56 year old homeowner can get a loan?

CLN

Am not sure why I am still here to continue being insulted but anyway...

Surely at this small size there are loans for personal use purpose? Most importantly the loan is for less than 20% the value of my property, and if my income is low then worst case I can increase the term until the monthly payments are less than 50% or 30% of my income whatever the requirement is, the purpose should not be so important so long as the banks/loan company knows that I will pay the money back, or have a house as security in the case that I couldn't.

What reply I would like is helping me in the right direction to raise this money for my son, I would like to know which banks are the most flexible for this complicated situation, if I should increase the term or not, if there are some other kind of option I could use.

And IF the worst should happen, I can always do what someone suggested as a FIRST option, and downgrade my house to repay the loan. This is my decision and my risk to take, so I would not like to hear any more about it.

Any helpful posts are much appreciated!

AMILLIONDOLLARS

I'm afraid apart from the advice you have already been given, there is not a lot you can do. You can research all the loan companies you like, to borrow £30k over five years on a salary of £20k will be all but impossible for what you want to do. Because the amount you want is so high, a personal loan will be out of the question. Remortgaging might be possible but the term will be longer than the five years you want. We don't know whether you owe money on credit cards or have other loans which might further preclude you from getting the credit you want. Furthermore your age might work against you especially in these recession laden time. Added into the mix, the person you want to borrow for does not live in this country and it seems like he has no plans to ever want to do so.

So what are you left with. Selling up and downgrading to release the capital in your property which will enable your son and his partner to increase the equity in theirs. Furthermore as your son does not live in the country there is no way any lending institution is going to lend him anything, so you acting as an guarantor is also a non-starter.

Have I covered everything?

So in conclusion, make the ultimate scarifice sell and hand over the cash, lets hope he appreciates this gesture.


PS - £30k, plus interest is not a small amount!!
AMD

CLN

Would making the term of the loan longer help as the monthly fees would be smaller? Another idea I was thinking was to include another persons income in the loan? I read somewhere that if a house is co-owned then you can have a joint secured loan. Or would it be possible to borrow a smaller amount from more than 1 company? I guess not but am stabbing at all options.

I plan to contact some loan companies anyway to see what they suggest on the matter, what companies would be best to try? Obviously considering how flexible they are and their rates.

Btw I've read several websites and FAQs and they all say the purpose of the loan is not important at all, when putting information into one online form they actually listed Christmas as a possible reason for the loan

bargainbetty

OP, my brother is a loan advisor for one of the big four banks. He has previously turned down a well-known pop star for a loan because it related to an overseas property investment with no way of guaranteeing the seizure of the asset in the event of default. There is a reason banks won't lend to schemes like this.

Personal loans of £30k usually require significant security, such as your home, so would impact upon your property in the same way as a mortgage. You could be forced to sell up if he defaults.

If you are asked what the money is for and you lie, you commit fraud.

If he does not pay it back due to the business failing, you lose your home. Please don't assume everyone is being mean by telling you not to do this - most of us have been burnt in some way or another by people we trusted or had faith in over similar arrangements.

You could ask your son to sign and get notarised a formal agreement with you, reflecting both English and Turkish law, that he owes you the money and must repay it even if it means shutting down the business and selling the assets should your home be threatened.

If you really want to give him the money, then your best bet is to downsize first. Sell your current home and find a smaller one. Then you can give him the money knowing that the worst that can happen is you don't see it again. If you take on the debt, he defaults and your house doesn't sell in time, it will be taken from under you.

If you must do this, be in absolute control of your own destiny. Downsizing now will also avoid the almost inevitable request in 12 months time when things are tough for more money. If you've taken out one loan Mum, why can't you take out another small one..... Seen it, got the tshirt.

Good luck, protect yourself x

DCFC79

CLN wrote: »

Am not sure why I am still here to continue being insulted but anyway...

Insulted by whom exactly ?

chesky369

If you want to go ahead, despite all the good advice which has been offered, I would suggest you contact a legal firm which deals with international property. They would be able to tell you of all the pitfalls which might occur with this scheme and if you still felt like continuing, they might be able to suggest specialist brokers. Perhaps you would have more faith in their advice. I personally think the scheme is doomed for all sorts of reasons but in the end it's your business.

AMILLIONDOLLARS

So its just not your house! someone else has an interest in the property. Have you consulted them on what you want to do. Have you advised them that if your son cant repay the loan and you can't either, then this third person would then be chased for the money. I would advise not dragging anyone else into this situation.

Secondly if these loan companies do a credit search on you, each time they do this it will lower your overall credit score which will make you a credit risk to other lending companies.

AMD

AMILLIONDOLLARS

Thinking about this a little more, two sayings come to mind:

Love is blind

also

When something seems too good to be true.......

AMD