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I have some collaterol... what can I do?

Hi Guys

Allow me to explain my situation....

I own a 2 bed house, in a shall i say colourful part of london (ex council basically), bought it for £235k back in February. Now probably worth at least £250k plus as I like to keep up to date with similar properties in my area just to get an idea of how much my house price has risen.

ANYHOO... I only borrowed 90k, as I had £145k as deposit for the house, making total of £235k.

I also had another savings account of just under £10k, to deal with fees, stamp duty, etc.

my question is.... with that £145k "collaterol" (is that even the right word?) what could I do with it, investment wise? My financial advisor, mentioned some new build flats in manchester, 2bed, going for £90-100k ... if I were to ask my lenders to release some money from my current property, would the rental market cover the costs of the extra mortgage i'd have to pay out?

What other investment opportunities could I do? Basically, I'm curious as to what opinions / ideas are out there, to my situation? It's nice to have just a £90k mortgage, with £145 "in my pocket", however it would be even nicer, to be finding a way to head towards mortgage free, rather than just paying it off, knowing I could possibly do something about it, hope i make sense :/

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Equity. You have £145k of equity in your home.


    You could re-mortgage your home to release some of this equity and use it to buy a rental property, invest in some other opportunity, or blow it all on drugs and hookers.


    Re-mortgaging will increase your mortgage so wouldn't really be working towards making you mortgage free.
  • eddddy
    eddddy Posts: 17,512 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 10 December 2014 at 6:01PM
    ...
    I own a 2 bed house, in a shall i say colourful part of london...

    ...My financial advisor, mentioned some new build flats in manchester...

    Is your financial advisor also in London? Why is he/she recommending some random development in Manchester?

    When you say 'financial advisor' do you mean an independent financial advisor regulated by the FCA, or...

    ... a 'dodgy ex-double glazing salesman' whose selling an unregulated off-plan property investment scheme on a commission rate of 15 to 20%?

    Sorry if that sounds cynical!
  • DTDfanBoy
    DTDfanBoy Posts: 1,704 Forumite
    New Build , Flat , Manchester , and Investment are five words which would never be used in the same sentence by a financial advisor of sound mind, run a mile ;)
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