Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Equity in a property I rent out - does it count as an asset toward second mortgage

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Equity in a property I rent out - does it count as an asset toward second mortgage

    Hello - I'm new so please move this thread if it's not in the right spot.

    I have some £40k worth of equity in a property that I rent out. The rent we receive more or less pays for the running cost of this letting.

    So far we have been living at my wife's parents house quite happily (honest) for about 1 year and we have managed to save about 10k.

    My question is this... Is the equity that is tied up in our rented out property able to be counted as some sort of asset? In other words, would an IFA regard the rental as 'paying for itself', and take our 10K as a deposit towards a new mortgage?... Does our 40k equity help us in any way to borrow more money?

    Basically we're trying to avoid selling the house we currently rent out just to release the equity to buy our next house.

    Thanks - I hope this makes enough sense to someone.
    Pascal
Working...
X