I have B2L but need to raise finance for new house for me

newtowales

Hiya, Just throwing this out there in case anyone has a solution (I've wracked my brains but come up with nothing so far).

I have a house in Scotland which I used to live in - mortgaged LTV 75%. Equity about 27k. I now let this out (with the consent of my lender) and rent a house in Wales. I'd like to buy in Wales but my partner (never bought a house but may have poor credit) doesnt earn enough to get a mortgage for 130k (what we would roughly need to get what we are looking for). I am self employed with a pretty low income (been trading 6 months). I assumed that I could get a secured loan on my B2L in Scotland but my lender says no cos I dont live in it any more Just wanna find a way to try and use a bit of that equity to boost our potential in Wales, without having to sell Scotland house.

Anybody got any suggestions? Or companies they have used before that lend for this type of situation?

Many thanks

BitterAndTwisted

At 75% LTV on a BLT you are at the upper limit of what a mortgage-lender will lend you, so there's no way of getting any equity out of the property other than by selling up.

If you're not going to move back to Scotland at some point, and looking to buy in Wales suggests you are not, then why hang onto this property which is holding you back?

longtermplanner

I agree with B&T, in todays market you won't do better than 75% on a B2L. Sell it.

And you must find out what your partner's credit rating is. saying you think it may be poor is setting yourselves up to fail. Check out all the CRAs now before you start applying for loans, so that if there is anything wrong on them you have time to get it corrected.