Posted on 15 August 2012 by Elaine
We want to buy a second property in Ireland as an investment with the view to moving there permanently in a few years time ond using it as a holiday home in the mean time. We currently own a house in London that has a £200k balance still due on the mortgage but is worth £250K. Can we use the equity in this property to help raise the mortgage for another property in Ireland? Our current mortgate rate is particularly low so we want to avoid re-mortgaging.
Any help or advice would be greatly appreciated.
You would think that with £50k equity it should be possible to release some of this to fund the deposit on a house in Ireland. However, you will not be able to release all of it and I would only expect you to be able to get up to 85% of the property value, another £12,500.
The rates on secured loans are not as low as mortgage rates, but I agree that it does not make sense to remortgage for a slightly higher amount and lose your existing low mortgage rate.
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