Remortgage term needed

Funky_Monkey7

Hi all,

If I own a property and don't have a mortgage on it as it's all paid off, what is the term for the mortgage I need? No deposit, just borrowing against value of property. Thanks.

dimbo61

This depends on your age! If under 40 you can get a 25 year term.
Why do you want/need the money ?
This will be the first question any Lender will ask!

Funky_Monkey7

I'm 28 and hope to finish my mortgage off in 5 years. I would like to get property number 2 with any luck. Will add rent from 1 to current salary and try to get a good income, but I will have zero deposit as I'll have just paid off the mortgage.

Is there a specific term? Not equity release. Is it just a normal mortgage in this instance?

Edit - I suppose it won't be a remorrgage, but I'll be a property owner just not looking to sell a home.

dimbo61

So you are 28 and already own a property without a mortgage WELL DONE
You are now thinking of buying a second property which you want to live in or rent out ?
ZERO deposit ? so 100% mortgage on second property.
Income over £25,000 I hope !
Time to speak to a broker if you want to build a Property Empire

Funky_Monkey7

I'm 28 and will just be getting my first property within the next 4 weeks hopefully. I'm earning 21,500 and hope to show £4,250 rent for this property under rent a room. Hope to be in 24,000 plus rent soon, and can theoretically pay off the property in 5 years.

It will indeed be a 100% on second, might get 5-10% but that will take 6-12 months.

I can show I'm living in property 2 and can show 1 is rented.

dimbo61

Sorry the £4250 you MIGHT get for renting a room does not count as Income.
So you earn £21,500 and may struggle to get a BTL mortgage with that Income and No Deposit.
Time to find a Whole of Market mortgage broker

Funky_Monkey7

Many thanks for the advice and responses. Time to get a better paying job and try to get a deposit too!

kingstreet

It's a remortgage of an unencumbered property.