Remortgage to invest the money

frithemajik999

Thanks for this. The investment isn’t stock market / FX etc. related. I guess my initial question was whether the bank would lend to me if I say I’m investing it. Not hearing anyone saying I can’t, but I’ve heard banks are very nosey and picky with this sort of thing. Perhaps I should speak to a few mortgage brokers and look for advice

MaxiRobriguez

frithemajik999 wrote: »

Thanks for this. The investment isn’t stock market / FX etc. related. I guess my initial question was whether the bank would lend to me if I say I’m investing it. Not hearing anyone saying I can’t, but I’ve heard banks are very nosey and picky with this sort of thing. Perhaps I should speak to a few mortgage brokers and look for advice

I took £40k out in a remortgage and said I was doing work on the house and buying a car. They didn't bat an eyelid because credit file is fine.

It's not so much making sure the lender is onside, it's making sure you know what you're doing and the risk has been calculated appropriately. Make sure you do that exercise, don't dismiss it. Making money in investments is easy until it isn't.

frithemajik999

MaxiRobriguez wrote: »

I took £40k out in a remortgage and said I was doing work on the house and buying a car. They didn't bat an eyelid because credit file is fine.

It's not so much making sure the lender is onside, it's making sure you know what you're doing and the risk has been calculated appropriately. Make sure you do that exercise, don't dismiss it. Making money in investments is easy until it isn't.

Thanks for that, did they not ask to see proof of your car purchase or a builders quote / architect drawings for your home improvements or something? Have been spooked a bit that that’s a possibility if I went that route...

SonOf

benbay001 wrote: »

SonOf - are you suggesting investing in the stock market is fine, but as soon as you introduce leverage its stupid?
But using leverage to buy BTL is somehow much safer?
Im sure there are more people upside down in property than there are people upside down in index funds.

Correct.

Gearing on the stockmarket is extremely high risk and would be totally unsuitable for the vast majority of the population.

MaxiRobriguez

No they didn't, why would they care? As long as your credit file demonstrates the ability to pay the new amount and as long as the LTV doesn't go above 95%, you're simply resetting what LTV band you're in.

ec9wrr

SonOf wrote: »

Who said investing in the stockmarket is stupid?

And that Fool headline is actually stupid. You can have over 30,000 options in an S&S ISA and some of those options will not beat buy to let. an S&S ISA is a tax wrapper. Not an investment. So, that headline is stupid. But then again, it is Motley Fool. So, we should expect that.

I don’t get your point. Ok 30’000 potential different funds in isa. But then isn’t that the same as comparing the millions of houses that could be your buy to let?

DairyQueen

frithemajik999 wrote: »

Thanks for this. The investment isn’t stock market / FX etc. related. I guess my initial question was whether the bank would lend to me if I say I’m investing it.

The level of 'returns' that you state suggest that you are gambling. This is not an investment.

You appear to be seeking info. on what background checks or evidence the mortgagor would require to substantiate the reason you give for increasing borrowing. In other words, is it possible to raise a cheap loan against your house without any audit of how you use the money?

The lender is interested in two things; Can you afford the repayments? Is their sufficient equity to cover the debt? The reason for the loan is unlikely to face close scrutiny.

If this is what you are intend, then it's an Interesting [STRIKE]stupid[/STRIKE] strategy for securing your financial wellbeing.

amnblog

Both Lenders and Brokers have been slaughtered by the regulator for being involved in similar cases in the past.

Unfortunately, those that borrow to invest and lose out have a history of targeting the lending channel for compensation.

Hence you will get a ‘no’