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Is it possible to...
Natterjack88
Posts: 758 Forumite
Just wondering if it is possible to get a remortgage on a house that doesn't have a mortgage, so is owned outright? A family member is wanting to release some equity in order to start a property business with us but we've hit the first hurdle!
£20 a day April 2014 £834.87/£600 :j
£20 a day May 2014 £108.45/£600
£20 a day May 2014 £108.45/£600
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Comments
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It is possible yes.
The difficult part will be getting one to start a business with.
Also, is the person employed at the minute? If not then its unlikely they will get a mortgage based on how the business will do.I am a Mortgage AdviserYou 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.0 -
Thanks for your reply- the 2 people owning the house- only 1/2 are employed. He had been awaiting various medical treatment and has now just had to go on jsa (or equivalent) as he has received treatment needed and is looking for employment. We are looking at having 6 family members in the business altogether 5/6 of us are employed.£20 a day April 2014 £834.87/£600 :j
£20 a day May 2014 £108.45/£6000 -
Its not about who is going in the business, its about who owns the property/who will be on the mortgage.
If one of the 2 homeowners work, then it should be possible to secure a mortgage. Although a lot more info is needed to confirm that.
I would personally go and see a mortgage advisor if i were you/your family, it shouldnt be too tricky to do but a lot of lenders wont allow lending for business purposes so you could avoid a lot of wasted applications by using a broker.I am a Mortgage AdviserYou 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.0 -
I agree with ACG.
Some lenders won't do a remortgage of an unencumbered property and others will not accept the purpose of loan if it is a business start-up.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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