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Equity Release - - Options????
garvster
Posts: 1 Newbie
First post so please be patient......
Situation
Mortgage £79k
Property value £160k
Joint earnings £56k
Want to borrow £60k out of equity to go towards purchase of overseas property with another couple. This will provide deposits etc and the remainder will be remortgaged in the country of purchase. Current lender needs proof, price and address of property before they will confirm the capital release, may then take 3 weeks. I can understand this however we need the finances in the bank so we can pay deposits etc when we find the property and dont want to be delayed by current lender who may want extra details etc.
If we remortgage are other lenders usually happy to place the £60k in straight into our bank as our finance calculations seem to fall well within most lenders parameters. Just concerned that they all will want this proof of property etc which we currently do not have.
The ING direct flexible mortgage seemed to be £70 pm cheaper than our current lender which is also desirable but how flexible are they likely to be with our extra capital request and deposit into our bank.
Also, considering an offset as we will not use the whole £60k to start with. May have 20-25k in the bank for 10-12 months. Is this an option worth considering?
The overseas property will rent for approx £750-£1000 per week high season and £450-750 per week off season and the mortgage will be around £1000 per month. Need to rent it out for around 16 weeks of the year to cover all associated costs.
So, are there any particular lenders who are ok with this arrangement or can we approach them in a particular way and what about the offset option and will that be the best approach for us.
As a note we are in this for capital growth over a 5 year period and will not have the associated mortgage for 25 years, so a flexible form of mortgage to allow full payment off UK mortgage would be desirable.
I hope i have explained it well enough and look forward to some helpful advice........G.......................
Situation
Mortgage £79k
Property value £160k
Joint earnings £56k
Want to borrow £60k out of equity to go towards purchase of overseas property with another couple. This will provide deposits etc and the remainder will be remortgaged in the country of purchase. Current lender needs proof, price and address of property before they will confirm the capital release, may then take 3 weeks. I can understand this however we need the finances in the bank so we can pay deposits etc when we find the property and dont want to be delayed by current lender who may want extra details etc.
If we remortgage are other lenders usually happy to place the £60k in straight into our bank as our finance calculations seem to fall well within most lenders parameters. Just concerned that they all will want this proof of property etc which we currently do not have.
The ING direct flexible mortgage seemed to be £70 pm cheaper than our current lender which is also desirable but how flexible are they likely to be with our extra capital request and deposit into our bank.
Also, considering an offset as we will not use the whole £60k to start with. May have 20-25k in the bank for 10-12 months. Is this an option worth considering?
The overseas property will rent for approx £750-£1000 per week high season and £450-750 per week off season and the mortgage will be around £1000 per month. Need to rent it out for around 16 weeks of the year to cover all associated costs.
So, are there any particular lenders who are ok with this arrangement or can we approach them in a particular way and what about the offset option and will that be the best approach for us.
As a note we are in this for capital growth over a 5 year period and will not have the associated mortgage for 25 years, so a flexible form of mortgage to allow full payment off UK mortgage would be desirable.
I hope i have explained it well enough and look forward to some helpful advice........G.......................
0
Comments
-
Do be careful which lender you choose to remortgage, as not all lenders will allow you to capital raise for a holiday home. Further to this, some lenders will restrict the loan to value that you can borrow up to, when raising capital.
Contact a whole of market mortgage broker and he/she will be able to marry your needs with a lenders criteria.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0
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