For every homeowner, there will come a time when your initial fixed period is coming to an end, and you will have the option of remortgaging your property. If you are not familiar with the process, remortgaging is basically a new mortgage taken out on the same property, to either replace the existing mortgage or borrow money against your home.
People can remortgage for a variety of reasons, such as raising capital, improving homes, and more. Another reason you may be unaware you can use capital raised for, is to purchase another property.
How can I remortgage to buy another property?
In some cases, some homeowners may have accumulated some extra money in savings to afford the deposit for another property. Though, any homeowner that has additional income during their mortgage term will more than likely put that towards paying off the remaining balance on their first mortgage.
Instead of this, we look at things like equity. Equity is the difference between the value of the property and the amount left on the balance of your mortgage. If there is enough equity in your home, you may be able to release some of this through a remortgage to finance the deposit of a new property.
Our team provides expert remortgage advice in Sunderland, while our mortgage advisors in Sunderland have a vast amount of experience in dealing with remortgages to release equity, so they will be glad to help you out.
What types of property can I purchase with my released equity?
Well, you might have enough equity, but would you qualify for an additional mortgage? As part of our service as a mortgage broker in Sunderland, one of our experienced mortgage advisors in Sunderland will carry out an affordability Check.
So long as you highlight what you are trying to achieve, your mortgage advisor in Sunderland will be able to let you know whether this is achievable. If your income and circumstances have not changed, you are highly likely to be able to remortgage. However, buying another property works a little differently.
Remortgage to Purchase a Buy to Let Property
The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.
If you are looking at becoming a landlord and are in need of buy to let mortgage advice in Sunderland. Your mortgage advisor in Sunderland will perform some calculations and look at your potential rental income. When it comes to buy to let mortgage affordability it can be less about your income, and more about the potential rental income that the property could produce.
Remortgage to Purchase a Residential Property
Flip side, if you are looking to buy a property for residential purposes, such as a second home for a legitimate reason (such as a home closer to your work if you commute, or for a family member) we will need to be sure that you can afford to proceed.
You will not be generating extra income from this property, so that is two lots of mortgage payments you will be covering out of your own income.
Speak to One of Our Remortgage Advisors in Sunderland
If you are looking at your options to take out a mortgage to buy another property, it is recommended that you talk to a specialist mortgage broker in Sunderland today. Book your free remortgage review of the mortgage today and a member of our dedicated team of mortgage advisors in Sunderland will run through your case and make sure you are able to proceed before you release equity from your home.
Date Last Edited: 13/01/2023
