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The idea sounds mad, but one of the non-bank lenders might lend for a new BTL using the existing one as security also, i.e. lend against a 'portfolio'.I'm thinking if I could somehow borrow or free up say €70,000 of that equity I could use it for a down payment on a buy to let.
Completely agree.Eggs & basket comes to mind
I would like to put this equity to use
I live in this property.
I rent this property
Thank you, I will definitively look into Credit Unions and top up loans.Credit unions are going mad to lend money
You did try them?
Home equity doesn't require you to be old... You just need a good income and good credit rating
It's called a top up loan
Younger is better when borrowing
Thanks, that's a pity about property 1 but it's good to know.Whats your borrowing capacity?
Ignore property 1 your PPR, don't believe you can release equity these days for anything other than home improvements.
If your goal is to create leverage to buy more properties. You could always sell property 2 and use the proceeds as deposits for multiple BTLs depending on your borrowing power, and whether lenders will approve.
e.g. If you can borrow 400k, sell property 2 for 210k. Buy two properties for 250k, putting a 30% deposit down (150k), with mortgages of 350k.
Thank you, I might try speak to a broker about this then.The idea sounds mad, but one of the non-bank lenders might lend for a new BTL using the existing one as security also, i.e. lend against a 'portfolio'.
BTL rates are currently over 7% with Dilosk and Finance Ireland.
This "risky strategy" is what I'm trying to figure out. I think you are saying that using property 2 to buy property 3 would be risky? But what I'm trying to figure out are concrete options for doing this, that's if there are any options, risk can be accessed fairly then. What type of loan? Which type of lenders? etc.This is a very risky strategy and most sensible people would not recommend it over a more diversified and less leveraged approach. Good luck if you go for it. You'll probably need it.
It's not that I "want" to borrow more money."equity release" = borrowing money
why do you want to borrow more money?
If you want to increase your income - you can get 14k a year tax free sharing a room in your home.
Thanks for all the replies, based on what I've heard so far I think the final paragraph in my reply here is what I'm down to trying to find out about. Is this possible? If so, what might be my options in terms of types of loans, lenders etc.It's not that I "want" to borrow more money.
I have property 2 now, it's paid off and produces cash flow. If I don't do anything then in 20 years I will still have property 2 paid off and it will still (hopefully) produce cash flow. All well and good.
But...
If had an option to use somehow use my equity in property 2 now to buy a property 3, and any borrowing involved was on a 20 year term, then in 20 years I could have property 2 and property 3 both paid off and producing cash flow. If there are options to do this then it seems like it would be worth my while to at least find out about them.
It will be impossible to get equity release.Property 2 has never had a loan in my name, I bought it for cash. It has a value of around €210,000. I rent this property.
Are there really no lenders prepared to do this? Even though somebody will be prepared to offer 'new loans' on properties 3 and 4 that could easily result in OP having higher total leverage?It will be impossible to get equity release.
I have no inside knowledge but whenever this comes up in AAM people tend to confirm it.Are there really no lenders prepared to do this?
I agree. The net effect is the same.Even though somebody will be prepared to offer 'new loans' on properties 3 and 4 that could easily result in OP having higher total leverage?
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