term loan

[forjon]

I require a term loan of 650,000 to construct a house on my own site construction cost c. 350,000.The other 300,000 I require to pay off other loans of 215,000 the balance I require as pocket money.
I need the loan for 18 months to 2 years.I have a mortgage free house value 850,000 euro with a rental income of 20,000 euro per year.this house I would intend to use a security and to sell same to pay off the 650 grand when the market improves.I would intend to keep the new house mortgage free.
I need advise on the best Bank to secure same from and general advise from someone out there.
thanks,Forjon.

 

[LDFerguson]

I don't think you'll get a term loan of €650,000 over 2 years anywhere. You may qualify for a mortgage of €650,000 over a longer term if your income will sustain it, on an interest-only basis. You'd need an income well into six figures in a very solid job. After two years, if you're on a variable rate you can sell the property and repay the loan. Assuming that the value hasn't dropped below what you owe by then.

If the other €215,000 debt is property-related, you may get a bank to refinance it. I'd be very suprosed if any lender will allow you to borrow €85,000 as pocket money.