Commercial line of credit

by Readers Question

10:36 AM, 24th January 2015
About 6 years ago

Commercial line of credit

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Commercial line of credit

Following the death of my mother, I have just inherited the (unencumbered) house I am currently living in and am not necessarily rushing to realise its value and downsize, although that is the eventual plan. I do want to expand my B2L portfolio but have no reasonable provable income as I live on rental income plus profits of my mail order company which is too new to have any reasonable profit history. Commercial line of credit

I wondered about securing a line of credit against it to enable me to buy a number of small props for cash, refurb and then remortgage on a conventional B2L mortgage to extract most of my original investment. What is the best route to explore this kind of facility and what kind of information will a lender want to see?

Which of the Sponsors are able to arrange this kind of facility and is there a better route to achieve the same result?

Many thanks



Mark Alexander

10:43 AM, 24th January 2015
About 6 years ago

Dear Jerry

I am sorry to hear of the passing of your Mother and I offer my condolences.

With regards to sponsors who are most likely to help, in no particular order of preference, I suggest the following:-

Malcolm Jones - Member Profile and contact form here >>>

Mark Edwards - Member Profile and contact form here >>>

Howard Reuben - Member Profile and contact form here >>>

Adam Hosker - Member Profile and contact form here >>>

Jerry Jones

11:23 AM, 24th January 2015
About 6 years ago

No condolences needed, thanks - she had been suffering from severe dementia and the person I knew left some months ago.

Thanks you for the links - i hope some of them may chip in with their thoughts for public consumption. I've done business with Mark previously and found him very good.

Mark Alexander

11:40 AM, 24th January 2015
About 6 years ago

Reply to the comment left by "Jerry Jones" at "24/01/2015 - 11:23":

Thanks Jerry

Did you do business with Mark Edwards via a referral from Property118?

Jerry Jones

12:24 PM, 24th January 2015
About 6 years ago

Yes, it was when he was talking about product swaps on BM Solutions and I asked him to look into doing one for me on a TMW product.

Howard Reuben CeMap CeRER

16:53 PM, 24th January 2015
About 6 years ago

Hello Jerry

In response to your request for advice / suggestions, I can confirm that we have several lenders who would be willing to consider assisting you with your projects.

We know the lenders who will allow you to release cash from your existing properties, enabling you to buy, refurbish and then refinance - with some lenders providing you with the ability to remortgage on to the new higher value, even one month after initial purchase.

Lots of options, and we'd be happy to help with advice and strategy planning.


Mark Edwards

14:45 PM, 25th January 2015
About 6 years ago

Hi Jerry

Good to hear from you again, I think what you're asking is, is it possible to obtain a commercial line of credit secured on your residential property. Well this may be possible in certain circumstances. The lender would require first charge on the new investment purchase and a second/first charge on your residential. In this way we can potentially obtain 100% finance.

Give me a call to discuss the detail as to how this could be put in place.

Jerry Jones

14:53 PM, 25th January 2015
About 6 years ago

Thank you both - I'll be in touch for more details.

Ian Ringrose

12:10 PM, 26th January 2015
About 6 years ago

Another option is just to use an “offset mortgage” or “current account mortgage” on your residential property. They allow you to increase and decrease your mortgage at will within agreed limits.

The costs will be lower, but you will then have to use anther product to refinance the property you have done up, before repeating.

Jerry Jones

12:59 PM, 26th January 2015
About 6 years ago

The problem with that is a lack of a provable income, although my credit rating is spotless and I have 7 B2L mortgages (one of which is actually my former resi one from Santander at base plus 0.49%, with a grand's worth of Permission to Let - what a bargain that was!)

Yvette Newbury

13:43 PM, 26th January 2015
About 6 years ago

Reply to the comment left by "Jerry Jones" at "26/01/2015 - 12:59":

Lack of provable income? With 7 BTL, whether you own them yourself or through a company must be showing an income to you either now or before you set up your mail order company as you state you live off the income.

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