Want to buy a broom cupboard in London, how to borrow the £££

[adam42]

Please can I get some advice what possibilities there are out there above and beyond the straight contractor mortgage?

After talking to a mortgage broker at Contractor Financials, it sounds like I could borrow £500K for a house on my current rate, putting down £100K myself.

However London house prices being what they are, it looks like that would only be enough to buy me the place that I'm currently renting.

What strategies or tactics can I employ to finance the purchase of somewhere for a million?

Any advice would be gladly received (I assume it would all be legit, and preferably not insanely risky - I dont think I qualify for govt bail-outs).

[TykeMerc]

If the obvious illegal approaches are eliminated, then you're stuck with:-

Get a contract at double your rate.
Have a wealthy relative die and leave you £500k.
Get a lottery ticket with the right numbers.

Hope that the housing market crashes dramatically.

[adam42]

Sorry, I should also have stipulated along with non-risky and legit, please could any advice also be within my power - which would rule out all your points, TykeMerc.

[TykeMerc]

Sorry, I should also have stipulated along with non-risky and legit, please could any advice also be within my power - which would rule out all your points, TykeMerc.

Well in truth the question you asked is daft and I suspect that's not news to you.

You've claimed to have around 100k as a deposit and have investigated the mortgage options via contractor specialists which will get you 500k, that's a long way off a million.

Ruling out illegal options and dodgy finance which is immensely risky as well as being immensely stupid there's nothing sensibly in your "power".

[adam42]

OK I see you're not from the school of "there's no such thing as a stupid question".

So you would definitively rule out the existence of any legit, feasible and normal risk approaches to the problem?

[stek]

OK I see you're not from the school of "there's no such thing as a stupid question".

So you would definitively rule out the existence of any legit, feasible and normal risk approaches to the problem?

Borrowing even £400k is a mega-risk in my view when you consider the state of contracting and it's future or lack of it.

[adam42]

Borrowing even £400k is a mega-risk in my view when you consider the state of contracting and it's future or lack of it.

OK good point but one that I think would be the subject of mitigating risks once you've actually borrowed the money.

[TykeMerc]

OK I see you're not from the school of "there's no such thing as a stupid question".

So you would definitively rule out the existence of any legit, feasible and normal risk approaches to the problem?

Nope, seen a vast number of utterly stupid questions asked on CUK, including in the professional sections where at least theoretically there shouldn't be any trolling, but it's the origin point for many a sockpuppet.

You have already investigated the legit and rational options, you're left with the idiotic, illegal or vastly risky like telling porkies about how much finance you've already secured or using the very iffy lenders.

As Stek said borrowing 400k is also high risk to start off.

[stek]

OK good point but one that I think would be the subject of mitigating risks once you've actually borrowed the money.

I can't imagine how you could do that - mortgage would be what, £1800 a month, some time on the bench, that eating your warchest, no help benefits wise, no real income protection for contractors, I can't see it.....

[jamesbrown]

OK I see you're not from the school of "there's no such thing as a stupid question".

So you would definitively rule out the existence of any legit, feasible and normal risk approaches to the problem?

The question is pretty daft afterall. Even if there were a legitimate option, it would be pretty stupid to leverage a 1m house at the height of the London mega-bubble on a 10% deposit (actually, probably quite a bit less after factoring stamp duty and other costs), especially as a contractor. As Stek suggested, borrowing 400k is a mega-risk in itself unless you have a very healthy warchest.