Why I don't use buy-to-let Mortgages anymore...
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- Опубликовано: 4 авг 2024
- Buy-to-let mortgages are crazy in 2023. Interest rates are higher than ever and I'm not sure Buy-to-let mortgages are the right way forwards anymore. That's why I'm thinking Bridging from now on! Bridging Loans, compared to Buy-to-let mortgages are like the wild child of the finance world. They're short-term loans used to bridge the gap between buying a property and selling another one. They're perfect for those who need quick cash to snatch up a property before someone else does. It's like playing Monopoly, but instead of passing Go and collecting £200, you're taking out a loan and praying the dice roll in your favour.
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Been unsure about why I would use bridging but your video has really helped me get my head around it, thanks very much
I never really took the bridging into consideration, I’m gonna start my journey of BRR and then get boring vanilla BTLs next year, I’m pulling money out my house but really struggled with how I’d be able to with getting on a btl mortgage straight away etc but now understanding how I can put 30k upfront and borrow say 70k on bridge makes so much sense! Then get it revalued and then get the btl mortgage! Thank you Jamie I watch every video and I appreciate the free education ❤
Cheers, thanks for watching! Glad the videos help you!
Great video as always! I’m definitely going to use bridging for my next one. Having to wait 6 months using a tracker mortgage for a refurb project is tedious
Sounds great! Cheers mate! Thanks for watching!
Always gold content 💯
Cheers mate!
Thanks for that video. So that’s 1 of the 7 ways to buy property. Have you got a playlist for the other 6 options please as I can’t find them? 🤷♂️
Short term vs long term goals with either interest only or repayment mortgage?
Loving the content. I would normally not consider bridge because of the cost of finance. However this video was very helpful to have a more in-depth information about this form of finance. 👍
Glad it was helpful! Thanks for watching!
Hi Jamie, please can you recommend a good bridge finance company that charge 1% upfront? As I recently took a loan for £270k form a bridge company and I had to pay 10% upfront that includes - 2% lender fee, 1% broker fee, 0.5% other fees expense like legals etc.. and then interest deducted upfront.. I will be amazed if you show me a company that lends with just 1% upfront fees
I am based in Colchester and am planning to buy my first house and rent out other bedrooms to sort of house hack. The avg price of a 3bhk flat is around 180k whereas a 3bhk terraced or semi detached property/house is 280k in non central areas. The difference between renting out room rents individually would be less than 10% . Am I missing something in calculations or is flat a better deal in my case ?
On a flat you're going to be having service charges, ground rents, and will require freeholder permission for any changes, to use it on serviced accomodation or HMO. Freehold houses are usually more expensive for this reason - you own the land. IN flats, you own just the building for a specified period.
Hey Jamie, i've been wanting to buy my first BTL property for a while now and finally managed to save up £30k, however, with rates at 5% (on a 75% LTV interest only mortgage) and the changes in tax, it feels like i've missed the boat. Realistically, can you actually make anything from BTL anymore without setting up a LTD? I've no interested in purchasing lots of properties. I was hoping to do this as a side hussle to supplement income. I'd love to know your thoughts?
You'll make 1% per year
I lost big chunk of money in a property auction because of the dirty game by seller.. So scared of the word 'property' .
Dont let the 1 encounter dampen your view, there are plenty of good experiences out there!
can you use a bridge to cover whole cost of purchase and refurb then refinance and pay it back? ive been playing around with the tools on lendlord but surely you'll have to put something up yourself?
You can usually get 100% for end value purchases
What about when you positively add to a directors loan account either via transfer of a property into Ltd or a purchase of a property under the Ltd but using funds from your personal earnings for the deposit?
From what I believe you can then pay yourself back the money owed out of future profits tax free after corporation tax of course?
Example, 100k purchase through Ltd with 25k deposit paid from personal money earned. This 25k would increase the DLA account and be owed back to you once rental has made profit.
Great strategy mate!
I must not be understanding this video. How can a bridge loan be better than a BTL Mortgage? Are you refinancing in a year?
Yeah! :)
High Ltv mortgages don’t work on btl anymore. If your rental yield is 5% and the mortgage is 5.5% just doesn’t work. All those highly leveraged landlords gonna be feeling the pain whe they come to remortgage. 😩
@@Bigdogstusksinterest only?
How can i know my best option if im not a British citizen
Do some research before hand
LendLord is not entirely free but yea thanks for the link 😂
The premium version is paid for but the main software is free :)
can you recommend a bridging company ?
I know he uses Lendlord, kind of like a bridging broker
There are lots (I work as a finance broker). There are quite a few and I'd be interest to see who Jamie uses, most likely Together as they do HUGE volume, or Shawbrook.
If you sign up with Lendlord and watch a couple of their videos you will know they are not bridging brokers they lend their own money. Not the same deal on the mortgages.
I personally use LendLord
HI just been offed a remortgage against on a paid for house are the chargers 5.44% plus £2495 to mortgage mortgage application £150 transfer fee £30 mortgage exit fee £115 conveyancing fee (approx.)£ 600 packer fee? £199 broker fee £299 is all the fees right
Wow!
Without knowing all the info I can't give you accurate info
What is max LTV on bridging loan?
75% currently, people will advertise 80% but pretty much impossible to get. That is a gross figure too, so interest will be retained.
Agreed. Typically 75%
In the real World i need 30-35% deposit, is that correct? Can the bridge be used for brrrr property when loan is below 100k ?
There are actually 90% LTV bridge companies, some do 100% if you have other properties in the background (but the legal work is a nightmare), then there are bridge companies that will lend on a day 1 uplifted value/OMV (i.e. for sale under values and lease options with PP uplift) which if done right can equate to 100% purchase.
Together max 65% LTV although they will lend on pretty much anything
@@slendeavours really? Who does 90-100% LTV? Please let me know who they are?
APG
Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)
thats whats wrong with the renting market ....muppets with couple of hundreds of thousands becoming " landlords" ........then give the burden to the renters 🙄
How many ‘muppets’ do you know that have managed to earner and get that sort of money? Very few I imagine
Also… providing a service to those that want to rent their property is hardly a ‘burden’ welcome to capitalism… the reason we all have a home 😊
Landlords provide a service and services have costs. If it wasn't for landlords, local authorities would have to provide even more accommodation... and that would increase your council tax. Landlords are not necessarily villains and opportunists, and no one wants higher council tax.
Good video. A lot of nonsense videos out there!
Cheers mate! There is yes, but you'll figure out who's talking a load of bs!
Bridging loans are a fools paradise, if you haven't got the money dont buy it !,
Debatable! I've used it successfully a lot of times