Turned down for add'l borrowing on home mortgage because I have 5 BTL properties

mystic_trev

bargainbarmy wrote: »

I am not going to sell it for less than I paid when I can make £200 per month on the rental. I just presumed I wouldn't have had a problem borrowing against my house as my LTV is about 25%.

No it's NOT! Add on the second charge of £150,000 for your Limited Company BTL's http://forums.moneysavingexpert.com/showthread.html?p=16086781#post16086781 and I assume you're maxed out - that's why they won't lend you anymore. Hardly bleeding rocket science!

Sibley

want, rather than need, surely?

But all this doesn't matter anyway. After all, in September 2007 you were being extremely patronising and saying there was no possibility of a crash, and you knew everything there was to know:

I'm really sorry to have to say this to you CarolT but you are talking through your proverbial. I am asurveyor and know the trends of the market inside and out. there is not going to be a crash. Prices will level out , possibly drop 5% but that's it.

The crash you are looking for is NEVER going to happen. You had better realise this now as all that money you are paying in rent is going down the drain and you will never see anything for it.

My advice to you is to buy something, anything, possibly not even for you to live in but to rent out. You could even continue to live in your council house butat least you would have a foothold on the market.


No market has crashed by 50% ever. The words 'wake up' and 'coffee' are coming to mind !!!

Why are you gloating? Houses haven't crashed.

I think the OP should just sell a house. Stop reading negative message boards full of renters wishing.

Stick one house up for top money and hold out for it.

FantomX

Sibley wrote: »

Why are you gloating? Houses haven't crashed.

I think the OP should just sell a house. Stop reading negative message boards full of renters wishing.

Stick one house up for top money and hold out for it.

Done in true Daily Express fashion Sibbers...

stringsmk2

FantomX wrote: »

Done in true Daily Express fashion Sibbers...

Sounds like a good suggestion to me

orangina

Income is £38 + £8 = £46 and you say you are paying off the cc but what is the monthly loan payment? An existing loan of £120K and want to release another £40K taking the loan to £160 - i need to know your loan payment


Plus you have a £69K B2L, is this correct? what is the rental income?

Did you give personal guarentees for the ltd company lending? Although you say your sister could cover any shortfalls leagally it is a joint commitment and you have equal responsibility


Stamp Duty - as you are married there should be none payable - if you were not it would be the prevailing rate on the proportion being transferred ( 1% of £225 if you property is valued at £450 if it is owned joint tenants)

orangina

Ah! just seen the second charge link for £150,000 - so no, its highly unlikely you can borrow any more as you are already over stretched.

You are confusing the equity in your home with the affordability - it doesnt matter how much equity there is, if you cant afford to pay the loan you have no automatic right to releasing equity.

Your "need" for the money does seem to bring into question your reasons for "wanting" it...you chose to invest in property and left yourself no rainy day fund presuming you could take more money from your house which is not the case. You need to put the extension on hold and save up your new rainy day fund

maninthestreet

Why has this 2 year old thread been resurrected???

angrypirate

maninthestreet wrote: »

Why has this 2 year old thread been resurrected???

Because of this
https://forums.moneysavingexpert.com/discussion/2962544

Each thread doesnt contain the full information but put them together.....

bargainbarmy

orangina wrote: »

Ah! just seen the second charge link for £150,000 - so no, its highly unlikely you can borrow any more as you are already over stretched.

You are confusing the equity in your home with the affordability - it doesnt matter how much equity there is, if you cant afford to pay the loan you have no automatic right to releasing equity.

Your "need" for the money does seem to bring into question your reasons for "wanting" it...you chose to invest in property and left yourself no rainy day fund presuming you could take more money from your house which is not the case. You need to put the extension on hold and save up your new rainy day fund

Nationwide have now told me that the second charge will not caise a problem as long as I show them paerwork to prove £150K loan (now £112K) is self funding. Thanks for your advice.

orangina

Well Good luck with that then