I went to a property investment seminar over the weekend. They tried to charge me £1000 for information you share with us for free. I really appreciate you doing this or these kinds of people would gatekeep a lot of the UK from getting started with property. Keep up the solid work Jamie!!
I was considering remortgage before the end of my 5 years but watching this clarified my thoughts - I would incur penalty and probably not raise a very useful amount of finance! Great video 😃 thanks again
Your channel just found me, nice info bruh. In my opinion, the five year mark is the way to go. It gives you more of a cushion to pivot in any direction you want to go, with the comfort of being able to sleep at night w/o the worry of losing your property in a downturn.
Jamie. Just bought first 3 BTL on 5 year fixed rate 75:25 LTV. As you say seemed just as cost efficient as 2 or 3 year and will look to remortgage and take out what I need at that point. Either to re invest or take out. Thanks for your help and advice in getting me going. Much appreciated 👍👍
@@JamieYork thanks for the vid jamie some good points. Although just a very novice question to clarify: The money once you have taken it out, is that not a loan rather than a lump sum of cash handed to you?
Hey Jamie, absolutely loving the videos so please keep it up! completed on my first BRRR on Friday and getting stuck in with works. If possible it would be great to see a video on timelines/order, end to end, of a BRRR for a leaseholder property in detail. For example how to get freeholder approval quickly (can this be done before exchange), how much lead time to organise builder etc and when to begin advertising your property. Thanks, Alex
Really like your presentation style...straight upfront and on point with a twist of attitude. Any essential reading for new property investors you would recommend?
Hi Jamie, I hope you're doing okay. Thank you again for your videos. I would like to "EDUCATE" myself. You have mentioned something in this way in a previous video. I appreciate your honesty and I would like to see if I would be eligible to have more knowledge from you, and even to make some deals later, speaking in an optimistic way. Thank you!
Great video! How would refinance play oit in ”reverse mode” lets say real estate prices decline. How would these play out? Now you would be paying the same loans on a cheaper real estate property? I liked the breakdowns in this video.
Another great video, congrats. My battle plan is to get my 24 BTL BRR property portfolio to 40 equity, 60% debt by 2026, in 5 years time. I'm not sure how I get more properties without more capital or more debt, and am worried about rising interest rates
i often hear remortgaging but i wasn't too clear on how it works. This video breaks everything down and makes it much more clear. Great video! Really appreciate your content! Hope you keep up the good value videos.... At the beginning of next year, i wanna start a portfolio and i should have about 100k to divvy out to projects. Whats the best way to get in touch with you
In my experience, even if the property is written up to the target value, the mortgage will just reduce the loan and switch to a ‘loan to cost’ basis, to stop you pulling all your money out and ensuring ‘skin in the game’.
So if we use the original example of the value at £115000 compounded at 5% for 5 years it would have a new value of around £148000? and for arguments sake the mortgage was still outstanding £86000 if you sold at that point would you be around £48000 in profit?
Another great video Jamie, thanks for picking another important topic to cover Regarding “Infinite return on your investment”; it is worth to mention the opportunity cost of the remaining capital, ie. you have two options 1) keep the house and the remaining equity in the property and rent it out so you have a rental income yield on that remaining capital 2) sell the house, realise the profit and go into another project. With your target return rates, would not the second option fit more in your strategy?
Well Jamie I saw this and thought "At last, someone is going to explain about getting another mortgage" (refinancing a property). Unfortunately I believe you could have explained this a lot better than you have. What you do not make clear to the uninformed is that they will be taking out a Larger mortgage than the original. So more debt. Never mind that you 'get money back' which I find totally misleading. However, thanks for trying to explain it in simple terms, which is hard to do with a difficult subject !!
@@andrewfallon2719 thanks for your comment. However, there are times when you have no tenant, so you must cover this, and if you have too many mortgages then you may find yourself in difficulties in paying this. I am defo with Jamie on the 'low risk' scenario. Lots of investors find themselves in derp water by buying too many too soon, as greed gets the better of them.
Thanks for sharing all this info! So let me get this straight…If your renting it out, and at year 5, it’s now worth 27% more, and your refinance, what about your renters? As your mortgage for it has now gone up, so you’ll naturally need to increase the rent right??
After watching a few of your videos I now regret buying my first home with a 5 year fixed rate and renovating , I cant remortgage it to get my money out to buy more!
You can remortgage but you will pay a fee to exit, check your paperwork may not be silly money, I’m looking at pulling one of mine early off a 5 year deal, it will cost me £2,000.
Hello Jamie, the information you pass to us its very good and explained, one thing, however I do not understand. I want to buy my first BRR, but I can do the repairs and improvements myself, would that still improve the property price or the bank i will refinance with will ask for proof of labour? (Receipts of work done, not the stuff bought and repaired). Because by doing most of the repairs and improvements myself it would greatly increase the profits made. Hope I've explained myself properly as my main language isn't english, looking forward to hear your point of view on this, thank you!
I've refurbed 2 properties and am in the middle of a 3rd using my own labor and barely getting other trades in, I've refinanced the first and am looking at the second and not once has either lender (different companies) asked for receipts of work - as long as it looks good and all works they're not bothered
Could you make video in detail about Let to buy as this strategy is till new for lots of people, and why not let to buy instead of refinance to cashout the equity and use it to buy a BTL
Hey, 1000 properties... that's a lot of hassle to manage (even w managing agents). I think you rather wanna have as little properties as possible but have them as high value as possible. (same return but much less mental/mgmt. efforts). Plus say a boiler in a 80k house costs the same as in a 300k houses but on the former it wipes out 6 months of profit, on the latter it wipes out 1 (same fixed costs but different revenues). I know higher value properties tend to yield less but that can be circumvented with doing HMOs. This i rather want to have 10 HMOs then 100 small BTLs. Let me know your thinking though.
Could you advising me please . I’ve got 100 k available from Parents to pay off my mortgage and to be mortgaged free . Would you recommande my to pay it off and refinance the property to be able to get 75% loan to buy a second property. Or should I use that 100K as a deposit to buy the second property ? Thank you so much . Your videos are so helpful and you are so passionately about helping other . Amazing !
Thanks Jaimie for the video, good insight. Quick question, as you refinance your mortgage and take out a higher loan, your monthly payments increase eating into the margin you constantly get therefore I see that as a drawback?
Hi Jamie, can you clarify if the equity released from refinancing is an extension of your mortgage or money handed back without interest? Thanks and great content btw!
At risk of sounding naiive here, how would you mortgage a property you intend to refinance? By that I mean is it subject to early redemption fees for the remortgage itself? How would you avoid the fees?
If you explain to a mortgage broker what you're wanting to do then they can find one with little early redemption fees. You'll always pay something but sometimes a higher percentage is better because there is little fees. Be honest with a broker and they will be able to help (usually!)
When you put a 25% deposit for the initial deal. When you refinance it does it require any more deposit since its a larger amount? Or is that just forgotten about now because the deal is active. Also when you refinance at the higher 75% how much does this effect the monthly repayments
Hi Jamie. Great video as always with usefull knowledge. I got a quick question regarding 2 or 5 years options when getting mortgage out. Lets say I done remortgage on my residential property and got 50k in bank, will be better to buy 2 properties let say for 100k each with 25% LTV for buy to let on or one more expensive? Also put on 2 or 5 years? I know your preference is 5yrs but if you begin investing would 2yrs would not be better to build up portfolio and re-mortgage after 2yrs (hopefully prices goes up ;) and try to buy another property or maybe 2? Thanks for all your great videos.
Hey Jamie Hope yr having a good Xmas I looked at remortgaging a rental property and they said they would only remortgage the property if I had the a direct contract with the tenants. I have a contract with the Student housing letting agent but not a direct contract with the students. I have also done this with a private rental as well. So im researching how to get round this as at the moment I'm a third party. Thanks so much Paul
Jamie, Amazing as usual!! I think exactly like you. I have been a bit unlucky with my buy to let. I had offered accepted but I was not able to proceed (bid out, property not accepted by my lender). Hopefully, soon I can give u a good news of an exchange. Question:y house I have a mortgage on in London, can I only remortgage or refinance if I have a full time job? Not part time? Thx
@@JamieYork at the moment as due to travelling, I’m only keeping my weekend job for an office. I guess, I need a job that shows I can repay my current mortgage and the one that I’ll take on again against my residence.
If say in 5 years time you look to refinance. What happens if in that time your personal income has dramatically reduced compared to when you initially got the first mortgage, and now with the refinance your borrowing increases. Can you do it? Do they still consider personal income or does it not matter if you have continued to pay your mortgage regardless. Cheers
I've been watching a lot of Samuel Leeds' content recently, who had an initial plan to have around 1000 properties too. He showed his plan to Alan Sugar who told him it was rubbish, and advised to do a small amount of bigger deals rather than 1000 smaller ones. What are your thoughts on this?
