Capital Raising - Low income

Posted on 27 April 2012 by michael

I have a house without a mortgage worth around £230k; but I need to raise capital to finish the work and also to pay off overdraft/credit card of around £6k and to invest in my business. I am a sole trader with a carpet cleaning business; as my business has slipped to page 7 of google need to update that with SEO etc. The last two years of accounts were below £5k after expenses etc. It seems impossible to get a mortgage or a loan and every avenue seems to be income based. Any ideas?


I regret that without a provable income that covers the amount you want to borrow, it will not be possible to get a capital raising mortgage on your property.

There are ways and means of obtaining a mortgage, but as these would involve a certain amount of fraud there is no way I can recommend or condone going down this avenue.

I expect that you have done so already, but in case you haven't,  I recommend that you speak to your own bank as they will have first hand experience of your ability to meet any mortgage payments and also your risk as a potential borrower.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.