Mortgages Archives - Page 20 of 21

Converting a House into Flats – How to Fund It

by Dax McLeanPosted on 4th February 2021 | Updated 20th January 2023

You may have been researching a property to purchase for letting out, but the thought of undertaking some developments to convert the property into flats has been crossing your mind.

Or perhaps, you are seeking to convert a currently owned property into flats for the purpose of selling them on for a profit.

Either way, this article will guide you through the process of turning a house into flats, including the financing options and further considerations to be aware of.

Undertaking Market Research

As with any business decision, plenty of market research should be undertaken to establish who is the target audience of the product, in this case, the tenants or purchasers of the flats, as well as further research into the current market conditions.

The research should include taking time to understand the local area, including the current or planned local facilities such as university campus’ or transport links into cities or towns which are ideal for young professional commuters.

In addition to the local facilities, the area demographics should be reviewed, ensuring that there is evidence of typical flat tenants or owners.

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To establish a picture of the current market conditions recent local selling statistics could be reviewed including investigating the duration of time that properties are on the market before selling. In addition, it would be recommended to establish which type of properties are currently in demand.

Once all of the wider elements have been reviewed, thoughts can turn to the property itself, planning the conversion such as the layout of rooms and corridors, ensuring that health and safety can be met and also that the property facilities will suffice additional habitants.

It is essential that extensive market research is undertaken prior to committing to development, to ensure that the project is viable and is forecast to generate a profit.

Costs of Converting the Property

Often the costs of renovations will vary dramatically between one conversion project and another however as a very rough guide, if the current property is structurally sound with existing kitchen and bathroom facilities, typical costs of converting a house into flats could be between £15-£25k.

As mentioned, project costs will vary greatly depending on a wide range of factors including the condition of the property itself, plus external factors that can impact during a conversion.

When drafting a business plan for such a conversion project, the following elements should be considered and cost to establish a project’s estimated profit:

The cost and time duration of planning consent – Costs will include obtaining architectural drawings, any property surveys that may need to take place, submission costs of the planning application to the local council plus the cost of financing the project during the planning phase.
Building regulation approval – Similar to planning consent, there will be costs involved to meet and document that building standards have been met as well as the costs of submission.
Costs of fitting individual utility meters, boilers and heating systems– Each unit will require its own heating system and utility meter for each provision.
Costs of fitting out each individual unit with kitchen and bathroom facilities – Each flat will require such facilities to make the space habitable, however, the costs of such will vary depending on the quality chosen.
Cost of installing additional entrances and separating the building into flats – There will be costs applicable to rearranging the layout of the property, reconfiguring corridors, separating rooms and adding additional entrances for each of the individual flats. The layout will also need to consider fire safety regulations.
The Costs of re-decorating – There will also be costs of redecorating the property following the separating the space into units, such as plastering and painting.
The Costs of financing the development – In addition to the interest costs of borrowing money, there could be arrangement fees and exit fees depending on the type of finance opted for.

In addition to the costs listed above, there will likely be extra costs during the development phase such as paying the utilities for the property and council tax, unless exemptions are applicable.

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Also, depending on whether the flats are due to be let or sold, there will be additional costs involved. Selling costs will involve marketing costs and agent fees, whereas letting the properties will incur charges to undertake tenant checks and set up tenancy documents.

Should a letting agent be used to minimise the ongoing burden of administration, the letting agent fees should also be considered.

Obviously, all of the above expenses are to be reviewed and estimated for the project scale to create a thorough business plan to enable a property development project to be fully considered before committing to a project.

Sourcing Finance for Converting Property

Due to the nature of any conversion project, a simple residential mortgage would not be suitable and therefore specific finance for such projects must be sought.

Specialised development finance would be needed, which is a type of financial product that can enable both the purchase and development of the property. There are many different financial products available on the market which would be suitable for conversion products depending on a number of factors such as;

The personal circumstances of the applicant.
The plan for the property once developed such as retaining the property to let or selling. Such plans will also provide a guide of how long the borrowing is required for.
The scale of the project.

Various types of financial products will be available such as short-term refurbishment mortgages or bridging loans, or longer-term mortgages for specific requirements such as an HMO mortgage which would be sought should the property be retained to rent out to multiple occupants.

Although there may be some high street lenders offering suitable financing options, typically for more specialised finance and to obtain the most competitive rates it would be worth considering approaching an experienced financial broker.

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Converting a House to Flats Summary

There are many considerations to review when planning to convert a property into flats however our friendly, expert team can help guide you through the process and advise on the most suitable finance options along the way.

Why not book a personalised appointment with our amazing team, no matter which stage of the conversion process you are currently, to see if we can help in any way.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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Buy to Sell Mortgages – Short term Mortgages to Sell Property

by Dax McLeanPosted on 28th January 2021 | Updated 20th January 2023

Landlords are continuously faced with adjusting to changing legislation within the rental sector as well as tax legislation developments, meanwhile managing their own finances with the objective of making a profit from their property portfolio.

The type of mortgage used to fund property purchases is key to the profitability of a landlord’s business and therefore throughout this guide will explore the buy to sell mortgages.

What is a buy to sell Mortgage?

Buy to sell mortgages, sometimes known as bridging loans, are a short-term financial product to enable the purchase of a property, that you will sell before the end of the agreement.

One of the main benefits of opting for a buy to sell mortgage, is the flexibility offered, as with a standard mortgage an investor could be locked in for a specified duration as well as being liable for early settlement fees.

Therefore, this type of finance option is popular with investors seeking to make a profit from purchasing and selling on properties.

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Buy to sell mortgages are not usually available from traditional high street lenders, however, on the odd occasion that they do offer such financial products, the interest rates and fees may be higher than a standard mortgage.

Therefore, a specialised mortgage broker is often sought to access a wide range of deals available on the market and seek the most competitive rates.

However, like most financial decisions, the most suitable product will depend on an individual’s circumstances and plans for the property, including how long they intend on owning it before the sale.

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Options available for buy to sell Mortgages

There are three common types of finance options under the umbrella term of a buy to sell mortgage. These are as follows:

Buy to sell short term loan

If the turnaround time of a property purchase and sale is expected to be very short term, under 12 months, for example, this quick process is often known as ‘property flipping’.

In this scenario, a bridging loan could be the finance solution to fund the purchase due to the short term nature of the financial product.

