Remortgaging/getting equity out of house - clueless -help!

ReturnofTheWildGoose

We have a rental property which has been ticking over - tenants are paying more than the mortgage amount each month.

House is worth approx 250k and we owe about 146k.

Bear with me as this may be a stupid question but someone suggested that we can somehow harness the 100k equity and then use that to get a new mortgage and keep our rental property.

Is this possible? Likely? seems a bit too good to be true...

joanneharris

You could maybe take some of the equity out if your mortgage lender allows this. I doubt you could take the full £100k but possibly £50k. Obviously this will just increase the amount of your mortgage (i.e. you owe £146k but take £50k out and you then owe £196k). This will potentially make your interest rate worse as your LTV gets worse so you will pay a considerably heftier mortgage repayment. Speak to your current mortgage provider and they will give you the full ins and outs.

Only other option is to sell your house, pay off your mortgage and pocket a cool £104k (less fees/tax)!

ReturnofTheWildGoose

Thanks...we are investigating further but it's good to have an idea of what might be realistic.

Caz3121

also you should factor in an additional 3% stamp duty as you would be purchasing an additional property
On a £250k property this would mean paying £10k instead of the regular £2.5k if you sold first

looking at your other post..can you confirm if the property you refer to in this post is in the UK and you are planning on buying in the UK? (my response above would not be correct if for example you were referencing your Canada property and buying in Ireland)