Can we re-mortgage?

Dave1967_2

In November 2008 we started a small business venture. Due to the credit crunch our bank withdrew it's offer of a business loan and we were left with no option but to use money from our credit cards to get it started . The business is now doing okay and growing, although profits are still only small.

Our 2 year fixed rate mortgage, on our house, runs out in November 2010 and I was wondering what our chances of re-mortgaging our 58K mortgage and adding 20K, to it to repay these credit card depts, would be (considering we only have an very small income, between us, to show)?

Regards
Dave

tattycath

Just bumping this thread for you. I don't know the answer i'm afraid-have you got much equity in the house? is your self employment your only means of income? (I'm asking this because I thought you had to have 2 - 3 years books/accounts in order to remortgage???0 No doubt someone much more knowledgeable will be along shortly (hopefully!!)

Thrugelmir

Some more information would be useful, in order to receive advice.

House Value

Indication of Annual Income and source of.

While remortgaging may not be an option. There may be alternative ways of funding the business venture.

Dave1967_2

A conservative guess at the value of our house would be £150K

I'm self employed and my tax returns show a profit of £18K for 2008, £13.5K for 2009 and a very rough estimate of around £12K for this year

I employ my wife, part time and she earns around £5K each year

Thanks
Dave

Dave1967_2

....Anyone?

VIGILANT22

You can only but try..see a whole of market adviser..however you should be prepared.. the underwriters wont like the declining profit..

opinions4u

Dave1967 wrote: »

In November 2008 we started a small business venture. Due to the credit crunch our bank withdrew it's offer of a business loan and we were left with no option but to use money from our credit cards to get it started .

There was the option of not starting the business at all.

The business is now doing okay and growing.

I am struggling to square that statement with your later statement of "my tax returns show a profit of £18K for 2008, £13.5K for 2009 and a very rough estimate of around £12K for this year". Your business has declining profitability. What do the accounts show as net profit?

Our 2 year fixed rate mortgage, on our house, runs out in November 2010 and I was wondering what our chances of re-mortgaging our 58K mortgage and adding 20K, to it to repay these credit card depts, would be (considering we only have an very small income, between us, to show)?

Pretty slim.

Dave1967_2

opinions4u wrote: »

There was the option of not starting the business at all..

We started negotiations for the lease in March 2008 (pre credit crunch) Unfortunately there were so many problems with the lease it didn't get agreed until November 2008, just as the credit crunch hit and the bank declined it's previous offer of the loan!

opinions4u wrote: »

I am struggling to square that statement with your later statement of "my tax returns show a profit of £18K for 2008, £13.5K for 2009 and a very rough estimate of around £12K for this year". Your business has declining profitability. What do the accounts show as net profit?

2009 is going to show a small profit because it was in the early part of this tax year that the majority of expenditure on the business happened. At the moment, on a weekly basis, we are doing very well, although I know this isn't going to help in the eye's of the mortgage providers.

Please could you go into more detail as to why my chances of remortgaging are described as 'Pretty Slim'

Conrad

Dave

your Accountant can legally adjuest your accounts to show a higher profit by removing certain expenses. Also some lenders can add certain expenses back into your profit to try and lend you more.

It's impossible to say without full detials but there is a chance.

Thrugelmir

Have you considered a personal loan, which would at least reduce your interest payable?

Are you offsetting your credit card interest against your business income as a tax deductible expense?