Borrowing 50k - any way to do it?

henryanne

Hi,

I know i've probably got no chance of achieving this but if anyone knows a way then I guess someone here will know so I thought there's no harm in asking.

my partner and I are splitting up. We own a property together worth about £180k with about £5k left to pay off on the mortgage.

I have some money saved up so I'd need around an extra £50k to buy them out of the property.

I'm self employed and do my own accounts, my income is very small, I make between £500 and £1000 a month. With having such a small mortgage, this has more than covered my outgoings and given me a bit to save, so it's been fine until now.

I've come to the conclusion no one will give me a mortgage, i just wondered with so much equity in the house if there's any chance of some sort of loan secured on it? I could take on extra work to pay a loan back, i'm just trying to work out if there's any possibility of it really or if i'm going to have to resign myself to selling and renting somewhere instead.

Thanks in advance for any help / advice

tell_it_how_it_is

I wouldn't automatically give up on obtaining a mortgage. My missus kept the house from her ex-husband when they split up, and managed to get a £38k mortgage from Santander (not her own bank, which I'm not sure she tried or not), despite earnings similar to those you mention (though not self-employed). So I'd suggest it is certainly worth at least making some enquiries at a couple of banks.

_Andy_

Not going to happen on that level of income.

blacksta

_Andy_ wrote: »

Not going to happen on that level of income.

If he is earning 12k per year - I guess the maximum loan availiable should be around 40k - which is close to the required amount

_Andy_

Yes but they said 500-1000 per month, not the higher amount plus we don't even know if that's net profits. Lender's not going to take the 1000, they will want an average, so 40k still not going to happen (ir highly unlikely)

GlamGirlie

Property is taken as a secondary form of repayment - the primary form of repayment being from your income.

If you can't afford (per their criteria) to pay it back, then you won't get the loan - security doesn't turn a bad proposal into a good one, I'm afraid.

henryanne

thanks everyone for the info

plum44_2

Might be worth speaking to a Mortgage Broker .....you've nothing to lose.

henryanne

Thanks, I did, and managed to get a 60k interest only mortgage on a decent rate fixed for 3 years - very pleased with the outcome.

tell_it_how_it_is

Cool job, glad you got sorted, and thanks for letting us all know that it was indeed possible in your situation. There's never any harm in asking the question IMHO - after all the worst they can say is no.

andymc29

Just out of interest, what's the plan for paying this off in 3 years time when they ask for the money back?

Are you building your business? You're biggest obstacle looks to be your income. Sort your income and everything else will be easy.