Bridging loans are a type of secured lending and therefore as part of the criteria for the mortgage, a procession of a high-value asset is required, which is ideal for landlords.

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Bridging loans typically will be offered at higher interest rates compared to standard mortgages; however, they can be beneficial for landlords as they can be used to purchases non-mortgage properties, and also won’t have early redemption penalties.

Another benefit of using a bridging loan is the speed of the transaction, often the application and payment processes are much quicker than standard mortgages, and therefore having the finance available promptly can be an advantage for the landlord.

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Refurbishment Finance

Should the property sought to require refurbishments, especially on a large scale meaning that the current condition is unhabitable, obtaining a mortgage could be challenging. Traditional lenders will not approve a mortgage on properties in certain conditions, such as without a functioning kitchen or bathroom, due to the risks involved and therefore other finance methods will be required.

A refurbishment mortgage may be the solution. It is a short-term type of mortgage that requires a strategy upon application to notify the lender of how the monies will be repaid.

Refurbishment mortgages come in two types; Light refurbishment finance suitable for projects that do not require planning permission or building regulation consent to undertake the planned improvement works, or heavy refurbishment finance that would finance larger projects, typically that cost more than 15% of the property value.

The duration of the loan will require on the type of refurbishment mortgage opted for, and the timeline of the refurbishment works, however the longer the finance is in place, the more it will cost due to interest.

Refurbishment mortgages are usually offered by specialist lenders who would assess the property value after the proposed renovations have been completed, and therefore a landlord or investor can benefit from borrowing more than with a standard mortgage as typically standard mortgages are assessed on current property values only.

Flexible mortgages

Flexible mortgages provide a landlord or investor with an option to save on early redemption fees, as often the timeline of property sales cannot be exactly planned.

An early redemption fee is charged on standard mortgages to penalise borrowers for ending a mortgage term early, whereas flexible mortgages have little or no early redemption fees so mortgage terms do not have to be considered when seeking to sell the property.

Flexible mortgages can be obtained for both residential and buy to let types of properties, however, they differ from refurbishment mortgages, as the property secured with the mortgage needs to be habitable.

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Development mortgages

Should a property investor be researching developing a plot of land to then sell on, often there would two types of mortgage suitable; self-build mortgages or development finance.

Self-Build mortgages

Should the development plan conclude with the mortgage owner living within the built property, a self-build mortgage may be option depending on the financial circumstances.
Self-build mortgages are often limited to 70% loan to value rate of the build cost, and therefore the balancing 30% would need to be self-funded as a deposit.

The funds are released from the lender in stages throughout the build. The work completed at each stage is then assessed by a surveyor, feeding back to the lender. The number of stages required would be set at the beginning of the process, depending on the scope of the building project.

Should the plot of land need to be purchased initially also, land mortgages would be an option.

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Buy to Sell Mortgages Summary

As every landlord or investor’s circumstances and background will differ due to many factors such as the number of properties within their portfolio and the level of equity available for further borrowing. As well as the objective for further borrowing, these other circumstances will be taken into consideration by lenders.

As the options discussed throughout this article are specialist financial products, a specialised broker would be required to review the individual circumstances as mentioned above, and the market conditions in order to provide tailored advice as well as source the best option and rates available.

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Foreign National Mortgages – UK Mortgages for Foreign Nationals

by Dax McLeanPosted on 14th January 2021 | Updated 20th January 2023

Skilled foreign workers that have settled in the UK with a relevant visa, may assume that they cannot purchase property here, however, this is not usually the case.

Foreign workers may wish to purchase property within the UK for a short-term purpose such as to live in while they remain within the UK, or for longer-term investment purposes.

Lenders are usually prepared to offer mortgages to skilled foreign workers that meet the borrowing criteria however there are additional risks involved due to the uncertainty, such as whether a foreign national will remain within the UK for the full mortgage term.

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The main difference for a foreign national mortgage compared with a standard mortgage is the application criteria, which will be discussed later in this guide.

However, if approved, the mortgage is like any other standard mortgage such as the choice between fixed and variable interest rates and the process will follow the standard application process.

There will be the usual fees to pay including:

Mortgage arrangement fees.
Property valuation fees.
Legal fees.

What is a Foreign National Mortgage?

If you’re not a UK citizen, it’s still possible to secure a mortgage on UK property. A foreign national mortgage is available to applicants that meet the following requirements:

You’re a non-UK resident or don’t have permanent residency in the UK.
Born outside of the EU but have indefinite leave to remain or permanent residency.

Factors that impact a Foreign National Mortgage application

When assessing your application for a foreign national mortgage, lenders will take into account the following factors when determining your suitability:

Remaining time on your visa to stay in the UK.
The type of visa you hold.
How long you have been in the UK.

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How to get a Foreign National Mortgage in the UK

If you are just considering applying for a mortgage as a foreign national living in the UK, the first important steps to take, which will make your application much more attractive for lenders include:

Open a UK bank account.
Secure a permanent job in the UK.

If these steps are not possible, certain lenders may accept mortgages paid from an overseas income, so it’s not the end of the road.

We also have foreign national mortgage brokers who can help you locate the lenders and best products for your specific circumstances, contact us today for a free, no-obligation chat.

Visa classes and how it affects lending

When applying for a foreign national mortgage, the type of visa you hold is an important consideration for lenders.

Here are the three main types of visas and what they may mean for your mortgage application:

Family Visa

These visas are for individuals married and living with their UK spouse, as well as children and parents.

This visa enables you to work and stay indefinitely, there’s also the option of making a joint application with your spouse, which can improve your application success rate.

Tier 1 or Tier 2 Work visas (now called Skilled worker visas)

The chance of securing a mortgage on either of the visa types will depend on the amount of time remaining on your visa. Most lenders will request that foreign nationals have at least 12-24 months remaining on their visa.

Read all about Skilled Worker Visa Mortgages.

EU Nationals

Skilled foreign workers with an EU passport are currently deemed by lenders as UK national and therefore will usually be able to apply for a standard mortgage in the normal way, as long as they have been living within the UK for at least 6 months.

The usual affordability and credit checks will be required during the application process, so as long as the EU passport holder meets these requirements, there should not be a reason why high street lenders would not consider lending with competitive rates and terms.

This may however change depending on the outcome of Brexit.

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Which Visa is Required to Obtain a UK Mortgage?

Skilled foreign visa holders with either a Tier 1 or Tier 2 category visa can usually be accepted for mortgages within the UK depending on the usual affordability and credit checks required.

