Borrowing against owned property

AJFORRESTER

I own my 2 bed flat in full, i want to take over an existing mortgage with a friend, and want to know if i can borrow from my existing property to do this?...

getmore4less

You would need to get a mortgage secured on your own home if you want to raise money from that.

AJFORRESTER

thanks... what are the pros or cons in doing this?

opinions4u

AJFORRESTER wrote: »

thanks... what are the pros or cons in doing this?

It's not totally clear what "this" is.

Whatever the plan, three words to seriously consider:

CAPITAL GAINS TAX.

getmore4less

You need to be clearer what you are trying to do.

Borowing money on your house just means you are in debt and need to pay it back just like any other mortgage arangement.

AJFORRESTER

ok..... I want to take over my partners mortgage with him, which buys out his 'ex' ...... He will loose the house if we cannot achieve this.... its a great investment... I am concerned about my mortgage worthiness, being self employed, and only having lived bk in the UK for the last 3 years... (only 2 years accounts)I wondered whether using my existing property as a guarantee will help?...... I plan to rent it out... i dont want to sell it..

Thrugelmir

AJFORRESTER wrote: »

.... its a great investment... ...... I plan to rent it out... i dont want to sell it..

Whist it may have a great investment. There's no guarantee as to future performance.

You need to decide what your long term objectives are. As borrowing against your existing property to fund another does carry a degree of risk. Which could well up costing you money. If for instance you received no rental income for a while.