Can i sell a private mortgage, advice please

whatsitallaboutplease

Hi, i owned a property a relation wanted to buy but he could not get a mortgage because he is self employed and did not have 3 years books.

The property was on the market with an estate agent for £100,000, i sold the property to him for the asking price, he gave me £32,000 deposit and my solicitor drew up a private mortgage for the balance (£68,000), the private mortgage is at approx 5%, he pays approx £350 per month to me.

My question, can i sell this mortgage anywhere so i can get my £68,000

Like i said the guy has £32,000 in the property so there is equity in the property. Any advice welcome, thank you...

opinions4u

I can't think that you'd find a buyer easily.

Does the relative now have three years' accounts (or even two)?

If so, they should see a broker, arrange a remortgage at market rates and those funds will repay you.

Thrugelmir

For a 5% gross return doubt you will find a private buyer.

TrickyDicky101

How much do you expect to sell the mortgage for?

kingstreet

No. He would need to remortgage and use the funds to repay your mortgage.

wannahouse

opinions4u wrote: »

I can't think that you'd find a buyer easily.

Does the relative now have three years' accounts (or even two)?

If so, they should see a broker, arrange a remortgage at market rates and those funds will repay you.

In Australia, where vendor financing is still something thats done occassionally, usually the point is to get vendor financing, and to roll that over to a proper mortgage at the earliest agreed opportunity, as the vendor financing is more expensive than to have a mortgage...
I would suggest he works towards refinancing via a mortgage so that you can realise your profit, as this situation is mostly beneficial to him, as your interest rate is rather low...what happens if rates shoot up in 10 years? will you still only receive 5%?