However, a Tier 5 foreign national would be considered a temporary worker and therefore would usually not be offered a mortgage.

A spousal visa is granted to those married to UK nationals and are usually treated in the same way as Tier 1 or Tier 2 visa holders.

In addition to the usual checking process, lenders considering a mortgage application from a Tier 1 or Tier 2 visa holder will also be interested in two other factors:

How long the applicant has lived in the UK.
The duration of time left on the visa.

Typically, lenders will require a skilled foreign worker to have been a UK resident for two- or three year’s dependant on their criteria.

This time frame is set so that an applicant would have a chance to build up a credit file within the UK including employment and credit history. Also, lenders will expect foreign applicants to have a permanent job within the UK as well as a UK bank account.

Lenders commonly ask for applicants to have a minimum of 6 months remaining on their Tier 2 visa, although they will usually take into consideration the circumstances of whether the visa is likely to be renewed due to continuous employment within the UK.

Should an applicant have less time left on their visa, a larger deposit down payment can be advantageous to the application.

Other elements can help the application process, such as if the reason for the relocation to the UK is through work with the same multinational employer, the income could be traced for a longer duration, reassuring the lender.

As Kenneth Clarke, from Sidepost.com.au states “it’s important to provide full documentation when moving abroad, including your tax returns and annual profit and loss statements.”

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Foreign Nationals with a Poor Credit Score

Should a mortgage applicant have a very minimal credit record history within the UK, or a bad credit score, it may be more challenging to secure a mortgage however often not impossible. In such a scenario, the interest rate offered, and other terms applied are likely to be less desirable or competitive due to the risks involved for the lender.

A credit record history can be built up over time, and therefore the duration that a foreign worker has been residing within the UK is a key factor.

The credit scoring system not only reviews the affordability of an individual but also the records of regular payments on consumer credit agreements on everyday expenses such as mobiles or utility bills.

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Should a negative mark be applied to a credit record such as a County Court Judgment, a default of a loan or an IVA, there can be increased difficulties in obtaining a mortgage.

In such situations when a foreign national has a poor credit score for a variety of reasons, it would be very worthwhile to seek independent financial advice to explore all of the options available to secure a mortgage and obtain the most competitive rates.

Foreign Nationals who are self-employed

Self-employment adds complexity to any mortgage application, even to UK residents and therefore if an applicant is a foreign national also, it would be worth seeking independent financial advice to explore the options available.

Other Considerations

Foreign nationals may wish to consider the following when seeking to purchase a property within the UK:

The location of property purchased for investment would be key. For example, lenders may favour investment purchases on properties within cities compared to dwellings in towns for example, without great transport links or universities campuses.
Should the foreign nationals are utilising funds from abroad for a deposit, additional checks may take place and therefore this could cause delays to the mortgage completion process. The source of funds must be traceable to enable the mortgage application to be approved.

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Foreign National Mortgages Summary

Certain categories of foreign nationals can obtain a mortgage within the UK as long as they meet both the general borrowing criteria as well as any specific criteria relating to foreign nationals as set by the individual lenders.

Depending on the personal circumstances and credit history of the mortgage application, independent financial advice may be required to seek out specialist lenders and compare the interest rates and terms on offer.

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Reasons Why a Mortgage Could be Declined on Affordability

by Dax McLeanPosted on 14th January 2021 | Updated 20th January 2023

Unfortunately, even after receiving a mortgage in principle, a mortgage application could be declined at a later stage of the process.

In this post, we will discuss the many reasons that could lead to a mortgage application being declined, including those linked to affordability.

Reasons Why a Mortgage Could be Declined

Over recent years, following a mortgage market review, the lending criteria has been tightened and therefore there has been an increasing trend of mortgage applications being declined due to affordability.

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Even if a lender issues a mortgage in principle, this is not a guarantee that the applicants will pass the rigorous checks that are now undertaken by the lender’s underwriting team.

These checks will include background checks on the applicant’s finances, a thorough review of the applicant’s credit history, as well as checks on the property that will be linked to the mortgage, including surveys confirming the property’s condition and value.

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One lender declining a mortgage application does not mean that it would be the end of the journey to take that first step onto the property ladder or to re-mortgage and move, as another lender may have differing criteria. However, should a mortgage application be declined, it is important to establish the reasons why so that actions can be put into place to rectify the concerns.

There are many reasons why the outcome of affordability checks may not be sufficient for a lender. These often are due to the applicant’s current credit score, their credit history, income levels and the property itself.

Let’s discuss the common issues further below:

• High debts – When reviewing a mortgage applicants credit file, the lender’s underwriting team will be able to assess how much debt the applicant has. Each lender will have their criteria of acceptable debt levels, however, many factors will be reviewed including; the number of credit accounts open as well as the level of current debt versus the total available credit limits. In addition, the percentage of income that would be spent on debt repayments each month would be of interest to the potential lender as this would have an impact on the level of disposable income available to the applicant following all bills being paid.

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Lenders will be concerned that an applicant with high debt levels may struggle to keep up the repayments on both the current debts and the new mortgage

• Credit Score and Credit History – A credit report will be requested for the mortgage applicant which will state their current score as well as detailed credit history.

A mortgage lender could decline an application should it find something disclosed on the credit score that it doesn’t like including a County Court Judgement (CCJ), a filed bankruptcy or previous home repossession.

Should there be a history of any of the above within the personal circumstances of someone seeking to obtain a mortgage it would be advisable for them to liaise with a specialised mortgage broker for further advice on lenders who are willing to accept applicants in such a position. The timing of the negative event on an applicant’s credit history will also be key. For example, a CCJ will remain on a credit report for six years following the event.

• Affordability concerns due to high monthly expenditure – As briefly discussed under the high debt concern, a potential lender will review all monthly expenses of an applicant, either by scouring through the bank statements supplied or reviewing the submission of monthly expenses that an applicant was requested to complete for their application.

The expenses themselves may not be the issue, however, the percentage of the disposable income after all the outgoings will be under scrutiny and each lender will set an acceptable level of this against which the applicant will be reviewed against.

Mortgage lenders will also review transactions that may be deemed as irresponsible spendings such as regular gambling or payday loan repayments.

• Mortgage deposit insufficient – The level of deposit required will be known from the beginning of the application process, however, if an applicant’s deposit is later found to be insufficient a mortgage application can be declined.

