LANDLORDS being STUNG by banks!

Banks are calling in loans from one property when another is sold. If you are a landlord considering selling a property to release capital, you should first be clear how much money your bank will let you keep.

If you have an “all-obligations” mortgage and a number of properties and loans, you could be seriously affected. We’ve been called a few times in the past month by some of our existing clients regarding this and are urging other people in this situation to make contact and let us check your loan documentation in order for us to assist if we can. The last thing you want is to sell an asset to release some capital and find you are left out of pocket when you need it the most. 

Lenders will often require an “all obligations” mortgage where a client owns more than one property and has several loans. They will endeavour to cross-collateralise security over all properties. This is why it is important to spread your borrowings across a number of lenders and is something often overlooked by the majority of property investors.

If you are being affected by this, call us and let us provide you with some experienced advice and support.