Well this week I’m (almost) feeling sorry for some of the lenders. I know they are an easy target for many people (OK, me included sometimes) but in many cases they really are also ‘feeling the pain’.

Take the example of some building societies - there are two events that have recently happened that almost certainly means higher pricing:

1. Downgrading of the credit ratings for a number of them.
2. High increases in levies paid to the Financial Services Compensation Scheme

Following on from the theme of last week, there are a number of factors that determine the price of their mortgage products and the Bank of England base rate is rapidly becoming less important.

My summary: the continuing pressure on funding means that those able to secure mortgages are in an increasing advantageous position when negotiating prices. Make no mistake – having a decision in principle (DIP) is a fantastic bargaining tool and is being used right now by our investors to secure some great deals.

Tip of the week – can’t buy any more properties due to funding?

You may think you have reached your limit with the lenders and can’t fund any more. Well here’s a quick couple of tips that have helped our existing investors.

Tip 1: Choose a lender who ignores your existing portfolio with other lenders.

There are still lenders out there that are more flexible when taking into account your existing portfolio. So, if you think you can no longer arrange a mortgage then do call us as we have had some noticeable successes in this area over the last couple of weeks.

Tip 2: For lenders that do have a maximum limit make sure you make use of all your allowances.

For example BM Solutions will allow a maximum of 9 properties within the Lloyds Group.

If you are a husband/wife/ partner/partner team then make sure you make full use of your limit by buying in individual names rather than joint names. This will then allow you to purchase more properties.

Call one of our advisors today for more information 01424 205 373