Lots of businesses have already started implementing contingency plans for businesses, some of which include laying off staff and making job roles redundant. But is this the right move?

No deal Brexit could impact supply chains for businesses and consumer spending. This means that businesses could have to put expansion plans on hold and trading with other companies in the EU could be challenging.

Some big businesses like Philips, Aviva and Barclays have already taken drastic measures in preparation for the no-deal Brexit. Some measures include moving production to a cheaper place or downscaling business activities.

But what can companies do to prepare for a potential no-deal Brexit? 

Companies need to start thinking now about their operations in case there is a no-deal Brexit. The best course of action is to talk to a solicitor about what the implications of the no-deal Brexit.

Look at where you are currently selling, where your suppliers are and where you want the business to be in the future.

Take some time to look at what agreements are in place for non-EU marketplace deals and then think about how you can apply these to your suppliers and customers in EU countries. Consider how border delays and how this might cause delays to your deliveries.

If you are concerned about how your business will cope with a No Deal Brexit, you can talk to our team about getting funding to cover the slow period that might occur in the lead-up to Brexit.

Talk to our team: 0203 900 0970
Email: enquiries@fundinghut.betraweb.com

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Though the building work will cost a lot of money, time and effort there are some long-term benefits to taking on a project of this size. For one, there is a great opportunity to make profit if the flats are sold. Or if you prefer, renting out each property which would give you an increased income as rent will be coming from each flat.

Owning flats has much lower maintenance than houses if bought freehold in a block. In addition, there is no grounds to maintain or building work. So all you will need to worry about is maintaining the boiler, smoke alarms and fixing anything that you have provided.

Where do you start?

The first thing you need to do is find a building that is in the right area with the right amenities. If you are planning on charging higher rent then you will need to ensure that the residents are able to afford the rate. If there are colleges or universities in the area then you could rent to students, though the rent would have to be lower. There is an opportunity here to rent rooms within the flats to the students. This will increase your income stream even more.

Another option is to choose somewhere that is near a big business and rent to people who commute to the business. If there are a lack of flats in this area, then this could solve an issue for the commuters.

Once you have found the property you will need to seek out planning permission. There will be extra regulations if the building is listed.

What about the funding?

Funding Hut have been able to help a lot of landlords get their property portfolio started by securing them a low interest loan that suits their needs. Talk to one of our team today and we will find you a loan that works for you.

What do you need to once the tenants are in?

There are regulations that you need to follow in order to keep your properties legal. For example each flat must have a smoke alarm installed and a carbon monoxide detector.

When writing the tenancy, you need to make it clear how the bills will be paid. If you have students as tenants then you will need to ensure that the council knows that they will not be paying council tax. You might have consider installing separate electricity and gas meters or use sub meters.

Whatever you decide for your project, we can assist with securing you the best possible loan. Talk to our team today:

Advantages of running a HMO (House of Multiple Occupancy) property

Landlords are discovering the benefits of turning their property into a multi-occupancy house. Each bedroom in the property is rented out to a single occupant and each tenant pays rent and their share of the bills. This way of living is particularly popular among students.

It is also used by people who work far from home, they stay in the room Monday to Friday then go home at the weekends.

There are things to consider before you turn your property into a HMO, for example if there are only students in the house then they will not pay

council tax. However if there is someone in the house that is not a student then some council tax will need to be paid. If you are unsure then you should contact the council.

There are regulations that the house will need to abide by the new regulations that came in on 1st October 2018. These regulations state that landlords who own HMO’s must apply for a licence (in certain cases).

The rooms that are being rented out also have to be a certain size and there are limits to how many people can live in each room.

It is also the responsibility of the landlord to install smoke alarms and carbon monoxide detectors.

There are many Lenders who can offer HMO mortgages to Limited companies and landlords. Funding Hut is able to help find you the perfect loan for buying the house and transforming it. Whatever your situation, talk to our friendly team about your property and we will find you a loan that suits your needs

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It is mainly residential properties that are chosen but it can also be commercial properties. For example an office building being transformed into flats. This option involves more work but can be a great project if the property is in the right location.

