can i release equity for deposit on new house

The lender will be looking for evidence of ability to repay the mortgage. How do you plan to do this? Have a look around the Property Investment forum for other general information on property investment.
 
Have you checked out the numbers for yourself? What rental would you get for that house? How much would the mortgage repayments be? Have you checked out the taxation impacts on your rental income? How many months will the property be vacant each year between tenants?
 
You can use Karl Jeacle's Mortgage Calculator to get a feel for what the repayments might be. If you borrow €135k at 3.5% p.a., you'll be repaying just over €750 per month. At rental income of €800 per month for 9 months, you'll be short about €1800 per annum on repayments, and that's before you even think about the tax (see Property Investment forum key posts for more details about the tax) or repaying your equity release.

Are you really sure you want to get into residential property investment now? Check out the Guide for a better understanding of your options.
 
You must log in or register to reply here.
Back
Top