Real estate & mortgages

Real estate is a tried and trusted way of building your balance sheet, but it is an illiquid investment.

Property often incurs high running costs, making it a liability on your balance sheet until you sell it, which is not really an option if you need a roof over your head. Very often a large proportion of net wealth is tied up in property, leaving you asset rich but income poor.

This is particularly acute if you have a “buy to let” property portfolio. In a rising market, this makes sense, but it does mean that your overall balance sheet risk becomes aligned with the property market and concurrent illiquidity risk.

BMP Wealth managers have a range of mortgage providers that provide cost effective lending to free up unused equity or help provide funding for projects as diverse as property development, business start-ups and Inheritance tax mitigation schemes. Reviewing and rearranging your property backed lending can often free up additional income to use more effectively in building and preserving your balance sheet.