Some properties will only need a bit of work before selling on but some properties will need a lot of work and it can be hard to tell until you start work what work actually needs doing. This is how people end up in a financial mess so be careful before buying a property. Hence, it is important to have accurate business plan with financial costings and numbers.

So, if you have just found the property that you want to flip, then you will be thinking about mortgages and loans. But where do you start? You will need a short term loan to cover the cost of buying the property. This is where Funding Hut can help, we have a lot of experience finding loans to cover this kind of property buying.

Another option when looking at properties to flip is converting a commercial property into a residential property, for example, an office block into flats. For this you will also need a short term loan to cover the cost of buying the building and the renovations. If this is something you are considering then you will need to gather quotes for the work that needs doing (gas, electrics etc).

So whether you are flipping a property as a one-off or starting a property flipping business, Funding Hut can help you find the right loan for you. We can find the loan with the best rates on the market.

Talk to our team today:

Tel: 0203 900 0970 Email: enquiries@fundinghut.co.uk

The post Flipping a property for profit appeared first on Funding Hut.

What do lenders want to see before lending?

• Will it give you a return on investment?

• Is there a potential to get capital gain?

• What is the rental market like in your chosen location?

• Location of property. Are there any businesses, schools and universities near the location which will increase rental demand?

• What are the demographic like in your chosen location?

Once you have decided on the property then you need to think about funding. Even if you have a few Buy-To-Let properties, lenders will want to see evidence that the property is a suitable security for their lending.

• Is the property with standard construction?

• How much is the rental expected?

• Is the property habitable?

• Can the customer make payment in case of rental voids?

Why use a loan broker like Funding Hut?

It can take a lot of time to find and secure a good deal, which when running a Buy-To-Let portfolio and maybe working as well doesn’t leave a lot of time to talk to lenders and do the research. Often people in this position end up choosing the wrong deal because they are in a rush and don’t want to miss out on their chosen property.

This is where Funding Hut comes in, our team have a lot of experience in this area. Each day they speak with landlords who are looking to expand their Buy-To-Let portfolios. They talk to the lenders and find the best deal for you, they can even have the money in your bank within a few days. They will ensure that you get the right deal for you. They take your situation into consideration when talking to the lenders and try to find you the lowest rate on the market.

Expanding your Buy-To-Let portfolio can be a great investment for the future. Just make sure that you have chosen a property in the right area that meets all your requirements and then talk to the Funding Hut team who will ensure that you get the best deal. Click here to talk to our tea

The post Things to consider while expanding your Buy-To-Let portfolio appeared first on Funding Hut.

Other benefits to doing Buy-To-Let:  

  1 An investment in the future and a chance to earn a monthly income. 

2 You can use your Buy-To-Let as a pension 

3 You can maximise return by capital gain and rent received 

4 Spread your investment across a portfolio of properties  

 The key differences between Buy-To Let and a normal property mortgage

When you are looking for a home you will be talking to banks about a mortgage that will be paid of monthly. You will have saved up a deposit (usually 10% of the price).  

Whereas a Buy-To-Let mortgage is a secured loan or mortgage for investment. These types of mortgage involves specific lending criteria and you can expect to pay higher interest rates.   

Banks will also use a different calculation to work out how much can be borrowed, they may also take into consideration the potential rental income. Typically lenders will expect the rental income to be 25% higher than the mortgage repayments so take this into consideration before applying.  

  Things to consider when doing buy-to-let

 Landlord insurance is a legal requirement to own a buy-to-let property, if you are mortgaging the property and is also for your own security. You should definitely consider landlord insurance. Even if you intend to rent the property to someone you know, landlord insurance will protect you and your tenants. Landlord insurance will pay if:  

• Your tenants don’t pay their rent (depending upon your policy) 
• The property is damaged 
• Claims against you if someone in the property is injured  

The importance of a proper tenancy agreement

Having a proper tenancy in place will protect all the parties involved. Even if you are renting to a friend or family member, a proper tenancy agreement will ensure that there are no awkward situations. Not having a tenancy will drastically impact any court case you might have against them.  

