How likely?????

[Deleted User]

I have an interest only mortgage that is due to expire in October 2019. House has been professionally valued as being £750,000- £800,000.

Mortgage is currently £389,000, with a second mortgage of £46000.

I currently have £100,000 cash in bank I will use to reduce it (keeping it in my own limited company business account for now as I have a very low interest rate on existing mortgage).

I have income to limited business account of £20,000 a month - so potentially £200,000 extra to reduce it by deadline though taxes to pay in Jan 2020 so let's say £150,00 to put towards it (Everything I earn in Oct, Nov, Dec and Jan will go to taxes).

I have £80,000 in a personal pension I could take (age 57) but would prefer to leave that there and spend next 10 years adding to it if poss.

My credit rating is confusing - Experian have me as Good; Noddle as very poor; no idea why such a big difference.

My plan is to wait until Feb/March and reduce debt as much as poss in meantime to give me best chance of raising my credit rating and then speak to a mortgage broker about getting a top up mortgage of maybe 15-25% LTV. Am I likely to get it esp with such a varied credit report?

Thank you experts.

csgohan4

You may need an accountant for your limited company, as taking money out of your company is not that simple. You could give it to yourself as a loan, but if not accounted for i.e Paye, dividends your going to run into trouble with the HMRC.








A broker maybe useful to engage to see your options

AnotherJoe

Are you actually looking for a top up mortgage? eg borrowing even more?

Or did you mean convert the mortgage that was left after reducing it, to a repayment mortgage?


You cant just take £80k out of your personal pension, the rates of tax would criminal.

[Deleted User]

Thanks for responses. I have an accountant and it will all be handled properly. I do not want anything other than to pay off the house. No increase. Just really need an extra year or two so as my current mortgage provider can not extend the term I need to find a new provider for the difference. Pension - yes last resort but not that worried as I have other properties providing an income but they are in an area that is difficult to sell in so can't rely on selling them to provide capital now.

AnotherJoe

So you will be looking for a repayment mortage of maybe £125k? Doesn't seem like a stretch if you are earning £20k/month you could pay that off in a year or two easily.
Next summer see a broker.