January 2015 - First 4 Commercial
27Jan2015

Fixed rate, up to 80% LTV and NO monthly payments

Castle Trust launches a new fixed rate product. We have long been able to provide access to Castle Trust’s innovative products at first4commercial. Such as their Index profit share mortgage, which tracks the national Halifax House Price Index and the Buy to let equity loan product, which shares in the equity growth of a property.

Castle Trust have now launched a new Flexible Zero Mortgage product which will allow clients to release equity from their buy to let properties or their own residence on a second charge basis (as long as this is for commercial/business use or the client is a High Net Worth individual).

The new product is for a loan of up to 5 years and to a maximum 50% LTV (80% gross when taking into account the rolled up interest for the term). There is also no upper age limit for applicants. Minimum loan is £25,000 and the minimum property value is £250,000.

A fixed rate of interest is set at the outset of the loan and interest is rolled up onto the advance and it is paid at redemption, which means there are NO MONTHLY PAYMENTS to make.

This allows clients to release equity to use as they wish with no monthly payments to make. The loan plus interest is repaid at the end of the selected term.

For loans secured on BTL properties there are no minimum income requirements either so there is another advantage to using these products.

All the products provided by Castle Trust are bespoke and therefore the criteria listed above is indicative only and may change depending on individual needs and circumstances.

Get in touch with one of the team today for full details and a tailored illustration to see if this is suitable for you or your clients.

first4commercial.com

f4c

T: 01277 620083 F: 01277 658900 E: info@first4commercial.com

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

9Jan2015

Age and affordability criteria means a rise in bridging loans

Bridging Loans on the Rise due to Age and Affordability Mortgage Barriers

The majority of first time buyers are in their forties before they’re in the position to buy, however, new mortgage affordability rules introduced in April this year, means that now even well-off borrowers might be denied a mortgage if they’re over 40.

Being deemed ‘too old’ to buy in your forties might seem nonsensical, but increasingly mortgage providers are rejecting applicants on this basis under the new Mortgage Market Review (MMR). Many lenders are setting a maximum age beyond which they won’t let a mortgage run, even when those applying show they can afford repayments even after retiring.

Yet it’s not just those in their forties struggling with the new MMR rules. There are also a large number of existing borrowers in their fifties and sixties who are unable to remortgage or transfer their mortgage due to their age, despite the fact that the average work retirement age has been raised. And the financial ombudsman has been asked to intervene in more cases than ever before to allow existing mortgage owners to transfer their loan to a new property as lenders refuse to transfer, or port loans for older borrowers.

All of which means that those who simply want to downsize can’t, or that those who apply for a loan in their mid-forties are subject to a shorter mortgage life, which increases the cost of the monthly repayments. As a result, bridging loans, have risen exponentially since the MMR rules were introduced, with typical bridging finance averaging around £475,500.

For more help and useful information go to www.first4commercial.com or contact the team.

first4commercial.com

f4c

T: 01277 620083 F: 01277 658900 E: info@first4commercial.com

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

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