Also, in some situations, a lender can revise their mortgage offer so that the potential homeowner needs to find a higher level of deposit due to the risk factors involved.

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Again, this may not be the end of an applicant’s property ownership dreams, they may need to find an alternative approach to funding a property purchase including exploring many of the government schemes that can help fund deposits.

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Such schemes change over time by the governments objectives however currently there are quite a few options including:

Lifetime ISA – A type of savings account that the government will provide a bonus of 25%. The maximum savings to qualify for the bonus is £4,000 a year.
Help to Buy ISA (No new accounts are available) – Another type of savings account that the government will provide a maximum bonus of £3,000 if the account holder saves £12,000. The bonus depends upon the savings amount.
Help to Buy equity loan – Another type of borrowing providing up to 40% of the property value as a 5-year interest-free equity loan. Interest is currently payable on the equity loan at 1.75% after the fifth year and 1% plus RPI for every year afterwards.
Shared Ownership schemes – A staged ownership scheme enabling the applicant to purchase between 25% and 75% of the property initially via a specialised shared ownership mortgage. Following this, further percentages can be purchased as earnings increase and affordability factors improve over time.
Salary Concerns – Often high street lenders specifically apply an income multiplier to calculate the total amount of money available to an applicant to borrow. Should this calculation not be sufficient for the property purchase proposed it is likely that a mortgage application would be declined. In this case, it would be highly advisable to seek independent financial advice to see if other options are available such as specialist lenders, who in certain circumstances can offer a higher multiplier.
Concerns with the Property – Some types of property are not eligible for a mortgage, for example, uninhabitable properties, properties with structural concerns, issues such as damp or invasive weeds, low-value properties or those with a history of flooding

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Reasons Why a Mortgage Could be Declined Summary

Should there be any concerns regarding mortgage affordability or if the mortgage application has been declined due to affordability criteria, it would be worth seeking specialised financial advice to discuss other options available.

There are now more methods of purchasing property than ever before, including government schemes and mortgage products and therefore one lender’s decision to decline an application will usually not have to be the end of a property ownership journey.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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How Reliable is a Mortgage Agreement in Principle?

by Dax McLeanPosted on 14th January 2021 | Updated 20th January 2023

A mortgage in principle, or otherwise known as an agreement in principle, is a written document issued by a lender, providing a provisional indication of how much money may be able to be borrowed.

The provision of a document is part of the mortgage application process which will be discussed throughout this article in addition to; clarifying exactly what a mortgage in principle is, how to secure such agreements are, as well as the effect that mortgage in principle has on credit scores.

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What is a Mortgage in Principle?

As briefly mentioned, a mortgage in principle is issued by a lender and advises in writing, an estimated total value that can be borrowed by the mortgage applicant or joint applicants.

The document is produced as part of a mortgage application process and can be provided to vendors, estate agents or home building companies to prove that the applicant is serious about purchasing a property and can (in principle) obtain a mortgage.

How is a Mortgage in Principle Obtained?

A mortgage in principle can be applied for online, over the telephone or in within the branch of a high street lender. In addition, a mortgage broker can source a mortgage in principle for applicants.

Personal information will be requested in order to complete the initial checks required to produce a mortgage in principle including:

• The applicants’ names, date of birth, and current address.
• Previous addresses if applicable, covering at least three years.
• Income details.
• Information regarding current expenditure and credit agreements.

The process of obtaining a mortgage in principle should be free and at this point does not commit either party to continue with the mortgage application. Should the mortgage application process proceed. Additional supporting documentation may be required to support the mortgage application.

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Does a Mortgage in Principle Affect a Credit Score?

A lender will need an applicant’s permission to undertake a credit search to be able to produce a mortgage in principle.

The search may be a ‘soft search’ that would not be visible via other lenders and not leave a mark on your credit records, however, a ‘hard credit’ check would leave a ‘footprint’ on an applicant’s credit file that other lenders could see.

This credit search could also affect an applicant’s credit rating in future and therefore it is advisable to be strategic regarding mortgage in principle requests.

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How Reliable is a Mortgage in Principle?

A mortgage in principle can be withdrawn as at this stage several deeper checks, otherwise known as underwriting, have not taken place, including background checks on applicant’s finances, a thorough review of the credit history, as well as checks on the property that will be linked to the mortgage, including surveys confirming the property’s condition and value.

Some types of property are not eligible for a mortgage such as properties that are uninhabitable or derelict, properties with structural concerns, issues such as damp or invasive weeds, low-value properties, or those with a history of flooding.

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It is not a mortgage offer.

A mortgage lender could decline the borrower’s mortgage application and withdraw a mortgage in principle due to an array of reasons such as:

• Failing additional financial affordability checks.
• Considerable changes to financial circumstances.
• A subsequent drop in credit score following the mortgage in principle being produced.
• An employment change deemed not acceptable by the lender, such as a move from a permanent to a temporary contract.
• The discovery of a County Court Judgement.
• Insufficient duration of self-employed income.
• Findings of the dishonesty of fraudulent claims during the initial application process.
• Concerns regarding rights to live in the UK.
• Other mortgage application criteria may not be met such as the applicant has a birthday and therefore is older than the maximum age that the lender is prepared to lend to.

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Should an application be declined for a mortgage, this doesn’t necessarily mean that other lenders will not be willing to make a mortgage offer to the applicant.

However, specific advice would be required from an independent financial adviser before undertaking any next steps so that further marks are not made against a credit file before investigations are undertaken.

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How Long is a Mortgage in Principle Viable for?

Typically, a mortgage in principle will be valid for 30 to 90 days from the date of being obtained. It may be possible in certain circumstances to seek an extension to the mortgage in principle.

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What Happens After the Mortgage in Principle Stage?

Following the receipt of a mortgage in principle, the property hunt can begin. Should an offer be accepted on the desired property, the next step would be to apply for a mortgage offer.

As already discussed, a mortgage offer is not guaranteed following receiving a mortgage in principle however should all the checks be completed sufficiently, this would naturally follow.

The property purchase would then proceed to exchange contracts, following by the completion stage.

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A mortgage in Principle Summary

A mortgage in principle is an initial stage of a mortgage application enabling potential buyers to explore the property market to find their dream home however it is not a grantee of a mortgage offer.

Throughout the underwriting process, the mortgage will be firmed up and confirmed by the potential lender issuing a formal mortgage offer. At this stage, the likelihood of reliability has increased.

