When it comes to holding up your financial blueprint and navigating the mortgage world, you will find that you honestly have a lot more options than you might imagine. It can feel like there are no options at all when you’ve been dreaming about that vacation home forever, but the answer to your problems really might lie within your own home currently. A lot of people don’t think about their equity, but you might have a lot more equity than you think. This is very true for homeowners that have lived in areas now currently experiencing rapid growth and appreciation. If you are in one of these areas, you might actually have a lot more equity in your home than you think. Equity is simply the real amount of your home that isn’t held down by mortgage. So a 200,000 GBP home with a 60,000 GBP mortgage on it actually have 140,000 GBP in equity! That is definitely worth getting another home with!
You will find that releasing equity from property to buy another property only sounds difficult. Once you are approved for the loan to make this happen, the rest is straightforward. A lot of people find that they have some different options as a homeowner. They can use the money as a deposit on a bigger home than what their equity would actually be, or they can buy a home that’s exactly the same cost as their equity cash out would be. The right decision just depends on your goals and the property market that you’re going to be working with. Some people like to pick a market that tends to agree with their views but this isn’t always the best way to go. You will find that you’re a lot better off making sure that you will truly be able to afford both properties, since payments can definitely go up. Crunch the number in an equity calculator if you’re worried.
As far as the purchasing goes, you will still need to get an advisor as well as a solicitor the way you would with your first property. Things are just heating up now, and staying organized is the key to pulling it off — what will you purchase with your new equity payments? There’s only one to find out — you got to dig deeper!
And speaking of digging deeper, if you need more information you really have to check out www.homeequityloans.co.uk — it’s a great site to figure out where to take your next few steps!