Want to release Equity to Buy Larger Property

Viet42

Greetings Forumites

Excuse me if any of these questions seem daft.

I have a property valued at 100k with a mortgage outstanding is approx 25k (monthly payment £250). Without selling it is there a way to take out some of the equity as deposit for a second home. If I get a BTL mortgage (6%) I could get a rental of just £500-£525 pcm in current market.

Question one is: how much equity could I get out (if any)?

If this isn't getting too detailed I'd like to buy a property for around 250-300k. My partner and I have a joint annual income of £62k. We have a minimal amount of cash (£5000) to put in with a deposit for new property if required. Is any of this realistic?

Any help or advice is very welcome.

Thanks.:)

Thrugelmir

My first question is always. Why not sell your current property?

Second is have you crunched the numbers fully? To assess your best options.

Letting property has its risks. Many view it as an investment when in fact you'll be running a business.

Dave_Ham

You can potentially take up to 60% of the value on very competitive rates, or upto 75% of the value on fair rates.

Both of these should be below the 6% rate you have rightly budgeted at, but will depend upon the details.

Therefore, your plan is executable but you need to get close to the detail and reading, or engage a broker.

All the best