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Investing on a property by buying in cash and remortgaging to diversify


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Hi everyone,

I am a non-resident and a non-citizen looking on to investing on a property in UK. So I was wondering that if I pay cash 100% and I remortgage the property, there's a 6 months cooling period right? 


1. So I would like to know if it is true that you cannot use the money from remortgaging and cannot be taken as cash?


2. In this case you can only use the money in investing to another property?
Does that mean if I pay 100% in cash then remortgage a property, I'll have the 75% back which then has to be used to invest on 3 different properties given that 25% equity is required?


3. Is there a workaround with me having the cash from remortgaging so I can invest the money somewhere else?

Would really appreciate your inputs and suggestion on this one.


Thank you so much!

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Hello, 

Most mortgage lenders restrict borrowers from refinancing until 6 months has passed - this is to make it harder for people to launder money through property. 

If you are looking to refinance money out of a property - the lender will ask you what you intend to do with the cash. Some lenders will be happy for you to refinance money to buy properties, whilst others will not. Some lenders will want to know what the next purchase is before releasing funds, whilst other will release the cash without wanting to know anything about it. 

The first thing you need to do is have a chat with broker who specialise in mortgages in the UK for you. With the right broker in place they should be able to advise you on what's possible or not. Definitely worth working out your exit plan before buying a property with cash, so I'd speak to at least 2 different brokers first. 

Hope this helps

 

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I looked into this and most of the major low-cost mortgages were pretty adamant that the funds had to be used for property - though this could be property development/extensions/etc in many cases. There may well be some that 'don't care' but I would guess this will be reflected in their interest rates.. Def one for a good broker to answer

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