Is this possible?

redpete

darrendonald2 wrote: »

It does work:

INCOME

• £1000/month - Rental income I am currently receiving

OUTGOING

• £340/month - Repayments on the mortgage (fixed for 4 years)
• £529.41/month - personal loan repayments spread over 4 years

PROFIT

• £130.59/month (without using my own money)

So it costs nothing to maintain or repair the property? What happens if/when interest rates rise, or you can't get as cheap a deal in 4 years time? What happens if the property is empty with no income for a few months? What happens if the mortgage lender does somehow find out about the other loan and pull the mortgage?

I have asked my friends (who don't plan on buying a property) to take out a loan for £15,000 and give it to me. I would then pay their loan off via direct debit plus an extra £1000 as a thank you. No one wants to do it though

Is this a surprise? They have no security against the loan, no quick access to the funds if their circumstances change, no redress if your business plan falls about your ears and you can't pay the monthly amounts,

JuicyJesus

redpete wrote: »

Is this a surprise? They have no security against the loan, no quick access to the funds if their circumstances change, no redress if your business plan falls about your ears and you can't pay the monthly amounts,

Sounds like the friends are more sensible than he is.

Also should be pointed out that there is absolutely nothing in it for them. No profit or other benefit for them, just a credit report that shows they're massively indebted and a possibility that they could get royally f*cked should OP decide on a whim that he doesn't want to pay back the money. Whoopedy doo, where do I sign?

The whole scheme is moronic.

ILW

Makes £130 pm. One boiler breakdown would wipe out a years profit. Seems a little shaky with no cash reserves.

jonesMUFCforever

Me thinks OP is a troll.

I could say more but probably would only get banned here if you know what I mean.

[Deleted User]

jonesMUFCforever wrote: »

Me thinks OP is a troll

The fact that the OP duplicated his post onto another forum is likely evidence of you being right.
https://forums.moneysavingexpert.com/discussion/4678379

darrendonald2

Apples2 wrote: »

I'm completely shocked that none of your friends are prepared to take out a£15,000 loan and give it all to you.!!!

I'm even more shocked that you could even think of abusing your so called friends in this manner in any case.

"So called friends". Strange statement.

I have borrowed from family members and paid back very quickly wand I've also lent money to my friends. I would rather sweep streets than default on any loan.

darrendonald2

Clive_Woody wrote: »

Building a potential house of cards.

Don't ask your mates to borrow money for, best way of losing your mates.

Don't get carried away, sounds like it's going well at the moment but there is no such thing as a 'sure thing'. Save up and when you have the cash look for your next purchase. Take you time and keep your friends.

Thanks for your thoughts. I am pretty surprised that the overall response to my question has been hostile (not your comment though).

I was able to stop working for money when I was 32 because I push myself to grow quicker but I don't take unnecessary risks. House of cards? Not really, I would buy a thing without knowing interest rates were fixed and that it would rent. We have hundreds of tenants waiting most of the time it's ridiculous. Yes, there are some risks I do agree and thanks for your comment.

darrendonald2

gazman100 wrote: »

Plus you'd almost certainly have to declare (or lie about) the loan on your mortgage application.

Not if I pay with cash and get the loan after the mortgage application?

darrendonald2

ch3101 wrote: »

Why don't you consider remortgaging one of your current properties to release some funds?

Banks are down-valuing everything massively.

darrendonald2

_Andy_ wrote: »

"The only trouble is, if you have an existing personal loan you can not get another mortgage."

Absolute nonsense

Hi Andy. Why is that nonsense? I've tried several times but maybe I am doing something wrong.