Mortgage free - need cash

hazeybe

Hi all, my partner and I own 2 properties between us, mortgage free, he also owns another property that a family member stays in so we can't really count that. The 2 properties are let out. Is there any way we could borrrow in this situation say approx 40% (£100,000) of the value of the 2 properties that are let out? The rental income is approx £13,000 per year. We are thinking that no way would this be possible but thought we better make sure.
Thanks

getmore4less

Should not be too much of a problem getting loans against the houses.

They might ask question like what is the money for, buying another house would probably be acceptable.

£13k rental income on £250k value is 5.2% gross yield.

£100k loans would be covered 150% by rent with interest rates up to around 8.5%

sabby12

Hi there, I wonder if anybody could help me with this. I own my property outright and its worth about £145k.

I intend to pursue a full-time study with NO income and want to get approx £40k out of the property to cover me for repayments and living expenses for the 3 years.

Is there any hope of me getting a mortgage in this climate with no income?

thanks,

herbiesjp

hazeybe wrote: »

Hi all, my partner and I own 2 properties between us, mortgage free, he also owns another property that a family member stays in so we can't really count that. The 2 properties are let out. Is there any way we could borrrow in this situation say approx 40% (£100,000) of the value of the 2 properties that are let out? The rental income is approx £13,000 per year. We are thinking that no way would this be possible but thought we better make sure.
Thanks

Looks relatively straight forward

As long as you have your own minimum personal income, and the properties type are ok, plenty lenders will be able to help

hazeybe

herbiesjp wrote: »

Looks relatively straight forward

As long as you have your own minimum personal income, and the properties type are ok, plenty lenders will be able to help

That is our problem as I am not working at the moment and my partner has just left his job and we are living of savings at the moment. Not the best place to be! I take it with no job it would mean no loan of any kind?

herbiesjp

Well as the properties are mortgage free, and provide an income via being let out, that would be classed as your income.

Some lenders do not want a minimum income either.

Your best bet would be to talk to a whole of market adviser to see if what you are looking to do is possible, and wise, in the current climate

Conrad

TMW and Northern Rock tend not to require minimum incomes.