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5 Times Salary Mortgage Lenders – Who Offers them?

by Dax McLeanPosted on 14th January 2021 | Updated 20th January 2023

There could be an array of reasons why someone may seek to maximise the amount that they can borrow including the high house prices of the desired location of a property purchase or low salaries for an initial house purchase to get onto the property ladder.

How to Access Higher Loan to Income Mortgages

The traditional high street lenders may not be able to offer higher borrowing limits to mortgage applicants and therefore often the best approach to explore such options would be to liaise with a specialist mortgage broker.

A mortgage broker will have access to the wider financial markets to be able to advise on the current market conditions, pass on knowledge of recent lending history, as well as compare deals tailored to the individual borrower’s requirements.

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Any highly recommended mortgage broker should be able to seek and advise on the requirement of higher value mortgages for a range of circumstances, such as:

• Homeowners seeking to trade up their property within an expensive property area.
• Professional first-time buyers earning at least £40,000 a year.
• First-time buyers with low deposits, within certain career categories.

As with any financial product application, the credit score of the applicants, the value of the property and the level of deposit or equity will all play big parts in the calculations that determine the levels that lenders will be prepared to offer for mortgages. Criteria can vary from one lender to another.

Lenders are keen to do business with professionals who are deemed to be high earning, insecure roles, who are also set to progress up their career path fairly promptly and therefore continue to make regular mortgage repayments.

Therefore, some of the usual risks of unemployment or mortgage default are less likely, and consequently, lenders can be prepared to offer higher loan to income borrowing to those deemed professional workers.

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5 times salary mortgage

Historically, the mortgage market has been based on a salary-multiplier calculation restricting borrowers to 4 or 4.5 times their annual salary.

However, following an industry review in 2014, there was a shift from maximum loan values to affordability calculations and therefore more information is reviewed throughout the application process to ensure that other expenses can be factored into the monthly household budgets.

Also, when lenders are reviewing an applicant’s affordability, they must factor in a buffer to accommodate changes such as inflation of bills and interest rate rises.

• Maximise earning status and income – Mortgage lenders will look favourably at an applicant with a permanent contract over a temporary staff member, and therefore in advance on a mortgage application it would be advisable to secure a permanent employed role. Also, exploring the options of a pay rise with a current employer will bolster lending power

• Getting organised – A mortgage application will require the collection of a range of documents to prove identity, confirm an applicant’s address, undertake employment checks and provide a record of regular expenses. Getting such documentation organised ahead of an application can save time and delays later on.

• Streamline debts and cleanse expenditure – Along with affordability checks, lenders can also review everyday payments. Certain transactions can raise alarm bells such as debt repayments to multiple credit cards or store accounts, as well as gambling payments

• Review credit report– Ahead of a mortgage application is it advisable to undertake an audit of all accounts as well as request a free credit report to check it for errors.

A credit history report contains many pieces of information including details of missed payments, details of financial related links such as previous partners, as well as ratios of borrowing levels.

The output from a report often provides a credit rating which will be used by lenders when reviewing a mortgage application and therefore is vital that all of the information underpinning a credit score is correct. Always ensure that there is plenty of time to log any queries with the credit referencing companies before an application.

• Improve credit scores – Following the process of checking a credit report, should the score be less than perfect, some steps can be taken to boost it up.

After any queries have been resolved, there are a few options to improve a credit score including; registering on the electoral roll, de-linking from previous partners, using rebuild cards to build credit history and ensuring that all bills are paid on time.

Once the groundwork has been put into place to be in the best position for an application, it would be worthwhile approaching a mortgage broker to review an applicant’s eligibility, the objectives of higher borrowing and search the market for the most appropriate competitive options.

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Mortgages 5 Times Salary Summary

As with any financial decision, it’s always recommended to seek independent financial advice before committing, ensuring that all terms and conditions are fully understood.

Independent brokers will also have access to the whole of the market, rather than just high street lenders and therefore will often be able to compare a wide range of options.

It is worth noting that all secured lending will have consequences to owned assets if the repayments are not kept up.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

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Best Part and Part Mortgages (Part Interest & Part Repayment)

by Dax McLeanPosted on 26th November 2020 | Updated 20th January 2023

A part and part mortgage, allows you to pay off some of your mortgage over time, but not all of it. When the mortgage term ends, there will still be some money left to pay off.

Part and part mortgages are considered to be in the middle of repayment mortgages and interest only mortgages.

A part and part mortgage is also referred to as a “part repayment and part interest mortgage”, or a “part capital and part interest mortgage”.

This guide will explore what part and part mortgages are, including their purpose and key advantages as well as alternative mortgages that may be worth considering depending on the borrowers’ circumstances.

What is a part and part mortgage?

‘Part and part mortgage’ are the term for when different types of mortgages are combined such as an interest only and a repayment mortgage.

An interest only mortgage is defined as a property loan where the borrower only pays the interest due on the financial product, for either part or all of the mortgage term, resulting in the capital balance remaining the same.

Interest only mortgages have strict lending criteria and have reduced in availability following the 2008 financial crisis.

Whereas throughout a traditional repayment mortgage, each monthly repayment value covers both the interest due and a part payment towards the capital, decreasing this balance over the duration of the mortgage term.

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Part and part mortgages are often researched with the objective of minimising the monthly repayment.

It is rare that interest only and traditional repayment mortgages are combined however it is possible. It is strongly advised that borrowers must inform themselves of the differences between the mortgage types and the consequences of financing property in this way.

For example, when an interest only mortgage comes to the end of its term, the principal balance is still due, you must have something in place to repay this outstanding capital.

Advantages of Part and Part Mortgages

In the short term, a combination of the two types of mortgages can reduce the monthly repayment values.

In contrast to a sole interest only mortgage, the combination of the part repayment mortgage ensures that some payment against the capital is being made. Therefore, looking ahead to the end of the mortgage term, there will be less capital to pay as a lump sum.

Also, in comparison to an interest only mortgage, there is less interest to pay with a part and part mortgage as the interest reduces over the term in association to repayments against the capital loan.

Often part and part mortgage lenders are flexible allowing the borrowers to set the ratio between the two mortgage types, however, the amount is likely to depend on the personal circumstances of the borrower and the repayment vehicle available.

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Disadvantages of Part and Part Mortgages

Although there are no specific disadvantages of combining two types of mortgages, it is stressed that specific financial advice should be sought to ensure that there is a full understanding of the part and part set up and any later financial considerations have been taken.

