So the battle continues… Lenders have started to reduce interest rates making it easier for the rental to fit only to hurl another obstacle in our way – the dreaded credit score.
Lenders like BM Solutions have entered the market with some fantastic rates but have made their credit scoring so tight no-one can actually get one. That’s one (very underhand) way to control lending volumes I suppose.

We even had one lender pull this trick on us last week – the property was down-valued so the loan amount etc would need to be reduced. However rather than just explaining this, they wrote to say that due to the property being down valued the client now failed the credit score and they were no longer proceeding. Now where’s the logic in that!

Tip of the week:

For all of you that are sailing through your credit scoring, then that’s fantastic. For others it may seem like some lenders have fallen out of love with the serial investor. This always seemed strange to me that they would rather lend to a novice than an experienced property investor, but then I’m not a banker.

The key now is to get a buying team in place rather than just yourself. Ideally, people in this team won’t have had many credit searches against their name and are still in a good position to gain funding – they could include partners, children (if eligible of course) business partners, parents etc.

Paradoxically, as people are finding it more difficult to finance their deals, the deals are getting better so if you can solve this particular challenge then you will be in a fantastic position.