Release Equity???

KBurns

I have recently purchased a property, spent around £20k fixing it up & now its worth £85-90k. I'm interested in using the equity on another property, maybe a buy-to-let (one in mind for 55k). As i am only 25 can i still release the equity??

I spoke with Santander (my current mortgage company) they told me that they wouldn't remortgage for more than the original value of the property. Does this sound right?? Is there another way to raise the cash from the equity without selling it?

kingstreet

Your only option is to remortgage to a new lender. You take a new mortgage for the amount you need and repay your existing mortgage, together with any applicable fees or penalties.

This may be problematic. You can't remortgage above around 85% of the loan to value and the rate you get won't be particularly attractive. You also need the valuation to be as good as you think and a surveyor may not agree with you, reducing the amount you can borrow.

What size is your current mortgage and how much would it take to repay it?