TYLER MORTGAGE MANAGEMENT - INDIVIDUAL EXPERT ADVICE
Investment Property Mortgages
Our team have been helping people and companies invest in property for 30 years or more.
Investing in property, be it residential or commercial can be attractive for two reasons.
Firstly, traditionally in the UK, property price growth has generally outstripped inflation since the end of the Second World War. Of course there are periods when, inevitably, property prices have fallen, but even taking these into account the general performance is very appealing.
Secondly, of course tenants, paying rent can provide a good income stream either simply to finance any mortgage costs and/or to provide “unearned” income.
For years some specialised lenders would lend up to 70% or 75% to borrowers who were wealthy and could afford the risk of rental voids (periods without a tenant in place) and loans were made at 2-3% over banks base rate.
In 1996 in the aftermath of the last property price downturn the Association of Residential Letting Agents (ARLA) coined the phrase Buy To Let (BTL) as ARLA re-launched the concept of residential property investment to a wider audience with the help of mortgage lenders who had developed an expertise in handling let property having been forced to repossess so many in the previous 3-4 years.
Since 1996 BTL has become an enormously popular area of investment for new landlords and many have built up substantial portfolios of property over the last 15 years or so. More and more lenders moved into this “specialist” area which rapidly become a mainstream area populated by many lenders with no real experience of, or exposure to, the downsides of such lending. As the market became more popular so margins crept down to as low as 0.5% over Bank Base and loan to value rules were stretched.
As a result of all the late-coming lenders entering the market and the competition for market share, lenders substantially relaxed their lending parameters eventually lending up to 90% of a purchase price or valuation in some cases. Understandably in such a frothy market at the end of a 15 year bull run for property prices, many lenders and borrowers got caught out by the collapse of the funding markets and the subsequent drop in property values and before interest rates dropped to the new lows we enjoyed from February 2009 onwards many borrowers and lenders were damaged – indeed such rash lending led to the end of some lenders' time in the market.
The market has now returned to the traditional “norm” of 75% maximum lending at higher margins than those available for homes in owner occupation. There are few lenders actively in the market now, but our history of introducing good borrowers to lenders means that doors remain open to our clients, when to others they may be shut.
According to our clients, residential property still represents a good long term investment and they are continuing to demand funds to purchase more property before prices start to rise again. We will not influence your decision to buy or not buy any property but once you have agreed to buy an investment property any of our team will be able to help you find the most appropriate funding available in the market.
Commercial property finance is a far more complicated market than the BTL market. None the less TMM’s team have been involved in Commercial property finance for 3 decades so we should be able to source the most suitable terms for commercial finance either for you to buy as an investor or for your own company’s occupation.
We have the necessary relationships with a wide range of lenders involved in commercial finance and re-finance covering all forms of property be they Offices, Factories, Retail Units or Leisure based businesses, Surgeries, Residential Care Homes, Schools etc. Please don't hesitate to contact us with details of your requirements.
Commercial mortgages and most buy to let mortgages are not regulated by the Financial Conduct Authority.
For Commercial mortgages we act as introducers
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Your property may be repossessed if you do not keep up repayments on your mortgage.
Commercial mortgages are not arranged via Sesame Ltd.
To discuss your current or future mortgage requirements please call 020 7930 7242.
A typical fee for arranging your mortgage is 1.5% of the loan amount.
