Remortgage

Captain_Hurricane

I live (rent a house) in the south, but I own a small cottage in Wales where I would like to retire in 15 years time. The property has been valued at around £80,000. The cottage is completely free of any mortgage and it's value will increase once it has been given a good makeover. I would like to borrow £30,000 to modernise the cottage and to repay some unsecured loans amounting to about £15,000. I am managing the repayments easily and I am also saving on a regular basis. On the face of it, I shouldn't have too much of a problem finding a lender, but there is one major fly in the ointment - I am self employed and can only show a profit of about £10,000 per year for the last 3 years. Should I give up gracefully or is it worth making a formal approach to a lender? Thanks for reading this.

gliderpilot_2

One way forward, could be to let your property out, and raise a "buy to let" mortgage on it. There a number of 'buy to let' lenders who will simply look at the rental income vs the mortgage repayments - and as long as the rental is say 125% of the mortgage repayment then you should be o.k. Also max. LTV tends to be 85% for a buy to let mortgage. Another alternative is a self-certified mortgage, i.e. no proof of income required - but I think you get loaded with higher interest rates...hope this helps!!

Captain_Hurricane

That has given me another avenue to explore, thanks for your advice.

herbiesjp

Either way you look at the scenario, you should be able to find a lender to help you out.