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Investment Property portfolios – 6 Key Strategies for a smart loan (Page 1 of 2)
A booming market for buy-to-let and investment property portfolios has created the need for new types of mortgages and investment property loan facilities. Securing finance for buy to let and holiday rental properties classed as an investment property loan, has never been easier and many of the main lenders have transformed their lending criteria to support property entrepreneurs.
Historically lenders were reluctant to support property investors unless they had serious investment equity ranging from 25-40% of a given properties value. The latest range of financial offerings, are now more in-line with existing household mortgages where buy to let loans are available for up to 90% of the value of the property. The criteria for lending, depends very much on the anticipated yields for the property and to some degree on solid business plans and logic that reflect capital growth in the investment. With a myriad of product offerings available it maybe difficult for a prospective property investor to determine what constitutes a good offer from a financial institution.
The best investment property lenders will look and consider 6 key elements in their risk assessment. So it is very important that you as the proposer understand clearly and prepare in advance a plan that accurately presents your facts in order to pitch smartly to get the finance you need.
6 key Investment Property Loan points
Equity available Know what you have in terms of tangible equity in your home, other investments in assets, and liquidity. Use this valuable information to form the basis of calculating your security to finance the investment plan. This ensures to the lender that you have a sound knowledge of your strategy in investing and you have a good consideration in managing your risk.
Interest Rate Percentages It is generally anticipated that the higher the investment deposit the better the mortgage rate. Buy-to-let mortgages rarely attract the discounts that home mortgages attain. However interest rate benefits are gained if you are prepared to put up front 20 25% of the loan value. Try and avoid low deposits as the rates for larger deposits will be more attractive both in the short-term overhead reduction and long-term gain.
Current debts Ideally all outstanding mortgage and loan liabilities or commitments should be understood and declared when requesting the finance. This will determine the maximum loan available to you for your investment project. Ideally this should be considered in advance of any property speculation or viewing of proposed properties. You may also find through this process that it presents an excellent opportunity to consolidate current finance and reduce overheads through the consolidation process.
Current Income or Salary Lenders will often consider salary and income within the mix of calculating repayments. Multiples of salary are often considered along with the yields or estimated monthly rental incomes from the property portfolio. Important to the property investment will be the current state of the property and whether the property requires investment in refurbishment or modification to enable tenants or renters to occupy.
How To Get A Really Good Online Auto Car Loan Rates
There are several different types of ways to go about getting the best auto loan rates. It will typically include some initial thought and some real focused planning in advance. It’s easy to just straight tell individuals to shop around, but this is far too much of a fairly simplistic explanation of the true process.
First things first, the best possible online car loan rate can only be acquired with some good credit. If you find that you are below 680 or in even some cases less than 700, you should anticipate that you will be paying car loan rates that are not the lowest auto loan rates. Since having higher rates is going to mean having to pay more money for a vehicle, it is really important for you to plan in advance by going about improving your credit score. This could mean making certain that all of your prior credit obligations are actually paid in a timely manner for at least six months prior to applying for a loan.
One thing that may be used and is taken into consideration may be the length of your employment. People who have actually been at the same job for over a year more than likely end up getting a low interest car loan rate. Another important thing that you should take into consideration is the debt to income ratio you currently. If your current outstanding debts are somewhat high, you should go about paying these down so that your credit profile will reflect more available credit, particularly because the lowest car loan rates will also have a low ratio.
Another important thing to take into consideration would be saving up some money for an initial down payment. Financial lenders view this as something really positive. Though several loans out there can offer 100% financing, these are not going to be the low interest car loan you seek, this unfortunately will typically come at the cost of a few additional interest percentage points. This means that any new car loans can immediately become upside down loans the moment that the person purchases the vehicle.
Figuring out exactly how much this automatic decrease in value will be when you go about purchasing the car can go a long way in helping you figure out the ideal amount of the down payment. If you require some help, you should take a look at the Kelley Blue Book rates to find out exactly how much a new car goes about decreasing in value when it is sold to help you figure out a proper down payment. It is also really critical that you do not add money to the loan by trading in a vehicle that you have that is currently in an upside down state. A genuinely low interest car loan typically will not be granted for those individuals who are looking at borrowing more money than the price of the vehicle. This should be avoided at all costs when you begin searching for the best car loan rate.
Lastly, you should most definitely shop around for the best car loan rate. Do not for a moment simply assume the credit score auto loan rate offered from a car dealership is going to be the best deal. Individuals who currently belong to credit unions very well may want to look for their loans there, as they could end up being the best place to find them. Others can do rate comparisons with different local banks, but may ultimately find that the best auto loan rates online. With having really good credit, it shows that you have a proven ability to pay things on time, include this with a fairly sizable down payment, and most potential borrowers will come to see that there are a lot of financial lenders who will want compete for their business.