Could Buy To Let Turn Our Fortunes Around

bon_3

Sale of propertyA £120,000- secured debts £126,000 +solictor and estate agents fee. Deficit. Can't get a mortgage company to give mortgage on B- for one reason or another( as explained earlier). Introducing C might offer a mortgage solution which doesn't involve B. Seems viable but offcourse I am urged to bear in mind the earlier quote from Zammo.

bon_3

CAB said they cannot give financial advice as the financial advice thing was still in its trial stages and therefore only available in certain parts of thye country.

bon_3

sorry about changing title of thread. Situation is real and desperate. Wanted to maimntain peoples interest in helping. Not used to forums. Thought original post would disappear and loose peoples interest. Especially as it takes ages for me to type and therefore reply.

bon_3

OK . Don't buy another property. Buy to let property B pay off all debts except £58,000 mortgage sell property A pay off mortgage. reduce buy to let mortgage. Use a good broker. Thanks for input. I think I'll use this site to try to help others when it's all sorted

epz_2

let me get this straight, if you sell A you will end up owing the bank 6K, but own B outright.

now an unsecured loan for 6k woulnt get you a brilliant rate but perfectly servicable say 7.5% of 6k has to be better than 5.5% of 125k morgage.

bon_3

The point is that unfortunately can,t raise the unsecured loan because I,m up to my eyeballs in debt already and on low income. When you apply they measure your ability to pay. They don't consider your intentions.

terrierlady

i thought i lived life on the edge!!! I can understand how worried you must be, i could not cope with the stress , lets hope one of our valued members can help think of a way forward.

epz_2

bon wrote: »

The point is that unfortunately can,t raise the unsecured loan because I,m up to my eyeballs in debt already and on low income. When you apply they measure your ability to pay. They don't consider your intentions.

but surely you wouldnt be up to your eyballs in debt by the time this came up as all your loans and morgage would be paid off by the sale of house A, frankly you could pay it off with a credit card and still be much better off than getting a new morgage you dont need.

i dont doubt you are going to pay over the odds in interest but if you are going to have your own home outwright (even if it is unmorgageable)with no other debt im sure there has to be some lending agency out there that will take you on.

bon_3

First thing I did to help raise money for build is tart credit cards. Interest free ends in June. I dare not approach another company to use interest free balance transfers. I've been refused to many times on unsecured loans this week Which I thought might make up deficit for selling A and getting rid of secured loans.

epz_2

it does seem mental that in this day and age where you can hardly walk down the street without a bank throwing money at you that somone who will own a house outright cant get 6 grand. i mean even at 20% your repaymenst would be like £100 to someone with no rent/morgage to pay.

frankly i think you need to sit down with a fincacial advisor of some sort and get it sorted out by fudgeing some figures etc, even if you get a survay showing the land your house sits on with planning permission is worth over 6k and borrow against that regardless of being built or not.