Article written by John Grant Angeletta.  BMV Investment Deals 

Since the economic crash of 2006, most of Europe has been in financial turmoil with some of our continental cousins still bumping along the bottom of the barrel.

Portugal, Spain, Italy, Ireland and Greece have enormous money mountains to climb with some governments rightly accused of poorly regulating property development that contributed significantly to their economic havoc. Our hearts go out to the people!

You may have noticed the U.S. and Britain did not escape the economic tsunami but we have not been effected to the same extent as mainland Europe. Recent pundit reports are encouraging about an earlier economic recovery ahead of Europe.

For instance, we recently reported that the U.S. is seeing strong recovery within the building supplies trade and that usually indicates home sales will be hot on its heels. In short, people dont buy bricks, tiles, boilers, kitchens and bathrooms unless they are building and/or fitting-out property, and what happens over the pond tends to follow-on here.

So, can we expect this year to show strong signs of recovery, too?

UK Government has been poking our property industry with a stick with a half-hearted effort to bump-start property sales. Stamp Duty holiday, first-time buyer and developer incentives turned out to be damp squibs but at least an attempt was made. 

Until UK lenders stop sending out mixed signals not much will change but perhaps there is hope.

What traditional lenders are not doing, opens up opportunity for other financing houses to fill the gap and it is they who are gaining ground impressively.

Second charge lenders, or bridging finance companies, tend to have there own funds and traditionally offered loans on property already mortgaged. Now bridgers offer first-charge loans competing directly with banks and building societies. Though they charge a tad more interest rate, applications tend to be processed quicker with loans following suit.


Though we saw good supply and demand for discount property during 2012, it was the banks and building societies that seemed to be the seat of the problem.

For some reason, best known to themselves, they have been compromising the BTL marketplace for months by viewing anyone applying for a BTL mortgage and using a professional property finder, other than an estate agent, as someone to be avoided. As if a professional, other than an estate agent, is unwholesome or unworthy.

 Now call me old fashioned, but why is it OK for a high street estate agency to take a fee when offering neighbourhood value property for sale but not OK for a reputable discount agency to offer property for a fee?

Could it be that the Council of Mortgage Lenders (CML) together with the National Association of Estate Agents (NAEA) have agreed a back-office deal to put out of business companies specializing in finding and offering discount property.

Could it be that specialist discount property agents are blanket persona non grata because lenders havent a clue how to monitor and control compliance of their own mortgage applications? Poor practice has become abundantly clear as mortgage fraud figures continue to rise?

This writer wonders how banks and building societies treat other professionals including Solicitors and Accountants used by investor/landlords too busy to search out deals? 

Article written by John Grant Angeletta, BMV Investment Deals