Raising money on main residence to buy overseas property
Posted on 31 August 2009
Hi we have a house worth £380k and mortgage left to pay of £195k. We would like to buy a holiday cottage to let in Ireland for £130k do you think we will be able to get a mortage based on the equity in our house? And if so what are the best current optins? Our current combined salary is £78k
Claire,
From the figures you have given this should be possible, providing neither of you have significant other financial commitments,. Such as an unsecured loan or credit card debt.
For a couple on your joint income it should be possible to borrow at least 4.5 times your income, which would be more than adequate. However, the cost of a new mortgage increases rapidly if you borrow more than 75% of the property value and it is very expensive to get a remortgage over 85%. I am assuming you have no early repayment charges on your current mortgage but if you do you may be better off asking for a further advance from your current lender rather than remortgaging.
If you would like more detailed advice we will need more information and so please call one of our consultants on 0800 71 81 91.
Categories: Buying abroad, Raising capital out of property, Remortgaging, Second properties
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