Hi all
I am looking at borrowing $340000 for a block of land value $350,000 as a development site for 2 townhouses, 1 to live in the other to rent out. Current mortgage of $350,000 on home with a valuation of 550 to 590,00 to be sold on a 12 month lease back $400 per week while building units.
I recently went to my bank and enquired about a loan and was told all was good if valuations are ok but they would have to run it by mortgage insurance. 2 weeks later after supplying countless bits of information and before valuations the mortgage insurer suggested to my bank that before they proceed any further with the application that i should withdraw the loan app which i did. My bank manager has suggested ways to go before going any further like paying a few extra personal loan repayments ect but i have decided if it is possible i will not be going through the process with them.
My details are
Partner 1 $124,000 gross year, current employment 2 years, previous employer 15 years.
Credit cards 1 $2000 2 $1000 nil owing on both
Personal loan was $40000 left to pay $14000 at $1800 per month
Personal loan 2 $14500 at $490 per month
$6000 in savings account
Spouse Self employed $70,000 gross, last years gross $46,0000 this seemed to be a reason the insurer was wavering.
Credit card $2000 nil owing on card
Mortgage in spouses name with partner 1 signed on as guarantor. Mortgage $350,000 property valued at $560 to 590,000 payments always have been more than what has been required.
Good credit history 4 mortgages in the past.
No dependents.
Is this possible to finance or should i forget it as i gather lending criteria has become harder but in the past i have never had issues like this when wanting a mortgage.
I hope this makes sense and somebody can give me advice as i have lost all confidence in my bank manager for help.
Thanks,
You say you want to borrow $340,000 on a place valued at $350,000 and will be selling a house for $560,000 with a mortgage of $350,000.
The sale should net you $200,000 which you could use for the current purchase.
Could be doable from equity pov. Income seems ok too.
Best to speak to a broker.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
As Terry mentioned all things being equal i believe the deal could be done however of course it will depend on which mortgage insurer declined the deal.
Knowing a little more information and who your current lender is would make it easier to advise further.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for replying Richard and Terry
The bank is the Bendigo bank not sure who the mortgage insurer is.
When i first approached the bank the manager said as long as the valuations are ok it should not be a problem but they would run it by a mortgage insurer just in case i needed it. Minimum price the house will sell for is $550,000 the block i want to buy was sold 18 months ago for 514,000 with a house on it the developer that bought the property demolished the house and was going to put townhouses on it but has since come into financial problems the block was put on the market at 400,000 and my offer of 350,000 was accepted subject to finance.
The mortgage insurer was picking random payments made by spouse from bank statements wanting clarification where the payments went also questioned a supposed loan from GE. Random payments they queried were to places like office supply companies. When i financed the $14500 i got finance myself through BMW finance but did speak to a broker about a loan and apparently thats how the GE mixup came up. Savings history has not been much as we have been O/S 7 times in the last 2 years. The bank manager has suggested i make a few extra payments on the personnel loan and reapply and from what i can understand the mortgage insurer did not decline the finance but suggested to the manager that we withdraw the application before proceeding further.
I hope this is enough info for you guys to make an informed decision and appreciate any advice given.
Thanks,
Ok Bendigo Bank that says it all.
Look without being funny it doesn’t suprise me the mortgage insurer said no because that is lending for you in 2012.
All things being equal i cant see it being too difficult to get over the line elsewhere.
Got a couple of similar deals on my desk from forum members and haven’t had an issue so far.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard
I certainly wont be with Bendigo much longer after this experience and as you say this is lending 2012.
A few other issues have popped up on the owners side of things now so will have to wait and see what pans out. Hopefully i will be in touch soon and see if we can work this out.
Thanks,
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