Home Loan questions

[Ron Manager]

Been 8 years since I had any involvement in the UK mortgage industry and I know the whole industry has changed quite a bit since then, so wonder if anyone working in it (maybe as a broker) could answer my questions?

We still own our home in Westcliff which is rented out, I figure about 50-60% loan to value based on what I can see of recent valuations in the area. Rent comfortably covers Interest Only mortgage. Looking at options of remortgaging and raising maybe about 25k or so to bring across to Oz as a deposit on a house over here as the exchange rate is moving in our favour. Ideally I'd like some sort of 'Portfolio Loan' option where the facility is there for us to draw on when we need it, but only charged interest on what's actually drawn down.

Understand that no-one can give a definite answer based on that general overview, but wonder if I'm being completely unrealistic or is this maybe a go-er? We're in the country for 6 weeks in late November/through December so could maybe get the ball rolling then.

Cheers all

 

[MK Shrimper]

PM Dave The Shrimper, he's yer man on mortgages and 'ting.

 

[rigsby]

I did something very similar around six years ago with HSBC. 50% loan on a house I already owned to develop another property I had bought. This was by far the cheapest way of borrowing.. 1.79 above base. Not sure how any bank would be about the money disappearing to Oz.

Word of warning about draw down facility. In my case when I went to draw the last £15,000 they asked to see all my receipts. Despite support from my branch, they could see I had bought new boilers etc, so was clearly close to completion with the new project. Some faceless bean counter at headquarters refused the last stage. I would have been better off taking the whole loan in the first place and putting it in another account. Luckily I have some trusting friends who paid for the kitchen otherwise I was facing £1000 per month repayments with no rental income.

It has since been proved that some banks (mostly RBS) deliberately tried to scupper certain viable projects/businesses in order to grab the property.