Can I raise equity from my property to buy another?

Posted on 26 July 2008

Hi Bea, I'm British but have lived in Australia for the last 3 years. I have a house in NW London worth $350,000 with a mortgage of $165,000. My mortgage contract finishes in August this year and I'm interested in raising some equity to buy another property in Australia (or UK). I don't have a buy to let currently but would that be my best option? It's essential that whatever I borrow does not exceed the rent I receive (1250 pounds per month). Do you have any suggestions on my best options? Thanks Sarah

Hi Sarah,

Thanks for your question.

Yes a buy to let mortgage is the way to go and you have a wide number of options available in terms of lenders and rates. However each lender will have their own criteria for you to fit in to based on where you live, the loan amount, property value and the rental income (a lot to think about I know).

You will need to be able to provide proof or your identification and address and some lenders will require you to have plans to return to the UK. The rental income will need to be around 125% of the mortgage monthly payment and you will need to leave a minimum of 15-20% equity.

One of our Charcol brokers would be delighted to assist you in finding a solution so please do call us on 0845 413 1053.

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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