Secured Loans or Pensio draw down ?

[SteveFLS]

Hi guys, I'm in the middle of a grim divorce and working on the financial settlement. We have a house valued at 400k with mortgage of 60k . I would like to. buy the ex out of the house at circa 170k and turn into a HMO which will generate 24k gross per annum. I had an unblemished credit history until the last couple of years when life became like an episode of Jeremy Kyle and too many missed mortgage payments meaning mainstream lenders not interested in loaning me the 170k, have tried various on - line brokers to no avail....my thinking is that if I can raise the 170k and ensure payments from rental income my credit score will be improved and I can approach mainstream lenders again going forward. I have a local authority pension generating 22k gross from a pension pot circa 411k.....am keen to keep the house as it's in the middle of a University city where accom. is in demand and the house has already made very good capital growth in the five years that we've owned it.....apologies for the long post but feel at the end of the road and hoping there might be fresh brains and perspective among us ? Thanks Steve