Remortgaging on owned outright property.

Stryder58

Hi All,

I am trying to help my son buy a property - he lives in Australia. 
We own our house outright and have no mortgage. I am wondering if i can remortgage our house on interest only to buy him a place in Oz for which he will pay rent. At the moment he is not in a position to get a mortgage there but should be in the next 2 years after which he will effectively buy the Australian property from us. The property is is rural and he wants to run his business from there and hopefully expand it into a working farm. 

Is a remortgage possible or is there another way that is more cost effective?
any help much appreciated.

Thanks 

MWT

I would suggest you talk to a mortgage broker to explore what it might be possible for you to raise on your property and if interest-only is a viable option.

I can't comment on how wise this path is as there are a lot of potential pitfalls, but the broker can at least help you determine what is possible...

movilogo

While technically you can do it, I'd be wary of buying something in Australia. You don't know if your son will stay there or come back to UK. Selling house in Australia will be a hassle. Let him rent for sometime and then decide.

MWT

movilogo said:

Let him rent for sometime and then decide.

Probably not going to find something rural and capable of being developed as a farm on the rental market though...

I do share the concerns about what happens if the plan doesn't work, takes a lot of effort and more than a little luck with the weather depending on exactly where in Australia this is...