Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage
Specialist Lending
Why the Need?
The regulation surrounding residential / personal mortgages is far more stricter than commercial or other lending types.
Specialist lenders are also monitored to ensure a level of fair practice, but as the products themselves may not be regulated to the same standard, it allows the lender to be more flexible in terms what they can lend you and the purpose of the loan. This can be very useful for you.
Bridging Loans can help help undertake or complete projects that may otherwise not be possible. Once the project is completed, you may sell the asset or re-finance to a more standard longer term mortgage. Key is that these are short term loans and you should have a clear exit strategy.
Second Charge Mortgages. Again as above, these provide flexibility. You may need a 2nd charge for a number of things such as home improvements or buy another property if it is a regular mortgage product can not assist. It may also be the case your main mortgage is in a penalty period and thus it may make sense to undertake a 2nd Charge mortgage and then refinance for example your when your situation has changed or you no longer in a penalty period and 1st charge lenders are able to assist.
Commercial / Development Finance. This is should you need monies to buy a business, business premises or to undertake a new project. Customers have used these to buy warehouses, hotels, running businesses or build properties.
Equity Release. Often taken by the older age group, this could a situation where someone is asset rich with plenty of Equity in their property. This allows then to release that equity for a host of reasons such as helping their children. The monies can be repaid or allowed to roll up.
Specialist lenders may entertain an application with adverse credit unusual circumstances or non-standard properties. And some loan types can only be undertaken by such lenders.
Cash Flow
Depending on the need, many of these lenders will allow interest only loans which can further help with your cash flow. Their rates will be slightly higher, but all lenders are monitored to ensure they have fair pricing and practices towards their clients. These lenders will undertake due diligence and so you do need to ensure your ID, income proofs and other documentation is up to date – its just that they have a greater margin for the assessment parameters. The above are just some examples and there can be many other reasons to consider these options and loan types.
Buy to let mortgages are not regulated by the Financial Conduct Authority
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