Combination of mortgage + business loan??

markdesign

Does anybody know if it is possible to combine a normal mortgage with a business loan to provide accomodation and working premisis?? we have seen a house with a bungalow within the grounds, but we cannot afford the mortage on the house, but we currently pay £1000 a month on our business premisis, we were wondering if we could get a mortgage for 3/4 of the property and some sort of business load for the rest so we can work from home?

Anybody know of such a deal?

toonfish

what about splitting them and getting a residential mortgage on the house, and a buy to let on the bungalow? You could then rent the bungalow to your company.

Alternatively you could raise a commercial loan on the bungalow but this will be more expensive, both in terms of fees and interest rate charged.

You will also need to check any planning issues, and make sure the buildings insurance is properly arranged.

markdesign

We are borrowing up to our max, which does not quite cover the cost of the property we are 50000 short!, which is a shame because we are paying 12000each year on our business premisis, so would we have to combine the personal mortgage with a business loan? to bridge the gap? renting back to the company sound a great idea, just not sure how we would go about it.

Fairdo_2

You can get mortgages for Mixed Use on a residential rate, but you may still fall short on the overall deal. However, a lender may take into consideration the fact that your £1000 per month would go and they may consider. All depends on your circumstances though.

Other possibility is to look at borrowing on the overall picture. There may be lenders out there on the commercial side who would deal with the whole package based on your personal circumstances.

Can't tell for sure because the advice would deoend on the whole picture.

Best to find a Whole of Market Broker that you could trust and give them a full run down of your circumstances, plans and aspirations. They may be able to find you various solutions and recommend the most suitable option.

No guarantees though I'm afraid. You could be right and there may be no way they can find the solution for this particular situation.

However, you can but ask.

toonfish

markdesign wrote:

We are borrowing up to our max, which does not quite cover the cost of the property we are 50000 short!, which is a shame because we are paying 12000each year on our business premisis, so would we have to combine the personal mortgage with a business loan? to bridge the gap? renting back to the company sound a great idea, just not sure how we would go about it.

which lenders have you tried to date? This really is a case for an experienced broker, but in effect if you rent back you gain £12000 per year on your income. Not all lenders (many to be fair) like mixed residential/commercial use though. It may be that you can just find a lender to cover the higher income multiples for you.

markdesign

Thanks for all the advice.

Our broker is mortgage talk, who set up our mortgage with the halifax when we have actually found a property which the mortgage is set-up on, it was just this particuar house kept niggerling out us because of the ease to work from home and the savings in the rent. When we mentioned this other property to him, he said you would have problems having our bank agree to lending us the money in combination with the halifax, he did not say it could not be done, but he wanted to put us off the idea, it was then I thought I would just see what you guys thought!!

In theory you would think there would not be a problem, its just marrying the two loans together.

Fairdo_2

There is hope then.

It may be that another lender may be more sympathetic to the Mixed use on this property. Worth asking your broker to do their research for you.