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Can I remortage and use equity to buy second home?
izgo
Posts: 9 Forumite
Hi all,
I currently live in a 2 bed semi with wife and we've been here for 5 years. I'm not too keen on the location anymore and we'd like to upgrade to a bigger home in a better area. At the same time I don't really want to sell this house.
At the moment my house has been valued at £120,000 and I have £90,000 left to pay on my mortgage. Therefore I have £30,000 equity in the property.
What I'd like to do is remortgage my house and use the £30,000 equity I have to use to put down as a deposit for my second home.
I'd then rent my existing property out under buy to let.
My question is....is this possible or am I talking rubbish?
Thanks
I currently live in a 2 bed semi with wife and we've been here for 5 years. I'm not too keen on the location anymore and we'd like to upgrade to a bigger home in a better area. At the same time I don't really want to sell this house.
At the moment my house has been valued at £120,000 and I have £90,000 left to pay on my mortgage. Therefore I have £30,000 equity in the property.
What I'd like to do is remortgage my house and use the £30,000 equity I have to use to put down as a deposit for my second home.
I'd then rent my existing property out under buy to let.
My question is....is this possible or am I talking rubbish?
Thanks
0
Comments
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Rubbish I'm afraid.
You'd need a Buy To Let mortgage. And this will only give 75% (ish) of the property value, so on £120K you'll get a mortgage of around ........ £90K.
See also
New Landlords (information for new or prospective landlords)0 -
What I'd like to do is remortgage my house and use the £30,000 equity I have to use to put down as a deposit for my second home.
No chance of obtaining a 100% mortgage. You'd be better off starting from a base point of selling the property.
If you wish to own a BTL wait until you've saved the capital to fund the deposit. So perhaps put the idea on the back burner for a while.0
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