1. Mortgages

Please note: Commercial/ Business Buy to Let Mortgages are not regulated by the Financial Conduct Authority & therefore these borrowers lose an element of consumer protection under the arm of the FCA.

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

2. Re-Mortgage

A remortgage can refer to replacing your current mortgage arrangement with either a new deal with your existing lender or to a better deal with a different lender. Lenders consider remortgage applications in the same way as if you were applying for a new mortgage from scratch. Common reasons for remortgaging include:

• Reduce monthly mortgage payments: Take advantage of a better deal when your current “special period” ends e.g. 2 year Discounted rate comes to an end and reverts to the Standard Variable Rate (SVR). This means you could benefit from a new discount rate with a new lender or switch deals with your current lender.
• Release cash from your home: Release equity in your property in the form of a lump sum advance to pay for e.g. Other debts, home improvements etc. This is especially useful when your Property’s value has increased meaning you have gained more equity.
• Capitalise on competitive interest rate: Interest rates fluctuate so when they hit a low some wish to remortgage so they can switch to a better interest rate on their mortgage payments & save money
• Consolidate Debts: This should be carefully considered as it means the value of your unsecured debts will now be secured against your property which will raise your monthly payments compared to previously. There are various ways to manage debts including free debt advice charities, you may wish to contact the Money Advice Service.

At Direct Mortgages we will ensure you are genuinely getting a better deal, taking into account early repayment charges (ERCs), conveyancing/legal fees & Valuation fees.

Getting an acceptance first time does not guarantee the same on a remortgage. If your financial situation has changed since you originally got your mortgage which will adversely impact your credit score then lenders will not hesitate to reject the application. At Direct Mortgages, we work with specialist lenders to eliminate this stress & find you the best deal.

3a. Investment Property

An investment property can come in various forms, the most common & well know is a Buy to Let. Investment property can produce a wealth of benefits:

• Capital Growth from your initial investment
• Passive Income Stream
• Stable Investment: UK has a prosperous housing market which offers more stable long terms returns compared to other equity linked investments
• Record Population Growth: Constant demand for housing & rental accommodation with housing supply in shortage
• Possibility of rising rental yields & property prices: House price inflation runs ahead of general inflation

See below for more detail.

Warning: Your home may be repossessed if you do not keep up repayments on your mortgage.

3b. Buy To Let

A Buy to Let property, also known as an investment property, is purchased as a second property with the intention of letting it out to tenants rather than living in it as a residential property yourself. Becoming a Landlord has its perks but it is also very complicated & time consuming.

• BTL have higher min deposit typically 20-25% of prop val & also have higher interest rates on mortgages vs resi mortgages.
• Lenders usual main concern is the rental income yielded from the property, in some instances your own personal income is not even considered. Therefore, may be worth doing your homework e.g. via local lettings agent about the demand in that area, the estimated rental income etc of a property before you proceed with a purchase and mortgage.
• BTL rental income generally exceeds the monthly mortgage payments, leaving a surplus profit for the landlord but it is important to consider the other costs e.g.
• Property upkeep & maintenance
• Letting agent’s fees.
• Ground rent / service charges – applicable to leasehold properties.
• Legal insurance – to cover costs of evicting tenants in the event of non-payment, this can be very expensive.
• Insurance – building and contents insurance for the items provided under the tenancy agreement.
• Furnishings – If the let property is to be furnished.
• Gas / electrical appliances – cost of maintaining appliances and ensuring they comply with any regulations e.g. safety tests.
• Cost of decorating.

3c. House of Multiple Occupancy

Also known as HMO is a popular method of maximising returns from one property. HMO’s require a license & involves multiple unrelated tenants residing in the same property on a room by room basis e.g. Student Housing.

3d. Serviced Accomodation

Similar to a HMO, this is a strategy of maximising returns from one property. Commonly marketed as accommodation on a night-by-night basis e.g. Bed & Breakfast, AirBnB etc

3e. Buy To Sell

Essentially buying a property as an investment to refurbish it as a project & then re-sell it at a premium, making a profit in the process

3f. Buy-Refurb-Finance

This involves buying a distressed property, possibly below market price, which would be considered un-mortgageable by residential lenders e.g. no functioning bathroom or kitchen, on an emergency bridge finance loan with the intention of refurbishing the property to an acceptable & habitable standard & then exiting the bridge loan with a standard term mortgage.

