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  • FIRST POST
    • Ezra6
    • By Ezra6 9th Jul 17, 6:19 PM
    • 3Posts
    • 0Thanks
    Ezra6
    Can/Should I re-mortgage
    • #1
    • 9th Jul 17, 6:19 PM
    Can/Should I re-mortgage 9th Jul 17 at 6:19 PM
    Hi,

    I have recently come to the end of my career as a professional sportsmen.
    My next chapter I am hoping is going to be involved in property development.
    I have the majority of my savings tied up in my property. This is worth approx £1million with a mortgage outstanding of round £180k.
    I need a large sum of liquid cash to be able to pursue developing, is my only option selling the house and using to the funds from the sale?
    I have no other income hence why I am unsure of the possibilities of being able to re-mortgage. Would banks and lenders turn me away straight away as I have no income?
    It would be great if we could stay in this home but we are also in acceptance that selling is more than likely at this point.
    Any help appreciated.
    Thanks
Page 1
    • glosoli
    • By glosoli 9th Jul 17, 7:08 PM
    • 673 Posts
    • 386 Thanks
    glosoli
    • #2
    • 9th Jul 17, 7:08 PM
    • #2
    • 9th Jul 17, 7:08 PM
    They need to evidence that you can sustain the repayments, so yes you need an income to release monies from the property.
    • Ezra6
    • By Ezra6 13th Jul 17, 12:25 AM
    • 3 Posts
    • 0 Thanks
    Ezra6
    • #3
    • 13th Jul 17, 12:25 AM
    • #3
    • 13th Jul 17, 12:25 AM
    Thanks for the reply.
    Even if I wanted to take say 300k out from the house, would the remaining 500k in the house not be enough security for the lender. With say 200k being used to buy another property to renovate, could they also not use this as security? Also this leaves 100k minus any refurb costs to make payments before selling and hopefully making the profit.
    • AnotherJoe
    • By AnotherJoe 13th Jul 17, 7:48 AM
    • 7,563 Posts
    • 8,166 Thanks
    AnotherJoe
    • #4
    • 13th Jul 17, 7:48 AM
    • #4
    • 13th Jul 17, 7:48 AM
    I think the issue is, you arent really asking for a mortgage in the conventional sense, you are looking for a business development loan. This is not the business that most (all?) mortgage companies are in, they lend to people who have an ongoing income either for residential or BTL purposes. You dont, you are starting a business up and want a loan for that. Even if you had an income, many lenders still wouldn't loan on that basis.

    You could perhaps get a loan via P2P but that would be at maybe 15% - 20%. What would that do to your profit? If that is acceptable it might be a route to go down, and possibly it might be similar costs to selling your current house and renting another for three or four years and then buying back. Presumably even if you turned say £50k profit on your first deal you'd need to do it all again as £50k wouldn't be enough for the next property?
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