Low income, excellent score, poor chances..what to do?

mosaicsquares

Hi, interesting viewpoints thanks everyone..
I do work in forestry and if I'd brought land years ago I'd still have my own business. Working someone elses land gives no security as I unfortunately found out the hard way.

The point of taking a loan to buy land is that time is of the essence when growing trees.. a wood takes time to mature, 10 years and I'd have fuel for life, plus each year the price of land goes up.. securing land now is my priority before I get too old to see the fruits of my labour.

My income is spare because we are frugal and we have lived off one income for a few years. Why not try and follow ones dream, even if we're deemed as poor in others eyes.

I drew up a legal agreement with solicitors to protect my investment in the house should things go tits up. The Halifax did seem to penalize me for being a non earning housewife in this situation, but they had us over a barrel, our choices were very limited.

I understand now I must be a poor investment for lenders, but obviously they wouldn't see the potential.

boo_star

mosaicsquares wrote: »

Hi, interesting viewpoints thanks everyone..
I do work in forestry and if I'd brought land years ago I'd still have my own business. Working someone elses land gives no security as I unfortunately found out the hard way.

The point of taking a loan to buy land is that time is of the essence when growing trees.. a wood takes time to mature, 10 years and I'd have fuel for life, plus each year the price of land goes up.. securing land now is my priority before I get too old to see the fruits of my labour.

But lenders don't really care about that. What they care about is "if this venture goes belly up will we get our money back?" I suspect the answer is no as the desirability of woodland out the back of someone's house is quite limited, more so if the council go and strap a TPO on your trees. Perhaps not that likely but even if it isn't, can it be developed on? If it can't it's really not worth much.

My income is spare because we are frugal and we have lived off one income for a few years. Why not try and follow ones dream, even if we're deemed as poor in others eyes.

But it's nowhere near enough to support a £30000 loan. In the current lending environment, with everyone and their cat claiming misselling or "irresponsible" lending is the bank going to chance their arm for something like this?

I drew up a legal agreement with solicitors to protect my investment in the house should things go tits up. The Halifax did seem to penalize me for being a non earning housewife in this situation, but they had us over a barrel, our choices were very limited.

Not really relevant, banks don't want to repossess property, it's expensive and a headache they don't want to deal with. And again, if you go at them with an irresponsible lending claim they're going to be screwed, because it is exactly that.

I understand now I must be a poor investment for lenders, but obviously they wouldn't see the potential.

"Potential" is for business loans, not consumer ones.

[Deleted User]

mosaicsquares wrote: »

Hi, interesting viewpoints thanks everyone..
I do work in forestry and if I'd brought land years ago I'd still have my own business. Working someone elses land gives no security as I unfortunately found out the hard way.

The point of taking a loan to buy land is that time is of the essence when growing trees.. a wood takes time to mature, 10 years and I'd have fuel for life, plus each year the price of land goes up.. securing land now is my priority before I get too old to see the fruits of my labour.

My income is spare because we are frugal and we have lived off one income for a few years. Why not try and follow ones dream, even if we're deemed as poor in others eyes.

I drew up a legal agreement with solicitors to protect my investment in the house should things go tits up. The Halifax did seem to penalize me for being a non earning housewife in this situation, but they had us over a barrel, our choices were very limited.

I understand now I must be a poor investment for lenders, but obviously they wouldn't see the potential.

If you are applying for a personal loan then lenders won't be looking at the potential but your ability to pay it back and that size of personal loan on your part time income just isn't going to happen.

Potentially you could look at jointly remortgaging your home to release some equity to pay cash for the land. I don't know if any mortgage lender will entertain it and a lot of it will come down to affordability again and your LTV.

You can follow your dream, and you should if you can, but it's not being deemed poor in others' eyes that matters it's how lender view you in terms of risk and affordability that matters.