Financing
There are really 3 ways to finance your investment properties
- To pay cash for the entire purchase.
- To use cash for your deposit and take a mortgage for the remaining amount.
- To release the equity built up in your existing home or investment portfolio in order to fund your deposit, and then take a mortgage for the remaining amount.
Obviously, saving the cash for each and every deposit can take time, so most investors are choosing to release the equity in their home or existing properties and use this to leverage their portfolio and get more money working for them. We have specialist finance brokers who can help you to do this with safety and a minimum of fuss.
What is Equity?
“The difference between the value of a property and the balance of any mortgage(s) secured upon it”
What is Refinancing (Equity Release)?
“The process of converting the equity built up in a property into cash, without having to sell the property.”
i.e Borrowing against notional wealth
- Although equity is desirable, it is essentially ‘dead money’
- Use equity to achieve additional ‘asset growth’
- Raise the maximum funds in ‘One Go’
- Use Good Debt Vs Bad Debt
- Reduce your existing outgoings
- Borrow more for the same monthly outlay
