Mortgage help, buying a garage

[Scuff_]

Hi,
Going to make an appointment with bank later but hoping for some help from here first.

I've seen a garage for sale near my house that would be ideal to store my P&J in. The price is £20k (it's a big garage, enough room for 2 cars + work space) and have a 10% deposit available.
We are currently halfway though a 5 year fixed deal on our house and don't really want to change this, ideally i'd like a second seperate mortgage so the house and garage are not tied in together as I may want to sell one and keep the other at some point.

Will lenders be interested in loaning on a garage or will I have to go down the unsecured route to purchase? Current mortgage is less then 2x current earnings so no issues with borrowing further.

thanks.

[scotal]

Scuff_ said:

Hi,
Going to make an appointment with bank later but hoping for some help from here first.

I've seen a garage for sale near my house that would be ideal to store my P&J in. The price is £20k (it's a big garage, enough room for 2 cars + work space) and have a 10% deposit available.
We are currently halfway though a 5 year fixed deal on our house and don't really want to change this, ideally i'd like a second seperate mortgage so the house and garage are not tied in together as I may want to sell one and keep the other at some point.

Will lenders be interested in loaning on a garage or will I have to go down the unsecured route to purchase? Current mortgage is less then 2x current earnings so no issues with borrowing further.

thanks.

Whats the loan to value on your house?

[Scuff_]

have about 30% equity in the house.

[scotal]

So your current mortgage may or may not be able to take the £18k you want to raise?

If it can then that will most likely be the easiest way.

Getting a first charge at reasonable rates on a garage at 90% ltv might be interesting.......

[Scuff_]

I thought as much, guess its going to be a case of weighing this up against the charges for taking equity out of the property before the end of the current 5 year deal.
Have a meeting on Friday, will see what they say thanks.

[anonymous-user]

You should be able to get an equity release loan from your current provider (subject to credit approval of course) without changing your existing 5 year deal.

[scotal]

MRSNEAK said:

You should be able to get an equity release loan from your current provider (subject to credit approval of course) without changing your existing 5 year deal.

That depends on the max LTV of his current loan, if the mortgage is at or near its LTV limit he might struggle. Irresepctive of that, he mith struggle if his lender is a bit wary of what the loan is for.

[btsidi]

Could you get an unsecured loan instead, separately on the garage?

[onomatopoeia]

MRSNEAK said:

You should be able to get an equity release loan from your current provider (subject to credit approval of course) without changing your existing 5 year deal.

Depends on who the current provider is. Some wont.

[Scuff_]

onomatopoeia said:

MRSNEAK said:

You should be able to get an equity release loan from your current provider (subject to credit approval of course) without changing your existing 5 year deal.

Depends on who the current provider is. Some wont.

the main issue is persuading Mrs Scuff to allow me to take equity from our house to pay for what is effectivly my toy store

[scotal]

Scuff_ said:

onomatopoeia said:

MRSNEAK said:

You should be able to get an equity release loan from your current provider (subject to credit approval of course) without changing your existing 5 year deal.

Depends on who the current provider is. Some wont.

the main issue is persuading Mrs Scuff to allow me to take equity from our house to pay for what is effectivly my toy store

You pay the extra oon the mortgage. You overpay to lower this extra debt in a given timescale.
Its cheaper than moving house, or a divorce.

I suspect your biggest issue is going to be persuading your lender to allow you to buy your toystore.

[Seight_Returns]

I tried unsuccessfully to do this 10 years ago. I asked that the garage be added to the mortgage for my fla,t but the mortgage company wouldn't acknowledge that the garage would add any value to the flat and at the time I had insufficient equity to withdraw to buy the garage outright.

Phoned a couple of brokers trying to get a mortgage for just the garage, none of whom could find me a lender prepared to offer a mortgage secured against a garage.

Unsecured lending was my only option.

[m4tt]

For that much I'd consider a personal loan, fixed rate over 10 years, will be a higher rate, but not secured against anything which may be attractive to you.

[a boardman]

was the garage a business garage or personal,

if it was you may have to business rates on it even though it is for personal use, that is what I was told when looking at a garage behind my house.