4. First Time Buyers

Getting on the property ladder as a first time buyer is not as easy as some may think. This is someone who is buying a house/flat and has not previously owned a property. They are usually more appealing to sellers as there is no chain involved, nor are they waiting to sell a property. Many lenders and builders will also offer attractive rates/deals to first time buyers as an incentive to buy and move onto the housing ladder. You would be also eligible for a 95% loan (loan to value) or a help to buy guarantee government scheme. Many banks are now offering 95% LTV mortgages to first time buyers so you only need to put in 5% deposit.

For many people, purchasing a house will be one of the most important financial decisions of their lifetime, this can be especially daunting for a first time buyer. In terms of a mortgage, with so many options available it can be difficult to make a decision that will not impact you finances too harshly, this is where we can help with our advice process. At Direct Mortgages we will guide you from the fact find to chasing solicitors, stamping out the stress & making the process as easy as possible.

First Time Buyer with low credit? You have come to the right place. Whether you have had previous IVAs, CCJs, payday loans – we know the right lenders that will give you the consideration you deserve.

As a first-time buyer, the advance a lender will be willing to offer you will be based on your household income & your affordability assessment when compared to other outgoings e.g. mortgage payments, utility bills, committed expenditure etc. There are ways to combat a low credit score to get the acceptance you need, such as increasing your deposit, & we can help advise you on this.

5. Let To Buy

The term Let to Buy is used for someone who is letting their home in-order to buy a new home. This type of deal is very appealing to frustrated sellers who eventually decide to let their existing home and raise funds to buy a new home, all without feeling pressure to sell in a hurry and possibly at a loss. Such applicants can sometimes be referred to as accidental landlords since they may have struggled to sell their home & in the meantime, they are choosing to rent it out as a landlord which was not their original intention for the property. If you have enough equity in your property, you could re-mortgage and raise cash towards a deposit on a new property. Your existing property could then be let out to generate income, which in turn could cover the cost.

6. Council Right To Buy

Introduced in the 1980s, the Council Right to Buy scheme is a popular government programme to help individuals living in council housing in England to get on to the property ladder & buy their council property at a discounted price. Different discount levels exist for houses & flats. To qualify for a right to buy purchase the following criteria must be applicable:

• It is your only property & it is in England
• You have lived in the council property for 3-5 years (Discount applied depends on length of time you have resided at the property)
• A legally binding contract exists between you & your landlord
• The property has had a public sector landlord for minimum 3 years
• It is a self-contained property i.e., there are no common areas or facilities which are shared with people outside your household.

A Right to Buy Mortgage is similar to that of a standard mortgage in terms of affordability, income & expenditure, & in some cases you may be able to get one without having to put down a deposit since most lenders will treat the discount in the same way as this.

7. Commercial Borrowing

Commercial Finance is typically secured lending for Businesses i.e., non-residential property. This is a specialised area of lending and can vary considerably depending on two key factors: Firstly, the security e.g., retail shops, industrial units, land, semi commercial, development or buying an existing business in its entirety. Secondly, the ability of your business to make the repayments. A lender will assess the financial status of your business before quoting you an interest rate. Each application is judged on its own merits and our specialist lending team will cater for a variety of uses. Our team will design the terms and package the deal around your needs at very competitive rates to suit you. Lenders generally require a deposit of around 15%-25% of the total value and mortgage terms can run for one year, up to 45 years.

We specialise in sourcing finance for adverse credit & complex commercial applications & can accommodate for Businesses with CVA’s, previous insolvency’s, Defaults, CCJs, Mortgage arrears, HMRC Tax liabilities, Liquidations.

8. Bridge Finance

This is a short term but affective lending option to provide funding, with speed being the most important factor. Bridging finance can be crucial in obtaining and facilitating a purchase or re-mortgage that otherwise could not happen when faced with time constraints. Bridge loans are ideal when you need money immediately for a short-term period. The most common use of these loans is to help fund a new property purchase, while waiting for your existing property to sell. Bridge loans are also commonly used to buy properties at auction where you need to move quickly and there is no time to delay. Once bridging finance is obtained, there is normally an exit strategy required to be put in place, this could either be the sale of the property or re-financing to pay off the bridge loan.

We can accommodate Bridging loans for low credit applicants with a 14 Day turnaround & completion period*. Not only do we guarantee to source you the best Bridge Deal to suit your requirements quickly, but we will stay with you all the way to completion and help you exit the bridge by way of arranging long term finance. We don't just stop once we've arranged your bridge - you can rely on our full support for long term solutions.

*Subject to Valuation & Legals