 THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER SECURED DEBTS. Underwriting flexibility.... Many UK lenders show a lack of understanding and underwriting flexibility when dealing with self-employed individuals and company directors who have a shareholding of 25% or more in their own business. Eden has access to mortgage schemes where self-certified, no proof of income is required on a 90% loan to value of the purchase price. Where we do have to use accounts, we can often get the lender to take into account all dividend income. Large Loans.... Eden deals with mortgages in excess £500,000, we know which lenders to use to access the right product range, rather than a High Street product priced at a set margin over Bank of England base rate or Libor. The difference in interest payments between low/short-term new business rate, (fixed or discount) and a normal variable rate product can be tens of thousands of pounds. Given the low level of interest rates currently in the UK and the strength of the pound it may suit many purchasers to achieve a high level of gearing against the property. Eden has achieved loans of up to 90% on purchase prices up to £500,000 and 85% above this level. In some cases up to 100% may be achievable if additional security is available. Buy to Let and Residential investment portfolios.... Eden has access to products offering up to 95% of the purchase price of a second property at residential mortgage rates. Depending on the expected rental yield of the new investment property, it can often make sense to borrow the maximum value of the purchase price of the investment property in the knowledge that as the value of the property appreciates and the rental yield increases, you have maximised the current and future opportunity to offset the interest payments on the investment property against the rental income before any residual tax liability is calculated. For clients who wish to accumulate a portfolio over a period of time, it may be advisable to establish a pre-agreed facility with one lender. This will keep the mortgage approval process on each new property to a minimum. It can also avoid the need for a number of further advances with different lenders, when you require releasing equity from the existing portfolio for a deposit on a new purchase. [Note: Buy to let loans and mortgages are not regulated by the FSA] Residential development finance.... Development finance will have to be placed with specialist lenders, to afford the right level of gearing though out the stages of development to ensure adequate flexibility on stage payments and interest roll up. On good quality projects the banks who specialise in this area will look to charge a margin of between 1.5 – 2.5% over Bank of England base rate or Libor and then a facility fee of ½% - 1½% on exit of the loan. A critical factor for developers will be the level of gearing they can achieve as this will not only effect the size of the project but also the quality of the finished product and the ability to do other projects simultaneously. Eden can arrange facilities of up to 75% of the total cost including interest roll up on market leading terms, subject to the quality of the client and planed project. [Note: Development loans and mortgages are not regulated by the FSA] To discover exactly what this service could mean for you, call our Specialist Mortgages Division on: 01202 715316. |