http://xjavporn Daniel Tannenbaum, Author at Regentsmead
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Daniel Tannenbaum

What are the advantages of using a loan broker?

By | Guides, Lending

Trying to apply for a loan and find the best deal is not always the most straightforward of things, and can end up becoming stressful. This is amplified when there are a vast amount of lenders available both online and on the high street, with a wide range of financial products to choose from, too: it makes it hard to know the right loan best for you in your individual circumstances.

However, there are ways to navigate around this: such as using a loan broker. But what is a loan broker, and what are the benefits of using one? We explain everything you need to know.

click now What is a loan broker?

This is an intermediary who gathers the relevant information needed to then approach a variety of lenders on your behalf. They can seek out all the available options, in order that you can find the best loan available.

Extra resources Advantages of using a loan broker:

trouve ça Getting the best deals all in one place

One of the biggest plus points of using a loan broker is being able to see all the best deals at once and they will usually work with a number of direct lenders. In addition, many brokers are able to provide exclusive deals to customers that may not otherwise be available. This is because some have access to financial products that are not otherwise on the open market, as only certain lenders deal with them. broker

Comparing deals

As loan brokers compare deals on your behalf, this helps you to easily compare the pros and cons of each product without having to do the research yourself: which can be a considerably time-consuming process in itself, without even considering the additional time it would take to also read the small print.

Particularly for something like development finance, the lenders will have different criteria and take a view on things like loan amounts, credit histories and risk – so having a whole of market view can be very useful.

Loan broker’s expertise of the market

A loan broker can help to advise you on what will be the best loan products for your needs, as they know the loan market exceptionally well and have developed a wealth of expertise of the industry, ensuring that you get the best advice on what would be the right loan for you, and also provide you with guidance on your application: such as which lenders are most likely to accept you for a loan based on your circumstances.


Loan broker usually gets paid only if there is a deal

In most cases, using a loan broker is free for you. Whilst a small minority charge a service fee for helping you to find a loan, the majority only get paid via a commission if a deal takes place.

No fees

Depending on the industry, some brokers will not charge fees, instead taking a commission from the lender. Property finance such as bridging and development finance does come with broker fees of 1-2%, but for things like personal loans, there are no usually no fees from using brokers.

What to consider before developing an office space

By | Guides

The commercial office space in London is booming, and despite Brexit woes, is seeing some of its largest investment in years. For many property investors and developers, the office space is an exciting proposition – but before jumping in, there are some key things to consider.

Demand for the area

The skill of a developer is to find a property not only where there is a demand for office space, but also might be overvalued and up and coming, therefore people are willing to pay more for it. This includes offices in Soho, finsbury park, bethnal green and other parts of East London.

Consider that if you want to rent out your office space at good rates, you need to find a place with good demand and this means that it is easily accessible from most train stations on TFL, has places nearby for lunch, coffee meetings and leisure such as gyms – and you may wish to incorporate this into your building too.

You can look at the demand by looking at surveys and reports over the years and looking at comparable offices in the area. This will also give you an indication on your pricing and what you can charge for rent each month or year.

Is there a huge demand for co-working and flexible office space in the area, such as Shoreditch and Camden? In which case, you may require a floor dedicated just to this.

Planning permission

Planning permission is absolutely vital for any building work that you are doing. Getting the right planning needs time and homework in providing designs, sketches and plans from your architect and construction team and understanding what you can do. The process may take a few months to a few years – and also incur legal fees. But doing this properly from day one is essential. Find out more about planning permission here.


Have you considered all the fees?

There are a lot of different fees to take into account when developing an office space and getting a full understanding of your costs can also help you determine how much rent you should be charging and funds you may need to borrow through development finance. Managing your fees effectively can help you get the best margins possible.

Fees include:

  • Development finance fees (up to 6% per month) or rolled up until the end of loan term
  • Legal fees
  • Valuation fees
  • Architect fees (see London architects for more info)
  • Construction fees
  • Broker fees (1% to 2% of loan term)
  • Insurance
  • Contingencies

How you are financing it?

Development finance allow you to borrow money in stages, helping you effectively manage your cash flow and do the necessary work on your office, whether it is building it up from scratch from a plot of land or renovating or constructing an existing property.

Most loan terms are up to 12 months, or sometimes 18 or 24 months, with the option to roll up repayments until the end. If you are unable to pay off your finance by the end of the loan term, you may be able to refinance under slightly different terms as a way of extending it.

What is Remortgaging?

By | Uncategorized

Remortgaging is a process by which homeowners can replace their current mortgage with a new one. This is more common than you might think, with nearly a third of all UK home loans being remortgages.

This guide explores exactly what remortgaging is, and some of the important things to think about when considering one.

Why Should I Remortgage my Home?

There are many different reasons why people consider remortgaging their property. For many people, a mortgage is one of their biggest financial commitments. Therefore, it’s important to only apply for one for the right reasons, helping you to get the most from its numerous different benefits.

Homeowners typically apply for a remortgage in the pursuit for better deals (and therefore lower rates) from their current mortgage. Finding a better mortgage may also allow a homeowner to borrow more money than their current home loan allows. This can be very useful for those wanting to make some significant home improvements or to pay off other debts.

