Advice on re-mortgaging

Lifeisbutadream

Me and OH have had a mortgage for 11 years - it was a 25 year mortgage so we have 14 years left.

We have remortgaged several times, through moving house, home improvements etc. and currently owe £88,000. Our house is worth around £250,000.

The mortgage is now a repayment only mortgage and we have no endowments.

We are self-employed and our books show a profit (between us) last year of £16,000 - the year before it was £2,000. We basically pay ourselves the minimum amount possible and plough everything else back into the business (we are trying to expand).

We want to borrow another £15,000, but when I rung the Abbey they said that they would need 2 years worth of accounts - now obviously they wont lend us any money on the amounts of profits that we have, so what other options do we have??? we can afford to pay it because we will just pay ourselves slightly more to cover the extra mortgage - I dont really know what to do as we have always just stayed with the same lender and not shopped around.

I really would appreciate some advice if anyone can help.

druss

As your business is expanding I presume your current year will likely show a higher profit than last year, if your accountant is able to back this up with a projection of profit for the year many lenders will take this into consideration.

Regards

luckyfool

C&G and RBS will take an average of most recent years final figures + a projection of the next years figures.

Lifeisbutadream

We are not paying ourselves any more - we are ploughing it all back into the business, so I would expect this year to be only slightly higher than last. The year after the same again - possibly a rise of £2K per year...