What will they lend me money for?

27col

Emmzi wrote: »

Sounds like you are self employed. Is the amount you pay yourself all of the profit or just what you pay yourself?

I think a visit to the business banking manager. But expect the loan to be secrued. Bit wary about what kind of building you can buy for 17k though, that wouuldn't even buy the land it is on. Something you haven't told us?

My thoughts exactly, what sort of a building can you buy for £17,000. People can pay more than that just for a home office in the garden.

TadleyBaggie

Beach hut?

dnet

It's an old barn i use for storage. The owner wants to sell and i want to carry on using it.

It's £22,000 and i have £5,000 available

Macca83_2

Most banks won't lend you money for what would be classed as a deposit on a property and you've pretty much maxed out your mortgage for a secured lend.

I think you'd probably need to go down the business loan route. Unless you're willing to tell a few porkies around the purpose of your loan, but, even then very few lenders would give you 17k

dnet

Macca83 wrote: »

Most banks won't lend you money for what would be classed as a deposit on a property

Yep that's why i asked. It's their computer which decides if i can afford the replayments, not what is actual

I'm paying £50 a week rent and have been putting £60 a week away for the last year so i can afford £110 a week. With the purchase of the building i will no longer pay rent. But that information in not relevant..

I can increase my earnings for the purpose of lending if i am prepared to pay tax on it. ie i produce higher tax returns..

Macca83_2

Id just stick to the truth and go see your banks business banking team.

You'd reasonably need about 30k+ pa to go down the personal loan route and being self employed can sometimes be a bit of a nightmare. The banks underwriters Will go over you account with a fine tooth comb

Emmzi

but if you buy the barn as a business asset, it is business income that counts, not your personal salary.

Business loan is the way to go. Sounds like you are savvy enough to have documented accounts etc. Go for it.

DCFC79

dnet wrote: »

It's an old barn i use for storage.

dnet wrote: »

Hi,

I currently earn around £1500 per month (after tax), i am paying £465 per month for a mortgage and want to borrow £17000 so i can buy the building i have been working from

Is it a barn or where you work from ?

dnet

I use it for storage and packing stuff up to send off.

antrobus

You're self-employed and currently rent an old barn for storage for which you pay £50 a week.

You have the opportunity to buy the barn for £22,000. You have £5,000 as a downpayment, and want to borrow the remaining £17,000.

If you own the barn, your business will be better off to the tune of £50 per week,or £2,600 per year. £2,600 is 15% of £17,000, that should be enough to fund repayment of the loan. Looks like a doable deal, I'd go and speak to your bank manager.