Help with Remortgage?!

shelleyh_3

Hi, I am looking for advice. My home is currently worth approx 390k, my mortgage is 180k. I would like to borrow a further 180k to buy another property with a view to doing it up and selling it on. Ideally I would like to buy the 2nd property outright which would enable me to put it in a family members name to avoid capital gains tax. What is the best way to raise the finance? Help would be appreciated.
Many Thanks.

MortgageMamma

Hi Shelley

Its not possible to offer advice on the info you have given, but if you are prepared to risk the equity inyour existing property then a mortgage is one way to go. If the 180k for the new property is the purchase price combined with cost for improving property, then a mortgage where you can drawdown the funds as you need them would be helpful, as you would only pay interest on what you borrow at the time you borrow it. There are plenty of providers that do this. You really need full independent advice before you make such a big commitment, as a professional can guide you as to which is the cheapest and easiest method of doing this.

shelleyh_3

Thanks for your reply. I am unsure where or who to contact for advice. Do I just go to a high street bank or do I find a mortgage adviser. Once I see a mortgage adviser am I then tied in to using them. Sorry I am a novice and do not know where to start.
Thanks again.

Joe_Bloggs

The interest alone of borrowing £360K is £1500 a month @5%. You would also have to find funds for renovation costs, stamp duty, legal fees and prove to your lenders that you earn about £100K a year. You are considering becoming a property developer. Do you have the necessary financial and business skills and property expertise?
J_B.

herbiesjp

Provided the affordability is there, and your income would be able to support the loan, then a re-mortgage may indeed be the way to purchase the property outright.

However do you have enough funds to cover th project i.e. legal fees, stamp duty, rennovation costs.

I do think you should look for professional guidance as you state you are a novice to this.

Rather than just going to a high street bank I would be more inclined to go toa mortgage broker, who should be able to look at the whole market and find a lender that could provide a scheme to suit your needs.

Seeing a mortgage adviser does not tie you in to use their services - however if you have been happy with their service, there is no need not to proceed with them.