A ten step guide to a commercial loan: Step 9

A ten step guide to a commercial loan: Step 9




.

With Lancashire Mortgage Corporation

Each week we bring you a step by step guide to setting up and completing a commercial loan

This week it's step 9:

Buy to let on the up

Time is of the essence for any busy landlord and brokers need to be up to speed to be aware of specialist lenders who can help them obtain suitable commercial finance for their clients.


With a stagnant mortgage market, renting has become far more popular in recent years.  As a result, there has been a surge in demand from tenants and in turn, an increase in new landlords entering in the market.


Getting on the landlord ladder can be helped by specialist lenders providing funding for almost any property in various states of repair and many client status profiles.  Usually the rental income from a property will need to cover at least 100% of the monthly repayments, but in the current housing market, some lenders will take additional income from employment, providing a wider option of lending solutions.


Being a landlord or having HMO’s is a long-term investment and commitment for your clients.  By extending lender panels to incorporate Buy to Let plans, it will open up possibilities for brokers to advise their clients in expanding their property portfolio and maximizing the return on their investment.
Buy to let lending is a viable diversification for brokers to fulfil their client requirements, and if managed properly, generate a steady and profitable return for them.

 

To read the full ten step guide to setting up and completing a commercial loan click here 

 

 

 


 

with Lancashire Mortgage Corporation

Leave a comment