If there’s one thing to be said for major lenders right now, it’s that they aren’t making things easy for first-time buyers. Saving huge deposits and qualifying for a mortgage in the first place is becoming increasingly difficult as banks and lenders continue to put the squeeze on first-time applicants.

Which is precisely why record numbers of first-time buyers are turning to specialist lenders in order to explore a variety of alternative financial solutions for property purchases. With limited to no help being offered on the mainstream side of the lending market, some of the UK’s smallest independent lenders are experiencing a whirlwind of activity from the first-time buyers’ market.

Homeownership is a dream shared by the vast majority of UK residents. The unfortunate truth is that, as far as mainstream lending goes, most will simply never qualify. Meeting all necessary criteria is one thing, but when it comes to saving deposits of anything from £25,000 to £100,000 in some areas, it’s an outright impossibility that just isn’t going to happen. Work out the costs of a mortgage using our UK mortgage calculator.

What makes the difference with alternative lenders is the way in which each case and application is considered uniquely. With conventional lenders, it’s a case of meeting X, Y, and Z as standards or failing to qualify. The rest of the alphabet is inconsequential. With smaller, independent lenders, financial solutions are provided in direct accordance with the personal circumstances and requirements of the borrower. tailored packages to suit their needs, terms they can meet, and a deal that works for all parties.

Suffice it to say, this isn’t the kind of flexibility any of the UK’s major lenders can come close to. Tied to all-encompassing lending standards and protocol, first-time buyers are often lucky to get so far as to secure a meeting with a mortgage manager.

From bridging loans to development finance to secured loans to second-charge mortgages, there are countless opportunities to explore for those who wouldn’t typically qualify. Some require collateral; others are more about current financial circumstances; all are fundamentally flexible. Which is precisely where the difference lies—flexibility.

But the interesting thing is that while all this is going on, the UK government continues to pledge its relentless allegiance to the UK housing market in general. Specifically, make it as easy as possible for first-time buyers to get themselves on the property ladder. Yet what’s really happening is quite the opposite—major lenders are making it more difficult by the day. Even for those looking to purchase properties as a buy-to-let investment, qualifying for the required funding has never been more of a challenge.

The advice from the experts, therefore, is simple. Alongside the usual applications and inquiries lodged with major banks and lenders, speak to a specialist independent broker to find out what else is on offer. For those who fail to qualify via the usual channels, alternative lenders can often help. And even if you do qualify for a typical loan, you could still get a better deal from an alternative lender.

For more information on alternative financial solutions for all types of property purchases, get in touch with UK Property Finance today! For example, subprime mortgages are a product that allows those who may have some credit issues or may have had no chance to build credit yet to have a chance of getting a mortgage.

Over the past year or so, the rate at which lenders are offering financial support to buy-to-let landlords has been slowing significantly. For the most part, it comes down to the fact that the official UK legislation governing the buy-to-let mortgage sector has seen a near-endless array of reforms and adjustments. Things have changed radically over the past 18 months, leading some to believe that we could be looking at the long-predicted bursting of the buy-to-let bubble.

But is this really the case?

From stamp duty increases to tax relief restrictions to the strictest lending criteria seen in some time, it’s seemed for a while now that the UK has declared war on buy-to-let landlords. Newcomers to the industry and those with extensive portfolios alike have been squeezed so hard that many have been forced to exit the market entirely. Or, in some cases, find themselves denied entry in the first place.

Tax changes have hit the industry particularly hard, though they have at the same time been largely augmented by growing demand for quality rental properties. Not to mention the fact that average rents across key areas of the UK continue to climb at a rapid pace annually. Successful buy-to-let business owners are still making massive amounts of money, having staked claim to a UK property market that’s becoming more and more difficult to get into.

The problem, therefore, is one that surrounds getting into the buy-to-let game in the first place. Not to mention, expanding a portfolio once through the door.

It’s because of the various tax changes and general squeezes that conventional lenders are making it increasingly difficult for applicants to qualify for buy-to-let mortgages. Where you’d usually be a shoo-in, you may now fail to qualify for so much as a second thought. This is precisely why the market for alternative financial products and services has seen record growth over the past year or two as conventional banks and lenders close their doors en masse.

Whether it be using secured loans, specialist development finance, bridging loans, and so on, these are all the types of innovative and intelligent financial products that largely eliminate the usual qualification criteria that we can assist you with. Often exponentially cheaper and more easily accessible than any traditional mortgages and loans, buy-to-let investors are finding the financial support they require from smaller, often independent lenders offering tailored financial solutions.

What the government perhaps doesn’t realise is that by making life more difficult and more expensive for landlords, they in turn have little choice but to do likewise for their tenants. higher rents, bigger deposits, and greater scrutiny of whom they’ll let their properties out to in the first place. Most of the housing schemes and legislative changes introduced are supposed to be for the benefit of the public in general by contributing to the easing of the escalating affordable housing shortage.

