The Mortgage Organisation

14/04/2025

Imagine securing a property on a Purchase Lease Option (PLO) and exiting straight onto a Buy-to-Let mortgage—without the hassle and cost of a bridging loan. Sounds impossible? It’s not.

Many investors assume they must buy at the original option price, leaving significant equity trapped for up to 6 months. What if you could finance the property based on its Open Market Value (OMV) instead?

With access to specialist lenders, you can now exit a Purchase Lease Option (PLO) directly onto a Buy to Let mortgage at up to 75% Loan to Value —saving you time, money, and stress.

The Investor’s Game-Changer:
· No need for costly bridging finance.
· Secure long-term Buy to Let funding based on Open Market Value, not just the lower purchase price.
· Faster transactions and increased cash flow potential.

Example Scenario:
John secured a three-bed house on a Purchase Lease Option at £150,000. Over time, the property appreciated to £200,000. Traditionally, John would need bridging finance to purchase at £150,000 before refinancing. This would involve a 2% bridging fee (£3,000) and six months of interest at 1% per month (£9,000), he would have to wait six months before being eligible for a remortgage, during which time market conditions could change.

Upon re-mortgaging, lenders would only allow a maximum Loan to Value of 75%, meaning John’s new mortgage would be capped at £150,000 (£200,000 x 75%). However, this amount would need to include the bridging fees and interest, reducing the actual loan available for the re-mortgage and leaving John with ‘money in the deal’ of £12,000.

With this alternative solution, John bypassed the bridging stage entirely. He secured a Buy-to-Let mortgage directly at 75% Loan to Value on the £200,000 Open Market Value with a smaller fee which can be added to the loan above the Loan to Value cap, covering the full purchase price without additional borrowing hassles.
No bridging.
No unnecessary fees.
Just smart investing.

ant to see how this could work for you message me directly or e-mail me to arrange a conversation: [email protected]

24/03/2025

We had the pleasure of being back to the Homebuilding & Renovating show 2025 at the NEC Birmingham.

I was fortunate enough to get the chance to speak to the audience about Back Land Developments. How to identify in Town Plans where councils want this type of development, how to consider access and precedent when considering the potential viability of a site and discussed a case study where a client used a Back Land Development approach to build a modernised retirement bungalow as her future residential home and fund the project without basing the lending on their income.

I have posted the slides for review for those that took our page link and for the followers of this page. If anyone would like to talk to us about this subject, the case study or anything else mortgage/property related feel free to reach out and get in touch

24/03/2025

It was a pleasure to be back at this years I had the pleasure of Homebuilding & Renovating show held at the NEC Birmingham this Saturday 22nd March 2025.

I was fortunate enough to have the opportunity to speak to an audience on Back Land Developments, how to identify desire in Local Town Plans, how to consider access and precedent when trying to understand a sites potential and walked them through a Specialist Finance case study where a client used a Back Land plot to build a modernised retirement bungalow and financed it for residential purposes without having enough income to fund the complete build.

I have uploaded the slides and can add further information and videos on this subject and more as we start to speak at more shows (or more information is requested from followers of the page).

If you'd like to talk to us about this subject matter, the case study, or any other mortgage/property related matters feel free to reach out or contact us on the details provided.

23/03/2024

Here at the National Homebuilding & Renivating show and looking forward to supporting all the self builders and families looking to renovate and extend their family homes.

Come find us on Stall K106 for a friendly helpful and engaging conversation about any and all your property needs.

24/02/2024

Looking forward to the 2 day Build It Live event at Kent County Showground.

Will you be there?
Come speak to us at Stand D2

02/02/2024

I was on a Q&A panel recently and I was asked what I thought was going to happen to interest rates generally and specifically relating to mortgages.

I started with pointing out that SONIA swap rates were the general indicator of where the market though the rates would be and is generally the first point of review for someone with that question.

I advised that the developer/bridging market was an interesting environment as it generally sits outside the direct impact of rate rises. These companies deal in a short term high risk environment and tend to price on risk, the financing behind these companies is private equity, venture capital, High Net Worth individuals etc which I why I felt there hadn’t been a great deal of instability in the general pricing currently sitting at 10-12% pa (as time of writing this) and that I didn’t feel these prices would increase dramatically over the next 12-18months (outside of some extreme external factors).

The retail / residential mortgage market has however seen a great deal of volatility over the last 18 months and it is good to see some stability within the pricing of the lenders within this market however, the economic indicators for this market are not favourable. Recent BoE & FCA data shows a severe reduction in mortgage transactions numbers and transaction values which they do not envision improving significantly in the next 12 months (outside of something impressive being introduced in the Spring budget that would re-ignite the market, i.e. further Stamp Duty reliefs or the 99% mortgage scheme). Given the flat lining economic data, the near daily reports of job losses, the reduction of available jobs, bank account deposit values reduced, consumer credit levels and default rates both increasing along with mortgage arrears also increase despite the forbearance measures put in place (The Mortgage Charter) in June 2023 there are few indicators of anything other than a strong recessionary period throughout 2024 and into 2025.

The only possible upside is the large number of mortgages that will be finishing their fixed period from around April this year, there is a significant volume of business available and the banks/lenders will surely want to look at their available market share and will compete for this business which may be reflected in the mortgage interest rates offered but Banks and Building societies are going to need to see more economic data indicating a stronger economic outlook before they start to plan for rate reductions.

This question got me thinking, of late there seems to be a significant focus on interest rates /costs from potential investors/developers that I speak to when looking for re-mortgage finance for their developments / Buy to Let -remortgages with a disregard for other factors that should be considered as equally important as the rate.

There is a term I use, ‘chasing the rate’ that many investors/developers are guilty of and that is looking for the cheapest rate available and insisting that they get this rate when a lot of the time they should be looking at a lenders appetite for lending, their lending criteria and not just what rate is being offered. Mortgage lenders first priority is their risk, how can they avoid it and how can they mitigate it when it is unavoidable. In a flattening economy when investment risk is increasing lenders will always look at the client profile, the property, the likelihood of default and repossession. When they are offering market leading rates are you the fit for their ‘client persona’.

There are lender’s that get an application and approach it “how can we make this work” and there are lenders that get an application and approach it “what can I find wrong with this application, trying to find a lender that wants to lend, who’s criteria you fit that has a rate that earn you a profit should be your focus. Would you rather spend a month, 2 months or longer providing paperwork, getting reports, jumping through hoop after hoop to be told maybe, or worse no and all the time sitting on 1% a month finance cost, or instead would you like an application that gets you the outcome you are looking for a succinct time frame. The first thought of a developer should be wanting to get off the expensive bridging/development finance onto a ‘mainstream’ rate as quickly as possible and a good mortgage broker will help you understand the options available to you.

27/01/2024

A fantastic day at Property Elevator Live today with the Property Angels.

Thank you Ranjan Bhattacharya, Hayley Andrews, John Howard, Elizabeth Warburton

There were some interesting pitches from the audience resulting in some extremely informative and detailed conversation’s that revealed some great advice and insights into the mortgage market and the deals available within it.

I believe you should take every advantage and every opportunity you can get to improve your knowledge and understanding and these individuals will always add something of value.

Roma Finance Andrew Roberts Bernadette Anderson

09/10/2023

One of my long term clients completed on her residential remortgage today with Skipton Building Society.

Glad to see this one finally make it over the line.

24/09/2023

22/09/2023

A long but fruitful day at the The Homebuilding & Renovating Shows today finished off with a great meal.

Looking forward to tomorrow.

14/09/2023

If you had one pressing mortgage related issue/concern you needed answering, what would it be?