900k equity how can borrow ?

Nadsbmw

Thrugelmir wrote: »

If the property generates no income how are you going to service a £435k debt? Interest rates may well not remain at current low levels indefinately. At 6% your mortgage interest will be over £2k a month.

Don't calculators that include a stress test take this into account ?
As any BTL has the potential for void periods I thought that's why LTV requirements and rental income parameters exist. In my case LTV would be 36.25 %

getmore4less

£435k I/O upto £2k available in range with some room for rises.
£1000pm 2.76%
£1500pm 4.14%
£2000pm 5.52%

Doable on an I/O basis but need that long term plan to keep the place and get the debt down.

£2k @ 4% 32year

Ebe_Scrooge

Nadsbmw wrote: »

property valued at 1.2m

And you want to borrow £150K? Can Mummy and Daddy not lend it to you?

Seriously though, why do you need to raise the money ? This may influence the suggestions people give.

I'm sorely tempted to say, though - why is someone who owns a property worth well over a million quid, posting on a money-saving site ? Just saying, like ....

Nadsbmw

Ebe_Scrooge wrote: »

And you want to borrow £150K? Can Mummy and Daddy not lend it to you?

Seriously though, why do you need to raise the money ? This may influence the suggestions people give.

I'm sorely tempted to say, though - why is someone who owns a property worth well over a million quid, posting on a money-saving site ? Just saying, like ....

Wow ! how insensitive, you have no idea how I came to own the property .......or if I even have a "mummy and daddy".
So this forum isn't for people who have assets or equity in property.
Not my fault that there are such stupid property prices in London.
in my next of the woods 1.2m doesn't exactly get you much more than a decent sized family home. No need single me out because of the property value. I only came here for some advice on raising funds. I think your comments are a little harsh, no need to get personal.

erin110

Don't see why this wouldn't work. There are a few lenders out there now that do not require a minimum income. As long as there are no other issues as stated above then you should be fine. I would get a good broker.


I take it this is not a limited company BTL or a HMO? I specialise in this area so as long as its straight forward and you can prove some income the rate should be quite competitive.


Also do you own your own home?

Thrugelmir

Nadsbmw wrote: »

Don't calculators that include a stress test take this into account ?

The stress test will against the amount of other disposable income you have available. Cashflow is the root cause failure of many a business. Assets simply provide the security.