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best way to use our home for raising cash
PaulCCC
Posts: 2 Newbie
I want to buy a small terraced property to use as a let, our situation is that our current mortgage is only 24.5k on interest only ( old endowment type ) however we make regular £500 payments to reduce the capitol, our home is worth approx 195k what is the best, cheepest and cost effective way to release some funds, we have sought advice from a few " professionals " but find it very conflicting 
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Comments
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increase the mortgage on your home to fund all or part of the btl. a mortgage is generally the cheapest way of borrowing money. you will need to prove an income in order to do this or go self certificate if you want to use the rental income to justify the loan.
you then take a btl loan on the new place for the remainder of the purchase price.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
thanks silvercar, spoke today to our BS did all the sums based on 6% borrowing and with the income from rental the sums don`t add up I forgott to mention the proposed rental property`s value would be no more than 100k0
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