Why choose us?

We have direct access to a wide range of lenders including some that are not available direct to the public giving you the greatest selection of lenders to choose from.

We deal with the decision makers saving you both time and money.

Finance for landlords and business

Total Business Finance provides an independent view and support to landlords and businesses looking to raise finance.

We talk daily to the banks and specialist lenders and understand their current appetite and the information they require.

We will help you prepare for a mortgage or finance application and identify the information you will need to provide.

We will find the loan for you whilst you get on with running your portfolio or business.

Help for Professional Advisors

Looking for a partner who understands Business Finance?

Are you a property professional, estate agent, accountant, solicitor, mortgage broker, insurance broker, IFA, business consultant etc?

Most of our business is by recommendation. We understand you will have your contacts but with our help we can open up more lenders to you and provide an independent view on the changing market.

We have a detailed knowledge of lender's underwriting policies which maximises your clients chances of obtaining finance.

Services for Banks

If you are a relationship manager you will have a portfolio of customers that will approach you for the finance they require to run their business.It may be working capital,to buy a property or purchase equipment.

Due to the guidelines of your credit,underwriters or head office there will be occasions when you are not able to assist.

Rather than just say No; talk to us and we may be able to place the request with another lender who takes a different view.The rest of the relationship will then be retained by you.

This saves your customer from shopping around, reduces the impact on their business and gives them an alternative source of finance.

Recent Transactions

£300,000 refinance of New Build Flats

A Cheshire based company had built four apartments with a total land and build cost of £200,000 and the properties were valued at £440,000.

Lenders had been approached by our clients and all were either not interested as they were property developers, or wanted them to leave some of their money in the project so they only had had access to a loan of £180,000.

By getting to know their medium and long term strategy we presented this to a specialist property lender. By outlining their plans the lender was satisfied that the company had a long term viable plan which they wanted to support and offered 75% of the value to them. So we have two happy directors who now have an extra £150,000 to go towards their next project.

£330,000 refinance from Yorkshire Bank

Due to their withdrawal from the market Yorkshire had given notice to a long established Lancashire property company to move it’s property portfolio to another bank or sell.

The directors were in their 80’s and spent most of their time overseas and didn’t own a main residence in this country. To add to this their tenants received housing benefit which most of the bank’s didn’t like.

Due to our dealings with the Banks we kept in constant contact with the outgoing lender and updated them at every stage. This gave the bank the confidence to grant extra time in a complicated restructuring.

Never to back away from a challenge we arranged with the directors for a UK based relative to become a director. This gave a new bank comfort in succession planning and where other brokers had failed we obtained the finance needed. The properties have been retained giving the clients a comfortable income in their well earned retirement.

£500,000 Residential Development Finance in London

Experienced developer had been declined by its bank as they were not lending in the sector.Based upon previous track record and his professional team a loan of 100% of build costs and fees was agreed with a specialist property lender.

Auction Finance in Leeds

We were approached by a residential mortgage broker who had a client that had purchased a residential investment property at auction.They thought they would be able to obtain finance from their bank but their request was declined.

Due to the tight deadline bridging finance was considered but we were confident that we could raise long term finance within the time limit.The loan application was received and due to our strong relationship with Shawbrook we rang them to ask them to put it to the top of their workload.This was done and we obtained agreement. As a partner of Shawbrook we are able to instruct valuations so the valuer was then instructed and visited the property the next day with the valuation report being received the day after.

A formal offer was then issued and it was down to solicitors to finish the hard work that all parties had put in.As we are copied in on all solicitors correspondence issues were identified early and dealt with quickly.

The deadline was achieved and the clients now have a new addition to their property portfolio.

Bridging Finance in London £900,000

A corporate finance house in Manchester had a client who was buying a business in the South West. They had been let down by a Venture Capital company and were looking for alternative funding. The purchaser had a property with no mortgage and wanted to obtain a bridging loan of £900,000 quickly.

Other lenders and brokers had already been approached. Initially we gave an overview of the lenders that had offered finance and outlined the positives and negatives to the loans and the lenders.

As the repayment was to come from the sale of the property we considered lenders that would offer extensions to the loan if the sale took time. Cost was also important and knowing that the lender had the money to complete

Due to our experience in the sector and detailed knowledge of the lenders we were chosen to source the finance and the client obtained a 12 month loan ,interest calculated on a daily basis with no exit fee.

The house is on the market and they now own a very profitable business.

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Recent Posts

Has the lender filled its boots?

The holiday season is about fun, family and reflecting on the year. Lenders are certainly reflecting, although with some there is not much fun. First the good news lenders who need to hit target are reducing rates and making life more enjoyable for landlords.

However there are some Scrooges around. For lenders that have hit their annual targets some are now being awkward and declining cases which would have sailed through earlier in the year. Thankfully this hasn’t affected any of our clients but if you get turned down on your credit score and you don’t why this could be the reason.

Buy to Let Light Refurbishment Finance up to 80% LTV

Refurbishment Finance is not for everyone as there is strict criteria but it does show there can be an alternative to bridging.

For a property that requires a level of light refurbishment which doesn’t involve any structural work or change in planning then it’s a very cost effective way of adding a property to your portfolio.

You have to be an existing property owner and with some lenders a landlord. The initial loan is based on the lower of the valuation or purchase price. The valuer also estimates a valuation and rent figure after the work has been completed and the final loan is based on these figures. The difference between the two loans is retained by the lender until the work has been satisfactory completed.

