I have got the email and it has been confirmed:

 

We can do bridge and remortgage with FOUR lenders!

 

The LTVs and rates are not as good as I thought but hey you cannot have everything.  You can get:

 

Up to 70% LTV

Rates from 3.5%

 

The good thing is you can buy.  When I was building my portfolio I did a deal with one bank where they let me buy whatever I wanted but used to make me pay heavy arrangement fees, margin above base and repayment only.  I look back at those charges and think they are cheap now!

 

Anyway this is how you should use these bridge and remortgage deals:

 

Buy no money down with this simple method and then remortgage out on interest only when the better deals start coming in in late 2009.  the reason you should use this method is it is cheaper, simpler and the minimum value is lower.  So you can buy at higher yields.

 

I will be using it for one of my purchases.  I bought the report that no one else did.  It was a 1 bed bungalow for £20,500.  it will rent to DSS at £375 and I am hoping I will get a valuation of £30,000. 

 

So the bank should lend worst case 65% of £30,000 = £19,500.  I will have to put in around £2,500 to buy but the yield will be15%+.  Nice.

 

Now give it 12 months and the mortgage market will come back at 85% interest only at sensible rates.  The property will be worth say £40,000 and I will be able to get a remortgage for 85% x £40,000 = £34,000.  This will release another £14,500 for me to buy lots more property.  Even if I do not get any BMV I will still be able to buy 3 more properties putting a £5k deposit (okay I will be short £500 but who is counting?).

 

So buying now at the cheap prices and while getting DECENT buy to let mortgages is very very important if you want to build a portfolio that generates a lot of cash every month for you to live on.

 

If you want some high yielding deals then speak to my office.

 

Ajay

Posted on: 30th Apr 2009