Hey Micheal, could there be more profit in large deals? Yes. Would there be more risk? Yes. I like boring, vanilla buy to let’s. It’s all about what you want and what you want to achieve. I want to get rich slowly 😀
@@JamieYork if anyone knows Jamie he would rather get rich slowly and get to keep it than to go into something quicker and riskier! One thing he hates is the thought of getting money and then losing it Taking a step forward then having to take a step back!! 😂
Thanks for all the fabulous and encouraging videos. Could you please make one about off-plan property? I'm considering this but would love to know your views on it before I splurge lots of cash. Thanks!
Hi Jamie. I have 2 buy to lets. My first is 5 year fix, and Iv had it for 2 and a half years interest only. I bought it for 100,000 and it’s now worth between 130,000 - 140,000. So I was thinking of refinancing at 2 years instead, and using the money I pull out to put into a third house. As I don’t have any money of my own I can use for a third house. So I’m thinking it’s a great idea to grow my portfolio! Would you say this is a good idea? Also maybe you could do a video on it, but I was wondering, what is better overall…selling a house and using the capital to buy more houses, Or refinancing a house and why? Thanks, Alec :)
Do you recommend this strategy for my first property? My worry is putting in most of my savings in a property and taking years before I can buy another property?
Thanks for the video. In your example of 75% LTV for re-financing, how is it that the 25% deposit you put in for the second mortgage is not considered "cash-in"? I'm trying to understand what other advantage re-financing brings other than getting another mortgage product with a cheaper interest?
who can explain me. what is point to take bigest mortgage ?? lets say I buy house 9 years ago, for 125k now it is worth 250k so what point to me take new mortgage with 250 k then for me left to pay only 80k ??? maybe I don;t understand somethig ?
You are not considering during the 5 years before to get a remortgage, you have to pay the mortgage, so you have to add into the capital invested into the property that amount, at least £25000
So I have remortgage my house for second time without evaluating it, when I have bought it was 95000 and bought it as first time buyer with 5000 deposit. Since then I haven’t evaluated and now is worth around 145k on a quick sale. I was wrong not to do a reevaluation, right ?
I have often wondered why people spend £10 million plus on properties. However, if you can continually refinance as the asset goes up these high costs seems less extravagant and more a judicious investment. If only I had that spare £10 million.
Either I don't get something or your math explanation are off... you bought a house for 80k, spend another 20k to make it better to remortgage it for 90k as value increases, but firstly for mortgage you still pay it every month etc, which means before evaluation you will need spend extra few grands on top as you can't make house better in a day, secondly you take another debt of 90k to cover your previous debt of 60k and leaving you with extra money but in reality is not extra money, you have 30k cash and 90k debt which you need to pay back each month and because all debts nowadays are compounding you end up broke fast.... probably I just didn't get something...
Hi Jamie. I managed to save £30000, I'm a first time buyer and would like to purchase my first residential 3 bed house. I'm not keen on new builds and also the not keen on the help to buy scheme. Any pointers you can give me to get onto the ole ladder? I'm in the Milton Keynes Bedford area! Thanks Jamie.
What happened to all the monthly mortgage repayments? If 5 years down the track, the original mortgage has to be paid off surely the 5 years of repayments are deducted from this figure. Or is the assumption that this is an interest only mortgage? Pls clarify
@@JamieYork Thanks for the reply. Can I ask why this is. I am new to this and considering an investment purchase. I would have thought paying off some of the mortgage balance would be beneficial?
can you clarify the deposit when you remortgage for the 130k? Originally you put in 20k deposit when buying the property at 80k,. When you remortgage at 130k you need 32.5k for the deposit right? (25% of 130k) since you already put in 20k deposit when buying do you just need another 12.5k or do you need another 32.5k? does it come out of the equity? Sorry - i just can't get my head around that bit
When remortgaging, how important is the early repayment fees? As it appears like when you change mortgage supplier you will get stung with their % charge
I've got 96k left with a LTV of roughly 60%... Im considering pulling 30k out to buy a 80k ish house. Any advice? im 29 and would probably do a 35 year interest only mortgage.
@@JamieYork if property purchase price 300k, 200cash 100 via bridging. It’s a fully let hmo, so can I get an interest only remortgage to pay back the 100k borrowed bridge?
Hi, I bought below the 40k second home tax bracket in scotland and am looking to refinance at 50k... Does Jamie or anyone else know if I will be charged the tax when it's revalued/remortgaged?
Hi Jamie, so just to confirm, Say I bought a house 5yr ago for 170000, its now valued at 210000, I refinance at 75% which gives me 157500, I have a 110000 mortgage so after playing that I have 47500 to invest in another property? With 52500 in equity still in house A? Essentially increasing mortgage A to free up cash for the next investment? Then rinse and repeat this process on each property every 5 years?
