Can I raise a mortgage on my house to update my fishing boat?

Posted on 24 March 2013 by Mr A Morris


I own my house. No mortgage. No debts. I own my fishing vessel which provides my income. I wish to raise £50,000 to update the vessel. I am 62. Can I raise funds on my house?

Mr Morris,

This is a particularly tricky request, with a number of potential issues. The first two are age and income related. Many lenders now cap their maximum age limit at 70 - 75 and where the loan loan goes over your stated retirement age, they will look for evidence of pension income to ensure that you can maintain the payments. They may also question at 62 years old how long you will be looking to keep working at sea? Also the term available to you may also affect the lenders affordability model.

The thrird issue that we will face is that you are capital raising effectively for business purposes, which again not all lenders will be happy with.

I think that it is more likely that we would have to approach a lender who manually underwrites applications, and can therefore look at each one on its individual merits.

If you'd like to explore your options further, then please let me know and I'll arrange a suitable time for a consultant to contact you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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