For example, a plan would need to be considered for the repayment of the capital sum left at the end of an interest only mortgage, no matter the proportion within the part and part combination, otherwise financial pressures could simply be delayed until the end of the mortgage term.

In a like for like comparison, a part and part mortgage will cost the borrower more in interest versus a repayment mortgage and therefore the reasons why a borrower would enter into a part and part, and the ratio of the split between mortgage types must be fully explored.

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How does a Part and Part Mortgage Work?

No part and part mortgage is the same and the exact and how much capital you pay off over time and at the end of the mortgage period will be discussed and decided upon with your lender.

However, the majority have maximum amounts that can be interest only. Typically, this is linked to the loan-to-value ratio of your mortgage, or LTV.

Therefore, even though a part interest, part repayment mortgage can offer flexibility, you will be required to pay back a considerable amount of the mortgage on a regular basis.

Paying Back the Interest Only Part

When you apply and accept the terms of a part and part mortgage, you will need to prove to your lender that you’ll be able to repay the money remaining at the end of the period. This would be the case if you had an interest only mortgage.

As a result, it’s important to put together a plan, also called a repayment strategy. It’s normal to be asked a lot of questions about your strategy, so ensure you are well prepared when you apply.

The Application Process for a Part and Part Mortgage

A part and part mortgage application follow a similar process as to that of a standard mortgage where; the applicants’ income is confirmed, the loan to value rate is reviewed considering any deposits or previous equity percentages within the property, and credit checks are undertaken.

Evidence of a repayment strategy for the capital outstanding at the end of the mortgage term would also need to be submitted for review by the lender.

Any other criteria would be set by each lender, for example, some lenders will have a maximum level that they would offer as the interest only mortgage element.

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Re-Mortgaging Mid-term

Personal financial circumstances change over time and often these changes do not always align with a mortgage term break. Therefore, re-mortgaging may be considered at any point.

In some circumstances, if the previous repayment plan to cover the outstanding principal balance at the end of an interest only term is no longer viable, one option may be to switch to a repayment mortgage.

This option may also be considered should income increase and therefore borrowers can afford to make higher monthly payments, resulting in a reduced cost of interest over the longer term.

In other situations where financial circumstances take a negative turn, depending on the scale and duration of the changes, it may be difficult to re-mortgage on the open market as application criteria may no longer be met.

Therefore, depending on the full details of each individual situation, it may be possible to enter into a negotiation with the existing lender to establish options, such as if a repayment mortgage is in place, can a change be made to a part and part mortgage. As with all financial decisions, it is highly advised that specialist financial advice is sought before making any changes.

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Part and Part Mortgages Summary

Due to the very nature of part and part mortgages, the ratio between the different mortgage types, and the suitability for borrowers will depend entirely on the personal circumstances of the borrower and therefore specialised tailored financial advice is always recommended.

Experienced financial advisors provide many service benefits from being able to share an insight into the market conditions, as well as lender traits to evaluate the likelihood of applications being successful.

In addition, advisors will compare viable options and will seek to find the most cost-effective option for the borrower, saving them money over the term of the mortgage and therefore the advice can be invaluable in many ways.

Give us a call on 03330 90 60 30 to speak to an advisor, or contact us for mortgage advice that’s personal to you and takes your credit history into account. That way you’ll know where you stand in the mortgage market and we can guide you on your route to securing a suitable loan.

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HMO Mortgage Broker Guide – For Buy-to-Let Landlords

by Dax McLeanPosted on 26th November 2020 | Updated 20th January 2023

HMO properties are more common than ever before, and a trend has been noted with landlords increasingly often choosing to apply for HMO mortgages.

Rental properties are in high demand across the UK and whilst interest rates are low, landlords are keen to continue to reap the rewards of the current market conditions.

Houses in Multiple Occupation (HMO) can earn landlords increased rental income compared to traditional buy to let properties and therefore have become increasingly more common.

This guide will explore the purpose of HMO mortgages as well as the differences between traditional buy to let mortgages.

What is HMO?

As already mentioned, HMO stands for Houses in Multiple Occupation which means that a property is occupied by more than one tenant. Another common term to describe this time of property is ‘multi-let’.

Landlords can divide the property and charge rent per room or per flat or section of the property for example. The benefits to the landlord are increased rental income per property as well as reduced risk of unoccupancy.

Often HMO landlords pay the utility bills for the property and increase the individual rents accordingly to cover the utilities.

However, if the property is converted into separate flats with individual title deeds the utility bills are the responsibility of the individual tenants.

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Is an HMO licence required?

Although HMO properties are very attractive to landlords due to the increased rental income possible, they can be complicated to set up and, in some circumstances, will require the landlord to seek an HMO licence.

Local councils manage the HMO licence process and therefore the relevant council will be the first port of call for any licencing queries.

Some councils will only require HMO licences for larger setups if all three of the following conditions apply:

1) There are more than five tenants within an HMO property
2) The property has a minimum of three storeys
3) Tenants share facilities such as bathrooms or kitchens

However, the licencing rules do vary across the UK and therefore it is strongly advised that any landlord considering an HMO property contacts the relevant local authority directly.

If an HMO licence is required, an application will be required per property, rather than per landlord.

The local authority will review an HMO licence application and will evaluate the proposed living conditions for tenants within the property as well as assessing the landlords themselves, checking they have not previously breached landlord laws.

If an HMO licence application is rejected, there may be a number of requirements that need adjusting before granting a licence, such as changes to the proposed property set up.

However, if the landlord disagrees with the reasons why a licence application is rejected, they can appeal via an appeal process via the Residential Property Tribunal.

If an HMO application is approved, the licence is valid for five years.

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Differences between an HMO and a Traditional buy to let

With a traditional buy to let property, a landlord would purchase a property with the intent to let it to either an individual or a family. The tenant would pay rent either on a weekly or monthly basis and would usually pay the associated utility bills and council tax.

With an HMO property, each bedroom could be rented out separately, and any spare reception rooms could also be converted to additional bedrooms. Often this set up is best suited to single working professionals or students, depending on the location of the property. As previously, discussed the landlord often covers the utility bills and ensures that the rent per room is set at a rate to cover these costs.

In some occasions it is calculated that an HMO property can generate three times the rental value as a standard buy to let property, rented to a family, for example, however, this is not always the case! Read onto the next section to investigate the reasons why.

