Using equity to buy?

Dont_give_up

Hi All,

I have a equity release type of question and I wonder if anyone can help?

I'm trying to figure out a way to move using my main residence.

My mortgage is is approx 20/25% value of the property and what we want to do is use money from some kind of equity release to buy a smaller property to live in and let the main property.

Ironically letting out the main property and moving would pay the new mortage/charges, secure us a mortgage free property and bring us a welcome income on top.

Most of these products seem to be ok if you remain in the home, some I believe you can use if you want to buy a smaller property for BTL?

However I guess what we're seeking is buy to let in reverse?

If anyone could give any feedback, whether equity release, or other suggestions on potential ways to do this?

Any help appreciated

eddddy

So you're looking to remortgage your current property with a 'let to buy mortgage'. If you google 'let to buy mortgage', you'll get some general info.

Then I guess it's a case of talking to brokers.

dimbo61

Yes mortgage broker all the way.
You have a lot of equity in your home.
If that is enough to buy a second property and pay all the costs plus the 3% extra stamp duty and Make it Pay is another story.
Many lenders have increased the rental ratio to 135/140% and set the Interest rate higher.
You also need an income of over £25,000

MerrilyA

Yep as mentioned that would be a let to buy. You let out your current house and get money to buy another.

A mortgage broker who understands this well should help you out.

anjb

Hi yes, I have done similar recently.
I used a well known broker to sort out the let to buy. It was remortgaged in around 3 weeks and cash in the bank, which has been used as a deposit on another house.

I would use a broker as they are familiar with this approach, and can sort out the stress of finding the right product and lender for your needs.

My situation was slightly different to yours however, as my house was already let out (consent to let), but remortgaged as btl to withdraw equity. I'm not sure exactly how yours would pan out, as you will be without rental income from re mortgage to completion of the smaller prop. Normally the terms of btl are that you're not allowed to occupy.

Dont_give_up

Thanks everyone for your input

Sounds like a broker then..