We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Using equity in own property
Sandalwoman
Posts: 13 Forumite
We are thinking of branching out and buying another property. Is it advisable to use the equity (approx £200K) in our home or getting a buy-to-let mortgage. We are in our late forties. If using our equity, how does this work? Is it worth getting a "one" account? All advice gratefully accepted.
0
Comments
-
A buy to let property will need a 15% deposit. You can use your existing property to raise this.
Remember though when repaying you will in effect have 100% to repay as you borrowed the lot in one way or another.
Interest only on £120000 = £560 per month aprox.0 -
BTL has been a bit like the Klondike goldrush.The first who arrived found easy pickings and have made a fortune. The word then spread and everyone became Derek Trotter (this time next year we'll be millionaires Rodney) and jumped onto the bandwaggon - you can't go wrong with Property it only ever goes up.
In the last 10 years many areas have trebled in values, ask yourself, how long can this go on? I bought for yield (10 years ago) with the hope of long term growth. Most newbie Landlords are now buying with the hope of growth and are happy to subsidise thier tenants. If you are happy to take those risks, go ahead. For me? Sooner or later this Property Ponzi scheme is going to go horribly wrong.
All IMVHO0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards