I have a huge tax bill and need to raise some money urgently on my assets – can you help me get a loan to pay a HMRC tax bill?
If you are one of thousands of people who are currently looking to pay their tax liability then you know how urgent it is to find a fast solution to make payment. I’ve been inundated with enquiries in relation to raising additional funding to pay a tax bill via different types of loans.
Our sister company Niche Funding tends to deal with this side of the business and they have a number of options which include raising funds on existing assets such as residential property, buy to lets, vintage cars and desirable artifacts e.g. paintings.
The funds can be arranged in a fast and efficient manner.
For investment and commercial properties we have other options such as bridging finance and commercial secured loans to ensure your tax bill is paid promptly.
If you have equity in your existing property this can be used to raise funding but I must stress generally lenders do not like the combined secured debt on a property to exceed 75% of its value.
Property value £300,000
Existing mortgage £100,000
75% of the value £300,000 = £225,000
£225,000 less £100,000 = £125,000 in additional funds can be raised.
Getting a Loan with bad credit
Unlike traditional mortgage lenders: secured loan providers are much more tolerant to a bad credit history. The rate, equity requirement and fees will be higher than a mainstream application though.
I recently self-employed and do not have my accounts yet?
There are options open that assess affordability based on income credits showing in bank statements so if you do not have accounts or previous self-assessment returns it is not necessarily an issue.
If the case is a buy-to-let the principal affordability determiner is the rental income.
Be clear on the exit strategy
Borrowing money that is secured against property can lead to repossession in the event of a default in your payment obligations. As well as the monthly interest payments the capital of the loan itself will need to be repaid at the end of the term so you need to think carefully about this before you take a loan on.
The most common repayment strategies are: put money aside each month; sell the property; use investments that are due to mature in the future; and consolidate the loan into a traditional remortgage.
At Niche Funding we are here to help with all different types of loans and specialist finance no matter what your objectives are and at the same time will ensure your best interests are looked after.
For more information on getting a loan please contact us on T: 020 7993 2044 or alternatively complete the enquiry form on the right-hand side of this page.
Typical APR 11.8% variable
Niche Funding is regulated by the by the Financial Conduct Authority as a Credit Broker.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.
You can call Payam on 020 7993 2044 or alternatively complete the enquiry form so he can personally get in touch with you.
Niche Advice is not tied to any bank, building society, estate agent or insurer and offers Independent Mortgage and Insurance advice.