Best Way to Borrow Against a Property with No Mortgage to Buy a New Property

Thenonameleague

HansGruber89 said:

bris said:

HansGruber89 said:

bris said:

You are looking at the sub prime market to get a secured loan, you still need a around 30% deposit and your rates will be high.

An independent financial advisor might be able to help but if you think you can just use the owned property as security without putting anything into the pot, you can't. 

Affordability is still the key, you need a salary to meet the criteria as well as the deposit.

So would the property itself not count as putting something in the pot? 

Yes the property is something in the pot but it's not what they will lend on. They still need affordability, thats an income that can comfortably pay the mortgage. The last thing they want is to chase you and reposes the properties only to be then getting accused of lending to someone who could.t afford the payments.

I see. So if I am able to make the payments and have a good credit rating history (which I am and do), AND I am willing to put a house in the pot owned outright, would that put me in good stead for borrowing using the house as collateral or using it in another way (such as releasing equity etc)?

Your rating is here nor there when it comes to finance.
Your history is what is important since that is what lenders see.