Another important things to note while buying buy to let property which includes:  

• Affordability is based on rental received and not on applicant’s individual income
• Can be purchased with no income
• Foreign nationals can even buy property in the UK
• Help generate monthly income
• Option to purchase under individual name or under Limited company

 How can you ensure you get the right mortgage?

It can be a worrying time when looking for mortgages, you might be worrying about taking the wrong loan or paying to much interest. That is why a lot of people go through a broker, so that they can talk through the options with someone who has your best interests at heart. Funding Hut have contacts at a lot at mortgage providers so you can be sure you will get the perfect mortgage for you.  

• Funding Hut deal in whole mortgage market
• Can help provide lowest rate and best suitable product for the client
• Deal with complex cases on a regular basis 
• We help our customers from start to end 
• The Funding Hut team have wealth of experience in this industry 

How will Brexit effect the housing market?  

A lot of people are concerned about whether Brexit will have an impact on the housing market.  

There is a lot of uncertainty around Brexit at the moment and what impact it is going to have on the housing market. There is a lot of people asking whether they should buy now or wait until the UK has left the EU and see what the market looks like. The future isn’t mapped out, if you are in the position to buy now then it is best to start proceedings now. The market seems to be stable at the moment even though house prices are creeping up. 

So in conclusion, if you are looking for a Buy-To-Let property then make sure you investigate landlord insurance, getting a proper tenancy agreement in place and talk to the Funding Hut team about getting the best deal on the mortgage market.  

The post Benefits of investing in a Buy-To-Let property appeared first on Funding Hut.

The Funding Hut team took all the details from the company and started looking for the perfect funding for them. Within 24 hours of being approached by the IT company, the team had found and secured a loan package for them.

The money was in the bank within a few days and the contract was secured. This new contract took the business to the next level.

We help a lot of companies get funding they need to take their business back to the next level. If you are looking to expand your business then talk to the Funding Hut team who will secure your funding with a lender that will fit your needs.

If you are looking for funding for your company then talk to our friendly team.

The post Funding Hut secures funding to help IT company expand appeared first on Funding Hut.

Recently, there’s been a massive increase in amount of UK landlords purchasing buy-to-let properties in a limited company rather than their personal name. This is mostly due to changes implemented by the government in the 2017 Budget which includes a reduction in the amount of tax relief available for interest on buy-to-let mortgages.

One of the main reasons for the recent growth in limited company buy-to-let is the difference in tax. Rather than paying income tax, if you were to purchase a buy-to-let property as a limited company, you would pay corporation tax which currently sits at 19% and is going to reduce over the next few years.

Let’s look at the key benefits in detail:

Lending opportunities

Lending costs will vary depending on whether you’re buying in a limited company or as an individual. While mortgages for a limited company can be higher, lenders tend to relax the buy-to-let stress testing when considering rental calculations.

It’s better for traders

If you buy a property to make value-adding improvements and sell on for a profit, you’re better off purchasing as a limited company. By trading properties as a limited company you will pay corporation tax on your profits as opposed to purchasing as an individual where your gains would be taxed as income. The rate of corporation tax tends to be around half of the higher rate of income tax.

Taxes

Additional rate income taxpaying landlords could find themselves worse off. If you are a basic rate taxpaying landlord; you might find that because the tax is calculated differently, the taxable income calculation could tip you into the next tax bracket.

Upcoming tax changes

From 6 April 2020, if you own a residential property, you will no longer be able to deduct the finance costs from your property income when calculating your taxable profit. This means that you will only get a basic rate reduction on the finance costs from your income tax liability.

The table below outlines an example of a higher rate (40%) taxpayer who personally owns a property valued at £300,000 with a buy to let mortgage of £225,000 (75% LTV), receiving rent of £1,250 pcm. The first column displays his net profit calculation if he privately owns the property. The second column displays his calculation if he owned the property in a limited company:

As you can see, by investing through a limited company, you can save a lot of tax. At Funding Hut, we can find you the best rates for loans if you’re planning on purchasing property through a limited company. Give us a call today on 0203 900 0970 or email enquiries@fundinghut.co.uk

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Most financial loans fall under two categories: secured loan or unsecured loans. The main difference between the two is the presence (or absence) of collateral. This is something to be taken as security against non-repayment. In this article we explain the difference in the two and which option might be best for you.

