Struggling to Invest because of LTV’s?

Banks have got it completely backwards- literally! Instead of helping the average Joe to get onto the property ladder and invest, they seem to go out of their way to make it impossible.

Take LTV mortgages.

We cannot tell you how many times we have found the perfectBank of England property investment – a property that has got instant profits of over £9,000; that can generate incomes of up to £1,000 a month and that has got a strong tenancy demand – only to be left frustrated by the fact that banks want deposits of 25%-40%.

It’s ridiculous. Even with a £100,000 property that is still at least £25,000 to find before you can invest. And unless you have got this money just lying around from a redundancy or simply from your savings, the average homeowner simply cannot afford it.

Thankfully 3 of the UK’s leading banks seem to have seen sense and are finally getting off their backsides to make a difference.

Over the last few weeks we have had conversations with representatives from 3 of the UK’s major banks and they have told us about a fantastic new scheme. A scheme that will enable you to maximise your investments and withdraw thousands of pounds in equity simply by negotiating your LTV!

So how does it work?

Instead of specifying a Fixed LTV that a property must achieve, these 3 banks say that they will soon be willing to consider the affordability of the mortgage.

Meaning if you can prove that your property investment will more than pay for itself once you have invested, they will improve your deal. Simple.

As with any deal, we were sceptical at first about the benefits it could induce. For example how many of the schemes launched by the government in the last year have actually achieved what they set out to do? ‘Help’ the property market? Not any we can think of. So what makes this new scheme any different?

Well surprisingly a lot. After we applied this theory to one of my properties, it produced promising results:

Step One: Take a property that generates an income of £16,000 p/a and has 45% equity in it
Step Two: Bank’s implement ‘Affordability Test’ and tell you that you have 85% LTVs
Step Three: Using this information, you use Property Mentor Finance to negotiate the LTV deals

Add this all together and you have got moveable equity of £300K (based on taking 30% out of the property) – all of which is completely untaxable!

When you look at these figures, it makes you wonder why banks haven’t thought of this scheme sooner. It makes so much more sense than the current drivel they offer.

And if you combine this with all the knowledge, know how and connections with the Property Mentor Network, you can easily take this scheme right by the horns and maximise your investments no end.
 

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