mikmac Posted December 8, 2011 Report Share Posted December 8, 2011 hello just a quick question,please forgive my ignorance if this is a stupid question. i have two properties one i live in and another i rent out, thinking of buying a third property, i have the deposit around 25% cash(property price around 65-70000)however both my other properties have at least 25% equity in them, is it possible to use this equity as a 'deposit' rather then remortgaging them or using my cash in the bank? many thanks Link to comment Share on other sites More sharing options...
Mortitia Posted December 9, 2011 Report Share Posted December 9, 2011 Lenders (if you can find one for Buy To Let) will want to see a cash deposit I'm afraid. Who says there is 25% equity? Your lender will decide on that and it may not be the amount you think as valuations for equity release are always lower than a market appraisal. Also don't forget to factor in the costs of setting up any deal, legal work and stamp duty of 1%. Mortitia Link to comment Share on other sites More sharing options...
Melboy Posted December 9, 2011 Report Share Posted December 9, 2011 Like Mortitia says you will have to provide your deposit in hard cash and not a figure of what you may think you have in equity in other BTL properties. Those days are long gone. Mel. Link to comment Share on other sites More sharing options...
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