It is always important to make sure that borrowing money from your mortgage is the best option for your financial situation, and that other means of borrowing have been explored before applying for this.

Some of the other common reasons people remortgage their homes are concerns about their interest rates going up, the value of the property has risen significantly, or the current home loan is nearing the end.

A lot of the best mortgage deals out there are quite short-term, especially for fixed rate and tracker mortgages. When this deal ends, the current lender may then put a homeowner on an SVR (standard variable rate), which will most likely come with higher interest rates than the previous deal. Therefore, searching for new mortgages when your current deal is about to end is a great way of saving money on your home loan.


How Do I Find the Best Mortgage Deals?

As previously mentioned, remortgaging is a common process that most homeowners will go through. With fixed rate and tracker mortgages only lasting from 2 to 5 years, it’s good to know how to go about looking for a new deal to avoid being put on an SVR loan and to save yourself some money!

Those considering a remortgage should firstly contact their current lender and ask if there is the possibility of switching to a better deal with them, whilst also checking if there are exist fees to pay with this.

Next, those looking to remortgage should compare what other mortgage lenders have to offer, and what type of mortgage deal to go for (tracker, fixed rate, discount mortgage etc.). It is vital during this step that homeowners check any and all fees and charges that come with each potential home loan in order to get the best rate for them.

Once numerous different mortgage deals are found that could save a homeowner money, it might be helpful to speak to an independent mortgage broker. An independent mortgage broker could help better judge which mortgage would be best for someone’s current situation, and advice accordingly.

What Are The Fees and Charges Involved in Remortgaging?

This will be dependent upon your current and future mortgage lenders; there may be administration fees for remortgaging your home, in addition to product fees and other potential charges, all of which are entirely dependent upon your situation. It is therefore crucial to both research and understand all potential fees and charges you could face through the remortgaging of your home.


Popular Specialist Mortgages

By | Uncategorized

Traditional, first charge mortgages are a very well-established concept and are the most commonly utilised secured loan in the UK. the basic premise is well understood, whereby borrowers secure a substantial loan against their property in order to finance the purchase. Should the borrower default on their repayments, the lender has the right to seize the property and sell it to recoup their losses.

However, there are a number of increasingly popular specialist mortgages available for a variety of purposes and specific borrowers. Some of the most popular specialist mortgages include second mortgages (more information) and bridging finance, both of which may only be used for limited periods of time and for specific purposes.

Furthermore, borrowers will need to take out these types of finance with specialist lenders, often via specialist brokers who will have exclusive access to the lenders.

How do Second Mortgages Work?

Second mortgages, also known as ‘second charge mortgages’ as their name suggests, run alongside a first charge mortgage on a property. The borrower and property owner will therefore have two mortgages at the same time and will need to be making two sets of repayments to keep up with their financial obligations in this respect.

Second mortgages are often utilised in cases where a property owner with an existing mortgage on the property in question needs additional funds but their current mortgage lender either doesn’t allow remortgaging or only does so with expensive early payment charges.

In such cases, rather than having to incur the costs of remortgaging, and so long as the borrower has acquired enough equity in the property, a second mortgage can be acquired, with the permission of the first charge lender. Then, once the early repayment charge period ends with the first charge lender, the borrower may remortgage their first charge mortgage, including the outstanding balance of the second charge loan, consolidating everything in to a single mortgage.

Second mortgages are most commonly used for debt consolidation, home improvements and renovations and for often, much-needed injections of funds for a business.

It is very important to remember that although these mortgages may be used for home improvements and property renovations, if you use the mortgage amount to change the purpose or nature of a property, such as to become a house of multiple occupancy (HMO) for rental purposes, you will still need to ensure you have Planning Permission and have satisfied the relevant parts of UK Building Regulations, including Approved Documents E, F, L pertaining to sound, air tightness and ventilation testing.

These mortgages will however, need to be acquired through a specialist lender as they are not routinely offered by high street lenders.

Bridging Finance Explained

Bridging finance, or ‘bridging loans’ are well-established as a form of specialist finance but do still need specialist lenders to fund them. These types of mortgages are designed to literally ‘bridge a gap,’ usually between property purchases, to help borrowers not miss out on a property.

For example, it is often the case that a homeowner needs to sell their current property in order to fund the purchase (or at least a proportion of it) of a new property, such as if they are looking to upsize. In these cases, if the sale of their property doesn’t go through, the borrower can be left unable to purchase the new property. Bridging mortgage provide the money needed to purchase their new property, whilst awaiting the sale of their former property.

Working Quickly to Bridge the Gap

Often, when it comes to property purchases and sales, particularly those where there are multiple parties interested it can come down to fine margins and who is the fastest to buy the property in question. With regards to needing bridging loans, if a homeowner has found a property they need to move to quickly, they may not be able to sell their existing property quickly enough.

In these cases, as the borrower has an ‘exit strategy’ (a strategy through which to pay off the bridging loan), they may reasonably apply for a bridging mortgage. Then, once they have moved to the new property and their existing one sold, they simply use the sale amount to pay off the bridging loan and then remortgage their property with a view to repaying the bridging lender.