Getting a mortgage based on cash and other assets

musashi10

Hi.

Just wondering if this is possible.

Say you had £500,000 in the bank and you had £500,00 in non-income generating assets (not deemed cash equivalent) .No regular income

Can you get a mortgage in either of these two scenarios.

1) Mortgage for home to live in for Home cost £200,000
2) Mortgage for a 2nd home, Home cost £200,000 that will generate some income - holiday let for example.

I guess that the provider would also like a reason. My reason is to buy more assets.Which I guess wouldn't go down to well.

And if so, can anyone recommend a company that provides this?

Or alternatively to provide security.

Could you buy a house with cash for £200,000.Use that as collateral  And then get some of that cash back through a mortgage? (to then use to buy more assets)

Thanks

[Deleted User]

Without an income, you won't be able to get a mortgage.

But you can buy a house for cash in other scenario.

getmore4less

Why do you need to keep the cash?


£1m generating no income?
Any in property?

What do you live on, no job?.
Where do you live(as one of the purchase is a place to live)

justwhat

One  option is BTL. As long as you told them your "intention" was to rent out.
 Cash rich or asset rich is not very good for getting credit 

The system is not set up or any use to people that are cash rich. You would play the system use BTL or get a job for 6 months...lol

Once you have a mortgage the banks are not interested in your income. So you can have 0 income as long as you keep paying the mortgage.

musashi10

justwhat said:

One  option is BTL. As long as you told them your "intention" was to rent out.
 Cash rich or asset rich is not very good for getting credit 

The system is not set up or any use to people that are cash rich. You would play the system use BTL or get a job for 6 months...lol

Once you have a mortgage the banks are not interested in your income. So you can have 0 income as long as you keep paying the mortgage.

Thank you. I suspected this is the most likely scenario

[Deleted User]

BTL mortgage could be tricky, not impossible but tricky, with zero income and not already owning your home. Not to mention what @justwhat is proposing is mortgage fraud. 

musashi10

Why do you need to keep the cash?


£1m generating no income?
Any in property?

What do you live on, no job?.
Where do you live(as one of the purchase is a place to live)

I want to accumulate as many assets as I can, and wish to leverage what I have to do so.

My thesis which I don't expect anyone to agree with and am not recommending - but is just my personal thesis:

USD/GBP with the excessive money printing is gradually being debased to 0.

As part of the money printing we are seeing and will continue to see rampant inflation.

At the moment this inflation is selective to certain asset classes - which will filter into the real economy once the velocity of money increases. As this scenario plays out there will be a further rush to real assets as people try and protect their wealth - so I am expecting these asset classes to go through the roof in the mid term future.

So to me it makes sense to accumulate as many real assets as possible now before the mainstream mad rush starts.

It also makes sense to get as much cheap fixed debt as possible, because in the above scenario in real terms the debt will get "paid off" by the inflation in real terms.

If I need cash in the future, I will borrow against assets or sell assets. Or divest into some income generating assets such as property.

musashi10

The reason why I have avoided income generating assets thus far, has been because of the above.

The cost of capital on the income generated is extremely high with the debasement of the currency. Higher than most income generating assets.

One could argue with this thesis that the MMT policy is temporary, but if you look at history late and recent and the real state of the economy I believe that the only way forward for government policy is to continue to print i the short to medium term

musashi10

In fact with debt to gdp levels almost reaching 100% inflation is the only way that the government will "pay back" their massive debts. So hence why I think scenario will play out.