Lorraine76
Registered User
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- 6
Are you aware of a lender currently offering such a facility?I'm a bit puzzled at the question.
You could remortgage your house to buy a Maserati if you wanted to.
A lender has two questions to answer before they will lend you money
Can you afford the repayments?
Do they have security?
And in that case the security would be the property you buy rather than your own home.I would need a buy to let mortgage
No. The above posts are very misleading.Maybe I should change banks!
Yes, that is what we are trying to avoid getting because the rates are so high.And in that case the security would be the property you buy rather than your own home.
Thank you, thats exactly as I thought. I was just holding on to some hope that one of the banks did it. Looks like buy to let is our only option. Thank youNo. The above posts are very misleading.
What you want to do was possible up to 2008. Since then equity release has obviously tightened up a lot. Banks will provide equity release for very specific purposes, such as home improvements or paying college fees for your children. For any material amount they will seek evidence of the spend. Buying a 2nd home, holiday home, or an investment property is not a purpose that banks will provide an equity release. (By the way, they won't provide it to buy a Maserati either, not in the last 12 years anyhow).
Your only options are either a mortgage for your son (I'm assuming that's not a runner), or a BTL mortgage, secured against the new property. You will need 30% deposit.
But I heard about a guy, down the pub......Banks don’t do equity release
Would like to buy another house to give to our son.
Of course they are. But a home improvement loan is even more expensive than a BTL mortgage, and there's a limit to the amount you can borrow.@RedOnion , not following, are you saying that banks aren't doing Home improvement loans?
Looking directly at interest rates the BTL rate is significantly higher. Yes there is a limit, I believe that was referenced earlier - we don' t know how much the OP wants to borrow. The specific question was if they could borrow using their own home as security.Of course they are. But a home improvement loan is even more expensive than a BTL mortgage, and there's a limit to the amount you can borrow.
And the answer is no.The specific question was if they could borrow using their own home as security.
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