You do the work normally within three months and you need savings to also cover the mortgage payments for that period. Once the work is finished the valuer reinspects and if all OK the retention is released.

The minimum property valuation is £100,000 and as with all lenders you need to be in receipt of income that is provable.

If you need to complete quickly, the value is lower or you need help with the refurbishment costs then bridging finance may be the answer.

Bridging Finance – The importance of the exit.

When going into bridging always work backwards. How will it get repaid?  If you only have one or two lenders then be very careful as those lenders may change their criteria and you will be stuck. The implications if you are not able to refinance, are higher rates and possibly repossession.

The longer the period between getting the bridge and it’s repayment the greater the risk.

BTL Product News

Has the lender filled its boots?

The holiday season is about fun, family and reflecting on the year. Lenders are certainly reflecting, although with some there is not much fun. First the good news lenders who need to hit target are reducing rates and making life more enjoyable for landlords.

However there are some Scrooges around. For lenders that have hit their annual targets some are now being awkward and declining cases which would have sailed through earlier in the year. Thankfully this hasn’t affected any of our clients but if you get turned down on your credit score and you don’t why this could be the reason.

Refurbishment BTL products

Anytime I get asked for bridging I ask is there an alternative? If you don’t have to complete quickly and the property has a kitchen and bathroom there may be BTL refurbishment products out there as an alternative.

It is provided in two amounts. The lender will provide a loan of up to 80% on the purchase price. Armed with a list of the work that will be done to the property they provide an after works valuation along with a rental figure. The lender will then provide a figure they are happy to lend once the work is done

The work is completed and the valuer does a re-inspection. If the after works valuation is confirmed then the difference between the two is released.

BTL products we have access to

We have direct access to lenders that will consider:-

  • Limited Company applications
  • Single Freehold split into multi units
  • Multi Lets
  • HMOs of all sizes
  • Portfolio Finance
  • Student Tenants
  • DSS/LHA Tenants
  • Retail with flats above
  • Rental valuations
  • No minimum income
  • Limited Company applications
  • Pension and Trust applications
  • Professional landlords
  • Adverse credit
  • Ex Pat applications
  • Foreign Nationals

Multi Unit BTL Mortgages

A freehold property split into self contained flats. Make sure it has the correct planning permission if it has been converted, along with building regulations.

These can be as simple as a terraced house converted into two self-contained flats or a new build on one freehold title split into multiple flats.

We have a wide range of BTL and specialist lenders which can provide options for all types of multi unit BTL mortgages.

Lenders with no minimum income

You need an income which is provable to cover your overheads but unlike a lot of lenders there is no minimum.

It’s particularly suitable for professional landlords who have carried forward losses due to past refurbishments or developments.

Or when income has fluctuated due to improvements or tax planning.

 

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Lenders

Aldermore Residential

Mortgages available for up to 80% LTV

What we like

  • First time landlords welcome with a minimum income of £25,000
  • No minimum income required for experienced landlords
  • Maximum age at end of mortgage term is 85 years
  • No limit to portfolio with other lenders
  • Maximum five properties with Aldermore on Residential BTL terms
  • They don’t credit score.

What we don’t

  • Not able to remortgage within six months
  • No DSS tenants

 

Landlord Advice

Financing a flip

A flip is buying a property and then selling quickly, hopefully at a profit. It may be a refurbishment to increase the value or you may just be trading property. There are only two ways to finance these:

  • Cash, which maybe from a remortgage of another property
  • Bridging Finance

Don’t use a mortgage to finance them as it will seriously affect your future prospects of getting a mortgage. Lenders look at your credit file to see when mortgages are taken out and repaid. If you are using BTL mortgages for this type of transaction don’t as you are using long term money for a short term purpose and it’s mortgage fraud.

 

 

Choosing a property mentor or education company – Do your homework

If you looking to pay anybody for property education then hours in front of a computer could potentially save you thousands.

Education-we never stop learning but with any subject sometimes we want a head start. So you want to learn about lease options, rent to rent, HMOs etc. Where do you go? Firstly don’t part with any money until you have done extensive research. This includes:

  • Search the company name and anybody associated to it on the internet. It may come up on a property forum or at worse a police report.
  • Use Google in the US as the search engine as EU privacy laws can delete the truth.
  • Do a company search. There are various options and you can get reports for a cost of £10 or use a free service from Componies House.
  • Go to a taster session and compare providers.

Even if your research is clear it doesn’t mean you are totally protected. Remember if it sounds too good to be true it is.

Tax Returns and BTL Mortgages

HMRC give you until the 31st January of the following year to send your tax return. After the 5th October the vast majority of the lenders need the return now as to them they are only valid for 18 months.

So you may not get your preferred lender if you haven’t done it and the cost of your mortgage may be higher. Doing it early will also make your accountant happier.

Land Registry Property Alert

A great way if protecting your property against fraud. Email alerts will be sent when Land Registry receives an application to change the register as well as for official searches. They can then judge whether or not the activity is suspicious and if they should seek further advice.How to sign up for Property Alert:

You will need to set up an online account with Land Registry which is free.

You’ll be able to monitor up to three properties per email account. Email alerts are sent when official searches and applications are received against a monitored property.

Benefits of Property Alert:

  • It can provide an early warning of suspicious activity
  • It allows you to take immediate action if something happens to your property that you are not expecting
  • It’s free and easy to use.