Best way of unlocking £100,000 from the house

home_bird

Good afternoon to all you good people.

If this is in the wrong section, moderators please feel free to move.

As my title suggests, my DH wants to release £100,000 from the house for a business venture and we were wondering what is the best way to go about this.

The current situation is this:
House is in DH's name only.
Looking on Rightmove, it's value is apx £310,000.
Last mortgage statement in January: £48,000 in overpayments (altho we have paid in another £1000 since), owing £29,500. Monthly mortgage payments apx £224. On Nationwide BMR.

Our thinking:

Get all the overpayments out, then remortgage? Is this the best way?

Remortgage without getting the overpayments out?

Business loan?

Loan secured on the house (but would prefer not to).

Any suggestions and feedback welcome.

TrickyDicky101

Sounds like you have an NW mortgage that theoretically permits you to borrow back the overpayments whenever you wish seeing as you are on the BMR. Please note that post-MMR NW have restricted access to this borrowback facility so it may not be straightforward.

How much is your husband's income as this will largely determine how much funding he can access from borrowing against a property in his name only?

home_bird

Thank you TrickyDicky.

DH is on £21,000pa. Ideally we want to borrowback £45,000.

If we can't, what would be our options?

amnblog

Are you saying the total lending needs to go back to £129,000 based on £21,000 income.

home_bird

HHmm, that's not going to happen is it? Even though we have alot of equity?

getmore4less

£100k set up costs for a business, is none of that buying assets?

How long before the business is generating excess income after servicing £100k of debt.

amnblog

It is not going to happen.

I am not trying to offend anyone but it is a big leap from earning £21,000 to running a business that warrants a £100,000 initial investment.

ScoobyZ

I called Nationwide yesterday and they wouldn't release funds to buy a buy to let. They said they didn't allow a remortgage to release fund for commercial purposes, including buy to let.

home_bird

Hi, Thought I would update this thread in case it helps anyone in the future.

DH managed to borrowback all the overpayments on the mortgage, we called Nationwide on the Monday and it was in his account on Thursday. We were worried that we may not be able to access the overpayments with the new rules but the telephone interview with NW was pretty straightforward, all they basically asked was what the money was for, we said we needed the money to do up the house.

getmore4less

So you lied to get the money back...........

home_bird

No, we have a change of plans.

Postphone the business plan...do up the house to command top selling price, buy a smaller house to live in and use the rest of the money for the business.

That way, we won't be borrowing money at ridiculous interest rates.