Urgent advice to try keep my home..

Discussion in 'Mortgages' started by Jo319, Oct 11, 2019.

  1. Jo319

    Jo319 New Member

    I have a grade 2 listed beautiful cottage, valued at £225k, that has a 12 year £50k mortgage remaining. I had to take out a £40k bridging loan due to a change in financial circumstances that destroyed my credit score, preventing remortgaging to access the £175k equity.
    This is due to be repaid in full at the end of October. The funds were to refurbish the house for sale, allowing the mortgage and loan to be paid off.

    However, I have been severely ill with a newly diagnosed pituitary tumour that has slowed down work on the house, that I am doing myself.
    I have been offered another 6 month loan of £55k to repay the due Bridging loan, which will cost me £25k.

    I am looking for alternative ways to be able to refinance in a different way that may allow me to either stay in my home, or rent it out for 3 years, until I can access Equity Release when I reach 55.
    I think the only way to do this would be to find an investor to buy into a share of the house for 3 years, with the increase in value providing a return when I either sell or refinance with ER.
    I have no idea how to do this, where I might find investors and how to structure a mutually beneficial deal.

    If anyone has any advice/contacts regarding repayment of the loan, investors, or any other clever way to come out of this smiling then I would be very glad to hear from you...

  2. Longterminvestor

    Longterminvestor Administrator

    There are a number of factors to take into consideration here. Despite your credit rating, I am surprised you are not able to remortgage on traditional terms bearing in mind the level of equity you have in the property. Personally, I would approach a mortgage broker to see what they can do.

    If you were to go down the investor route, to raise funds to pay off your bridging loan, you might like to throw in the option to buy the whole property at a predetermined price over a specific period. You would probably be able to bring in an extra few thousand pounds by giving the investor the option to buy the whole property further down the line.

    When you consider that nobody really knows where property prices will go in the short to medium term, you may lose out a little if the value rises or if the property fell in value then the investor would not take up their option. They may try to buy you out at a low level but as their option would have a predetermined price you would have the option to sell or not. Just some ideas.

    Take professional advice before deciding.
  3. lookinginvest

    lookinginvest Member

    There are specialist lenders out there who see these scenarios every day of the week. Go through a mortgage broker and find out your options.
  4. diyhelp

    diyhelp Active Member

    Arrange to see a mortgage broker asap. You will not be the first and certainly not the last to find yourself in a situation like this.
  5. realdeals

    realdeals Active Member

    I am pretty sure there will be a decent way around it considering the amount of equity you have in the property. I also suggest trying a mortgage broker.
  6. Longterminvestor

    Longterminvestor Administrator

    Even if you have to approach a mortgage broker they should be able to more than save you their fees if they can find some suitable finance for you.

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