new business - mortgage possibility?

54druids

After a long fight, my company has gone down the tubes. I managed to save 4 jobs by setting up a new company from the ashes. Due to me investing thousands in the company to try and save it, i find myself with very little money. I think i am going to have to move house but am not sure i will be on about my mortgage. I presently have a hefty mortgage on my current property which i have always managed to pay. Am i right in thinking I will have to rent as the bank (which incidentally were the ones who forced us to take a bigger mortgage as they persuaded us it would be cheaper than them giving us a business loan). will not give us a mortgage due to our circumstances or is there any way we could still get a mortgage.

kingstreet

With a business start-up with no trading record I don't see any mortgage options available to you in the near future.

xyellowx

"if the bank forced you to take out a mortgage to use for a business loan this is fraud" sue them for everything you can then buy a house cash with the payout
but i doubt they did so with no books for the new company no chance of getting mortgage for 2/3 years

54druids

ok so that is what it felt like when they strongly suggested that would be the better option as it would cost less and be quicker to process than a bank loan and that was what they would prefer. Although it has a different name the outlet that remains is the successful out of 2 we previously had, albeit under a different name. Do you think if we can show the bank this,they would consider us for a mortgage? Seems really unfair when we have never defaulted on our present mortgage which we have held for many years and if we stay put we wouldnt get our mortgage taken away. So what is the difference between paying the mortgage on our present property or paying it on another one?

Thrugelmir

54druids wrote: »

ok so that is what it felt like when they strongly suggested that would be the better option as it would cost less and be quicker to process than a bank loan and that was what they would prefer. Although it has a different name the outlet that remains is the successful out of 2 we previously had, albeit under a different name. Do you think if we can show the bank this,they would consider us for a mortgage? Seems really unfair when we have never defaulted on our present mortgage which we have held for many years and if we stay put we wouldnt get our mortgage taken away. So what is the difference between paying the mortgage on our present property or paying it on another one?

The lender cannot call in the existing debt unless you breach the terms of the agreement. However in applying for a new mortgage the bank can reassess the risk. So its not your mortgage that matters. But the principle if this was allowed across the entire mortgage book. Lenders will look at that mortgage books top down , not bottom up.

54druids

thanks but not quite getting your last sentence!