Getting started - use equity in home?

Discussion in 'Mortgages' started by Louise569, May 23, 2018.

  1. Louise569

    Louise569 New Member

    I am in my late 30's and my husband is early 40's we own a home worth approx. £250k with a mortgage of 85k remaining and 10 years left, although if we overpaid we could probably clear it in 7 years. We are thinking of increasing our mortgage and increasing the term to 20-25 years to get funds to start investing in buy-to-let. Are we mad!? Properties in our area rent for 500-650 per month and prices start at 60k - 110k for 2/3 bedroom semi's. I really want to go for it and don't want to delay any longer. Has anyone else started off in this way? Any advice? Thanks.
     
  2. diyhelp

    diyhelp Active Member

    If you buy the right property in the right place earning the right rent then it is certainly worth pursuing. However, do your research first as the days of making easy money in the buy to let market have long gone. There is still potential to make good money along the way and build up a sizeable portfolio but fully investigate the potential risks and potential rewards.
     
  3. nmb

    nmb Well-Known Member

    I think there is still money to be made in the buy to let market but it is more of a long term investment these days than a short term pay day. You also need to consider a potential increase in mortgage payments as and when base rates start moving back towards more traditional levels - do not extend your finances to the limit at current base rates as you might struggle further down the line.

    Inevitably you will make some mistakes and it is best to make them when you leave yourself at least some financial headroom. Go for it, but do you research!
     
  4. realdeals

    realdeals Active Member

    Do you have sufficient income from other sources to cover you if you bought a buy to let asset and the property was vacant for a period of time?
     
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