looking for new mortgage but was told by IFA and bank they could do nothing for us, living in rented property but have small btl mortgages on 2 properties have nearly 38k equity, have been told cant release any money..Have loan and credit card debt, never miss payments credit score is 952 feb 08, waiting on new credit report to see if anything has changed I dont know about. They have gave me no reason why even though have asked.

It seems to me that you already got your straight answer - the bank/IFA have decided that you have borrowed to the limit of your income. 38k equity is not a lot of money spread over 2 properties, and they are probably taking the view that if your tenants leave, you will be in trouble, since you are already stuck with a loan and credit card debt, and you have rent to pay yourself.

Which bit are you struggling with?

Hi skywalker

didn realise gave the impression I was struggling ! just dont see the logic,as for 38k equity is not alot wouldn mind seeing your wallet,as for up to my credit limit, earn not bad money on flats 250% return on each flat per month so they more than pay for themselves, my own rent is only because I sold my house and couldn find one at the time I liked so even though I have debt I still have my deposit and my rent is nearly 600 pm but the mortgage I would like would be around 400 they still havent given me a logical reason.

ps my btl mortgages are not very large got good deals

thanx

Hi...if your BTL's are self funding and you have a deposit I can't see why you can't get a mortgage. There must be another reason??? Your BTL's may already be up to 75% LTV and therefore no available equity to draw on, but I understand that is not necessary. Could you offer any more information??

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Regards

Ian

Equity is not the same as liquid capital. Do you have the 38k as cash in hand or included in your other mortgages? If its the latter then it will be almost impossible to get a mortgage without 25% equity over your protfolio.

Smala01

HI

My properties are sitting with about 40% on one and around 35% on the other, I would release money from them for to buy another BTL so my portfolio would grow but they have said I cant do that either, this is why I cant understand the logic maybe there is no hope for me until debt has gone, the way it was worked out I would be better off financially per month in my own property so I personally didn see the risk but obviously there is one somewhere. Just have to knuckle down make more money and get debt free wish me luck.