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. 

Will my completed IVA affect my chances of getting a mortgage?

An IVA is an effective debt solution, there to assist those struggling to make the minimum monthly repayments on ‘problem debt’ that they may have and looking for a way to cut out negotiations with lenders. If you are considering an IVA, or attempting to discern if you qualify for one, then it’s also a good idea to look into how this debt solution could affect you when obtaining a mortgage.  So, will a completed IVA affect your chances of getting a mortgage? The short answer is yes.   Your credit score is affected   An IVA significantly affects your credit score, and while completing your repayments you will notice your credit score drop. This drop in number will continue to impact you until you start rebuilding your credit again. You will also be unable to take out credit of more than £500 without the permission of your insolvency practitioner,...
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Borrowers Looking for Low Cost Finance Must Be Quick

  UK borrowers in search of property development finance, for whatever reason, have been warned that leaving things too late could prove to be an expensive yet entirely avoidable error.  Whether you are a first-time buyer, a homeowner looking to move, or a buy-to-let property investor in search of expanding your portfolio, secured borrowing products have never been lower on cost.  However, the status quo is not expected to last much longer, with many economists warning that an inevitable hike in interest rates is definitely on the cards, as the historically low borrowing rates gradually start to subside to previous levels. Nonetheless, if you are looking to take advantage of the present lull in interest charges then there is still time to act, provided you move quickly.  Of course, the low interest rates that are available at present are quite possibly the only advantage of the recent economic downturn that...
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Bank of England continued its freeze on interest rates

  The Bank of England continued its freeze on interest rates today with its last monetary policy decision of what has been a tumultuous year for the UK economy.Policymakers were widely expected to hold at 0.25 per cent, with signs of economic resilience undermining calls for another cut and uncertainty over the Brexit effect prevailing against a rise.Financial markets reckon there is a 50% chance of a rate rise by December this year, although many economists now think it could be much later.   Property Expert and eMoov CEO, Russell Quirk, comments on today’s rate freeze: “Today’s decision is great news and will no doubt boost both UK buyers and sellers, as well as the wider economy. It also acts as validation that the over-all market stability seen throughout 2016 should carry on well into 2017, with the UK property market remaining in good health. With interest rates remaining as...
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The Perfect Fit

Moving into a retirement community is a decision that demands a great deal of careful consideration.There are plenty of reasons to think about downsizing. Perhaps your children have flown the nest, you’re approaching retirement, or your spouse has recently died. But whatever the motivation, it can still be difficult to leave somewhere that’s been your home for many years.Fortunately, the choice of purpose-built accommodation for retirees is expanding and becoming more flexible as well as more appealing, helping residents to live independent and fulfilling lives for as long as possible.In recent years, there has been a surge in the numbers of retirement villages under construction in the UK, many of which provide luxury accommodation to people over the age 55 who are looking to downsize without compromising their standard of living.“What we hear most commonly from our clients, once they have settled into their new home, is that they wish...
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Landlords Embrace Second Charge Borrowing as HMO Appeal Intensifies

  The past couple of years have been somewhat unkind to buy-to-let landlords, bringing a raft of stricter underwriting standards and significant tax changes into the equation. Just as the changes have resulted in many buy-to-let being driven out of business, thousands more are being forced to rethink their strategies and portfolios. One specific area that seems to have become a key consideration for landlords up and down the country is the conversion of properties into houses in multiple occupation (HMO). In the simplest of terms, this is where a standard dwelling is converted in a manner whereby it enables multiple tenants to reside within the same property who are not part of the same group or family. As a means by which to deal with tax increases and make improvements to rental income, HMO is proving to be an effective and appealing option for a growing number of buy-to-let...
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