Releasing cash from property

jayemel

Hello everyone,
I'm looking for help/advice and I'm sure someone out there can help me. I have a house, which I live in, and a flat which I rent out. I have no mortgage on either property and I'm looking to raise £50.000. The value of the house is about £190,000 and the flat is about £150,000. I am 70 years old and retired. My income is, State pension, £485.00 pm - rental income - gross £675.00 and a little private pension of £120.00 pm. I want the money to make some improvements to both properties. I have been looking at Buy to Let mortgages and have been offered a rate of 6.04% fixed for five years, with a £700.00 arrangement fee and a £3,000 get out fee, which is payable even if I die. I have no experience of current mortgages because I gave been mortgage free for many years now. Any better solutions?

Thanks in advance because I know someone out there will help me.
Cheers
Jayemel

mightymouse

Hi

Just a quick reply.

If it were me I would discuss it with a mortgage broker (whole of market) with a view to a normal mortgage on the house keeping all receipts etc for money spent for improvement on your flat to set off against any tax. (income tax or cgt).

As for overhang and possibly other lenders fees I would not be prepared to pay them and would expect a rate lower than % 6.04 for 5 years fixed.

To be fair there may be lenders fees which are acceptable depending on the deal.

your mortgage adviser may / may not charge a fee.