The secret of building a successful property portfolio is using “Other Peoples’ Money” in the form of a mortgage, our mortgage brokers have access to exclusive mortgage products that are not available elsewhere and are experienced in the buy-to-let market which is essential in ensuring your purchase proceeds smoothly.
Positive Property Investment specialises in helping our members buy discounted property and recirculate there capital as quickly as possible to purchase more property.
Investment property is purchased using an interest only buy-to-let mortgage; these usually have the following criteria.
- Most mortgage lenders will lend you 75% of the purchase price of the property.
- This means that you would need 25% of your own cash to purchase the property.
- They will lend you this maximum amount if the rent meets a certain criteria.
- The normal criteria is that the rent is 25% more than your mortgage payments, however this differs between lenders.
- If the rent does not meet this criteria they will lend you a smaller amount.
Most buy-to-let mortgage products are based on the rent the property will achieve, however some will also take your income into consideration.
Having already looked at the Property Facts section you will be aware that property prices in the UK double every 7-10 years.
Research shows that the average UK home is worth £200,000 and that most investors have at least £80,000 worth of equity in their home.
Most residential mortgages only require you to have a 10% deposit which means you could release £60,000 from your home to buy more property.
Transferring equity from your home to purchase more property will not only help you to build a portfolio to provide you an income in retirement but it can also help you to pay off the mortgage on your own home more quickly helping you to have a better standard of living.
Why not put your money to good use and use it to purchase more property!
Transferring equity from your home to purchase more property will not only help you to build a portfolio to provide you an income in retirement but it can also help you to pay off the mortgage on your own home more quickly helping you to have a better standard of living. Why not speak to one of our mortgage brokers now to see how they can help you.