For many years experienced property investors have used finance to take advantage of opportunities and build their wealth.
However, over recent years for a host of reasons, property investors have found accessing finance increasingly difficult:
More Property Investors - Greater Caution
Property Investors - Understand the Lending Landscape
Debt Servicing - When and How Will They Be Repaid?
Historically, if debt servicing was tight, experienced property investors could leverage their track record to access the finance they required.
However, whilst experience in the sector still carries weight, the focus today is about being able to demonstrate you can repay borrowings from normal cashflow and not be reliant on asset sales.
Even if you are seeking interest only finance, you will need to demonstrate to Lenders that you can:
Whilst experienced property investors with a sound track-record, may enjoy some greater flexibility, the ability to repay will be the key issue that will need to be satisfied.
Know Where You Stand
We are starting to see signs that some Lenders are taking a slightly more flexible approach when it comes to property investment.
Indeed, one of the majors (along with some other Lenders) recently reduced interest rates for this type of finance, which is a positive sign.
They will no doubt continue to carefully assess finance requests; however, this should favour experienced property investors.
The key to a successful outcome, as outlined above, is preparation and submitting a professional finance proposal.
If you are an experienced property investor and would like to learn more about how The 500 Group can help you access the finance you need, don’t hesitate to give me a call.