Raising money.

[Harry Fisher]

My wife and I bought a house to rent last November using cash we had from a pension and inheritance, so did not need a mortgage, I have now almost finished the DIY renovation and am thinking of looking for another house to renovate.

But we have no cash to buy one and both in our 50s and not in highly paid jobs probably won't get a buy to let mortgage, would it be wise to re-mortgage our own home that we live in to raise cash?

I find the idea worrying as we could lose our home, (worst case scenario), but can't think of a quick way to raise the money required?

[Richlist]

would it be wise to re-mortgage our own home that we live in to raise cash?

I think you might be asking the wrong question.

* Is it possible ? = yes

* Is it tax deductible ? = yes

* Do other landlords raise finance this way ? = yes

* Is it wise ? = only you know your personal circumstances.

Presumably you now own your own house & one investment property. You could choose to mortgage the investment property to raise a deposit on another.

[Mortitia]

You could re-mortgage your own house (I have done this) and or the one you have just done up to raise money (if there is equity in them).

Take a look at Peer to Peer loans at companies like Wellesley - google it.

Although buying old properties cheap and doing them up for rental is great fun (for some) the stumbling block is raising the money at a time when loans are not available or suitable.