The Property Ombudsman

1 In 5 Refinance Home To Fund Buy To Let

Re-mortgaging for investment

Internal research from Sequre found that 1 investor out of every 5 has refinanced their home to fund a buy to let purchase. Whilst deposits can often be a stumbling block for many wanting to invest in property, it would seem that individuals are willing to see a small rise in mortgage payments on their family home, in return for the benefits and income that buy to let property can generate.

It’s normal for people to be apprehensive about refinancing their home when the main goal is usually to pay the debt down, not increase it. However, many see property investment as not just an opportunity to generate additional income, but also a chance to invest in a tangible asset that will benefit from capital growth and is able to be passed down to loved ones.

What does the research say?

With mortgage rates currently at an all-time low, our team are inundated with questions about how refinancing can help people not just take advantage of the attractive rates, but also of the fantastic buy to let deals that are available.

As with any investment, it’s all about the numbers. When looking to refinance, the rental income from the investment property should:

1)            Cover the rise in mortgage payments for the main residence

2)            Cover the mortgage payments and other expenditure on the investment property

3)            Still provide a healthy return on cash invested  

If you’re going down the refinancing route, there’s no shortage of lenders either. Currently, there are over 800 buy to let mortgage products available with some providers offering fixed rates of up to ten years. As tempting as some of these deals might be, if you’re new to buy to let, you’re likely to find the lending criteria quite different from normal residential purchases.

If you’d like further information on how refinancing can help you, contact us today on 0800 011 2277. Our team work closely with a number of professional mortgage advisers who can help you with any mortgage queries you may have. Regardless of whether you’re purely seeking advice, looking for a buy to let mortgage or are about to move house and are searching for the best rates around, speak to our team who are more than happy to help.  

For more information on investing in buy to let property, call our team today on 0800 011 2277

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