Second charge on a property

[Oneposhbird]

Help needed please. To cut a very long story short. I have been offered a thriving business and also been given the opportunity to pay for it over a 10 year period. Naturally the sellers are wanting some form of security however my mortgage lenders, First Direct, will not accept a second charge on my property, apparently it is something they never agree to for customers. Does anyone have any suggestions how to get round this at all?

Could you increase your mortgage and use that money to buy the business outright?

You can get secured loan from lenders other than your mortgage provider but it is quite unusual for someone to sell you a business over 10 years- are you sure it's all its crack up to be?

Try HSBC although First Direct in same group they have different criteria.

You need to go to one of their main commercial lending centres though not your high street branch and talk to a specialist in business lending department. Commercial bankers think a lot different to retail bankers but getting banks to lend is tough at the moment though.

One other thing. If you are buying over ten years this sound like an 'earn out'. Have you negotiated a clawback if the business fails to live up to expectations? Is the current owner still a share holder? How will you manage that relationship? Sounds very complex - a clean break is a lot better and easier.