It can be frustrating, but you may have options you didn’t even know about…Here’s some food for thought:
My house keeps going up in value! How can I make the most of it?
If you bought your house over five years ago you might be feeling rather smug at the money you have made without doing anything. Average house prices in Surrey and Hampshire have soared 10% in the last year alone. That’s one of the highest levels of growth outside London! It seems that our excellent transport links, more relaxed lifestyle and proximity to the countryside are drawing in increasing numbers of buyers from the city.
So I should just stick. My house will continue to go up in value, right?
The short answer is that no-one knows for sure. The Royal Institution of Chartered Surveyors (RICS) expects the South East to see rises of at least 5pc in 2015. The housing shortage in the south-east, record low mortgage rates and rising availability of loans is keeping the market buoyant. On the other hand, the London market is slowing, and many believe that will continue.
We need more space. Can we use some of that money to convert our loft?
Yes! (well, assuming you meet the lenders normal criteria that is)…. Capital raising on your home releases a chunk of money that you can use for loads of different things: – not only home improvements, dream holidays and new cars but also as a deposit for your children’s first home or to consolidate existing debts.
In short, a capital-raising mortgage can be a very useful solution.
What about releasing equity in my home to put towards a Buy to Let property?
It’s not right for everyone and we would need to ask a lot more questions to find out if this is the right approach for you. If it is, then you could look at remortgaging your current home to see if this is right for your needs. By remortgaging it is possible to release funds to use on a ‘Buy-To-Let’ (BTL) property to either buy the BTL outright with the raised funds, or use the funds as a deposit and take a BTL mortgage depending on affordability and your circumstances.
How does that work then? Re-mortgage your existing residential property to release the funds to buy the rental property (or provide a deposit). There are various criteria you will need to meet, all of which we deal with on a daily basis.
To take a look at your options, give us a shout on 01252 217036 & we’ll have a chat.
Your property may be repossessed if you do not keep up repayments on your mortgage.
You can choose how we are paid: pay a fee, usually 0.75% of the loan amount or we can accept commission from the lender. www.yournextmortgage.co.uk/your-mortgage-choices/