How much can I capital raise on my investment portfolio?

Posted on 21 August 2012 by garry


I own two flats which are both rented out. One has 117,000 mortgage balance & is valued at 400,000. the other is 114,000 mortgage & valued at 165,000. Would I be able to raise capital on both properties? And how much?

Garry

In general you will be able to borrow up to 85% of the property value, which would give you £223,000 and £26,250 respectively.  Ultimately the amount will depend on the rental income you receive, Lenders are looking at the monthly rental to cover roughly 125% of the monthly interest payment.  This gives you sufficient income to build up a fund to cover repairs, maintenance and any rental voids.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgages for your situation.

Peter

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

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