Hi,
I will use rounded figures to make this easier.
Let's say I have a mortgage of 150k, with 25 years remaining. It is on an excellent tracker rate of 2.15% (+.65% over ECB). There is also an LTV of about 30%.
I have no debts apart from the mortgage and plenty of disposable income.
I want to buy some land that costs 50k.
People I talk to in branches, and brokers, all say that on paper there is no issue with my approval.
However I am getting a flat refusal when the request goes up the line because banks "are not lending on agricultural land."
I have been told they would lend me the money if it was for home improvements. I'm not prepared to pretend it is for that.
I have the following idea:
Work out the interest payable to the bank for
- 150k/25/2.15% (45,000)
- and 50k/25/2.15% (15,000) = 60,000
Entice the bank to offer me the 50,000, by giving up my tracker.
i.e. remortgage the entire lot (200k) but at a variable rate.
200k/25/current variable% = interest of 130,000 (approx)
This is obviously WAY too much interest
So, would there be a possibility of them doing a custom rate????
i.e. 200k/25/2.75% = 75k interest
My monthly repayments would be OK, I would get the land. And they would get me off a tracker and earn more interest. I am pretty sure I could pay alot of it off early.
Do banks do this kind of thing? I have a meeting with them next week and want to know if I should even bother mentioning this.
I have been told that I could simply remortgage with another provider, not mention the land, and just release the 200k in one go. But I would have to move to the high variable interest rate. The point is that this IS possible, but is just too expensive. I'm just looking for a halfway point (or less!).
Thanks.
I will use rounded figures to make this easier.
Let's say I have a mortgage of 150k, with 25 years remaining. It is on an excellent tracker rate of 2.15% (+.65% over ECB). There is also an LTV of about 30%.
I have no debts apart from the mortgage and plenty of disposable income.
I want to buy some land that costs 50k.
People I talk to in branches, and brokers, all say that on paper there is no issue with my approval.
However I am getting a flat refusal when the request goes up the line because banks "are not lending on agricultural land."
I have been told they would lend me the money if it was for home improvements. I'm not prepared to pretend it is for that.
I have the following idea:
Work out the interest payable to the bank for
- 150k/25/2.15% (45,000)
- and 50k/25/2.15% (15,000) = 60,000
Entice the bank to offer me the 50,000, by giving up my tracker.
i.e. remortgage the entire lot (200k) but at a variable rate.
200k/25/current variable% = interest of 130,000 (approx)
This is obviously WAY too much interest
So, would there be a possibility of them doing a custom rate????
i.e. 200k/25/2.75% = 75k interest
My monthly repayments would be OK, I would get the land. And they would get me off a tracker and earn more interest. I am pretty sure I could pay alot of it off early.
Do banks do this kind of thing? I have a meeting with them next week and want to know if I should even bother mentioning this.
I have been told that I could simply remortgage with another provider, not mention the land, and just release the 200k in one go. But I would have to move to the high variable interest rate. The point is that this IS possible, but is just too expensive. I'm just looking for a halfway point (or less!).
Thanks.