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loads of equity but how to release it

Hi don't know if anyone can help me but my daughter told me to give it a try, so here goes.


I have a property value estimate £269000 and have an outstanding mortgage of £42000. I am 54 so apparently can't do equity release until 55. I need to raise some cash to pay a debt. Have tried my mortgage lender but as I am self-employed without 2yrs accounts and 1 yr. projection they won't entertain me. Tried my bank, they've done credit check and said my score is "first class and impeccable", (their words) but still a problem with being self-employed. The remortgage would make my outgoings actually less due to current lower interest rates, and I am managing my finances ok, and he said that there was no risk to the bank as there was still more that 75% equity, but still computer say no. I don't know if my options have now run out?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    There isn't a risk to the bank more the purpose of the remortgage thats at issue.

    Look at other ways of cutting your outgoings in order to repay the debt.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    leppy wrote: »
    Hi don't know if anyone can help me but my daughter told me to give it a try, so here goes.


    I have a property value estimate £269000 and have an outstanding mortgage of £42000. I am 54 so apparently can't do equity release until 55. I need to raise some cash to pay a debt. Have tried my mortgage lender but as I am self-employed without 2yrs accounts and 1 yr. projection they won't entertain me. Tried my bank, they've done credit check and said my score is "first class and impeccable", (their words) but still a problem with being self-employed. The remortgage would make my outgoings actually less due to current lower interest rates, and I am managing my finances ok, and he said that there was no risk to the bank as there was still more that 75% equity, but still computer say no. I don't know if my options have now run out?

    What do you have in the way of accounts? What income do they show?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Only been self employed 9 months so no accounts yet.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    leppy wrote: »
    Only been self employed 9 months so no accounts yet.

    Possibilities with 1 years accounts subject to amount, or you could look at a second charge secured loan now but the rates would not be pretty.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thanks for the advice. Was looking at re-mortgage for £65000 total.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Why the £23k debt?
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