Capital Raising - help please

suziesue1_2

I have a £26k joint mortgage on a £150k property as well as another property worth approx £65k. I need to raise £40k for a deposit on a buy to let property. I can't get an increase on my existing mortgage as its with my ex who is supposed to be buying me out (18 months and no sign yet) as he wouldn't agree to it. I've been told I can mortgage my other property but it will still be based on my income which would only support about an additional £10k. What if any options do I have? I am going to apply for an order for sale but this could take months and I've seen the property I would like to buy. Any ideas would be appreciated. Thanks in advance.

GMS

Is the 65k property let? If so what rent per month?

Is there a mortgage on it?

What is your income?

suziesue1_2

No Its the property I live in. There is no mortgage on it. My income is only about 8k as I only work part time. Its frustrating as I have about £125k in equity by my salary is too low to borrow against it.

Thank you

Thrugelmir

An £8k salary isn't going to support a BTL mortgage or any other mortgage for that matter. For the simply reason that your plan involves a lender taking all the risk should the business not be profitable for any reason.

suziesue1_2

Even though I would have more than enough equity as collateral to cover all the debts including the btl mortgage? I thought that might be a problem. I have someone who has offered to come in with me on a 50/50 basis would I be able to do that somehow? I would need £20k for the deposit and refurb and a mortgage for £35k.

Foxy-Stoat_3

suziesue1 wrote: »

Even though I would have more than enough equity as collateral to cover all the debts including the btl mortgage?

For the lender to see the collateral they would need to make you homeless, force a sale, sell it and then get paid.

Why not sell the house and buy a cheaper one, that way you can release the collateral and not have to worry about paying it back.

suziesue1_2

Asi said in the original post my ex is supposed to be buying me out but no action on that after 18 months so I am going to have to get a forced sale but that is going to take time. I have found an amazing investment but need to raise the capital in the next few weeks hence my problem. Thank you though for your comment.