How can I raise equity to buy a new home?

Posted on 29 April 2008

I want to buy a new home.I have a £159k mortgage on a house which is not selling at the moment and the rental figures for this house won't cover 125 % of the mortgage payments. I also have a holiday house in Scotland with no mortgage. 

Can I use the Scottish home as equity for a new loan ?

Only if you sell it to release the equity.  Do you need to keep the Scottish house for your own use?  If not, and you could let it for a year or so, you could get a buy-to let mortgage on it, and raise the cash out that way.   If you want to keep the Scottish property as your own and continue with it not making an income, you would have to sell the house that's not selling, by reducing the price.  Unfortunately property values are falling, and reducing the price at which you are trying to sell is the real effect of this.

 

Category: Current rates & the market, Let-to-buy

 

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