Unfortunately, measures like those affecting buy-to-let investors could be sending things in the exact opposite direction.

 

Once again, major lenders are dangling the proverbial ‘carrot’ in front of would-be buyers with a raft of enticing fixed-rate mortgage deals. It’s getting increasingly tricky to qualify, but for those who do, there are some decent deals doing the rounds right now.

Two-year fixed rate: up to 60% LTV

For example, there’s a 0.99% deal on two-year fixed-rate mortgages up to 60% LTV on offer at the Yorkshire Building Society, alongside a £1,495 arrangement fee.

There’s also a decent 1.09% deal on offer at Sainsbury’s Bank, which comes to an end on the last day of October 2019. This time with a £995 arrangement fee to pay.

Top Tip: Arrangement fees are standard admin charges banks impose on mortgage deals, which may be required up-front or when the purchase is completed.

Two-Year Fixed Rate: Up to 90% LTV

If you’re looking to borrow a little more towards the cost of a home, The Co-operative Bank is offering a two-year fixed rate deal of 1.79% until the end of November 2019, with an arrangement fee of £1,349.

Likewise, Platform Loans is currently offering the same 1.79% until the end of November 2019 with a £1,499 arrangement fee, though with the added bonus of £250 cashback.

Top Tip: Mortgages via Platform Loans are provided by the Co-op and can only be accessed via a broker.

Five-year fixed rate: up to 60% LTV

Over in the five-year arena, Digital Mortgages has an offer on until December 22, 2022, charging 1.59% with an arrangement fee of £900.

As for HSBC, the same 1.59% is available over five years with an arrangement fee of £900.

Top Tip: The arrangement fees combined with valuation charges may add up to £1,200 or so, but as a five-year deal at around £236 per year, this still represents great value for money.

Five-year fixed rate: up to 90% LTV

Last but not least, five-year deals up to 90% LTV are headed by Digital Mortgages, which until November 30, 2022 are up for grabs from 2.39% with a £900 arrangement fee.

As for the Co-operative Bank, things step up to a slightly higher 2.45% with an arrangement fee of £1,349.

Top Tip: There’s also the option of a 2.45% deal at Atom Bank (the operator of digital mortgages) with zero arrangement fees to pay.

Alternative financial solutions

The above represents just a small sample of the kinds of conventional mortgages being offered right now by some of the High Street’s major lenders. Whatever your intended property purchase, we highly recommend considering the alternative financial solutions that may be available.

UK Property Finance specialises in specialist development finance, bridging loans, secured loans, and a variety of intelligent financial solutions. We provide access to 100% bespoke financial solutions for all types of property purchases, with fees and interest rates that typically undercut those of all major lenders.

For more information or to discuss any of our financial products, get in touch with the UK Property Finance team today. Work out the costs of a mortgage using our UK mortgage calculator.

Owing to recent tax relief changes that came into effect in April this year, a growing number of buy-to-let investors have found themselves turning their backs on domestic rental properties in favour of commercial investments as a more favourable opportunity.

In addition to this, some buy-to-let experts are also considering venturing out into more complicated areas of rental accommodation, such as multi-occupancy homes, which are popular with students who are studying away from their paternal nests.

Another area that is attracting an unusually high level of interest from buy-to-let landlords is semi-commercial property investment. This is where one part of the building is used for business reasons, such as a high-street bar or restaurant, and another part of the same property contains a residential flat.

Whereas the residential buy-to-let sector is experiencing a number of difficulties, the commercial property rental market is seemingly unaffected by recent changes, with industrial units being the primary candidate for healthy investment with serious returns.

Why choose commercial leasing as an investor?

The most significant advantage of investing in a commercial property with a view to letting is that the rents are typically much higher than with similarly priced residential lettings. This is a particularly appealing option at a time when most landlords have found themselves having to seriously think about lowering their costs while improving profit margins.

Although retail premises and office spaces are currently performing somewhat less admirably in the commercial letting arena when compared to industrial offerings, the commercial property sector as a whole is doing relatively well at the moment, with demand for such lettings consistently on the increase.

The effects of the Brexit vote

Another factor that is influencing this shift of focus is the Brexit effect and, in particular, the wide degree of uncertainty it caused. The most obvious result of this new period of insecurity was a dramatic increase in the number of low-cost commercial property investments entering the market.

‘The slowdown in the investment market during the summer months did inadvertently create a catalogue of available assets marketed at “Brexit factored” prices,’ read a recent report published by Knight Frank.

‘This was pivotal in delivering the strong uplift seen in Q4, which represented the fastest quarter-on-quarter growth in investment volumes for three years. Overseas investors continued to dominate, with £24 billion directly invested in UK commercial property in 2016, accounting for 49 percent of all investment.’

As the government seeks to make life more and more difficult for those in the residential buy-to-let sector, those letting commercial properties as a means of generating revenue seem to be having a much better time of things, with a growing number of UK investors choosing to abandon their domestic rental properties in favour of a more profitable experience.