ad

What options do we have?

J

Johnc2020

New Member
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
 
P

PostBrexitInvestor

Member
There may well be the potential to withdraw part of the equity in your property by remortgaging and then adding a buy to let property to your assets. While much will depend upon your combined income there seems to be a fair amount of equity in your property already. If this was the correct strategy for you, with interest rates as low as they are this may well be an opportune time to take a closer look.
 
J

Johnc2020

New Member
There may well be the potential to withdraw part of the equity in your property by remortgaging and then adding a buy to let property to your assets. While much will depend upon your combined income there seems to be a fair amount of equity in your property already. If this was the correct strategy for you, with interest rates as low as they are this may well be an opportune time to take a closer look.
Thank you for your reply. At the moment, without any overtime or bonuses, our joint income is over the £60k mark and with bonuses and overtime, could get over £70k. Yeah interest rates are very low now. So, hopefully stays low for when we get to remortgage. So let’s say my 5 year fix rate has finished this month and the house is worth £500k and we only owe the bank £200k what could we take out based on current situation?
 
L

Longterminvestor

Administrator
Hi @Johnc2020

We deal with a mortgage company who will be able to offer your some guidance. Would you like me to PM you their details?
 
Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
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
 
N

nmb

Well-Known Member
I was interested in your comment "Strategies like rent to rent, lease options, Jv’s, private finance and services accomodation are a few examples... "

Would you need to put ANY money down at the start and if so what kind of ballpark figure?
 
Top