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. 

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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Interest Rate unchanged at 0.5%, but extra £25bn for economy

Interest rates remain at 0.5% after the announcement today from the Bank of England, this being the eighth successive month since reaching the all time low in March. The Bank has decided to pump an extra £25bn into the economy via their quantitative easing (QE) programme, having already spent £175bn on it so far. The Bank of England said it would spend this extra money over the next three months, which represents a slowdown in the rate of putting money into the economy – in the previous three months it had been £50bn. In the Bank’s statement they go on to say that “A number of indicators of spending and confidence, however, suggest that a pickup in economic activity may soon be evident.” View the full BBC Article or visit the Bank of England website.
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BoE and ECB Leave Interest Rates Unchanged, 0.5% and 1%

The Bank of England today announced it would leave the interest rates on hold at 0.5%, now the seventh successive month. The Bank also decided to continue with the quantitative easing (QE) which is likely to take another month to complete. – View full BBC Article Also today the European Central Bank (ECB) kept interest rates on hold at 1% and is expected to wait several months before raising then in order to help the eurozone economy. – View full BBC Article
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