Can he get the money?

[Martial Arts Man]

I am attempting to sell a franchise of my business to a third party.

Problem is that I require a lump sum of quite a large amount before we can do business.

The third party has recently come through some pretty bad financial difficulties. AFAIK he had a number of quickly settled CCJs and a number of now cleared credit card defaults. Basically he was in a real mess.

However, he is now sorted and their family has a decent income, somewhere in the region of £50Kpa.

Now, this guy lives in a mortgage free house worth circa £400K and is keen to secure a loan on this property.

What is the likelihood of him being able to arrange secured finance of about £25K at non-ocean-finance apr in order to pay me?

I know precisely nothing about how secured loans work, so any advice that I can pass on will be most appreciated as it is in my interests for him to acquire the money as cheaply as he can.

Thanks in advance.

[scotal]

Martial Arts Man said:

Now, this guy lives in a mortgage free house worth circa £400K and is keen to secure a loan on this property.

What is the likelihood of him being able to arrange secured finance of about £25K at non-ocean-finance apr in order to pay me?

If his house is mortgage free, he may struggle to get a secured loan deal, as a lot ofthese firms are only interested in second charge stuff. He'd be better off getting a small mortgage.

However whether or not he can do that is going to come down to how much the CCj's were for, who they were from, when they were settled etc.

As an added wrinkle, nt all lenders will allow capital raising for business purposes.

Not a straight yes or no answer, I'm afraid.

[Martial Arts Man]

scotal said:

Martial Arts Man said:

Now, this guy lives in a mortgage free house worth circa £400K and is keen to secure a loan on this property.

What is the likelihood of him being able to arrange secured finance of about £25K at non-ocean-finance apr in order to pay me?

If his house is mortgage free, he may struggle to get a secured loan deal, as a lot ofthese firms are only interested in second charge stuff. He'd be better off getting a small mortgage.

However whether or not he can do that is going to come down to how much the CCj's were for, who they were from, when they were settled etc.

As an added wrinkle, nt all lenders will allow capital raising for business purposes.

Not a straight yes or no answer, I'm afraid.

Cheers.

Nothing is as simple as you hope it to be huh?

I spoke to him earlier and he said the CCJs were paid within 28 days.

His credit card defaults were in the region of £20K earlier this year although they are all now paid in full.

Basically, his credit rating is shot to bits.

Is he likely to get a mortgage even?

[scotal]

Martial Arts Man said:

Is he likely to get a mortgage even?

Igent he tiny LTV he should get a mortgage, but hes going to need to sit down with someone, and get chapter and verse on whats available to him.

[Leondrums]

He cant get a secured loan, a first charge will alwats be a mortgage - a secured loan is always a second charge. With his small LTV he should have no issues getting a mortgage - I can have an underwriter call him if need be.

[hamski]

People rarely know the exact details of their credit, especially when they've had a few problems. But if he paid the CCJs within 28 days, then they will not be registered. I know of lenders who will ignore all defaults, but he won't be able to declare the true reason for raising the cash. 4.60% 2 yr tracker.