Some people will warn you that buying a property that you can’t get a mortgage on is madness. If you listen to them you could be missing out on some great opportunities that may be unmortgageable – but are still very profitable!
Traditional lenders have a long list of types of property they won’t touch. These include:
Most of these are solvable problems. Just because traditional mortgage lenders are ultra-conservative when it comes to agreeing a mortgage, doesn’t necessarily mean it’s a bad purchase. The secret is in doing your homework first – and then solving the problem BEFORE looking for a mortgage.
The first step is to take a good look at the property and ask yourself four questions:
Don’t guess do your due diligence, so you are in possession of all the facts regarding the problem with no nasty shocks later on.
Now you can decide if it’s a good deal – or not.
Although no mortgage lender will lend on these properties, bridging lenders will. Bridging finance gives you the ability to buy like a cash buyer, as they make decisions quickly and you can have the money in your bank in less than a month, (sometimes in days).
Remember one important fact – people who are selling unmortgageable properties usually KNOW they’re unmortgageable – and that usually means that only cash buyers will be interested. In other words, they’ll be prepared to negotiate on price – with the right negotiating skills you can get amazing reductions on the asking price.
However, you don’t need a massive bank account – you just need to know how to use bridging finance effectively.