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Computer says NO again

Sorry I have been a bit quiet recently.  Since obtaining my credit line from a big bank I have been spending my time putting everything in motion so I can buy 50+ properties every month.  Believe me that takes some organisation!

 

Anyway there was a near spanner in the works when the dreaded 6 month rule reared its ugly head.  Oh no I thought as my dreams of getting to 1,000 properties would grind to an abrupt halt however I have managed to get round it.   Lets just say I have a good solicitor who understands which side his bread is buttered on.

 

Where the computer has said no was on my remortgage of my personal home.  I was trying to raise some additional cash to put towards fees for future purchases and I thought it would be good to use the bank that had recently opened up a Ltd Co account with.

 

So I had the face to face meeting and we went through the motions and lo and behold the computer said no.  It said no on two counts:

 

  1. credit score
  2. loan amount

 

I had gone in looking to raise £600,000 to clear my uncompetitive Northern Rock mortgage at 4.79% and raise an additional £100,000.  This bank was offering 2.89% which would have brought my mortgage payments down by £400 AND give me a nice £100,000 cash gift. 

 

But as usual the bank said no.  Am I bothered? Not at all.  The remortgage market is hotting up.  The offer I got refused on was free legals and valuation.  I reckon I can get sub 2% borrowing if I pay for legals and valuation so in the long run I will be better off.  I just need to get on and make the applications.  I think I will spend a day filling out loads of applications and see where I end up!

 

I am also busy writing my business plan.  My business plan is to raise £1m secured as a second charge on all the equity in my portfolio to assist me buying with my new bank. 

 

Now if I thought trying to remortgage my own home was difficult try raising £1m second charge secured on 200 properties!  It will take some convincing however if I get half the way there I will consider that a success.  Getting 2nd charge lending means I get to keep my 2.25% 1st charge borrowing with Mortgage Express.

 

I am also raising a whole load of unsecured finance to help me buy even more by using my partner’s name (poor old Hana!) and get another £100,000 possibly.  All scary but very exciting stuff.

 

If you are wondering why I am doing all this there is a simple answer to this question:

 

PROPERTY PRICES ARE CHEAP AT THE BOTTOM END

 

I built a £15m property portfolio buying at the bottom end and it has given me a very comfortable lifestyle.  10 years on I see property prices back at 2003 levels which I never thought possible but this time I have a lot more money to pile in to.  I have credit, the market predicts doom and gloom and rental demand is strong for the bottom end (have you seen the unemployment figures?). 

 

The government will stick kick out housing benefit payments as regular as prime minister’s question time so to say the next 18 months look rosy for a bottom end landlord would be an UNDERSTATEMENT!

 

Speak soon.

 


Posted on: 16th Sep 2010




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