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Mortgage Rule

sohappy · 2016-11-17 17:22:20

I wanted to get a mortgage of 70k on a property that I own outright and is currently rented out,. The purpose of the loan is to clear a credit union home improvement loan (25k) and pay back a family member (45k) which was used to help purchase the house. Loan to value is less than 50%, I have no other loans. l approached…

17-11-2016 6:22pm

#1

sohappy

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Join Date: July 2004

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I wanted to get a mortgage of 70k on a property that I own outright and is currently rented out,. The purpose of the loan is to clear a credit union home improvement loan (25k) and pay back a family member (45k) which was used to help purchase the house. Loan to value is less than 50%, I have no other loans.
l approached my bank and they said my finances were fine and I could easy make the payments .
The problem is they said because of central bank rules they won't lend me money to pay a debt that was not issued by a proper lender, they will lend me the 25k as that was from the credit union but not the 45k to repay the family member,
Seems like a crazy rule as I can easy afford the payments and have a good credit rating.
Do I have any other options here other than sell the property?

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