HI all,

Just a very quick question, I'm looking to raise £17000 via a secured loan against my property, but at the moment I don't live there (living in rented accomodation & working up North).

My parents are currently living in my home and cover the cost of their living i.e. bills and council tax etc.

Would I still be able to apply for a secured loan on my property or is this not allowed as I'm not living there at the moment?

I earn £27000 PA and the house is worth £125000 approx with a £82000 mortgage owing.

Any advice would be great, thanks :-)

S

PS Asking my mortgage company for an increase is not an option as due to the financial crisis over the last 12-18 months they have basically closed up shop (to the extent of not offering any new deals to their customers or taking on new business).

I would think that any company approached to provide a secured loan, would have to contact the existing mortgage company, to see whether they can hold a second charge. Your mortgage company, as they hold the first charge, could block the additional loan.

It would be in your interest to advise your mortgage company of your current circumstances, if they don't know already. As it is your parents living in the property, they should not consider it as a buy to let. If you applied for a secured loan, they would need to know your current address, as well as the secured address. If they contacted your mortgage company for permission, they could find out about you living elsewhere.

Have you also thought about looking into remortgaging the property. Would a new company provide a mortgage for £17k more than the current amount owed. It may be worth contacting a local independent mortgage broker, so they can look into this for you. Find using http://www.unbiased.co.uk/find-a-mortgage-adviser/

Hope this helps.

Huckster