Loans secured against 'other' property..?

mightymouse

RichyRich wrote: »

Lenders will often willingly advance loans that are unservicable provided sufficient collateral is offered. They do this less and less now with increased regulation from the OFT et. al. but it would almost certainly be possible to raise a mortgage against a property with a high enough LTV ratio to be recoverable by the bank. A mortgage is an almost cast-iron guarantee of repayment - if the borrower doesn't repay, the bank can sell the property.



Rich

Lenders would say they lend money responsibly and not to repossess the security else the borrower might as well sell now and save the costs.

mightymouse

just a thought but isn't there a capital gains tax implication somewhere in this?

RainbowsInTheSpray

It seems I've stirred up some animosity between 'experts'. Too bad.

It amuses me, Ejones, to note the virtual 'presumption of guilt' which you are making. I have seen this before on these fora, particularly in the case of people who are asking about non-status situations - you know, the kind of people who really would need to ask for advice.

We are talking here about a lady who is a late 50's, semi-retired music teacher and who has, as far as I'm aware, very few if any connections to the mafia.

The case is as described. The individual concerned is a very private person and wants, as I've mentioned, her financial affairs to stay private.

Such people do exist. Their attitude does not make them criminals and should not automatically render them subject to suspicion from the likes of you.

I have asked whether, on the basis of the information submitted, there may be a possibility of her being able to find a loan. I have not asked for gratuitous comments about 'alarm bells' and suchlike. If the situation was untenable, that was all that was needed to be said.

I suggest that you should confine your helpful comments in future to the many millionnaires who come on here looking for a £500 loan as clearly this will aid you in maintaining your dignity...

RainbowsInTheSpray

CLAPTON wrote: »

just as an example, an interest only mortgage / loan at say 6% on 120,000 will cost 6x120000/100 =7,200 per annum... can she afford this?

A very practical matter which I myself should have noticed. Thank you. Clearly her £500/month would be insufficient. More than somewhat surprising that certain other 'experts' also failed to spot this pretty basic point.

jonesMUFCforever

Are you blind?
See post 2 and post 6 on this.