Borrowing more money - what to say?

pimento

.. and no credit card company will give me a £25k credit limit, will they?

want_to_save

if you were to switch the mortgage to FD and borrow an extra 25k i am sure they would ask you why you require the monies wouldn't they?

HappyMJ

pimento wrote: »

.. and no credit card company will give me a £25k credit limit, will they?

Not on one card...My total credit card limit is in excess of £40,000. Don't use much of it though. Stupidly high rates of interest.

The problem is the purpose of the loan. You have to tell the mortgage company what you want it for and then explain what your income is going to be for the next year whislt you are taking a break from work. You will most probably be refused unless you lie to the bank. A personal loan and/or a zero/low interest credit card application does not have those questions. You can get the money in your account for a personal loan much quicker than a mortgage...There are no fees. A simple online application and within a few hours the money is in your account if you pass the credit and online identity check.

Thrugelmir

Have you considered selling the property and downsizing thereby releasing some equity?

marmitequeen

Remember you will also need the cash to have brilliant fun whilst traveling. I think maybe looking at blocks of a month here and there might work for you - that's still loads of time to have a fab adventure. What do you want to do that needs the 6 months solid?

pimento

Yes, I have thought about selling the house. That takes time. I think we may only have two years of good enough to travel, health. Selling our house may take a year by the time it is done and dusted.

We need a six month block because we want to go to New Zealand where my husband was born and stopover a couple of places en route.

HappyMJ

pimento wrote: »

Yes, I have thought about selling the house. That takes time. I think we may only have two years of good enough to travel, health. Selling our house may take a year by the time it is done and dusted.

We need a six month block because we want to go to New Zealand where my husband was born and stopover a couple of places en route.

You can sell your house within a few weeks if you really want. It doesn't take a year to sell...at least it better not take that long. My house isn't even on the market yet and I'm leaving in 6 months time...but no earlier so I don't want to list it now. Price it right and it will sell very quickly. You could even get an offer the same day you list it. It might mean knocking £10,000 off the asking price but you'll also save a whole year of mortgage repayments as well.

pimento

Where will we live once we've sold?

Any rent will be way more expensive than the mortgage currently is even if we rent a one bedroom flat.

holly_hobby

Equity release to go travelling won't typically be an acceptable reason for the lender (despite the underlying reason for the request).

Some peeps may suggest thinking os of the box re basis for equity release, but thats not something I'd condone or discuss .

However, you could source a personal loan (secured often gives better rates but requires the mge lenders permission and has higher admin fees), and then subsequently apply for a remortage to repay the debt - thats a perfectly permissible reason from the mge lenders underwriting, and given the LTV and salary being sufficient to meet the increased borrowing, could be a solution.

HOWEVER, if you have 6 mths unpaid leave, and hubby has no critical illness (which actually pays on on non-terminal diagnosis of qualifying conditions), then how would you service either your current or an increased mortgage or any additional personal loan (if you intended on applying for equity release when you return and are back in full time pay) ?

Sometimes, when throwing things on the table, having a look at them, a solution often pops up !

Can I also just conclude in saying how sorry I am for your family situation, things aren't always as bad as may be painted, and there are many instances (including personal to me), where peeps have defied both the odds and their diagnosis.

Ensure that you source and are in reciept of all available assistance you and hubby are entitled to, including pensions Hubby may have forgotten he has etc ... etc

Wish you well and happy, happy filled with love travels !!

Hope this helps

Holly xxxx

HappyMJ

pimento wrote: »

Where will we live once we've sold?

Any rent will be way more expensive than the mortgage currently is even if we rent a one bedroom flat.

Go on holiday...you don't need a house.