Looking ahead – property market stability in 2023?
mainstream lender. A detailed review of the proposed lenders’ lending criteria will be required, including stress tests and Interest Coverage Ratio (ICR) requirements. Where the planned exit is a sale, this means working with a reliable valuation partner and trusting their expertise on both the accuracy of their valuation as well as their advice on how long it will realistically take to achieve a sale. If there are concerns about the ability to achieve a sale within the required time frames, further safeguards may need to be implemented to ensure a successful exit. These can include asking that the property is marketed for sale by a specific date, or doing additional research into recent sales of similar properties in the local area. By taking steps like these, responsible lenders do as much as they can to ensure that they only offer loans that a borrower is highly likely to be able to exit successfully. This leaves the borrower with either an ongoing investment for their property portfolio or a profit from a property they were able to sell at a higher price than they purchased it for.
Although 2022 was a volatile year for the property finance market, there are positive signs ahead in 2023. While the Bank of England base rate is likely to rise further before it begins to fall, borrowers will find a more stable market, with products priced appropriately for the current circumstances from both mainstream and specialist lenders. This will increase the number of opportunities that property investors will be able to take advantage of, and lenders like KSEYE, who have an ethos of responsible lending, will be well-placed to facilitate such opportunities.. For further information please contact Brooke Andrew, Underwriting Team Leader at KSEYE. KSEYE is a specialist property finance provider offering bridging and hybrid buy-to-let finance, having completed 800+ loans totalling over £500m to date. Learn more at www.kseye.co.uk
Click to connect with Brooke on LinkedIn
brooke@kseye.co.uk
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