Cash Flow Problem - Solutions?

happyboy

Please advise

I am a property landlord, I let two properties out, providing me with an annual income of around £9000

Both properties are paid for and are worth approx £300k

I have my own home with a small mortgage of approx £30k

I have one loan with Abbey (secured against the house I live in) of £20k

I also have 2 credit cards with a balance of approx £6k

I seem to be struggling week to week with cash flow

Apart from selling the properties can anyone suggest how I can raise some money

I did attempt to borrow against one of the properties with Abbey but they refused

Between my mortgage and secured loan I pay out approx £650 per month

I could be doing with reducing my outgoings and my credit cards being paid off.

I have no objection of putting any of my other properties up as collateral

Does anyone know who/what I might be able to do i.e. experience of any good companies who aren't going to sting me for high apr

Thanks

mpython

What do you do for a living?

Do you have other expenses & income (e.g. kids, utility bills etc etc)?

happyboy

Married with 2 kids,
low income from partner (who is also self employed)
generally about £100 council tax
£80 for utilities, + sky + BT
I have been living via the income from the properties and also a house-husband when my partner does work
Also worth noting sold 2 properties over last 2 years, was claiming tax credits but faced with a big repayment - also the income from the properties sold went to pay off debt.

geordie_joe

If I had £300k in my ING bank account it would pay me £12,300 per year, paid monthly. Of course I would have to pay tax on the interest, but the bank has already taken a large chunk of tax before they give me the interest, so I wouldn't have to pay much.

If I were you I would get some professional advice. It may be worth selling the properties and stashing the money in a high interest account.

Don't know if the £9000 you get now is before or after tax. And whether you have to pay insurance for the properties and maintenance out that.

Beerworshipper

Hi Happy Boy,

Probably worth posting this again on the Debt Free Wanabee board. Read the stickys at the top and do a Statement of Affairs from the links they provide to show your incomings and outgoings.

Once you've done that and posted the results on the board (don't worry it reall is all very easy to do) the Debt Free Wanabee's over there will jump into action kike a pack of highly efficient money savers, they will offer numerous snippets of advicce tailored to your situation and before you know it you'll be saving more than you ever dreamed of.

Go on have a go - what have you got to lose:D

money_maker_3

Not 100% about this, but as far as I am aware the rental properties can be mortgaged ignoring your income as it is the rental value that they take into account and not your wages, so this could be an option to release some money, but it may not be the best advise in the world to increase your debt when you are struggling at the minute.