Releasing Equity to fund another property

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MoiMoi

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Looking for advice. Currently I have a mortgage of 190k, house value between 450k and 500k, i am thinking releasing the equity of my ppr, rent it out and use that equity to buy another property as ppr. which lender would be able to do this and how much can i release my equity?
 
One thing to note - if you release equity on your existing PPR to buy a new one and then rent out the original PPR then interest on the top-up will not be allowable against rental income. Only interest on the amount currently outstanding will be allowable.
 
clubman, any idea of what would be sufficent time between release of equity in PPR (to use to purchase 2nd property) to actually using released funds to purchase 2nd property so that the interest on released equity can be offset against rental income on 1st property (now an investment)
i.e. if equity was released from PPR (property 1), banked for two months (while still living in property 1) before 2nd property was purchased. then property 2 became PPR and property 1 an invesment.
 
There is no "timing" issue here. You simply cannot legitimately offset interest on a loan against rental income unless the money is used to purchase or renovate the rental property generating the income. In your case you would releasing equity from your former PPR/eventual rental property in order to buy your new PPR so all that you could claim would be owner occupier mortgage interest relief on the topup and offset interest on the originally outstanding amount against rental income.
 
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