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.
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
Jerry
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Member Since May 2014 - Comments: 252
5:38 PM, 26th January 2015, About 11 years ago
Reply to the comment left by “Yvette Newbury ” at “26/01/2015 – 13:43“:
A lot of mortgage companies want proof of income but will not, for reasons known only to themselves include B2L income.
It doesn’t make sense, as the likelihood of having voids in all your properties at the same time is unlikely so there should always be some income to pay the mortgage. Whereas a day job that they will allow could be lost overnight ending up with no income to pay the mortgage!
Comments: 297 - Articles: 1
5:59 PM, 26th January 2015, About 11 years ago
Plenty of losses brought forward have finally run out so my income for tax purposes on the SA302 has been zero for many years.