I thought I would just share with you my new plan to buy property at discounted rates and remortgage at full market value within a week, with the banks full agreement …..I am not sure if I have mentioned this before but last year I was able to buy property using a legally none of my money down system. It all came about after listening to Vanish Patel talk at the Berkshire Property Meet in January 2009. He was talking about lenders and that there are a lot out there – he encouraged everyone to just approach banks and build relationships. I asked a question through the mike and he spent 15 minutes coaching me on what to do next. So that is what I did, I created a presentation of me, my experience and my business and took it to a number of banks.

First I took the less scary approach that I was interviewing them to see who would provide me with the level of service I wanted to help my business grow. I also knew there were lots of banks I could go to and not just those on the high street. After two attempts which were successful but not what I was looking for I stumbled across a business card of someone I met networking.

To cut a long story short, we met and I presented my business plans and experience and he said that they would be happy to look at my case further. The fundamentals needed to take place – like open an account, deposit some funds, and credit checking but within 8 weeks I had a commercial bank account with a central London branch.

The agreement we had was that I would buy a property for cash and then remortgage. Because the bank did not have rules about 6 month ownership (or Early redemption penalties for that matter) they allowed me to remortgage at full market value after 3-10 days (depending on speed on my side). Unfortuantely they also changed their minds in September and decided I could only remortgage that quickly at purchase price.

Its been about 6 months since I bought using this system and so I decided it was time to get in touch again and see what mood the bank and the underwriters were now in, especially as the election and emergency budget were all out of the way.I spoke with my relationship manager and he has proposed a one year interest only product (to allow quick remortgage or flipping) at 3.5% above base on a 70%LTV on market value – woo hoo

Guess what – I had a deal accepted on Friday which is a potential flip or excellent B2L (2 exits) I had been thinking about using a residential mortgage with no ERC (Early redemption charges) to allow the quick sale. …. So ….. rang the bank again and my case is with underwriting as I type …

Watch this space ….. no actually get out there and talk to your banks :)

To our mutual success, wealth and happiness
Vicki – The Property Mermaid

 

1. Ways to Wealth – Make Money from Property – http://www.waystowealth.co.uk/wtw-events/

2. Reading and resources – http://Bit.ly/OPM

3. Where you can find me next    http://thepropertymermaid.com/blog/events

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