re mortgage my house to buy a business property

redrowebb

i own my property which must be worth £150,000 to £200,00 and im unemployed and want to buy an old school which is for sale at £79,500 so i cant start my own business up.
is there a way of taking a mortgage out on my house to buy the property so i can start my own business,my new business will take more than the repayments.
any help would be greatfull,im good at what i do and work long hours and 7 days a week to get my business running
i know you say no income no mortgage,but my ex girlfriend did the same 2 years ago,took a mortgage out on her house and bought a pub,she sells beer and pays the mortgage on the pub and house,so cant i do the same

GMS

With no source of income you would be unable to get a mortgage.

motch

Sell the house, buy the school, do it up, start the business. Thats one option.

Thrugelmir

Why do you need to buy an old school to start a business?

redrowebb

my house is still being done up(when my house is finished it would fetch over £250,000 but hard work to finish on the dole and have applied for loads of jobs,i know that i could earn well over £1500 per month if i got up and running) would take too long to sell as the school is on the market now,if i can borrow the money to buy the school then i would have an income to finish my house and pay the mortgage evry month and in a few years time would sell the house and concentrate on the business side

redrowebb

i need a school as it has the old look as i sell antiques on the internet and to the trade and its only a minute off the main road A40,being a school it has a play ground that i could use to display furniture to the public and has off road parking for my customers,i could also turn part into a tea room as its on the main west wales coast road and in the summer it would do well

jamesperrett

If you are already selling antiques then maybe you aren't exactly unemployed. It might be a good time to get your accounts in order and talk to someone about finance. When I was in a similar situation I had a chat to my accountant who had a chat to a friendly bank manager which resulted in a combined mortgage/business loan deal.

James.

motch

I like the idea. i can see where you are coming from with the old school look / outside space.

How much is the house actually worth? the figures 150-200k as is and 250k done up are quite far apart.

redrowebb

i would say my house at the moment is worth £150,000-£200,000 and i would say it needs another £25,000 to finish it to a high standard then i think it would fly out at £250,000 plus,but as i do the work myself its a bit slow so would get some builders in to finish when the money comes in.
my ex girlfriend just did a business plan and remortaged her house to the max and got £110,000 to buy a pub,i own my place and think that someone would do the same and lend me the money and they would have my house as a garantee and i pay the mortgage as my ex does every month and if it went wrong there would be 2 properties to sell which would not happen as im sure my parents would help

Senior_Paper_Monitor

The original question was could you remortgage to finance the business.

The subsequent replies correctly state you can't in the circumstances you describe.

You would possibly (even probably) be able to raise a business loan by providing an 'all assets' or 'specific charge' (on the property) as you subsequently describe.

On an aside - consider any such action very careful before 'putting your home at risk'.

However, you need to be aware than any lender (mortgage, secured loan or even unsecured loan) will look at the details of your finances and the statements " im unemployed " (sic) and " as i sell antiques on the internet " or them simply showing up as benefits and/or unexplained income on your bank statements will inevitably trigger an alarm.

With the CML, FSA and HMRC moving closer and closer in policy and technical connectivity literally by the day and the pressure on brokers/lenders et al to identify and report tax evasion (money laundering) you may wish to consider your financial strategy carefully.

I am not moralising in any way - just giving you the facts as they are in the real world of money lending !