Pseudo bridging finance product
Posted on 10th August 2021 at 11:42
Mansfield Building Society have released an amazing pseudo bridge product, although I must point out, this is not a bridge… Keep reading…
The little building society with big ideas have:
· Manual underwriting and no ‘computer says no’ scenarios – this means some flexibility too.
· 100% LTV 1st time buyer residential products
· 90% LTV residential products
· Regulated products treated as normal BTL
· Self employed – only 1 full years accounts needed OR, if your latest was higher, they can use just that year for affordability.
· Holiday lets up to 70% LTV
· Expat BTL – Including Expat 'consumer BTL' mortgages
· Later Life Lending (able to lend to the older person)
· Debt con, they can go up to 85% LTV on residential cases to get rid of debts
· You can also capital raise in your own name to provide funds for a LTD company purchase!
· Top slicing (allowing your own income to be used when rental income is a bit low)
· No Personal Guarantees needed with LTD company lending!
· They allow up to 15 properties in the portfolio but only 5 with them. Un – mortgaged properties are not counted in this.
· No onward purchases needed when capital raising
· Buying and renting back to the builder – show homes
· Large acreage
· Modern Methods of construction >85% LTV
· They even allow some adverse when there has been a life event – e.g. divorce etc.
Now, the other thing I alluded to and a quirk that makes them pretty amazing is for BTL purchases, they can look at the purchase on future value…
So, if you saw a property that was liveable at say £200k however, below market value and needed some TLC such as a bathroom/kitchen etc to bring it up to date and worth £250k, they can consider lending from Day 1, at the market value that it WILL BE - £250k!
They would obviously protect themselves with a retainer and a re-valuation when the work is done, but what an amazing product that would allow you to begin your developing early and without the bridge needs or huge cash injection!
This could save you so much money without needing to pay ERC’s on another product or an expensive bridge loan.
This product means you can visualise the property as it should be rather than as it is. As long as the work gets done within a reasonable timeframe, you can start from the first day, ahead.
This means that with the new EPC rules coming in, a lower rated property could be bought cheaply and turned into a much better rating with much more potential for a fraction of the price...
They have also released recently that they can now stress 5 year products at the pay rate, so if your rate was 3.39%, thats what they can stress at rather than the usual 5.5% - another incredible quirk!
Mansfield Building Society are going to give some of the huge mainstream lenders a real run for their money.
YOUR FIRST ACTION - email your situation to me austyn@hdconsultants.net
Austyn Johnson
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