Can I take equity out of my house to buy another house? The answer is, yes. Whether you’re using equity release to buy a 2nd property, or you’re taking out equity release on an existing 2nd property you own (where products are available), in this article, we explain how equity release works on a second property.
How do I get equity out of my second home or buy to let property?
To qualify for equity release on a second home, you’ll need to be 55 years old or older. The value of your second home should be worth a minimum of £70,000 and will be subject to product availability at the time of application. Bower will be able to inform you what products are available and all your options.
Can I take money out of my existing home equity to buy another house?
Yes. It is possible to access funds tied up in your existing home to purchase a second property. By taking out equity release, you can use the released funds to purchase a second home. However, it’s essential to note that you are obligated to reside in your primary residence, your second home may be a holiday home. Additionally, the payment of stamp duty for your second property will depend on its value.
Can I release equity from my property twice or more?
It is possible to take out equity from your home multiple times. However, this option is dependent upon the terms of your current equity release plan, your property value and the remaining balance. Lenders will assess factors such as age, health, and property value, to determine whether additional funds can be released. An equity release specialist such as Bower will be able to advise you on whether you can do this and your best options.
How do I use equity from one house to buy another?
You can release equity from your main property to purchase another property. You can do this providing your main property remains your main residence, for example for buying a holiday home.
How many times can you take out equity release?
It is possible to take out equity release multiple times, how many times will depend on your plan. Some people take small amounts as they need them over many years, hence delaying any rolling up of interest with a lifetime mortgage or selling a percentage of the house with a home reversion plan. Sometimes it is possible to re-mortgage a lifetime mortgage to a better plan, or one that allows you to take out more money.
For further information or if you have any questions, feel free to get in touch with Bower on 0808 169 8316. Alternatively, you can request a callback, send us an email, or message us through the live chat on our website.
At Bower, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding.
Bower Home Finance provides independent, impartial whole of market advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,495 be payable.
If you are considering equity release, we strongly recommend that you read our equity release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or join our live chat you’ll find on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.
