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    • theerroll
    • By theerroll 8th Jan 18, 5:48 PM
    • 55Posts
    • 50Thanks
    Raising Capital against my Home
    • #1
    • 8th Jan 18, 5:48 PM
    Raising Capital against my Home 8th Jan 18 at 5:48 PM
    Good evening,

    I am looking for some advice regarding borrowing against my home which I own out right for the purpose of clearing debt and to use toward a business start-up.

    My home is worth between £200,000 to £220,000 and I am looking to borrow in the region of £70,000.
    I have existing debts of around £28,000 which I am paying off a minimum of £600 pm, although I usually pay between £700-£800 pm.

    The rest will be used toward a business start-up, but I will also remain in my current job.

    My basic annual salary stands at over £38,000 although in the previous tax year I made £63,000 and this year I am already over £53,000.

    According to Credit Expert my Score is 'fair', to be expected due to the large amount of credit I am currently using.

    Does anybody here think it would be plausible for me to raise the capital against my home and what would be the best possible way of doing so?

    FYI, The reason I intend to clear my debts as well as raise capital for the start-up is because I believe that across a 25year mortgage my repayments could be lower if not similar to my current commitments.

    Many Thanks in advance I look forward to reading your replies
Page 1
    • Thrugelmir
    • By Thrugelmir 8th Jan 18, 7:34 PM
    • 57,892 Posts
    • 51,263 Thanks
    • #2
    • 8th Jan 18, 7:34 PM
    • #2
    • 8th Jan 18, 7:34 PM
    You find it challenging to find a lender willing to advance you money for the purposes given. Days of a property being an ATM are over. Lenders have their own backsides to cover. You may well be able to obtain a secured loan from a finance house. However unlikely to be at a low residential mortgage rate.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • theerroll
    • By theerroll 8th Jan 18, 7:38 PM
    • 55 Posts
    • 50 Thanks
    • #3
    • 8th Jan 18, 7:38 PM
    • #3
    • 8th Jan 18, 7:38 PM
    Even if I intend to remain in my current employment?
    Also what does ATM mean?

    Thanks for the response
    • KB2018
    • By KB2018 8th Jan 18, 8:37 PM
    • 4 Posts
    • 0 Thanks
    • #4
    • 8th Jan 18, 8:37 PM
    • #4
    • 8th Jan 18, 8:37 PM
    I am in a very similar situation and would love to know your outcome!
    • dimbo61
    • By dimbo61 8th Jan 18, 9:30 PM
    • 9,774 Posts
    • 5,267 Thanks
    • #5
    • 8th Jan 18, 9:30 PM
    • #5
    • 8th Jan 18, 9:30 PM
    " ATM " cash machine !
    Taking money out of your property is now much more difficult.
    Lenders will want to know how you have built up debt.
    Business plan for the new business you want to set up
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