In the UK, remortgaging stands out as a highly cost-effective method of raising capital to purchase a new property. However, it is crucial to ensure that your current property holds sufficient equity to make the process worthwhile. If you have not been paying off your mortgage for an extended period, there might not be enough accumulated value to support your next property purchase, or the associated costs may not be justifiable when compared to the amounts required.
How Do I Remortgage To Buy Another Property?
Remortgaging to buy another property, is the mainly the same as a standard remortgage or home purchase.
The lender will want to assess your affordability, check your credit score and decide if you can make the repayments based on your incomings and outgoings.
The equity in your property will play a massive part in the remortgage process.
Equity is determined by subtracting the total value of loans secured on your property (your current mortgage loan) from its current market value.
When considering a remortgage for your property, you have two choices: opting for a full remortgage, which replaces your original mortgage entirely, or selecting a second charge mortgage, which entails a separate loan secured on the home.
Types Of Properties You Can Buy:
1 – Second Homes
Acquiring a second home for personal use and as a getaway spot can offer numerous advantages. However, it’s crucial to account for the ongoing maintenance and upkeep costs of the property to ensure it remains within your financial comfort zone.
2 – Buy To Let Residential
Whether you’re a new landlord or want to expand your current profile, you could buy another property to rent out to tenants.
3 – Buy To Let Holiday
Purchasing an additional property for the purpose of renting it out as a holiday accommodation is another viable choice. Keep in mind that such investments typically necessitate a larger initial deposit, hence it’s important to factor this into your affordability calculations.
…Amongst others.
Contact An Expert For Advice:
Regardless of whether you’d like to find out more about your remortgage options, your affordability, or the wide range of services we can provide here at UKMC, don’t hesitate to get in touch.
You can either give our friendly remortgage team a call today on 01925 573328, request a call back at a more convenient date and time using our online contact form, or simply book your own appointment here.
Regardless of whether you live in the UK, if you’re looking for a down-to-earth remortgage advisor to minimise the hassle and save you money, contact us today.
UK Mortgage Centre is a trading style of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. FRN – 826982. Registered in England & Wales: 11614569. As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages. The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
