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Mortgage, Remortgage or Virgin ONE/ IF mortgage?
sainthalo
Posts: 503 Forumite
Hi there I have a friend who has a problem that I think could be solved on here.
She has her own home worth about £300k which only has about £18k left on the old mortgage which is around 15 years old.
She needs to raise £200k to buy some commercial property, some of which is in bad repair but the price is right and she will profit by buying the property quickly before agents/developers get involved.
So I mentioned the Virgin One account and the IF mortgage account since they have interesting concepts which would allow her to easily withdraw money again in the future should a similar event occur. However i dont know if this is the best option.
Also I dont know if she should pay off the old mortgage or remortgage.
Does anyone have any tips at all? Thank you.
She has her own home worth about £300k which only has about £18k left on the old mortgage which is around 15 years old.
She needs to raise £200k to buy some commercial property, some of which is in bad repair but the price is right and she will profit by buying the property quickly before agents/developers get involved.
So I mentioned the Virgin One account and the IF mortgage account since they have interesting concepts which would allow her to easily withdraw money again in the future should a similar event occur. However i dont know if this is the best option.
Also I dont know if she should pay off the old mortgage or remortgage.
Does anyone have any tips at all? Thank you.
.
0
Comments
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There are far cheaper ways of borrowing money on a flexible basis than the One account or similar; most discounted mortgages offer some sort of flexible terms and the better ones will allow overpayment and drawdown at will.
To do what she would want, it would be best to borrow the £200k up front; overpay when she has the money to do so (e.g. when she sells the commercial property) and then she would be able to draw the overpayment back down if required in future.
This is all dependent on her having sufficient income to borrow £200k.0 -
Unfortunately she doesnt have sufficient income to borrow anywhere near that amount but does have lots of property worth well in excess of that amount.
She is hoping to not have to go down the commercial loan route.
Is there any other way?
Can she self certify that she can meet repayments?.0 -
An offset type mortgage isn't going to help her if she hasn't got the income to support the borrowing.
You can't self certify your ability to pay; you can self certify your income but lying to obtain a loan (e.g. by exaggerating your income) is a criminal offence.
If she is trying to undertake a commercial transaction, it may be most sensible for her to obtain a commercial loan.0
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