Borrowing large amounts of money??

[Katymac]

Will my mortgage company lend me money against the equity in my house?

Is this a good way to raise money to start a business?

Should I tell them it is to start a business?

Should I borrow off someone else?

Help I don't know what to do??

im not sure you can borrow for business purposes. Definatly tell them though, otherwise if they find out you could be in big trouble.

can you not approach the bank and see if you can get a specific business loan???

But that either has to be unsecured at a high interest rate or secured (which seems the same as a mortgage??or isn't it?)

sort of the same.

It's so hard making these descisions

do you think the business will suceed? will you be able to pay the loan off if it doesnt?

Well I hope it will succeed

But you have to buy the building employ your staff ask OFSTED to inspect your nursery approve it & only then can you open...so if they don't like it your opening is delayed

If it fails and I sell everything off I might make maybe half or 2/3rd of the loan

I would struggle to pay the rest off - but would probably be able to as my current business will still be running while I do all this

I am speaking to NEAT - I may approach Business Link

id go unsecured at higher rate if I were you... dont risk losing your home if it fails.

A wise man once told me never to use your own money to start a buisness.
You should try to only out up 25% yourself.

Well would anyone like to invest

It is a problem isn't it?

Have you seen Snap number 4 in member profiles?

hmm suew that isn't technically right about the fraud aspect. These days you don't need to tell the bank what you want the money for as its yours

Xena... some lenders say that it cant be used for business purposes. I think that Carol Vorderman advert says it at the bottom.

I kinda thought it might be fraud

Bummer

Thanks SG I'll have a look

Ok approach a new bank for a mortgage that goes up to 90% of your house and they will lend you the money without asking what you need it for. IIRC carol V adverts are for what they used to call Loan sharks.
We are selling our current house and buying a new one in a different place we not putting 50k back into the new house and we are going to use that to start our buisness.
ITS NOT FRAUD THE HOUSE EQUITY IS YOUR MONEY

obv you will need to earn enough money already to support the mortgage iyswim

Well if they let me have 3 times I could borrow another £33K which would help

And if 3.25 it would be £41.5K which would nearly sort me out

swap to a flexible mortgage like the one standard life bank do and then draw the extra money you need down, they don't give a monkeys waht you are using the money for it is secured on the house so it's your look out.

They lend based on affordibility as well so you might get enough depending on your circs.

Disclaimer! This is not advice merely offering an alternative suggestion!

hmmm that might work

Who else do flexible mortgages?

abby does flexibnle mortages i mortgaged my house to get money to build another house in the garden (madness but there you go)

Thanks

Go to a mortgage broker or IFA, or try online eg Moneyfacts or Charcolonline. As long as the loan fits affordability and the % loan to valuation is relatively low, eg 75% or less, mortgage companies don't give a monkeys what the money is for. It is fraud to lie about income etc, but not about the use you put the money to after it has been drawndown.

I would be borrowing about 2/3rds the value of the house - so that should be OK