Unsure as to 'borrowing more' mortgage limitations

Kebby

Hi, 
Wondering if someone can help. Currently have a mortgage with Nationwide on our existing property - we have some equity we were looking to get our hands on to fund purchasing and renovating another house. It WOULDN'T be to let out, but to sell on. We're currently in a fixed mortgage so was looking at the 'borrowing more' option that they provide - but it's not completely clear on the limitations on what this can be used for. It clearly says it can't be used for buy to let purchases, but it doesn't say it can't be used for another property purchase. Does anyone know? (Trying to avoid ringing them and spending hours in their call queues!)  Screenshot of the details it provides online. 

Thank you in advance!

dimbo61

One for a broker if possible

Thrugelmir

Property redevelopment would be considered a commercial activity.  How much are you proposing to release? 

Kebby

Thrugelmir said:

Property redevelopment would be considered a commercial activity.  How much are you proposing to release? 

Hmm yes this was my thought! Ideally looking to take out around £50k. 

AdrianC

...and commercial activity means paying income tax on the profits, don't forget...

Have you actually done the sums to see if this is a worthwhile project?

Kebby

AdrianC said:

...and commercial activity means paying income tax on the profits, don't forget...

Have you actually done the sums to see if this is a worthwhile project?

Yes understand taxes will need to be be paid. We're not currently at the point of finding anywhere specifically as of yet - we're  just looking into the possibilities of actually being able to get hold of the money first, as otherwise it's not even a feasible opportunity.  

Thrugelmir

Kebby said:

AdrianC said:

...and commercial activity means paying income tax on the profits, don't forget...

Have you actually done the sums to see if this is a worthwhile project?

Yes understand taxes will need to be be paid. We're not currently at the point of finding anywhere specifically as of yet - we're  just looking into the possibilities of actually being able to get hold of the money first, as otherwise it's not even a feasible opportunity.  

You'll find it a crowded market. 

Kebby

Thrugelmir said:

Kebby said:

AdrianC said:

...and commercial activity means paying income tax on the profits, don't forget...

Have you actually done the sums to see if this is a worthwhile project?

Yes understand taxes will need to be be paid. We're not currently at the point of finding anywhere specifically as of yet - we're  just looking into the possibilities of actually being able to get hold of the money first, as otherwise it's not even a feasible opportunity.  

You'll find it a crowded market. 

Thank you - just trying to understand if we can get at our money first! 

steampowered

Remember you'll need to pay higher rate stamp duty on the second property.