I am consistently amazed by the number of so called professionals in our industry who don’t know what they are doing. Last weekend I was speaking at the Homebuyer Show at ExCel in London, where I was asked to share my views on the topic of ethics in relation to buying property below market value from motivated sellers. At the end of my presentation I opened up the floor to questions and I was asked “What would happen now that Mortgage Express had pulled their same day re-mortgages?”
This is typical of misinformation spread by people who do not know what they are talking about. The investor who asked the question was merely passing on information they had been told by their mortgage broker. Mortgage Express (MX) are the main lender we use when buying a property BMV for cash and then re-mortgaging the same day, to pay back the bridging, cover the purchase costs and sometimes even pull out some cash from a property purchase. MX are most certainly still doing this as I am doing deals every week. However, the mortgage market is changing daily. Some lenders are no longer lending on new build properties, some are reducing their Loan To Value ratios, and some lenders who were happy doing same day re-mortgages are no longer allowing it. MX at the moment are still doing it and there are a few others who will do it, if your mortgage broker knows how to deal with it correctly. This is where you need an excellent mortgage broker.
After my presentation three guys came up to me and asked me what I would do when MX do pull their product. They said that there were mortgage brokers and it turned out that they had purchased 40 BMV properties between them so they were fairly confident that they knew what they were doing. I explained to them a more advanced strategy that we teach on my Property Mastermind Programme but they seemed to think it was not possible. I know this certain strategy works as I have done it before and I am doing it again next week. Although they know a lot about the market, these mortgage brokers did not know as much as the brokers I use. There were actually quite argumentative, insisting that what I was saying would not work. I suggested they come and speak to one of my mortgage brokers who is on my Property Mastermind Programme and happened to be on my stand at the exhibition. After about 20 minutes talking to one of my mortgage brokers they left, all smiles and happy as they now knew of 2 more lenders who would do same day re-mortgages for them. Just goes to show, no matter how much you know, you can always learn more if only you are open to it.
Please make sure the people that you use as your Power Team actually know what they are doing so they can best represent you and give you what you need.
Will mortgage express always provide this type of same day re-mortgage? Who knows but currently they have a massive share of the market and I can’t really see them wanting to give that up. I believe that they may change their criteria. They may only allow experienced investors who already have several buy to let mortgages to use this facility which will block out the amateur investors.