Refinancing a rental property

curtis122

Background - I have one rental property which I've had for years which has gone up in value about 100k. In a few years I'm looking to sell my current main home as I would like to move. For the area/property I would like to move too I need more money so as well as saving I'm thinking of refinancing my rental.

I'm not looking at moving for a few years but I'm thinking it would be better to refinance now given my rental is now worth quite a bit more and the interest rate is still reasonably low. If I look at doing it nearer the time of moving especially given the current economic situation I'm thinking house prices could come down and interest rates could go up meaning I get less and it costs me more. 

I've never refinanced before, am I able to refinance and then sit on the money for a couple of years? I know you have to give a reason why you want the money and it will be to buy a new home but not straight away. 

K_S

@curtis122 The short answer to your question is - yes, you can indeed look at doing a capital raise remortgage (changing lenders) or a further-advance/additional-borrowing (current lender) and park the cash with the intention of using it to buy a residential property in the future.

Lenders will have different approaches depending on their individual policies based on the purpose of raising capital, the fact that the cash raised will be parked and the amount involved.

dimbo61

So you need a mortgage broker who deals in BTL