.5% by Bank of England

Not surprisingly the Bank of England (BoE) has today voted to maintain the Interest Rate at 0.5%, now for the 11 month running since they reducing the rate by 0.5% to the record low of 0.5% back in March 2009. The Bank also voted to continue with it’s programme of quantitative easing (QE), maintining the level at £200bn This programme is expected to take another month to complete and will be kept under review. For more information visit www.bankofengland.co.uk
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Bank of England: UK Interest rates remain at 0.5%

The Bank of England (BoE) has decided to keep UK interest rates at the all time low of 0.5%, in a move that was widely expected. The committee has also committed to continue with the quantative easing (QE) that it announced last month would be increased to £200bn. The Bank recently warned that the recovery would be “slow and protracted” and that it would take months for the full impact of its policies to be felt. Read more at Bank of England News or news.bbc.co.uk
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