Refurbishment finance helps to turn weathered property into modern new pad for professionals. THE BRIEF - OBJECTIVES/PROBLEMS/CHALLENGES: Our client purchases property, renovates it and then either sells or holds the property long term. The brief was to fund a 3-bed terrace house in Windmill Hill that was tired and needed updating. The plan was to also add a bedroom to the property and once works were complete to refinance on to a multi-let BTL mortgage. The challenge with this property was that the property faced a pub. One of the lenders didn’t share our clients vision and no amount of convincing that the clients work was of a high quality would tempt them to lend, they also had worries that the property would not ‘value up’ at the end of the works. THE WORK: Due to the knock back of the initial lender we approached a lender that the client had worked with several times previously. We secured refurbishment finance at 0.85% per month with a 1.5% fee. As the works would only take 3 months we required a lender that would lend within 6 months of purchase and that would lend 75% of the increased value. We secured funding [...]
Buying a property can be a daunting process, with so many things to consider. Before you begin the process, here are 5 things you need to know to make the process as smooth as possible. 1. Know your budget Before you begin your property search, it’s important to know how much you can afford. Mortgage lenders use an affordability calculator to determine how much you can borrow. Fox Davidson are a whole of market mortgage broker and we will find a lender that will hopefully lend you the amount you need. You may find that your eligible to borrow more than you thought! Consider your budget carefully and be sure to include costs such as buildings insurance and mortgage protection. 2. Know your neighbourhood needs You know what you want to be in your future home, and how much you can afford to pay, but do you know where that home needs to be? Do you need somewhere close to the city, with good transport links, or near highly rated schools? Having a list of must-haves for your new neighbourhood is vital, but it shouldn’t restrict your property search. Doing your research is extremely important but don’t be afraid [...]
2017-09-20T17:29:52+00:00 August 22nd, 2017|Categories: Uncategorised|Comments Off on Getting on the property ladder: A guide for first-time buyers
Mortgages can be a daunting and confusing subject, and if you’re looking to buy your first property you may not have a clue where to start. If you have never previously owned a property, you are considered to be a first-time buyer to mortgage lenders. It can be extremely difficult to make your way on to the property ladder through buying, so there are indeed a number of initiatives that could offer crucial help. The Help-to-Buy government scheme offers an equity loan to first-time buyers who are looking to purchase a newly built flat or house. Buyers are required to provide a minimum of a 5% deposit for the property in question, therefore if the property cost £250,000, a minimum of £12,500 is needed for a deposit. If certain criteria are met, the government can lend you up to 20% of the property value, meaning that a mortgage can be agreed for 75% of the total cost. This is not a free gift, however, and you will be expected to pay the equity loan back. In the first five years after your purchase you will be able to make payments with no added interest, after this point interest will be [...]
2017-09-20T17:31:47+00:00 August 22nd, 2017|Categories: Uncategorised|Comments Off on The buy-to-let market has doubled in a decade – tempted?
If that's true, does this mean that now is the right time to get a buy-to-let mortgage and join the growing ranks of private landlords? Thousands of ordinary people in the UK have become successful landlords in the last thirty years, most since the buy-to-let explosion of the 1980s. The popularity of low-deposit mortgages secured on the property, but allowing rental income to be taken into account when calculating the affordability of the loan, allowed people with equity stored in their family homes to buy one or more houses to rent out. As well as the rental income paying off the mortgages, and hopefully a bit more, these first-time landlords owners enjoyed capital growth on the properties too, most using them as savings vehicles for their retirement. Although property prices dropped in the early 1990s and after the 2007 credit crunch, long term investors will still have made capital gains. The statistics that were being bandied about recently varied, but were all long term indicators showing significant growth in the private rented sector (PRS). The PRS excludes institutional investors such as pension funds and other financial institutions and social landlords such as universities, local authorities and housing associations. The English [...]
2017-09-20T17:33:21+00:00 August 4th, 2017|Categories: Uncategorised|Comments Off on Why you should leave the comfort zone of renting
Of all the commitments you can make in life, a mortgage is one of the biggest and also one of the scariest. All of a sudden you can be liable for a lot of money, but the benefits can far outweigh the risks involved. The advantages of renting can be tempting: being able to rely on a landlord when things go wrong can feel like a safety net, but it’s not always that easy. With owning your own home you’re the master of your own ship and you aren’t dictated to on what you can and can’t do with the place you live in. No longer do you have to follow the rules set out in your tenancy, instead, you can have the peace of mind of doing things on your own terms. While you are entering into a large agreement with your mortgage provider, looking around for the best rates can often mean you end up paying for less for your monthly payment than you would in a rental property. The true financial freedom can often come from having that lower repayment and not being so constricted by your finances before payday. Also with a mortgage comes that piece [...]
2017-07-26T13:49:33+00:00 July 26th, 2017|Categories: Bristol Property|Comments Off on What use is the HTB ISA really?
According to Hometrack, property prices rose on average by 6% in the last year alone, and with Zoopla stating that the average price for a house is just shy of £300k in Bristol, is it really worth having a help to buy ISA that only allows you up to £250,000 for properties outside of London? Designed to help first-time buyers get onto the property ladder, it enables them to put up to £200 a month into the account, any interest they receive is then awarded tax-free. In the first month, the ISA allows potential buyers to put in an additional £1000. When the time comes for buyers to purchase a home, the Government tops up the ISA with a 25% bonus, which is also tax-free. The bonus cannot exceed £3000, meaning the most that can be earned tax-free stands at £12,000. To help make sense of the ISA which has confused many and been heavily criticised by some, we've put together some basic pros and cons surrounding the account... The good It's free of tax. As previously stated, the ISA will allow anyone to earn up to £12,000 without having to pay tax. For anyone especially eager to purchase their [...]
“ I would not hesitate to recommend Fox Davidson to family and friends. I am a first time buyer and therefore the house buying process was a little daunting to start with but I was kept fully up to date throughout the whole process to the point where I would receive an update email at least twice a week.
I was also extremely pleased to find that as well as assisting with the mortgage I was also being provided assistance with home and life insurance. The service I have been provided is definitely good value for money and I am very grateful to everyone at Fox Davidson who has helped me.“
Miss R Power , Bristol
“ Having been let down by another mortgage broker (who seemed to only want to assist with a mortgage if we took other products too) I stumbled across Fox Davidson. As I am based half in London and half in Bristol, they seemed the perfect fit. Having connected with them and receiving prompt, relevant and helpful advice at the outset of our property search, I had no hesitation in coming back for the mortgage itself.
The mortgage application process was rendered painless and they bent over backwards to help with the sale. They also were extremely helpful and supportive when our first purchase collapsed, also managing to make mortgage application #2 equally as smooth. Thank you so much! “
K Gibson, London
“ After using Fox Davidson for my first buy to let purchase I didn’t hesitate to get in touch again when the time came to buy a second property. Being an expat living and working in Thailand I had found through my own research that the options available to me would be limited, however I needn’t have worried. Fox Davidson found me a mortgage that suited my circumstances perfectly. They have helped to make what could have been a complicated process very simple and stress free.
Great people, Great knowledge, Great service.
Thank you Fox Davidson. “