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Cost of equity release

Amy Shep

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Hi Hubbers!

We are newbies to property investment and are starting with £50k from equity in our home. With the idea to refurb then rent and release equity for the next in a couple of years. 

We are starting to run some numbers to see what kind of projects will work but I'm unsure of how to add in the cost of the equity release. It is as simple as adding to difference between our current mortgage payments and the mortgage payment after the equity release as a cost to factor in? Or it just the additional interest part of that mortgage payment. If so how do I calculate that? The LTV band increases after remortgaging which means a higher interest on the full sum. I want to make sure we are being realistic and the deal stacks up before taking the equity out. 



Oh and we are based in Northamptonshire if anyone knows of any good local resources.

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