Lending against a house we own outright?

Marcusian

I need to raise some capital for a business venture (owning a gym). My wife owns our house outright (value is 240k) so my understanding is that this is an affordable option? Granted the home would be at risk, but I was talking about borrowing 10-15k over a couple of years. From a friend who is in a similar position, he says this would be around 1.9% interest – does that sound right? What other criteria would I have to meet? Besides a minimal amount (probably none, but will be under £500 by the time I apply for the loan) of interest free period credit card lending and my student loan, I am completely debt free and clean as a whistle so to speak.

Anyway, any help appreciated.

[Deleted User]

You could apply for a loan, either secured or unsecured. It's too small an amount to remortgage.

But I'm not sure that sure anyone is lending at 1.9%.

You'll probably be looking at 4% upwards, depending on how lenders view you. And the reason for the loan would increase your risk profile.

Pixie5740

If the house is owned in your wife's name only then I think any loans secured against the property would also have to be in her name rather than yours.

As zx81 says, £10k to £15k is probably too low for a remortgage.

I don't know of any secured loans with a rate of 1.9%. A quick online search suggests that 4.45% is probably the best you could do.

A personal loan with an interest rate of 3.6% might be possible depending on your credit history and affordability.

Have you looked into loans and grants for business start ups? That could be another avenue to explore.

DCFC79

Not seen anyone offering 1.9%, its too low for a start.

Ebe_Scrooge

Most lenders won't give a personal loan for a business venture - you'd need a business loan, which usually carries a higher APR. You could ask about personal loans, but don't be surprised if you're turned down when they ask about the purpose of the loan.

Marcusian

Thanks guys...

Horseygirl123

Pixie5740 wrote: »

If the house is owned in your wife's name only then I think any loans secured against the property would also have to be in her name rather than yours.

As zx81 says, £10k to £15k is probably too low for a remortgage.

I don't know of any secured loans with a rate of 1.9%. A quick online search suggests that 4.45% is probably the best you could do.

A personal loan with an interest rate of 3.6% might be possible depending on your credit history and affordability.

Have you looked into loans and grants for business start ups? That could be another avenue to explore.

I've just been listening to the business expert on Jeremy Vine's Radio 2 programme. Many more options to borrow, not just banks. I think even local councils were mentioned.