Second charge on my property could affect me borrowing more on my mortgage.

bargainbarmy

Hi I have a second charge against my house for a business loan I have with Natwest for a property business (ltd company) run as a sideline with my sister. We both have other day jobs and set up the business a few years ago with a £150K loan which is now £112K and paid off in 6 years. The loan is £1500 per month but is completely covered by the income into the business so we do not have to pay anything out of our own money at all.

The problem is I want to borrow a further £30K on my own mortgage to build an extension. The advisor from Nationwide asked me if I had any other charges against my property and I told her about this second charge. she said she would have to refer my application to the underwriters as she wasn't sure they would offer me the loan because of the second charge and the amount of the £1500 payment per month. I told her that the sideline business was self funding etc.
My LTV on my own house is about 25% (outstanding mortgage £127k with £90K paid off in 4 years time, property value £500K in current market) so as far as risk goes I'm pretty safe but it's just this second charge that is worrying me and I'm wondering if Nationwide come back and refuse me would I have the same problem with other lenders? Does the fact that the business is a ltd company help us at all? I'm thinking that they may take into account the £1500 per month loan cost as part of my personal outgoings. My job salary is £42K.

Any advice would be greatly appreciated.

opinions4u

For the loan to proceed, Nationwide will need a "letter of postponement" from Nat West.

This is basically Nat West saying "if you want to repossess the house, we'll let you have your mortgage and the new £30k before we get any money".

If they refuse, Nationwide won't lend even if you pass all the other underwriting checks.

bargainbarmy

Thanks opinions4u

SouthCoast

I like this thread:

https://forums.moneysavingexpert.com/discussion/1303863

FantomX

Busted! )

bargainbarmy

FantomX wrote: »

Busted! )

What is busted about this? I've been totally honest and it all ties in with my present thread.

Some MSE'rs really do need to get a life instead of trawling through everybody's previous posts to try and dig up some dirt. Must have pretty boring lives!!!

nottoolate

bargainbarmy wrote: »

Must have pretty boring lives!!!

Not as boring as this lot.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=157255

FantomX

nottoolate wrote: »

Not as boring as this lot.

Wonders will never cease...the coming together of TWO Buy To Lose speculators!

Congrats to you Sibley...happy for ya!

:rotfl:

stringsmk2

How about clearing some of your debt and not building the extension.
Or ask your sister seeing as she earns so much

jitsuka

FantomX wrote: »

Wonders will never cease...the coming together of TWO Buy To Lose speculators!

Congrats to you Sibley...happy for ya!

:rotfl:

Buy To Lose - love it.

This guy is over-stretched. I hope you fold.

Trollfever

Do I hear the sound of..............................

.............................margin calls.