Creative mortgage / borrowing options required

JimmyTheWig

Thanks!

Definitely worth making the offer to the builder. I'd imagine you'll end up paying more to them than if you paid cash upfront (as Martin's old economics teacher used to say - you pay a premium for liquidity) but might work out worthwhile. Especially if they are struggling to shift the places it's better for them to get the money this way than not at all.

getmore4less

pixelwife wrote: »

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!

I wouldn't change but they look to have been set up too short in the first place they have need a significant cash flow requirement and you had no buffer. Why did you not use offset?

going from can't pay the mortgages to £140k surplus in few months is very variable cash flow.


Might be worth asking if you can extend the current terms on the existing mortgages and I presume the BTL are allready interest only. you don't want another hickup. so if you draw down to buy this place you need to restore the cash ASAP.

Is there any way to do this within the business if the purpose is only for business use.

No harm in approaching the builder but they may not be happy with the defaults.

kingstreet

pixelwife wrote: »

When I say my credit is shot, I mean we have some mortgage arrears

We have 4 properties at the moment, and 3 mortgages. All but one is now up to date having had arrears.

Can you tell us the extent of the arrears?

How many months behind and how long ago?

Are any of the accounts currently in arrears? If so, how much?

getmore4less

from the sig

Our house - Outstanding £423,188.60 UNDERPAID so far: -£11,016.60 Ends: Dec 2017
BTL 1 - O/S: £256,904.51 Ends: Nov 2026 :eek:
BTL 2 - O/S: £113,011.95 Overpaid so far: -£0 Ends: Jul 2024 :eek:
Final MF date NOV 2026! Total mortgage debt£797,852.20 £793,105.06 BTLs owned outright =1

Thrugelmir

pixelwife wrote: »

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!

Sounds like you've fallen into the highly leveraged trap. Given that the BTL's appear to be highly profitable. Then you are already accruing a tax liability for the future. Whatever your longer term objectives you need to review them now. Having mortgage arrears isn't going to help your cause. In fact its highly negative.

Have you considered downsizing?