Creative mortgage / borrowing options required

Dave_Ham

Options 1 & 2 have merit, although it will depend largely on the damage you have done on your credit file with the arrears.

Should have scope still though, depending upon the detail.

Best of luck

Conrad

The only way forward I can see is on your unencumbered B2L. There is no way a resi lender will remortgage and top up your main resi as your sig indicates it is £423000, which leads to many many complications not least of which is proving you have enough income over the last 2 or 3 years to support this, plus the increase.

No, from what you say, I think you would only get a high rate deal on the b2l but given your late payment history it's going to be a rate of at least 6%, but could be a lot more. But then you have the issue as to whether the rent would WELL cover this large new payment.

Failing this, then something exotic from a specialist small lender, but you will be well above 10% rates. I'll bet you'll not want to go with that so the whole thing is not going to happen.

All the best

pixelwife

Thanks very much Dave and Conrad for the advice. Really appreciated.

From what you have said Conrad, I agree if I am paying very high rates I'm not going to go with a mortgage deal but rather than saying it's not going to happen, I think I'll say, I'll find a way to up my revenues to allow the dividend option to become more viable!

Really appreciate everyone's thoughts and suggestions. Just shows the power of the collective!

Thrugelmir

pixelwife wrote: »

Normally the simplest solution would be the best but it's tenanted by family members and this simply isn't an option.

There's no room for sentiment when running a business. The financial world is changing. So make decisions based on reality.

getmore4less

How long will it take to get the 4 extra deals that make £160k

The deals have allready been a problem aginst commitments. serious cash flow problems.

rent get the first deal then relook at buying

getmore4less

One other thing why are the terms so short?

All secured lending should be as long as possible on variable income

chirpchirp

Could equity release on the property which has no mortgage be an option?

Conrad

chirpchirp wrote: »

Could equity release on the property which has no mortgage be an option?

Only at very high rates.

OP, your'e slightly missing the point, with respect:p
Upping your dividend income won't make the slightest difference.
Your credit history means only higher rate options are currently even a possibility for you. Earning £5m pa wouldn't make the slightest difference.

One way forward some clients use is to arrange a deal in the name of someone with clean credit...........

JimmyTheWig

Conrad wrote: »

Your credit history means only higher rate options are currently even a possibility for you. Earning £5m pa wouldn't make the slightest difference.

I think he means upping his income so that he doesn't need to borrow.
If he earned £5m pa then he could buy the new place outright in a couple of weeks.
I think he plans to do this in the form of a dividend rather than a salary.

pixelwife

JimmyTheWig is spot on. And I love your username by the way.

As for how long would it take to do the 4 deals? That's anyone's guess but we did one of the four yesterday so I think I'll take that challenge on!

Another poster asked why the mortgage terms are so short. Usually our cashflow is pretty good and there have been no arrears or problems until the last few months. We know that the current drama will pass so it's not worth changing all our mortgage products for long term ones where we have some enviable rates at the moment!

There is one more option I've thought of. I'm not sure how this works with residential deals, but could I do a 12-month option agreement with the homebuilder? i.e pay half now, half in 12 months or something? Is it worth mooting that to them?