Does the prospect of owning a second house appeal to you? Daydreams of holiday homes, or perhaps a nice buy-to-let investment? Well, now could be the perfect time to explore your options and see if this dream could become a reality.
How does remortgaging work to buy another property?
Although you might not have the money saved up to put down a deposit on a second home right now, there are other ways you can still achieve this. Remortgaging is a common path many people take to buy a second property, but first, it’s good to understand how this works.
Remortgaging is all about equity
With every monthly repayment you make on your current mortgage, you are gradually shaving off more and more of your mortgage, and in the process, you’re building up the equity in your home. As the equity increases, you can remortgage and release some of the equity to put it towards other things, such as home improvements or, in this case, buying another property.
This is often a common choice for many looking to branch into the buy-to-let market as the equity you have can be put down as a deposit on a second property.
Using home equity to buy another house can be an effective way to use money that would otherwise sit tied up in your property. A mortgage adviser will look at your personal and financial situation before making recommendations on how you can achieve your ultimate goal.