Equity release / Remortgage

Gam2015

Hi I currently own my house outright I’m just wondering is it possible to release equity from it by remortgaging? It is currently worth about 100k so could i maybe release 75k and then remortgage it onto a BTL mortgage with the remaining 25% then put the remaining 75k towards a new property or investment? Thanks 

K_S

@gam2015 In principle, yes it may be possible to release equity from your mortgage-free residence if you meet affordability and criteria.

The rest of the plan needs to be clearer - do you want to stay in this house or let it out?

Gam2015

K_S said:

@gam2015 In principle, yes it may be possible to release equity from your mortgage-free residence if you meet affordability and criteria.

The rest of the plan needs to be clearer - do you want to stay in this house or let it out?

Yes we would like to let it out and leave 25% equity in it for the BTL mortgage then use the rest of the equity to purchase our new home. Would it be possible to do this then? 

K_S

@gam2015 What you want to do is called a let-to-buy. Essentially you remortgage your current house to a BTL and use the capital raised as a deposit on an onward residential purchase. All this happens simultaneously and both mortgages complete on the same day.

How much equity you will be able to release will largely depend on the estimated rental income.

pramsay13

Yes in theory it's possible. You can speak to a mortgage broker to get a better idea.
Whether you should become a landlord is a much more difficult question to answer.