Hi all, me and my wife are first time buyers and have lived in our house for 3 years now and will remortgage in 2 years time. In 2 years time we’ll owe the bank £200k which is left on the mortgage we took out and at the moment our house is worth around the £450k mark. And would like to think in 2 years time it’ll be close to the £500k mark. So, what options do we have with the equity we’ve gained over the time we’ve had the property for? Hopefully we’re asking the right sort of questions. Many thanks, John
You’re definitely thinking ahead and well done for planning! Essentially it will come down to what a mortgage company will lend you based on your income ratio and the value of your current house at that time.
These are other options such as a higher rate 2nd charge loan but that comes at a higher cost obviously but could help you release cash for other investments. Just make sure you are comfortable with the risk your taking, everybody has a different attitude to risk and you just need to be aware of that.
There are ways of getting into property investing without using your own cash though did you know that?
Strategies like rent to rent, lease options, Jv’s, private finance and services accomodation are a few examples...
For more on these strategies and ways to get into property investing my book “Investing in International Real Estate For Dummies” is well worth a read as a next step on your education journey...
You can order it on Amazon here:
http://bit.ly/For_Dummies Sent from my iPhone using Property Forum