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No bank/BS willing to remortgage for Business Purposes!!

Options
dhan
dhan Posts: 106 Forumite
in Mortgages & endowments
Wonder if anybody can help!!

I am trying to raise £100k by remortgaging my property valued at 160k to finance a Business.All the banks/ BS are happy to lend me that amount for remortgaging another residential property but not for a business purpose.
Is there anybody who can advise who I can turn to or how I can tactle this problem. Highly stressful as initially I was told there will be no problem remortgaging for this pupose.

Any advice/ solution will be much appreciated!!
Berba
«1

Comments

  • JoeK_3
    JoeK_3 Posts: 1,374 Forumite
    dhan wrote: »
    Wonder if anybody can help!!

    I am trying to raise £100k by remortgaging my property valued at 160k to finance a Business.All the banks/ BS are happy to lend me that amount for remortgaging another residential property but not for a business purpose.
    Is there anybody who can advise who I can turn to or how I can tactle this problem. Highly stressful as initially I was told there will be no problem remortgaging for this pupose.

    Any advice/ solution will be much appreciated!!

    You need to talk to a whole of market mortgage adviser as all lenders criteria are different.
    JoeK
    I am an Independent Financial Adviser.
    Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    There are plenty of lenders that will allow re-mortgaging for business purposes - some will limit the actual loan amount to 75% loan to value, however based on your figures you should have pelnty of options.

    What is your income? Do you have any otehr debts in the background? Do you have a clean credit history?

    Just trying to work out if there are other reasons why you may be having problems with this.

    HTH
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • toonfish
    toonfish Posts: 1,260 Forumite
    just tell them you want it for a buy to let property
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.



  • dhan
    dhan Posts: 106 Forumite
    Thanks for your response guys.Much appreciated!!

    You need to talk to a whole of market mortgage adviser as all lenders criteria are different.

    I have spoken to one of the brokers .... he should be getting back to me today hopefully but he did not seem too hopeful about it!!

    just tell them you want it for a buy to let property

    I believe they would want to know proof of where exactly the money is going and I would not be able to risk losing out in the last minute. Thats what I have been led to believe anyway.

    What is your income? Do you have any otehr debts in the background? Do you have a clean credit history?

    My gross income is £40,000 wife £20,000. No debts. clean credit history.

    Thanks
    Berba
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    YOu need to be upfront and state the correct use of the funds.

    Based on your scenario, I can't see any reason why you would be having problems
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dhan
    dhan Posts: 106 Forumite
    Well I have told them its for business purposes .......... most just simply say they do not remortgage or even secured loan for business purposes !! The nature of my business will be for financing a care home.The fund raised will be used as a deposit for the care home........... i dont know if that is the problem............ but i have been upsfront about it no doubt!!
    Berba
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    dhan wrote: »
    Well I have told them its for business purposes .......... most just simply say they do not remortgage or even secured loan for business purposes !! The nature of my business will be for financing a care home.The fund raised will be used as a deposit for the care home........... i dont know if that is the problem............ but i have been upsfront about it no doubt!!


    You cant do more than that:T

    Which lenders have you approached?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Mr_helpful
    Mr_helpful Posts: 3,233 Forumite
    This is dead easy. It needs to be put down as "deposit for another property" as this is the true purpose.
    I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)
  • toonfish
    toonfish Posts: 1,260 Forumite
    Mr_helpful wrote: »
    This is dead easy. It needs to be put down as "deposit for another property" as this is the true purpose.

    exactly right
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.



  • dhan
    dhan Posts: 106 Forumite
    Soz I have not been able to get back any earlier.Thanks again for all the replies.
    I have managed to get a few quotes by approaching a whole market broker as previously advised.I am getting slightly higher rates as it is for business purposes.
    Being a sum of about £100k apparently they will have to check and ascertain where the fund is going hence I dont think its as simple as just saying "deposit for another property".If it is their criteria that they do not remortgage for business purposes then it might get tricky when they find out where the fund is actually ending up!!
    When the remortgage is complete .... do they simply send you a cheque? I never remortgage so I dont know.
    Berba
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