Some very exciting news:

 

1. 80% LTV buy to let is possible with Saffron Building Society
2. No 6 month rule with Coventry Building Society (70% LTV)

 

This is a clear statement from some lenders that they are back.  It is strange it is the building societies coming out rather than the big banks but who am I to complain.

 

So the above means this for No Money Down Investors:

 

1. 20% BMV required to do the deal deposit free, 25% BMV to do no money down including fees.
2. Buying a wreck and refurbishing and getting all your money back that you put in including deposit, refurb costs and fees is now possible if you buy right.  So if you buy a wreck for £50k, spend £10k and get a valuation of £100k then the building society will lend you £70k.  This will result in a £10k cashback less any professional fees.

 

So whoever said no money down was going to die a death is clearly mistaken.  This is a clear indication that lenders are up for some lending to those who know what they are doing.

 

I have to admit I was feeling that some of the techniques of doing no money down were getting closed and they will be soon however new techniques are emerging.  It is the old ways which are coming back.  The old ways are like above plus:

 

• Borrowing the deposit off credit cards, overdrafts and loans
• Bridging for 6 months and remortgaging
• Daylight bridge (possible with Coventry BS)

 

Some of it has yet to be tested so I am sure if anyone from the building society reads this email they will bring it to the chief underwriter’s attention!  Us investors are getting excited about buying big time again….

 

Anyway thought I would let you know about the cracks that are appearing in the thick walls around all that loan money hoarded by all those financial institutions!

 

If you want to buy no money down then get in contact.

Posted on: 9th Mar 2010