Seeking Loan on Investment Property

D

dovest

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Does anybody know what lending institutions will currently consider lending for Residential Property Investment, or alternatively,
who might provide equity release on an un-mortgaged residential property ?

I have had several refusals: "we will not loan for anything except your Principal Private Residence"
 
Can you give us some more details of your situation and also did you have an actual property already picked out etc. I think a lot of institutions are only giving 50% mortgages for investment properties currently. Personally I think it's because the banks think property has some way to fall.
 
We have a mort of 130,000 on our home, interest only, taken out 5 years ago, we used the money to purchase outright a rental property with Halifax. We were considering changing the mortgage to the rental property a few months ago but were refused by the Halifax outright - although we could prove that the rental property has been rented for the total period & that the property - even in these times - is worth at least 220,000 & that the rent covers not only the mortgage but the insurance as well. When I queried why I was told that they no longer do buy to rent loans - unless it is for more than 1 property. Even when I said we would change to another company if they didn't accomodate us - no go! We didn't bother changing in the end as we couldn't be bothered with the hassle of it! I don't understand why banks are turning down safe bets - maybe if I wanted to borrow millions for something dodgy they would have jumped at it - doesn't make sense to me.
 
That's interesting TLC. What I take from that is that they only want well established investors who have 'some' properties and would presumable be coming from other instituyions looking for a better rate but they would be a good 'risk' as they were experienced investors. We are living in shifting sands in relation to borrowing rules.
TLC why didn't you put the mortgage on the investment property initially?
 
To be honest I can't remember - I think because the equity in our own home was about 300,000 (we were mortgage free) & the cost of the new build house we were buying was 120,000. We wanted to buy the property & cover the costs of buying without taking money out of savings, also I'm sure the cost of borrowing - interest only - was lower due to the equity we had in our own home. Thank goodness the house is still rented - we only had one month between tenants so far over the last 5 years. We intend to hold on to it as it's not given us any problems so far.
 
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