Buy to Let Equity Release – Is it the best option?

Wednesday, September 20th, 2017

Equity release in the residential housing market has seen significant growth in recent years, a trend which shows no signs of slowing. More interestingly, and perhaps because of the uncertainty surrounding the buy to let market, here at Caboodle Finance, we have noted an increase in the level of enquiries from landlords.

Why are more landlords enquiring about equity release?

Whilst equity release on buy to let properties is not actually a new thing, what has changed is the overall market that landlords now find themselves in. Consequently, we believe that more landlords are utilising equity release across their buy to let portfolios so that they may then continue to benefit from property investment in the longer term.

Could equity release be a better solution?

At first glance though, buy to let landlords do not seem the obvious choice for an equity release solution when compared to a traditional mortgage. However, given the market changes landlords have already experienced and the well documented challenges (be they Statutory or otherwise) still to come, it is perhaps easy to see how the combination of these factors has put pressure on professional landlords and more specifically their ability to make a “worthwhile” profit at a time when house price increases have also slowed.

Additionally, there is also a growing evidence that even those buy to let landlords with just one or two properties may also be looking to exit the market.

Is equity release an alternative strategy to outright sale in every case?

Certainly, for some, an appropriate equity release solution could provide a tax-free lump sum which also has the potential to allow a property to be retained over a much longer period during which the landlord is able to benefit from both the rental income and any future house price growth that may accrue.

Equity release advice should you need it

Making the decision on which route to take is not always an obvious one but our specialist advisers will be able to assess your individual circumstances and determine whether equity release may be more appropriate in all the circumstances than a more traditional buy to let mortgage/re-mortgage solution.

If you would like to understand more about how our specialist advisors here at Caboodle Finance of Sutton Coldfield, Birmingham can help you decide, please call us today on 0800 151 2407 or just complete the enquiry form by clicking HERE to contact one of our team.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan ratesis an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an Appointed Representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading name of Advance Mortgage Funding Limited which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products.
The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2017 Caboodle Financial Services Ltd