Drawing money off mortgage

JulieHudson

Hi. Can anyone help please. My husband and I have 3 mortgages 1 repayment for our main home and 2 buy to let interest only for rental properties. Over the last few years our lives has been hit with tradegy after loosing our son suddenly. This has caused us to get into debt with credit cards etc and our credit files are poor. We haven’t defaulted on our mortgages and we have quite a lot of equity in all 3 properties. We now want to do home improvements on our property but money is tight and we were wondering if there is a chance for us to be able to draw down some of the equity on any of the houses and clear off the short term debt too. Looking forward to your replies.

ACG

Possibly, but it will depend on your circumstances.

For the BTLs you would need to evidence the rent stacks up on the new affordability calculations that came in last year for the amount you want to lend. You may also need to evidence an income.

For the residential, you would just need to evidence your income supports the lending amount.

It might even worth cashing in the BTLs, with the recent and upcoming changes to how BTLs are taxed, they are no longer the money spinner they once were, especially if you are relatively highly geared on them.

Socajam

Sell one of the buy to lets (between the two of you) determine which house gives you the opportunity to do what you need and repay some or all of our debts.
Do not borrow any money from your main property - that will be foolish.
The last thing you need is to lose your main property.
This is what is being called house rich, but cash poor: Being house rich and cash poor is not a good position to be in.
You will be in a better position to have one primary residence and one buy to let and have some money in the bank for emergencies.
Once you have sorted yourself out, try and get rid of the mortgage on your primary residence, and do not under any circumstance borrow any money from that property.

Mortgage free for 4 years now, credit card debt - zero - living the life and loving every minute of it.