Extra capital raised on re-mortgage to help buy your first house to let!
Re-mortgage can be an opportunity to review your strategy and to see what can be done to start building your investment property portfolio .
Our success story this week is of clients who bought their first home with very little deposit 2 years ago and, on re-mortgage, we have now managed to get a deal that will let them borrow extra £30k to invest in their first property to let! This is a great outcome after only 2 years when they first bought a residential house.
Property values have increased over the last year and, despite all Covid related distractions, the market is very busy. It may be a good thing if you want to borrow extra capital on your home.
Every time your property grows in value, you gain more and more equity (ownership) which can mean benefits like:
an option to borrow more,
option to renegotiate your interest, or
option to reduce the term of the mortgage.
Remember, every case is different and it has to be assessed on its own merit but when you are planning your re-mortgage, you should not just assume that switching product with the same lender is the only option available for you. Have a chat with a mortgage adviser to discuss what can be done.