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secured business loan v mortgage?
financialfairy
Posts: 2 Newbie
in Loans
Please can you help? My partner has a small business and a charge was placed on the house which is on the business premises by Lloyds bank in 1995 as security against a business loan. He no longer deals with Lloyds as his account was transferred to TSB when the banks split.
At the time of the charge the property was not lived in by my partner and had been rented out occasionally.
However since 2011 my partner has lived in the property since his divorce.
The bank once mentioned by phone that it "might" be worth changing the loan into a mortgage as it is now his principal residence but nothing came of that suggestion.
Would it be to his advantage to push the bank to transfer the loan into a mortgage for the £135000 owed on a property recently valued at £35000?
At the time of the charge the property was not lived in by my partner and had been rented out occasionally.
However since 2011 my partner has lived in the property since his divorce.
The bank once mentioned by phone that it "might" be worth changing the loan into a mortgage as it is now his principal residence but nothing came of that suggestion.
Would it be to his advantage to push the bank to transfer the loan into a mortgage for the £135000 owed on a property recently valued at £35000?
0
Comments
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How could we possibly tell?
What rate is charged on the Business loan and over what period - what tax implications are there for the business?
Does he have a personal income sufficent to pay a mortgage?
There is no legal difference between a secured business loan and a mortgage.0 -
Are your numbers right?
£135k owed on a £35k property? or are you missing a zero off the property value.Thinking critically since 1996....0 -
oops yes £350,0000
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