How to Borrow 150k?

Joecattermole

Hello!

I am looking for advice on the best way for us to borrow about 150k to buy a property.

Me and my wife own a cafe which is our only source of income - the past 3 years accounts showing profits of approx 20k - 2014, 30k - 2015, and 40k - 2016 (2017 looking to be about 45k)

We have 50k savings and are looking to buy a new property for about 200k from which we will run a business from the ground floor and rent out the accommodation above.

We own our house outright with a current value of about 200k.

What are the possible options for borrowing (should we try and get a mortgage based on our earnings? Should we borrow against the value of our house?) and what (roughly) are the typical interest rates we can expect to pay on the loan? ..also what kind of timescales are associated with each type?

Any help would be greatly appreciated because we have pretty much zero knowledge on the subject!

Cheers,

Joe.

BJV

I would speak to a mortgage adviser. Buying a commercial property is very different than a private house. The amount you can borrow and even the rates at which they will lend. Speak to your accountant as well as you are paying them a fortune to know the ins and outs of your business.

MEM62

You will need a commercial mortgage. (And a business plan)

Anders_Theet

Or investment against equity?

foxy-stoat

Sell your property and go into rented for a few years, once the cash rolls in from your new venture get a mortgage to buy another home, this would be far easier and cheaper than releasing equity from your current property (if the lender agrees to lend) or finding a commercial mortgage.