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Using Equity in property to use as a deposit on a 2nd house
mestew
Posts: 27 Forumite
I am looking for some advice on the topic in the title.
Outline:
I have a current house with approximately £60,000 of equity in it (valued at £160,000 mortgage of £100,000)
I have found a second property that i am interested in purchasing and moving to and renting out the first property.
How can i utilise the equity in the first property, do i have to remortagge it at the current market value or can i some way offset the mortgage of the new property against the first
I am based in scotland
Outline:
I have a current house with approximately £60,000 of equity in it (valued at £160,000 mortgage of £100,000)
I have found a second property that i am interested in purchasing and moving to and renting out the first property.
How can i utilise the equity in the first property, do i have to remortagge it at the current market value or can i some way offset the mortgage of the new property against the first
I am based in scotland
0
Comments
-
You'll need additional borrowing from your current lender, or to remortgage elsewhere if you want to use the equity to contribute towards another purchase.
The former will require you to obtain consent to let, while the latter will be via a buy to let product from the new lender.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
So if i understand correctly:
I could remortage my property and release the £50,000, so will have a £150,000 mortgage on that property, I can then take this £50,000 + £10000 (cash) use as a deposit on the second property and have a mortgage of £140,000 on that property.0 -
On buy to let mortgages you'll struggle to go above 75% LTV, soit would be £20k that you could release.0
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