Residential investment loans can be used to purchase or refinance individual residential properties through to large residential portfolios. Loans can be used to assist investors with their purchase, refinance or to release funds for further purchases or other projects.
Residential Investment loans tend to be longer term, ranging from 2 years to 30
Individual properties can be funded by commercial debt of up to 7 years or on long term buy to let mortgages of up to 30 years.
Larger portfolios tend to be funded via commercial debt up to 7 years. On longer terms, Gilt and Swap based funding can go up to 50 years, or bonds for very large portfolios.
A lenders appetite to lend are based not only on the value of the property or properties but also the income yield. Lenders generally want to ensure that the property generates enough income to service interest, or interest and capital.
Buy To Let (BTL) mortgages are available usually up to 75% loan to market value, subject to sufficient interest cover. Conventional residential investment loans are typically available at up to 65% loan to value, given the lower yielding nature of residential investments. Longer terms Gilt based funding and bonds are normally available at up to 55%-60% loan to value.
How we can help:
- Through our extensive network of specialist residential investment lenders, buy to let mortgage providers, general funds, insurance companies (that lend to Real Estate) and institutional lenders, we can assist to initially assess the information provided, then look to source and arrange terms to suit your requirements.
- Based on our knowledge of our lenders and their parameters, we can give an indication of the potential debt quantum, rates, fees and time to obtain funds with lenders we deal with.
- We assist throughout the loan process, with the aim to minimise impact on clients time and allowing clients to focus on other areas of business.