End of One Day Re-Mortgages

As all you BMV Property Investors are in no doubt aware the party is finally over for one day closed bridging and re-mortgaging with Mortgage Express. I think we can all say we knew they would stop it eventually. Being the only real player in the market it was a risk the current financial markets could no longer pass to one lender.
You still have the likes of Nat West who offer the facility however the criteria is a lot stricter and the Pay Rate is based on Capital & Interest.
The question is what is next for BMV investors who seem to be the new target of lenders wanting to reduce "risk" on their balance sheets?
Any BMV investors who were already using Assignable Contracts or methods where the property was held for less than 6 months will also be aware (hopefully!!) that the CML Handbook has changed.
It now required solicitors to inform the lender if the property has been purchased with an assignable contract or if the vendors have owned the property for less than 6 months. Any readers who have used my company Fruit Finance LTD should be well aware of the issue we now face with the ownership of 6 months. This was the method we used up until 1 week ago.
We do now have new methods however our costs have increased along with the complexity of structuring the whole deal. It used to take me 10 minutes to explain the structure, it now takes me up to an hour.
It is becoming a very difficult time at the moment for BMV property investors and I must warn you all its sure to get worse before better.
However I never end on a bad note. The BMV discounts I'm currently seeing from my own BMV property and that of my clients have increase on average to 22% - 35%. I have not seen a BMV deal of less than 20% for several weeks.
This is good news on two fronts, with house prices set to decline further this year we all need to ensure we are not left in the same position as the vendors we purchased from. Secondly, we are seeing much less competition amongst fellow BMV investors, how many of use have been played against each other by the vendors who end up taking so long they get repossessed?
As I've been repeating in almost all my blogs over the last few months, this is the year to make some great deals in the BMV market. If you can ensure your deals are 25% BMV and work on the few products left on the market then your on to a winner.
Would any BMV investors still consider deals of 17% BMV where the rent just covers the 85% LTV mortgage at 5% fixed? I know none of my clients would!
Lastly we have some pretty good packaged BMV deals discounted to around 22% if any investors are interested. We get in around 5 - 10 per week which are shared between my clients.
The best bmv mortgage I'm currently recommending is at 80% LTV with C&G (one of the few mortgages still below 6%).
Good luck to you all in securing some great BMV property deals and remember to contact me if you require any help with your BMV mortgages and finance.
Regards,
Daniel Morgan