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Releasing equity to buy a second property

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Own my property with a mortgage of £136k. Property worth £600k. Want to release equity to buy a property with opportunity for conversion for my son estimated at £75k to £100k The property needs converting and currently has no planning although been advised this shouldn't be a problem. Advised by current lender HSBC of decision in principle to lend £87k against my own home. Need more and affordability on my part may mean my application is rejected as I have £20k worth of debt and outgoings high. Looking at interest only loan as once property is habitable and residential my son and his partner would be eligible to buy through their own mortgage. Just need to secure it for them in the first place. Long story, appreciate any advice on best ways to release more equity. Have a final salary pension too but only 54! So not sure I can access any funds from that.

Comments

  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Interest only mortgages are almost extinct nowadays.
    You cannot get funds out of a pension plan before 55 - even then it will depend on the pension plan - though taking anything out will mean a reduced pension thereafter.


    There is no guarantee that your son will get a mortgage in the future what happens then?
  • There is also no guarantee that planning will be granted.
    Thinking critically since 1996....
  • let your son stand on his own two feet
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