Collateral

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thebop

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Folks are buying a second home as they wish to relocate. They own their present home but cannot sell it due to market and location.

I was hoping that they could get the equity from their home to purchase the second home in the hope they can then sell the house at some stage.

My question is that if the above was possible and they relocated and then my father was made redeundant god forbid and they couldn't afford to make repayments on the equity release, would the bank cease the house they took the equity from and not the new house (in other words, would the new house be safe)

Any good advice appreciated.
 
"My question is that if the above was possible and they relocated and then my father was made redeundant god forbid and they couldn't afford to make repayments on the equity release, would the bank cease the house they took the equity from and not the new house (in other words, would the new house be safe)"

A Bank is entitled to and will have recourse to all assets of the defaulting borrower.
So, no, the new house is not "safe".

mf
 
thebop said:
Folks are buying a second home as they wish to relocate. They own their present home but cannot sell it due to market and location.
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any house is sellable, they just need to price it to sell

I'd suggest they have a serious conversation with their EA and reprice

thebop said:
I was hoping that they could get the equity from their home to purchase the second home in the hope they can then sell the house at some stage.

My question is that if the above was possible and they relocated and then my father was made redeundant god forbid and they couldn't afford to make repayments on the equity release, would the bank cease the house they took the equity from and not the new house (in other words, would the new house be safe)
Click to expand...

why don't they rent in the new location for a while, at least until they have sold the old house? buying seems foolish until they have sold the old place
 
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