Need a solution to borrow for 9 months

thisisit123

Hi,

I am in the middle of a large home renovation. I need to borrow £25,000 to complete the project. I will then list and sell the property, then repay the loan immediately. I expect the entire process to take around 9 months.

Although I have over £400k in equity in my house today and after the renovation the equity will be greater, due to my current loan and credit card debts, I am not able to borrow from any banks or lenders on either a secured or unsecured basis.

I have looked at P2P lending sites and they are also not possible for me.

I need to borrow this money, otherwise the house renovation can not be completed. I would be happy to pay up to £6,000 in interest to borrow the amount of for the 9 months, which works out at a very good interest rate.

It would be great to hear ideas about ways in which I could borrow such an amount for these type of terms.

Thank you

[Deleted User]

Remortgage?

thisisit123

I have applied to my existing mortgage lender to remortgage. I have also applied to several high street banks as well as via 3 mortgage brokers. All have reviewed my details and responded with a can not approve.

With the equity I have in the house today the LTV ratio of the remortgage amount is 65%, yet no bank will agree to such a remortgage.

thisisit123

I've been looking at the P2P lenders but the ones I've seen appear to operate similar to banks.

I wonder if there is a P2P exchange where I could post my borrowing requirement and proposed level of interest, and where prospective lenders could accept or make a counter offer on the lending terms

Thrugelmir

thisisit123 wrote: »

Although I have over £400k in equity in my house today and after the renovation the equity will be greater, due to my current loan and credit card debts, I am not able to borrow from any banks or lenders on either a secured or unsecured basis.

Suspect you are falling foul of responsible and affordable lending policy. Equity is all very well. However it's a costly exercise to recover the debt by forcing the sale of property. You'll need to put your creative thinking hat on. As sounds if you've hit the limits of the credit that's available. Have you tried adverse credit lenders?

thisisit123

The adverse lenders are not something I am familiar with. If I search for 'lending for bad credit history or score' I see results for poor credit history and CCJs etc.

I have a good credit score and have never missed a payment on any debt, it's more that my level of debt is a problem - and that goes against the responsible and affordable lending as you highlight.

How can I find adverse lenders that are appropriate for my situation?

somethingcorporate

I'd go and see a mortgage broker, if there is good equity in your house it seems that it would be the best route to take.

They will also stop you making lots of applications with lenders you'll have no chance with.

bigadaj

As stated above then. Mortgage broker could be good. Sounds as though something like a bridging loan would be appropriate but is expensive and your problem will be that you might then. E under to sell quickly and accept a reduced price.

thisisit123

Thank you for the ideas.

I have gone to 3 independent mortgage brokers. Each tried several options, but none succeeded. They all appeared to be trying the same bunch of lenders, so not sure if there are other brokers that could access other lending options.

I'd like to know more about bridging loans. I do expect to sell and complete quickly so this may be a feasible option. How do I go about finding bridging offers? Sorry, this is not an area I'm familiar with.

DCFC79

thisisit123 wrote: »

Thank you for the ideas.

I have gone to 3 independent mortgage brokers. Each tried several options, but none succeeded. They all appeared to be trying the same bunch of lenders, so not sure if there are other brokers that could access other lending options.

I'd like to know more about bridging loans. I do expect to sell and complete quickly so this may be a feasible option. How do I go about finding bridging offers? Sorry, this is not an area I'm familiar with.

My suggestion is to google bridging loans and click the moneysupermarket link and read it.