Releasing equity?

amhenderson

Hi, I currently own my home (mortgage free). It is worth £150000. I want to buy a second home on a buy to let basis, but in order to do this i need to access £100000 equity from my first home (£65000 deposit and rest for home improvements). How do I do this? Mortgage first home??? I am 47 and retired with an occupational pension of £1400 per month and disability benefits of £800 per month. Thanks for any advice.

D_M_E

Don't think you will get equity release of £100k on a £150k property at your age, even with an increased offer because of disability.

Try talking to a whole of market broker and see what they can do for you if you really want to go ahead with your plan.

Cakeguts

Can you afford to pay two mortgages if your buy to let property is vacant?

kingstreet

It's a remortgage of an unencumbered property, but as has already been mentioned, your borrowing is probably a little too ambitious.

Get a smaller residential remortgage and a BTL mortgage on the property to be let.

Get independent broker advice in putting this together.

konark

Don't think anyone does equity release mortgages for the under-55s, even then you'll only get around 20% of the house value.


Is the BTL market currently so attractive you're willing to put yourself in financial stress to get into it?

Gwendo40

How do you manage to get £800 a month disability benefits? I thought the higher rate of pip was only around £85 per week?

Is the combined £2200 per month not a sufficient amount for you to live on mortgage free?

kingstreet

konark wrote: »

Don't think anyone does equity release mortgages for the under-55s, even then you'll only get around 20% of the house value

It's just a nicey-nicey way of saying "I want to borrow some money."

Most people don't know there is a specific product with that name.