how to borrow 120k

garyb_4

Hello all,

I'm self employed, my income varies between 35-40k but I have no wage slips etc

I have a chance to invest in a company with very good prospects and become a 50% stake holder in that business. To do that I need to borrow 120k.

My dilema is this. Do I go for self cert mortgage of 120k(I have house worth 220k with no mortgage) or is there a more cost effective way of borrowing the money over 15yrs.

Things to consider. Want to pay back at fixed rate + be able to put in lump sums without penalty

What do we all think?
Garyb

jonesMUFCforever

I would find out a lot more about the 'company' than what you have just posted.
If it is that good why do they need you and your money etc etc

If you decide it is for you then you will need to provide security for a loan of that amount so go and see your business manager first to see how the land lies and whether they can make you an offer for a business loan and then compare that to what a mortgage will cost you.

JoeK_3

Garyb, you need to take professional advice on this.

If you take out a loan secured on your property and the company goes bust, you could be left with the loan and no income.

Have you investigated the company and it's financial strength?

In answer to your questions:

1) Fixed rates give you stability and some allow 10% repayment without penalty

2) A flexible will allow repayment without any penalty.
3) Why a self-cert remortgage? Can you not prove income?

Be wise and be careful

JoeK

AMILLIONDOLLARS

If it's that good, why are they selling you 50% share in it? I'd look very carefully before you leap, examine books, turnover etc...

Good Luck

AMD