HMO income and expenses

There are several considerations in relation to income and expenses that should be reviewed when a landlord is debating which methods of renting out a property is most suitable.

The first matter is the utility bills associated with the property. With an HMO often the landlord is responsible for covering these bills and if the rate added to the rent is not correct and therefore does not cover the annual utility bills, the landlord could be left out of pocket.
Also, the landlord does not have control of the usage of utilities and therefore this is a risk area.

The next consideration is that the running costs of an HMO property can be higher, for example, there are increased health and safety guidelines to comply with for an HMO property as well as security matters to cover, such as locks on each room.

There will also be increased admin involved with HMO properties as there are more tenants to reference check and set up individual rental agreements with. If the landlord undertakes the legal checks themselves, it can be very time consuming however if this is outsourced, the charges are often per tenant and therefore will wrack up.

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The risk of unlet periods between the two rental types is also to be considered. With a traditional buy to let, there is a higher risk to the landlord should a family move out, as the landlord would need to cover all costs during unlet or void periods.

However, these are often not as frequent as sometimes a content, the settled family could remain as tenants for many years. With an HMO property, often the risks of unlet periods are divided between tenants (depending on how the lease agreements are set up), which is favourable to the landlord.

In addition, the higher rental income from other individuals within the property is likely to be able to cover the property overheads such as a mortgage, should one tenant move out, however turnover of tenants are generally higher on shared properties due to the nature of them such students finishing their course or professionals moving jobs or location. Also, there can be more disputes between the tenants resulting in tenants wishing to leave.

Also, HMO properties may be rented on a fully furnished basis and therefore the set-up costs are higher.

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Location of the HMO property

As already briefly mentioned, the location of the HMO property is likely to have an important impact of the type of tenants required such as students and single professionals. City centres and university towns are often the location of choice for HMO properties. External factors are also highly important to the success of an HMO such as transport links.

HMO Mortgages

Often lenders will require several criteria to be met before accepting an HMO mortgage, including that the landlord is already experienced with letting property.

Although there has been a surge in the popularity of HMO properties recently, the HMO mortgage market remains fairly specialist. Access to HMO mortgages is usually via specialist mortgage brokers, seeking the most favourable terms and mortgage rates on the market.

Often HMO mortgage rates tend to be higher than standard buy to let mortgages due to the reduced availability of HMO lenders, however usually this is covered by the increased rental income.

HMO Mortgage Summary

An HMO is a method of renting out property maximising the rental returns. Although the higher rewards are often very tempting, there are other factors to consider, including additional compliance and maintenance costs.

Due to the specialist nature of HMO’s is vital that the advice of a specialist financial advisor is sought to ensure that as HMO is the most suitable approach to renting out a property.

Call us today on 03330 90 60 30 or contact us. One of our advisors can talk through all of your options with you.

Renovation Mortgages & Conversion Loans – How do they work?

by Dax McLeanPosted on 5th November 2020 | Updated 20th January 2023

A refurbishment or renovation mortgage, or refurbishment finance, are types of loans that enable renovations or repairs to commence on a property.

Refurbishment loans can be used to finance a property purchase as well as funding the developments.

A refurbishment mortgage is a short-term finance solution that requires a strategy from the onset to notify the lender of how it will be repaid.

There can be the flexibility of the exact timing that the finance will be settled, where certain factors are unknown such as completion times.

Often the main benefit of a refurbishment loan is that funds are released quickly so that works can start as soon as possible.

Renovation Mortgages Explained

Types of Refurbishment Loans

Renovation or refurbishment mortgages or loans are typically categorised by scale, light to heavy, depending on the level of the cost needed to make the renovations.

Light refurbishment finance would be applicable to properties that do not require planning permission or building regulations in order to proceed with the developments, such as:

Installing a new bathroom or kitchen.
General redecoration.
Fitting windows.
Undertaking electrical rewiring.
Installing heating systems.
Non-structural developments.

Light refurbishment can involve a combination of the above or simply aesthetic changes such as improvements to fixtures and fittings.

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Whereas heavy refurbishment finance would be for larger projects, which are likely to cost more than 15% of the value of the property.

Heavy refurbishment projects will require more formal planning and building regulations requirements, such as:

Structural works.
Demolitions.
Property extensions.
Property Conversions.

Due to the nature of heavy refurbishment projects, the duration of time that the finance will be needed for should be considered, including allowing time for the planning stage.

For this reason, heavy refurbishment loans are often required for a minimum of 18 months, and therefore costs can add up.

For even larger projects, such as developing multiple units such as an apartment block, or building a property in its entirety, development finance or commercial finance options would be considered.

There are also other circumstances where refurbishment mortgages are not eligible as the associated property is not deemed mortgageable.

There are a number of reasons why mortgages are not granted on certain properties, a few of these are listed below:

Property that is uninhabitable for reasons such as it is in a poor condition, the property is derelict or not weatherproof.
There is evidence of Japanese Knotweed or other invasive plants.
The property suffers from damp, rot, subsidence or flooding.
The property value is under £50,000.
Leasehold properties with a short lease.
Planning permission is missing for part or all of the building.
The property is not registered with the Land Registry.
Properties that are commercial or partly commercial, such as a residential unit above a shop.

You can always consider the DIY option for smaller projects, like upgrading your heating and cooling system, but of course, this is not possible for everyone and larger, more complex projects demand experience and time.

Roy from Cold Hot Air says: “Some tasks can be done quite easily using some old fashioned DIY, meaning you can avoid getting a renovation loan in some cases.”

“Even seemingly complicated repairs like HVAC systems can be quite simple to repair and in some cases install, but it does require some commitment to research and learn beforehand, which obviously isn’t for everyone.”

Renovation Mortgages Rates

Mortgage rates and other associated fees will often depend on the property itself and the circumstances of the applicant. Typically, refurbishment mortgage rates start around 5%, and rise for heavy refurbishment projects.

One main factor when considering refurbishment finance is that the values available are usually around 75% of the proposed property value following the completed refurbishments.

Obtaining more than 75% of the post-refurbishment value is often very difficult, following the credit crunch in 2007.

Should more finance be required, other funding options may be required.

Due to the variable factors, including the range of property projects, seeking the advice of a specialist mortgage advisor or broker may be beneficial to find a tailored solution, across a wide range of lenders.

