How to Finance a Property when the Mortgage Lender Says NO
In this Property Success Bites episode, I cover the dreaded situation when you can't get a mortgage on your investment property.
But why would a mortgage lender say no in the first place?
Well, it could be because the property itself isn't in a "liveable" state, perhaps with no working kitchen or bathroom.
Or, it could be down to you as the investor... maybe you don't have enough provable income, you've got no previous landlord experience or maybe you have a bad credit score.
Whatever the reason, this isn't a situation investors want to end up in if they don't have a plan in place for alternative finance.
So as soon as you consider investing in property, I strongly recommend you speak to a mortgage broker to find out your options and whether you are likely to be able to get a mortgage.
And if you can't get a mortgage? Perhaps you could consider one of my top 3 ways to find alternative finance which I run through in this PSB episode:
Bridging or Development Finance
Loans and Credit Cards
Private Investor Finance
But, whatever method of finance you use (mortgage included), make sure you stick within the golden rules of GOOD DEBT:
Golden Rule 1 - Work out ALL of the fees and interest payments you will be paying on your borrowing Golden Rule 2 - Make sure you have a plan to repay all of your debt including ALL of the fees within your project Golden Rule 3 - Then, come up with 3 back up ways to pay it back in case plan A doesn't work out as you planned!
P.S. If you would like to work with your own property mentor (me!) so that you can benefit from the experience and tips of someone who has been there and done it all before, why not book in a completely FREE Discovery Call with me to chat through how I can support you achieve your property goals?