Investment Finance For The United Kingdom

Various financial options are available for investment in UK property. Below is an overview of the types of finance now on offer.

Financing your property investment in the UK is an important decision and could entail injecting your own cash resources or, as most serious investors prefer, a mortgage or equity release scheme.

The “Credit Crunch” has caused lenders to put a general squeeze on potential buyers, while the cost of new mortgages is rising and banks are now far less inclined to lend. Indeed, first-time buyers are often being priced out of the market and generally unable to establish themselves on the property ladder. Sadly, it is this group that would normally benefit most from the current low property prices

However, those investors who can raise cash deposits (up to 20% of the purchase price) and satisfy new lending criteria are benefitting from a wide selection of mortgage products. The current need to raise cash to fund part of a UK purchase can be offset against the relatively inflated costs of purchasing property in other worldwide locations.

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UK lenders offer a full range of products, currently available from building societies and banks, where you may chose from variable or fixed rate mortgages to capped rates, tracker or buy-to-let mortgages. Remortgage services are also available, allowing you to switch your deal for a better interest rate or more suitable conditions when required.

Off-Plan Financing

Off-plan developments in the United Kingdom normally offer installment plans over between 12 to 60 months. The charges applicable vary according to the developers and repayments are usually index-linked. The developer can often offer the most competitive finance options to investors and these are certainly worth considering when looking at mortgage alternatives from your own country.

As always, before making a commitment, we recommend that you discuss your investment strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

  1. Equity Release

    Put simply, equity release is a way of releasing some cash in a lump sum from the home without having to sell up and move house. This is becoming increasingly popular in the UK for older homeowners affected by the “Credit Crunch” and falling property prices that are reducing their potential income in retirement. Equally, while investing in holiday or retirement property abroad or in the UK, they look to raise funds through equity release.

    If you have property in your own country and would like to borrow against this in an equity release plan, we can introduce you to independent financial advisors who will help you raise the necessary finance for your investment in the UK.

  2. Alternative Finance

    Not everybody falls into a category and some investors will need to raise finance in an alternative fashion to equity release or mortgage options. There are other borrowing facilities available to investors of property in the UK.

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