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Alternatives to Refurbishment Mortgages

In some circumstances, refurbishment mortgages are not valid against the type or condition of the property. In these situations, bridging loans can be used to develop a property promptly, to then subsequently apply for a traditional mortgage against the property.

In this situation, often the property in its original condition is not deemed mortgageable, either due to structural issues or did not have kitchen or bathroom facilities at the point of purchase.

Another example where bridging loans are commonplace is at auctions as the finance for the deposit are required upon winning the property, and therefore the refurbishment mortgage process takes too long.

A bridging loan is also a short-term financial product however, it requires the applicant to own another high-value asset to be able to access the equity within it, technically utilising this as a down payment towards other property.

A bridging loan also results in a charge on the other property that the loan is associated with for security. A charge prioritises the order that debts will be handled should the property owner not be able to make the repayments on the loans.

For example, in the case of a first charge loan, if the property was seized from the owner due to non-payment and subsequently sold, a first charge loan would take priority of being repaid from the funds of the sale.

Whereas a second charge is a terminology used to describe that a loan or mortgage is already in place against a property. In this circumstance, permission from the first charge lender is often required before a second charge can be added.

Due to the increase of risk to the lender, interest rates on loans where a second charge would be applicable are higher.

The suitability of a bridging loan would depend on the circumstances of the applicant as certain criteria need to be met including an exit strategy due to the nature of the short term finance option.

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Renovation Mortgage Lenders

Although there will be some high street lenders that offer refurbishment finance options, typically the constraints of their financial products do not cover the nature of various property development projects, and therefore specialist lenders may be required.

An experienced financial broker would be able to propose a range of financial scenarios, customised to the requirements, to be able to advise the best option, saving the applicant both time and money.

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Our expert mortgage advisors are here to help you find a lender from which you can secure a good deal from. Deals available will be based on your financial situation and so you’ll have a much easier time finding a loan that is best for you.

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Can you Get a Mortgage for Land? Land Mortgages Explained

by Dax McLeanPosted on 5th November 2020 | Updated 20th January 2023

Can you get a mortgage for land? The answer is that yes it’s possible, however, it’s important to be aware of the criteria.

Often mortgages are thought of as being for the purchase of residential property only, however, secured finance can also be obtained against land in a similar way, for a range of purposes.

The mortgage process to obtain a piece of land would be similar to that of a residential mortgage.

For example, the same checking process would take place such as; searching the applicant’s credit history, valuing the asset and undertaking the necessary legal searches.

However, mortgages for land are more specialised than for residential properties, therefore the lenders may differ, and additional criteria needs to be met.

One important criterion is the reason behind the land purchase and defining the ongoing use of the land. Once these are established, navigating the market to seek the appropriate finance will become clearer.

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Different Types of Land Mortgages

Within the UK, the land is categorised by its purpose, for example for agriculture, residential or undeveloped land.

The planning laws can change depending on the objectives of the government at the time, but the laws provide the framework of rules and guide how easy or difficult it is to change the category of land and seek planning permission.

The type of mortgage needed to fund the land purchase will depend on the current category of the land, the planned usage and whether planning permission has already been sought.

The following guide explains the different options of land mortgages.

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Self-Build Land Mortgage

A self-build mortgage is a hybrid concept, linked to both the value of the land and the proposed value of the completed build.

However, one big difference from a traditional residential mortgage, is that the finance is provided by the lender in stages, releasing cash throughout the build phases, for example, to pay for labour and materials during the project.

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Agricultural Land Mortgage

Mortgages on land are also provided as part of a business venture or as owning land as an investment.

With this type of mortgage, the application would often need to be supported by a plan of how the land would be used, such as a business plan.

The document would illustrate the plan to farm the land by the applicant themselves or by leasing the land to a contract farmer for example and detail the relevant income streams.

The category of land would therefore be of interest to the lender, to ensure that it matches the applicant’s plan.

Woodland Mortgage

There are opportunities throughout the UK where an individual can purchase a plot of woodland. Often the change of use or land category can rarely be altered from woodland, however, areas of woodland can be purchased as investments or used for various business models such as woodland sanctuaries.

A woodland mortgage is often deemed similar to an agricultural mortgage in the application processes and with any associated restrictions.

Commercial Development Mortgage

Entrepreneurs or large businesses may seek to purchase land with plans to make developments such as to build residential or commercial units upon it.

A formalised and documented business plan and strategy will be required before a commercial development mortgage application can be submitted.

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Mortgage on Land Criteria

As mentioned earlier, a land mortgage application would undertake the same checks as a traditional residential property mortgage application such as a credit check and valuation of the land however there are some differences.

The main factors that affect the ability to obtain a land mortgage and the terms offered are as follows:

The type of land or category of use.
The applicants plan to utilise or develop the land.
The applicant’s credit score and credit history.
The loan to value ratio – The required mortgage level versus the total value of the asset.
The deposit amount.
Any additional guarantees such as securing the loan against any other assets owned.

Land mortgages are often deemed riskier to lenders than traditional residential mortgages, therefore, to obtain a mortgage on land additional details of the transaction and future plans such as any linked income to be generated by the land are required.

Interest rates on land mortgages may be slightly higher than those offered on a property mortgage

Higher deposits are often commonplace with land mortgages. This is due to the level of risk lenders associate with this.

One reason that land is deemed higher risk to lenders is that typically the sale of land is a slower process, therefore if there were any repayment issues, it would take the lender longer to seize the asset and sell the land to recoup the funds.

Therefore, land mortgages are often only offered up to 70% of the value of the asset, requiring the applicant to cover the remaining 30%, either with a cash deposit or via securing additional funding against other assets owned with sufficient equity.

The current planning permission status on the land sought to purchase is also of high significance to lenders.

Should a developer wish to build upon land that does not have planning permission, lenders would consider this an additional risk as being granted permission can be a lengthy process and is not guaranteed. However, the land is commonly sold with the relevant permissions to increase the value of the asset to the current owner.

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Other Land Financing

The land is often sold through auction, which requires a deposit paid upon winning a lot. Therefore, due to the speed of such a land transaction, bridging loans are often used to provide short term finance promptly whilst the sale of other assets is in progress.

Mortgages on Land Summary

The land is often deemed a scarce resource and therefore investors often seek to purchase land to retain as an investment or develop to sell on later.

There are many options available to secure a mortgage for the purchase of land as long as the additional criteria can be met including a plan for future use and any associated business plans.

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