Reason needed for remortgage equity release?

alx3365

I am trying to remortgage a buy-to-let property I own in order to release equity from the property.

I would be releasing around 80k from the property.

But my mortgage broker has said I need to give a reason for why I want to release equity from the property.

I wasn't aware providing a sufficient reason was a requirement when releasing equity from a property you own. Surely so long as I ensure the necessary amount of equity remains in the property (25 - 40 percent) and can demonstrate I can cover payments (either myself or via rental payments), then whatever reason I need it for should not matter.

I'm actually taking equity from the property because I don't feel holding investment property in the london is as profitable as it was and want to diversify. This could be in other property ventures or other types of investments - I have not determined a precise investment strategy yet, but my current mortgage deal has come to an end so I'm releasing equity now.

So my question is - in the eyes of a broker/lender, what reasons are good enough reasons for why someone can withdraw equity from their property?

Thanks

kingstreet

Releasing equity? No. You just want to borrow more money.

You want to borrow more to buy more BTLs.