"If you are looking for this type of mortgage product we could help you!"
In this very difficult market we are not seeing too many Investment Portfolio’s that clients are looking to re-structure, to take advantage of a buyer’s market, because most of the lenders who are still willing to look at portfolio finance, have introduced some very difficult stress tests that have made it almost impossible to raise the required level of funding.In a normal market we would be looking at 70% LTV as a guide with coverage of the repayments at around 150%.
The value of investments can fall as well as rise. You may get back less then you invest.
Other Mortgage Products
If you wish to proceed with a mortgage enquiry please click the button below to go to our enquiry form.
A Mortgage 4 You Best Mortgage Buys
Mansion Park Limited is a credit broker not a lender.
More About Investment Portfolios
With the very fragile state of the property market, apart from London and to some extent within the magic M25, lenders have now taken a very cautious approach to portfolios with a requirement of 190% coverage, using a stress rate of 8%.
The effect of this is to in most circumstances is to reduce the loan to value to around 50%, which for most Investors will not allow them to gear up enough to release funds for further property purchase. This would explain the lack of activity in this area, which is unlikely to change until the markets become positive again.
You can almost feel the pressure building up for when the market does become positive, and no doubt we will see Investors fighting to find the bargains and the required funding. It just cannot come quick enough now with the downturn in the markets that has held us back since 2007. We do not expect any major changes this year but 2013 maybe very interesting.
If you would like to discuss your property portfolio, please call Michael J Alexander on 03452 605506. We are Independent Mortgage Advisers with over 40 years of experience in financial services and we are here to help and guide you to the product that most suits your requirements.
More about Investment Portfolios
Prior to the downturn in the property markets in 2007, many Investors preferred to keep their portfolio’s with one lender and to use the capital appreciation each year to enable them to gear up within the loan to value, without having to find any extra cash to put into the new purchase.
Unfortunately the downturn in the markets changed the dynamic’s of the plan, which saw most clients breaking up the portfolio, and remortgaging away to other lenders as they were in breach of the loan to value.
We are now just starting to see the return of Portfolio borrowing, with the property price boom in London, and the attractive investments within the magic circle of the M25 and certain Hotspots.
The main difference today from 2007 is that the niche lenders are not looking for exposure in excess of 20 properties, and most of the other lenders are comfortable with 5 or 10 properties. Lessons have been learned from the heady days prior to 2007, after which many lenders are still holding BTL portfolio’s and are waiting for the markets to return in order that they can dispose of them without causing panic in the market place.
Â Is it still a wise move to consider borrowing within the portfolio, yes but keep the portfolio small, 5 properties, which makes your life so much easier to take advantage of changes in the market, and to sell or buy at the right time. Also if lenders have a change of lending policy, you are only looking at changing part of your portfolio, rather than all of it. Reacting to changes in the property market is essential to enable you to grow with a spread of risk.If you would like more information, please call Michael J Alexander on 03452 605506 or 07867 794837 email firstname.lastname@example.org