Remortgage for investment

basher

My parents are remortgaging their house to buy a cheap property in their neighbourhood. They will refurbish the place and hope to sell it in 6-months time. To reduce costs they are just going to remortgage their own house and they settle the balance when the sale completes.

I have found a good deal for them from the Coventry BS with 4.99% var and some incentives (cheap legal fees and a free val.). There doesn't appear to be penalties for early repayment (even after 6 months).

Does anyone have advice on this process or can advise of possible pitfalls?

Many Thanks

herbiesjp

This sounds like it is achievable - although there are not any figures to work with. Depending on their circumstances there may well be a couple of other schemes that could work out slightly more beneficial.

Main pitfall is affordability and building in a contingency plan if things do noy quite go to plan with the whole process.