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. 

Stamp Duty - What's changed?

  Stamp Duty has changed signficantly in the last 6 months.  Therefore we thought it would be useful to summarise the latest stamp duty position, as a useful guide for our subscribers. Anyone who buys additional residential property, including second homes and buy-to-lets, has had to pay an extra 3 percentage points in stamp duty from April 1, 2016.   The additional charge applies above the current “stamp duty land tax” rates. This means there will be 3pc tax to pay on homes worth up to £125,000, 5pc tax (instead of 2pc) on homes that cost between £125,001 and £250,000, and 8pc on homes worth between £250,001 and £925,000.   Homes worth up to £1.5m are subject to 13pc stamp duty and those over this amount will incur a 15pc charge.   In practice this means that someone buying a £450,000 house will have to pay an extra £13,500 of tax....
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Five reasons why Brexit has triggered 50% surge in mortgage enquiries

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