BTL bother, development finance dilemmas and karaoke: A week in the life of a broker  “And now the end is near, I've travelled each and every Highway...” A famous line, from a famous song, sung by an even more famous singer, well on Friday some news made me burst into song and that was the tune.   “What?!” I hear you ask, “You sing in your office?” Well dear reader, if you relate to my blog from last week, which contained some of my somewhat outspoken views on accountants, you'll realise why I was singing. I raised the roof; yes, that’s right, the accountant has sent the accounts through so I could get movement on that stagnant case.   Slightly unrelated to broking, but still on the matter of singing that tune, I was once very slightly inebriated in a karaoke bar and decided that it was my moment to get up and put my stamp on it. Afterwards this old guy came up to me and said in a broad Sheffield accent, “Narden that wo best o'worst av erd that song sung...”   I took that as a compliment and shook him firmly by his outstretched mittened hand. It was like coming face to face with Albert Steptoe.   A broker’s life is a mixed bag after all, one day it’s karaoke and dealing with tricky accountants, the next it’s development finance, followed by bridging finance, and so on. Well, this week has been interesting to say the least...   A new client of mine has just had three offers accepted on three separate BTL properties.   “How do I raise the finance,” he asked me. “Do I have to use cash?”   This client had a portfolio of four unencumbered properties, and, following lengthy discussions, we decided to use two of those to draw down sufficient funds to buy two of the new properties outright (a pair of terraced houses that required £20,000 for refurbishment) for a total of £100,000, and a deposit on the 3rd.   So, two re-mortgages and one purchase mortgage – job is a good ’un. The clients are retired, no income except over £3,000 per month in rental income, so that removed most lenders due to minimum income levels, but praise must go to TMW, their products have some of the lowest rates available, (high arrangement fees, mind), and the rental assessment as such fit very snugly.   It was a dream match for these clients: one lender and three new properties to the portfolio equals happy new long term clients.   After that I tootled off down South to Walsall to sign up a barrister on some PMI (a referral). The excellent Pru-Health product suited him perfectly – good stuff for us brokers this PMI, excellent passive income every year the client renews, and more importantly a happy client. In fact, this client was so happy he had three referrals for me, and two of these were sat there. It makes sitting in the car park for 3 hours (that's the M1 between Nottingham and Sheffield on a Friday tea time) all the more enjoyable.   Finally, a development case landed on my desk this week. Builders with planning for 14 houses, they'd built and sold two before yours truly come on the scene, but then RBS pulled the funding. Very kind of RBS...   Anyway, Aldermore Development Finance came to the rescue. What an excellent service, and what excellent rates, I can't praise them highly enough. As the land is already owned, Aldermore is funding 100% of the build costs – happy clients, happy lender, and happy Bob.   So now it's off to the Holly Bush for some medicine of the Sam Smiths variety, at £1.43p a pint it's the cheapest medicine I can get over the counter to replenish my tank in preparation for this next week...    

Contact Bob Havenhand: [email protected]