Equity Loan Advice

jonnyen

Hi Forum

I inherited a house a few years ago and attempted to sell it. However, the house was in a pretty poor state of repair and needed a lot of work doing throughout so the only offers we got were from developers and landlords looking to turn a profit. Instead of selling I decided to do the work myself and ended up spending around £60k of my own money to do the work. £20k of this was from savings but the rest of the money came from budgeting, overdrafts and credit cards which has left me around £30k in debt. The house now has tenants and I am slowly paying off the debts but the interest on most of the cards is now quite high so the rent isn't making much of a difference to the repayments. I realise now that I should have borrowed the money from the outset in order to develop the property! So now I have a decent asset (worth around £150k I estimate) and a lot of debt. I've done a few soft credit searches for loans (secured and unsecured) but it looks like I'm now a fairly high risk if the rates are anything to go by (11-15% APR) so I wonder if anyone on the forum can offer an advise on how I can raise around £30k secured on my second property?

Thanks
Jon

Tixy

Have you looked at taking a small a buy to let mortgage on it?
That would probably be cheaper than an unsecured loan.

Foxy-Stoat_3

Unless your earning £100k+ a year then you are unlikely going to be able to refinance the debt.

Look for a good Buy To Let broker, they should be able to sort you out.