Overseas financing

I applied for some equity release on my property to buy a property abroad (only neeed 30k) yet the banh (ICS) refused it. Dont really want to remortgage to a new institution but if I have to i will, would they have refused because I said on the application that it was for an overseas property... should I have made something up like home improvements!! Any advice ?

figgy said:

I applied for some equity release on my property to buy a property abroad (only neeed 30k) yet the banh (ICS) refused it. Dont really want to remortgage to a new institution but if I have to i will, would they have refused because I said on the application that it was for an overseas property... should I have made something up like home improvements!! Any advice ?

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Dont know for sure to be honest but dont see what they would have a problem with you investing the money in a property abroad unless maybe they thought it was a risky investment possibly??

Ask again and say if they do not provide release that you will move mortgage. Should do it.

markowitzman said:

Ask again and say if they do not provide release that you will move mortgage. Should do it.

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That sounds like it came straight from Eddie Hobbs

You could look to do a secured loan for £30k depends on where you are looking to buy overseas and what growth your expecting to be able to pay of the loan as soon as you can. ALso depends whether you have enought collatreal in your house. You could expect to remortgage your overseas property once there is your £30k equity within the property overseas and repay the loan, almost bridging the gap for the interim. If you are buying in euros and your raising a euro loan for the overseas purchase your rate is going to be low whilst secured loan could be around 5 to 6%. Wheer you buying overseas?

Thanks everyone, think I will tell the bank that I will remortgage elsewhere and see if they will reconsider... Ice cool, how does this secrued loan work and who would you go to about this??? A regular bank or a broker???

If you could post the following details I could advise you of your options;

1. The market value of your house
2. The current mortgage balance
3. Details (amount owing/repayments) of any other loans
4. Your occupation, basic salary and any additional income
5. Your age

Sarah

www.rea.ie

1. Value = 315000
2. Remaining = 236000 (approx)
3. 1 loan (7500 remaining, 215 a month)
4. Qualified chartered accountant, 50k annual salalry, 10-20% bonus, 7500 from renting a room
5. 26 (nearly 27!!)

Based on those figures you should qualify for a fees free remortgage from either IIB or the EBS or the €1000 towards your legal fees offer from Bank of Scotland although you might need to include your loan in the remortgage to fit under the net disposable income criteria. I would suggest you go back to ICS and tell them that you intend remortgaging unless they are prepared to reconsider.

Sarah

www.rea.ie