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articles > Finance is the Holy Grail
Articles > Finance is the Holy Grail

Article kindly supplied by Matthew Moody

Below is an excerpt from the soon-to-be-published “The Truth About Property Investing” Blueprint.

#9. Finance is the holy grail

Once upon a time, there was a bank. It was called Mortgage Express. It decided that it would be a great idea to get into the Buy To Let market in a big way and launched BTL Mortgages in the late nineties shortly after the Assured Shorthold Tenancy was introduced.
Investors flooded to the market place and many companies joined the band wagon.

From the mid-nineties through to the end of 2007, both houses prices saw a huge surge in value (typically £100,000 was added to the average value of a house!) and finance was easy to get hold of.

Indeed I remember in my initial training as an investor back in 2004, some of the advice I was given then which in hindsight was reckless, unethical and also downright dangerous. But such was the availability of credit in the boom periods of 2003-2007 that it seemed any tom, dick or harry could get it – and they did. Self-certified 100% mortgages were the order of the day and a lot of people took advantage of this and maxed out to the hilt.

I think the issue it served to prove was that everybody was awash in a sea of good feeling and euphoria that this bubble would just keep growing and growing. Everywhere you looked no money down deals were been advertised, banks were offering customers crazy deals (anyone remember the 3.99% fixed rate MX were doing when interest rates were around 5.5%?) and everybody was an expert. Or so they thought.

Come the crash of 2008 the whole banking sector went down the swanny in a matter of months. I still remember a rainy day in April when I got the news that MX had pulled its bridge and remortgage product. I remember looking at my deal roster at the time and wondering what impact this was going to have upon my business. Two months later it was more than apparent at £1.15 million pounds worth of deals went down the swanny; particularly gutting as this would have added another £2.5K pcm profit into our business.

Still, this served a good purpose in many ways and here is a list of some of them for you to consider:

1) The current credit crunch (yes we are still in one guys) means that finance is more difficult to get unless you can prove it. In a way this is good because it means that on average, you need to earn £25,000 per year (not an unachievable goal for most people), prove that the rent stacks by 125% of the mortgage (ie if the mortgage is £400, then the rent needs to be £500) and you will need to find a deposit of between 25-40% plus buying costs of say 2-3% to cover all professional fees.

2) It means that investors need to take a much longer harder look at deals. Back in the mid-2000’s, people were picking up any deal as long as they could get finance on it (I put myself in this space for two units only, the rest of mine all stack) and most of the investors I spoke to were interested in only one thing – cashback. Thankfully, this doesn’t really exist anymore so this isn’t what the market is about and never should have been. You need to ensure that your deal works, it stacks and it makes money every month.

3) It means that banks are looking for sound individuals who have a plan, who have a business and are in this property game for the long-term, not the short-term in-and-out mentality. Sure, trading is great and who doesn’t like the extra cash that can be made from that game but it doesn’t allow you to expand your asset base and that’s what makes the difference between the balance sheets when the fat lady sings. Its not on how much cash has flowed through your fingers but rather what you’ve done with the cash to make it work for you…

So, how do you go down the route of acquiring that most holy of grails in today’s property investing market: the finance?

Firstly you need to understand and take some time out to really understand this sentence:

You do not have a right to finance, you need to prove yourself and earn it.

Please make sure that you read it and read it again as it’s easy to read it and not take it in but once you understand the meaning of this, then you are on your way to understanding how to use finance to purchase properties.

OK. So, there are really three types of finance available to you right now that you can take advantage of and here they are found within the main report which is due to be released.

To sign-up for the report, please go to


Matthew Moody HMO Profits Intensive

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Millennia Property is one such community where professional investors are invited to join with us and help us achieve your goals. Our vision is to create 100 property millionaires by 2015 through our financial and educational services. Register today to find out how we can help you make it in today’s property market.


Here is a great resource to help you learn about HMO's iIf you are a Beginner – Intermediate (you have some idea about HMO’s, are slightly jealous and want to dip your toes in):

You need to check out my 90-Day Fast Start Action Guide and 30-page report for less than the cost of a meal out

Once you’ve got the Fast Start Guide, you can check out the HMO Business Builder course for just £77.00 (but you need to get the HMO Survival Guide first).

Matthew Moody


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Rachel Clarke and Matthew Moody

Rachel Clarke & Matthew Moody at Simon Zutshi's PIN Christmas Dinner 2010

About The Author:

Matthew Moody is one of the UK’s top HMO experts and the founder of a website dedicated to providing property investors with free information about investing in high quality professional HMO’s.
He runs regular workshops and speaks at events around the country.
He also runs a HMO management agency with offices in Northampton, Leeds, Lincoln, Hemel Hempstead and Colchester together with a property sourcing and education business, and a furniture package supplier.
For more details, please contact Matthew on 01933 460270/01604 521301 or



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