Stuck unlocking equity - help!

toxicash

Ok my situation is this, the property I am sitting in is worth slightly north of £500,000 when I move out its worth £2000 a month to rent. I have no mortgage. I also have half ownership of a property which my stake is £100,000. So my property equity is £600,000 plus. I have found a cottage I wish to own at £170,000 and wanted to take out an equity style loan at the bank for the sum of around £150,000 to buy the place. My self employed business earns me up to £16,000 per year just started up. For the life of me HSBC won't lend me the money unless I'm earning at least £30,000 a year despite being the lowest risk on paper. What is wrong with our banks! I'm 56 and was going to take out the loan for up to 15 years. Does anyone have any advice on how I can unlock some of my finances without having to sell my main property,s and buy this home.

Thank you

toxicash

Just as a side note the banks ignore the £2000 rental income even though it would cover the equity loan easy and my cost of living would decrease moving into a smaller property.

BitterAndTwisted

Get a Buy-To-Let mortgage on the half-a-mill property and find yourself some tenants willing and able to pay £24k per annum

Thrugelmir

toxicash wrote: »

For the life of me HSBC won't lend me the money unless I'm earning at least £30,000 a year

That's HSBC's target market.

toxicash

BitterAndTwisted wrote: »

Get a Buy-To-Let mortgage on the half-a-mill property and find yourself some tenants willing and able to pay £24k per annum

Thanks for the reply

HSBC do not want to consider any equity value or rental income. Their rates are very good. Banked with them for 45 years too. I really need £140,000 to be honest. The estate agent has just been and thinks we will get £1900 a month in within weeks of us moving. Any places you recommend for a good buy to let?

Thrugelmir

toxicash wrote: »

Does anyone have any advice on how I can unlock some of my finances without having to sell my main property,s and buy this home.

Thank you

You may struggle. As despite being asset rich you are cash poor. So not an attractive risk proposition.

PasturesNew

Put another way, your posting might have read: "Help, I already own 1.5 houses and crave more. Even though I am already 56 and only earn £16k in a new venture, I can't get enough debt and want to borrow another £170k".

Could you sell your half share? Then you'd only need £70k to buy the latest one you want and would stand a chance of getting a mortgage for that.

toxicash

Everyone's situation is different. If I'm earning 30k a year and at a high risk of default and can borrow £120k. Then is taking a loan against my current hard earned assets such a bad thing? The banks still make their money and will get it back before or when I choose to sell. I have no debts so this is obviously why the market is frozen. Smart investing I call it.

As for being cash poor I offered to pay down 25% but it seems earning 30k plus ignoring the rental I come as a wage which meets this criteria gives me a no answer.

I'm forced to sell and bank at a poor interest rate.