Re Mortgage, is it a solution?

garVOK_2

Hi guys,
my first post and im just after some advice without someone trying to sell me something.

Basically around october 2010 I set up my own business, whilst still working for another company ( i still have that job)
it an events company, it was and is something im passionate about but our first big show hit a few unforeseen costs that didnt come to light till after the event, and resulted in me maxing out one CC and having to take a loan of 10k out to cover costs. I have done events since and the money is coming back slowly but, it's not quick enough and my 9-5 job has had its hours temporary cut so im starting to fall behind on repayments (all back to full wages now), currently need to pay 2-3months.

Before this I have never been in any sort of financial difficulty. I've had a mortgage for the past 5 years. the initial mortgage is very low, with my repayments being sub 350.00 per month.

I'm struggling to find a way to catch up and the bank charges for missing payments/going overdrawn etc it feels like i cannot see a way to get back to where i was. I know with my mortgage i could easily pay 500-600 if i didnt have the other debts..

mainl im after some advice, but also sounds a bit silly but how does the re mortgage work? i know for what i paid for my house it's worth roughly double as i renovated it from top to bottom.

thanks in advance for your replys
G

Thrugelmir

Difficult to see a lender allowing you to remortgage to release equity in the circumstances you describe. If you are serious about your business venture. Then sell the property and rent. This would enable you to fund the business properly. Until such time as it turns in a healthy profit. There again it may not. Which is a risk you need to bear.

garVOK_2

i don't want to lose my house all together, I cannot or will not invest anymore money than what i already have in the business, the way im seeing it is, cutting my loses and going back to normal. will run the business as it is without making the high risks i did when i first started

it was an expensive risk but if i didn't take it i would have regretted it.
none of the loans or CC were borrowed against my house, so does that mean i will not lose it if the s--t hits the fan (as long as i keep up with the mortgage payments) ?

Thrugelmir

garVOK wrote: »

it was an expensive risk but if i didn't take it i would have regretted it.

Few entrepreneurs get it right first time. Don't let it put you off though. Always another opportunity in the future. Just spend the time planning and researching to give yourself the best chance of success.

garVOK_2

it's doing ok at the moment, it's gone from losing A LOT to breaking even to slightly taking a profit, just the pot has run dry and i have nothing more to give it, next event will take some cash and create breathing space but im not sure how long i can hold off the lenders, i ring them up every month and offer them what i got left over, i figure a token amount even if its small is better than nothing?

Thrugelmir

Take your budget apart. Analyse every penny you spend. Cut back to the bare minimum on food. Surprising how little you need if you put your mind to it.