Remortgage options for reinvestment

Hi,

I bought a property for 555K with a mortgage on it of 510k which has an approximate value of 700K. Tracker mortgage ECB +1% .

My personal finances are 100K a year with a steady position / working life. 40K-50K in my bank account aged 27.

Also own an property valued at 210k with mortgage of 100k on it in foreign country, this cannot be remortgaged as easily as in Ireland as it takes so long to process.

I am looking to purchase investment properties potentially in London / Continential Europe with high leverage and interest only combined with high yield to pay for it.

Whats the best approach and which bank is the best to sort out a remortgage and to what value can i remortgage? It is my PPR.

Any advice appreciated on moving my financial matters forward.

You can re-mortgage your PPR for up to 95% of it's current value although your salary may not support a mortgage of this size. Also 95% mortgages are only available on a repayment basis, not interest-only.

Borrowing to invest is high-risk stuff, as your investment has to yield a net return equal to your loan interest for you to break even. Securing such borrowing against your PPR is also contains risks.

On re-mortgaging your foreign property, try www.mortgagesoverseas.com

Liam D. Ferguson
www.ferga.com

You are heavily borrowed at 600k against a salary of 100k in my view, but you have youth on your side in the event of any trip-up that sets you back a bit.

I would be more inclined to sell the overseas property (unless it is performing well and paying its way) and then leverage the 150K plus a small bit of extra equity from your home to get into a small commercial property with a strong return either in the UK or elsewhere.

At the end of the day, property investment is a good way to build assets and a future for yorself, but not at the expense of sleepless nights and poor quality of life!

Remember that you cannot claim owner occupier mortgage interest relief on (partial or full) loans secured against your PPR that are not used to purchase/renovate the PPR but you can offset interest on such amounts against rental income from any investment property that they money is used to purchase/renovate.

Apart from the risks involved in cross mortgaging against your PPR
to invest you also seem to be concentrating a lot (too much?) on a single asset class (residential (?) property) which is also riskier than diversifying acorss a wider range of asset classes, risk/reward profiles, geographic regions etc.

Hi Liam,

I forgot to mention my take home is 7000 a month due to travelling etc and owning company.

Auto320 foreign property is appreciating well and i wont sell its doing too well to be honest i want to expand not sell. It pays its way. Auto320 are you talking about gentrification units or just pure commercial ? As i havent read books on commercial property perhaps u can point me in the right direction.

Clubman i have options / futures on stock market to a value of around 150k. Had a pension before but lost my shirt on it; and this was during good times. I think a directors pension maybe the way forward in the future so i can choose as id like exposure to renimbi ie: chinese stock exchange.

Ldferguson, only interested in repayment on my home as its my PPR. Interest only on investment stuff as it seems to be way to go from advice on AAM and other sources. Who offers 95% on PPR and at what rate ?

Does anyone is it possible to borrow in CHF in england / london for investment purposes ?

Looking at 10 year interest rate option it appears a lot cheaper; also the currency risk can be offset somewhat by my current overseas property.