Remortgaging for 15k equity

srobbo74

Hi all

I purchased a house for 100k with a 90%mortgage only 16months ago, i have had interest in the house as it is in a popular first time buyer road for 115k but i do not want to sell.

My question is can I remortgage this propery and use the equity to continue to develop my business or is this not possible at the minute.

Any help would be massively appreciated

_Andy_

Not at that LTV no.

Thrugelmir

srobbo74 wrote: »

My question is can I remortgage this propery and use the equity to continue to develop my business

A property business by any chance?

srobbo74

no actually, I run my own sports coaching firm

GMS

Remortgaging to raise money for business purposes is not something lenders generally allow, especially at the LTV you are looking at.

Have you apporached banks about a loan for the business?

Evilm

If you had a mortgage of, say, £50k and wanted to raise £15k.... yes, subject to other affordability calculations. (going from 43% LTV to 56% LTV)

Having a 90% mortgage and wanting to take the rest of the equity so that it is now a 100% mortgage (assuming that the lender agrees with that valuation of £115 which they may not) ... no.

If you really want to go down the lending route then a small business loan could be more accessible. It would be at a higher rate of interest though.

srobbo74

yeah i have approached a few banks and been approved, but best rate been offered has been 8.65 if my memory serves me correctly.

thanks once again for the advice

Thrugelmir

srobbo74 wrote: »

yeah i have approached a few banks and been approved, but best rate been offered has been 8.65 if my memory serves me correctly.

thanks once again for the advice

Remember that securing a business loan against you home puts it at risk.