LOC question

We currently have an IP in name of family trust and our PPOR is security . We are wanting to start a LOc from a different bank with the remainder of the equity in our PPor as security but our MB tells us that we can't use our PPOR for security for another project in our personal names even though there is plenty of equity there. Does anyone understand why?
 
Hiya

Most lenders want a first mortgage on the security property.

Havings said that, properly structured and in most circumstances a second mortgage behind the first is possible at reduced Lvrs with some lenders, AND a collateral mortgage secured to the PPOR to provide equtiy for the new purchase may also be possible.

you could try and draw a LOC with the same lender thats currently on the PPOR mortgage ? Obviously you dont want to do that for a good reason im sure.

ta
rolf
 
k

Maxxis I recall was funded by ME............could be worth a bell there ?

Another hassle with sometimes smaller lenders, but at the time u took that loan who was to know what was going to happen to the financial world !

Else, it may be a worthwhile propostion to jump ship if you cant get a second behind Maxxis. Its quite possible they wil refuse the deed of priority that the second mortgagee would need.

If your loan is fixed, jumping may be a little expensive too ?

ta
rolf
 
Rolf the loan was fixed at 7.59% un til August 2010 (thought I was being very clever) but now I find it is limiting what I want to do. They are sending me advice as to how much it would cost to break but a rough verbal was about $4k.
 
Have you spoken to ME (Members Equity) at all Bella?

Maybe they can assist. I have a mate here in Melb who works for them. If you don't get any sense out of them on the phone ley me know and I'll try and see what I can find out for you.


Regards
Steve
 
Rolf the loan was not lo doc and it was for an investment property as per my first post.

Bradsdad thanks for the offer. I have already spoken to Members equity. Talked with someone fairly hopeless over a period of 4 weeks - I'm sure it wouldn't have been your friend. Then spoke with an Indian (I think). He was very helpful trying to work it out for me but in the end the fact that Maxis weren't doing anymore new loans made the only option breaking the fixed loan.
 
Rolf, I think the circumstances are what they are and I will just have to wait till next August before I can use the equity in our PPOR.
 
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