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Remortgage/Equity Release/Purchase
more_money_for_me
Posts: 260 Forumite
Currently living in a house with a value of around £165000. I earn around £27000, and OH around £23000 p/t last year. Our mortgage is about 50k. We are looking at purchasing a renovation property with OH's parents, and need to release around £100000 from existing property to finance this. We would then let existing property and move to renovation. My thought is an interest only with best available rate over 5 years, then revert to repayment and overpayment, on the basis that we will need money for renovation, and also after 5 years my partner will be earning quite a bit more, as will be f/t again with income more like £32000. So what do you think? How long should a remortgage of existing property take, why not interest only etc etc. Will be taking other advice as well.
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Can be donemore_money_for_me wrote: »Currently living in a house with a value of around £165000. I earn around £27000, and OH around £23000 p/t last year. Our mortgage is about 50k. We are looking at purchasing a renovation property with OH's parents, and need to release around £100000 from existing property to finance this.more_money_for_me wrote: »We would then let existing property and move to renovation.
That would be a Let to Buy mortgage but the availability is subject to the assessed rental income of the property concerned.more_money_for_me wrote: »My thought is an interest only with best available rate over 5 years, then revert to repayment and overpayment, on the basis that we will need money for renovation, and also after 5 years my partner will be earning quite a bit more, as will be f/t again with income more like £32000.
Interest only is your choice.
Depends on the size of the mortgage will you need for the renovated property.more_money_for_me wrote: »So what do you think?
How long should a remortgage of existing property take, why not interest only etc etc. Will be taking other advice as well.
Anything between 4 to 6 weeks.
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 -
Are you tied into your current mortgage? Why a five year fix? You may not get consent to let your current residential property from your existing lender so you need to consider would you be prepared to pay a big early repayment charge to move to a BTL mortgage in these circumstances. You may want to consider a mortgage with no early repayment charges or a shorter term fix?I am a Mortgage Adviser
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.0
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