Really hope someone can help or point me in the right direction....
I completed my IVA in Nov 2013. I live with my girlfriend in her property, contributing towards her mortgage. We do not have any financial links.
I still own my property in another part of the country. I have been trying to sell it since March this year with no luck so far, and no signs of anything changing despite dropping the asking price buy around 20%. I have £59k outstanding on my mortgage, and my property was initially valued at £105k in March 2014.
My main aim is to get my hands on some of the equity (ideally, around £10k). Ideally, it would be as straightforward as selling up but this seems unlikely now. I was wondering if there is anyone out there that would allow me to remortgage to a buy to let mortgage, to allow me to release some equity and to then rent out my property for a few years when I may try to sell again.
Or, is there another option I haven’t considered?
Thanks in advance.
In the depth of winter I finally learned that there was in me an invincible summer.
-- Albert Camus
Have you considered a secured loan? You could take it over a long period and it coiuld be arranged quickly.
I know Shaun Vickery at Select can raise funds for people in IVAs so no reason why he could not do it for you. His details are in the ask the experts section.
Good Morning. There may be options available to you. As always it will depend on your other circumstances but you should try to be clear on whether you intend to rent the property out or continue to try to sell it as this might determine the best option.
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by neilo1978
Hi,
Really hope someone can help or point me in the right direction....
I completed my IVA in Nov 2013. I live with my girlfriend in her property, contributing towards her mortgage. We do not have any financial links.
I still own my property in another part of the country. I have been trying to sell it since March this year with no luck so far, and no signs of anything changing despite dropping the asking price buy around 20%. I have £59k outstanding on my mortgage, and my property was initially valued at £105k in March 2014.
My main aim is to get my hands on some of the equity (ideally, around £10k). Ideally, it would be as straightforward as selling up but this seems unlikely now. I was wondering if there is anyone out there that would allow me to remortgage to a buy to let mortgage, to allow me to release some equity and to then rent out my property for a few years when I may try to sell again.
Or, is there another option I haven’t considered?
Thanks in advance.
Speak to your current lender. Some lenders will look at a "consent to let" (NatWest do this) - essentially them giving you their permission to let out the property, but on a residential rate.
You may be able to get a release of equity at the same time, too.
My brain is now programmed to translate the word 'loan' into 'step 1 in getting into debt again'. After my experience of the last few years, I am very reluctant to get a loan.
I have been renting out my property for the last few years whilst in my IVA, not wanting to sell then for obvious reasons. My mortgage provider (Woolwich) agreed to this and the arrangement runs out next year. I considered asking them about changing to buy to let and releasing some equity but am hesitant purely because they are owned by Barclays, who were one of my creditors. Would this not work against me when they were making a decision? It seems like I am almost rubbing their noses in it, pointing out that I cost them money, and am now able to make more than I owed them in the first place.
I know it makes more long term sense to hold onto my property as when my mortgage is completed in 11 years, the money made would, more than likely, be a life changing amount. Selling up now would mean a lot less, but I just want to cut my losses and start afresh, using any equity to make an honest woman of my girlfriend, put some money away (for the first time ever!) and start a family.
If my property won’t sell, then I wouldn't be against renting it out but the first hurdle is the mortgage being a residential mortgage, and at some point I will need to spend some money on my flat (it hasn't really been touched in the last 8 years) to keep it in a state that it is rent-able.
I just keep tying myself in knots trying to figure out a way around this. Any further advice/suggestions would be much appreciated.
In the depth of winter I finally learned that there was in me an invincible summer.
-- Albert Camus
I appreciate entirely what you say about getting into debt again. Stating the obvious I know but if you don't sell the house and you want to get your hands on some of the equity then borrowing is the only way to do that. I guess it really depends on what you want the money for and how important it is to you. PS. I've changed my response numerous times now because I'm not entirely clear on what the question is! It may be worth having a conversation with a professional adviser who can help you to explore your various options?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Shaun Vickery
I appreciate entirely what you say about getting into debt again. Stating the obvious I know but if you don't sell the house and you want to get your hands on some of the equity then borrowing is the only way to do that. I guess it really depends on what you want the money for and how important it is to you. PS. I've changed my response numerous times now because I'm not entirely clear on what the question is! It may be worth having a conversation with a professional adviser who can help you to explore your various options?
Thanks Shaun.
I appear to be tying you in knots too
I think my original question was, is there anyone that is likely to give me a buy to let mortgage given my credit history? I have been speaking to an IFA but he could only find lenders that would give me a residential mortgage. Was hoping the experts lurking around the IVA forums would have some inside knowledge.
In the depth of winter I finally learned that there was in me an invincible summer.
-- Albert Camus
Lending criteria for BTL property does tend to be far more strict in terms of credit history than residential and so I'd say it's highly unlikely and this appears to have been borne out by your IFA.
A good starting point, particularly if you aren't looking to raise additional funds, would be to see if Woolwich would extend the consent to let arrangement. Perhaps you should concentrate on this piece of the jigsaw first?
Specialist Mortgage Advisers. Highly Commended at the British Mortgage Awards.
It may be worth having a conversation with a professional adviser who can help you to explore your various options?