What is a secured loan

A secured loan is a loan where the borrower pledges an asset (in most cases property) as security/collateral for the loan. This means that, if the borrower were to default on his or her payments, the lender could take possession of the asset used as collateral and may sell it to regain some or all the amount originally loaned to the borrower.

Secure loans are normally available for much larger amounts than personal loans and are often the better option for those whose credit rating isn’t great. Repayment periods for secured loans can also be longer, with easy management of repayment plans.

What is an unsecured loan

As you may have been able to tell, unsecured loans are loans where lenders allow you to borrow money without having to offer up any assets, such as property, as collateral. You will need to prove a good credit score and sound financial history. The loan period is usually shorter than a secured loan and the amount of interest charged is dependent on the borrowing period.

Secured and unsecured loans are widely available and offer the flexibility to choose how long you want to repay them. People tend to make repayments over three and five years, meaning you will often pay a higher interest rate to borrow over a shorter term.

Here at Funding Hut, we have a track record of providing customers with unsecured funding within one day! If you’re looking for funding, give us a call today on 0203 900 0970 or email enquiries@fundinghut.co.uk

The post What is the difference between secured and unsecured loans? appeared first on Funding Hut.

Serviced apartments are properties (usually 1 to 3 bedrooms) with fully-equipped utilities and hotel-like facilities such as room service, housekeeping, etc. The UK has started to regard serviced apartments as an ideal alternative to buy to let investments and thus the demand is high, expanding in every corner of the UK.

As serviced apartments have recently started to gain traction, property moguls around the country are already seeing the benefits. In fact, according to the Approved Property Group, serviced apartments can potentially generate 400% more revenue than a buy-to-let.

Location

A key point to consider when looking to purchase a serviced apartment is the location. The apartment is likely to be let to either a business or leisure traveler. Look out for properties close to good transport links and things to do around the city. Travelers are now looking for more budget-friendly options as hotel room rates are at an all-time high.

Time of stay

Unlike buy to let properties, serviced apartments can be let for short-term or extended stays. Businesses are now looking to reduce the cost of overseas stays as much as possible, so a long-term stay in a more reasonably priced location would be ideal.

Benefits

Obviously, the main benefit of investing in serviced accommodation is the return on interest. As stated above, you could potentially generate 400% more revenue than a buy-to-let. Other benefits include a better tenant profile, an easier exit strategy and the guarantee that your property will be kept in a good condition.

We’re here to help

Investing in the right property can be a daunting task. If you need any expert advice or funding to help you, give us a call today on 0203 900 0970 or email enquiries@fundinghut.co.uk

The post How you can maximise a serviced accommodation investment appeared first on Funding Hut.

With the ever-increasing digital landscape, small businesses are finding it a lot easier to compete with larger, more established organisations than ever before. The impact of recent advancements in IT/Technology has enabled small start-ups to be more swift and agile, even responding to change faster. This, plus the positive impact on collaboration and financial savings has meant productivity is at an all-time high for smaller companies.

Collaboration

The impact that technology has had on communication and workplace collaboration has revolutionised many global corporations. Colleagues are now able to communicate with each other much more quickly and effectively than ever before. Also, working from home or ‘on-the-go’ is much more commonplace.

Smaller businesses are also reaping the benefits of this. Rather than learning from the ground up, a more collaborative work ethic is already established, thereby reducing the need for the workforce adapting to change.

Financial savings

One of the most important operational aspects of any business (big or small) is keeping costs low while delivering a healthy revenue. Luckily, the technology boom has increased productivity and reduced the financial costs for organisations who have adapted appropriately.

Because of technology, fewer workers are needed which has reduced payroll costs. Travel costs are also reduced due to advancements in communication.

However, technology can’t provide you with everything you need to get your business off the ground. At Funding hut, we can help you get off your feet by finding you the best loan, at the best rates.

We’re here to help

Whichever type of loan you are looking for, we’re here to help. Fundinghut also offers free consultation and advice on anything funding related.

Give us a call today on  0203 900 0970 or email enquiries@fundinghut.co.uk

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