Simple Commercial Finance

The Buy to Let Market has been hardest during the "credit crunch" with mortgage advances down as much as 80% on recent highs.

The lenders are very particular about the type of residential development proposal they will consider preferring as a rule houses to flatted developments.

Do not worry the BTL market is still alive and for good quality portfolios and landlords there are a number of lenders who are keen to lend and are competitive. This is important as it allows landlords to continue trading and removes the spectre of "forced sale" just to keep the funder happy.

Whilst it is accepted that property values have fallen in recent years this needs to be balanced against increasing demand for rented accommodation.

The demand is high as there remains a lack of first time buyers and people moving homes so naturally the need for rented accommodation has increased.

It is also felt that the housing market is showing signs of recovery - SLOWLY - but certainly there are signs within house price indicators and mortgage lending levels that perhaps we have neared the end of the sharp decline experienced from late 2008.

At Simple Commercial Finance we aim to assist landlords (large or small) through the process of raising finance whether for ongoing purchases or to have a more stable lending partner.

Loan to value is no longer the key driver in determining whether a request is successful as there are a complex array of "stress tests" applied to any mortgage request.This will involve a lender applying an "inflated" lending rate and margin and then measuring the rents achieved from the portfolio against this rate whilst also seeking additional comfort over and above.

This affordability test - which of course varies from lender to lender - can often prevent decent quality portfolios from raising funds.

However a well presented funding proposal to the right lender should bring results and at Simple Commercial Finance we are confident we can assist most investment property owners with their requirements.

The benefits from the schemes we can choose from are as follows:

• Free valuation with a cash back towards your legal fees
• Low interest rates
• 85% maximum loan to value
• Interest only for the full or part of the term of the loan without a repayment vehicle
• Available to Limited Companies, individuals or partnerships
• Maximum loan facility per client £50 million
• Private, students or DSS tenants accepted
• Houses in multiple occupation, blocks of flats or converted houses accepted
• Most lease types acceptable
• Fast further advances available to release further equity
• Refurbishments can be carried out under the same scheme on the same terms
• You can use your own solicitor to act for both sides
• Maximum Loan term 25 years

Facilities may be made available to purchase further residential investments over a 12 month period by refinancing & utilising equity in existing properties.