@@JamieYork i think I've seen another person message about something similar to my next question but i imagine to increase your portfolio you would also use other revenues of income to create further deposits to invest in time between those 5 year refinancing, a video on how you would plan and time say a 10 year plan from 1 property to portfolio and how much cash you'd look so have as a base amount for each investment would be really good to give an idea on a realistic timeline for creating a portfolio at your steady get rich slow rate would be awesome
@Jamie York im thinking in terms of a long leasehold flat, for example where it may become less valuable overtime compared to comps with longer terms. Coupled with the lets assume a stagnant market for example in 5 years time when a fixed rate would burn off and its time to refi, but the mortgage market is not great with interest rates high and property prices are declining. Would this situation mean its better not to refinance? As surely those 5 yrs of interest payments would have gone to waste?
Thanks for this! You mention that you like to take longer fixed terms so that you give time for the value to rise through corrections. Is there a possibility that a correction could take place right before the end of the fixed term when you need to refinance? And can that result in you having to find money from elsewhere if the new mortgage doesn't cover the old one?
Hey Jamie Do you know how toget round the issue with the contracts with having a contract with the letting agent instead of the individuals or people renting the house. I'm trying to remortgage my properties Is it down to the lender etc as the lenders my mortgage broker went didnt except the contract as they have said its third party as my contract is with an estate agent? Do I need to try a different lender who excepts third party contract with letting agents?
You should have a management agreement with the estate agent, AND a contract with the tenant that the agent arranged, else the agent isn't doing their job, assuming that it's and AST (assured shorthold tenancy)... If you're saying that it's a corporate let agreement with the agent, then the agent is paying you direct ... most lenders will be okay with that... if you're getting paid by the direct tenant you MUST have a direct contract, usually an AST, which your agent should sort immediately, as well as right to let, etc.
I’m looking at buying a bigger house and i have enough money to pay for the deposit without having to sell my current house, so is it possible to remortgage my current house to a buy to let mortgage to rent it out?
Yes, I did this a couple of years ago and I'll be doing it again soon. There are the standard fees such as extra stamp duty etc but that's just part of parcel of business.
Hi Jamie, Loving your videos! With refinancing your property every 5/10 years will that affect your credit history or is that perfectly acceptable to do? Thank you
I own and live in a property worth about £120k with £50k equity. Do I get bigger mortgage to buy more expensive property or use the equity to invest in BTL or flip???
To Rosa Linda: my opinion for what it is worth: it rather depends on your financial circumstances, do you earn enough to safely buy another? Is your job pretty secure? Can you cover the refurb costs? And comfortably pay back the increased mortgage? How experienced are you in BTL or Flip? When you are a novice there are many pitfalls but if you are prepared to take the risk then go for it!! Try to steer clear of the rough parts of town!! Good luck 🏠😉
@@joline2730 Many thanks Jo Line. No experience in BTL and to be honest not comfortable with letting property out at all but I have to start somewhere..right? 🤔 with flips on the otherhand I took a project on when bought the house I live in so it might not be much but definitely feel more confident with that. What's the best mortgage to buy a property to flip though?
@@rosalinda-qc6xd hi again Rosa, I only do flips and they are a safer bet. I don't like rental, too much aggro for me (been there, done that). I am in it for short quick return not long haul. Each to their own. If you are not doing BTL then you can just shop around for a good mortgage, or just take a second charge on your existing property with your existing lender. Buy another property with the money, you don't necessarily have to tell the lender what the money is for, just say "improvements" which it will be, right? Improve the second house then sell on. Job done.
@@JamieYorkthanks for your reply Jamie. Love the channel it feels 'real' if that makes sense. Keep them videos coming. 👍 To answer your question..don't need it but would like to move somewhere nicer in terms of area at some point. Doesn't have to be straight away. Not sure if using my equity to buy a property to flip is my best bet?
I went to a property investment seminar over the weekend. They tried to charge me £1000 for information you share with us for free. I really appreciate you doing this or these kinds of people would gatekeep a lot of the UK from getting started with property. Keep up the solid work Jamie!!
Oh wow! Thanks!
REFINANCING OF YOUR PROPERTY INVESTMENT VERY HELFUL INFO. THANKS SO MUCH JAMES.
Glad you enjoyed it
Thank you so much!!!! The wait was 100% worth it!
Thanks bud, really happy reading that!
Legend. You explained the refinance very simply. I finally understand it!
I was considering remortgage before the end of my 5 years but watching this clarified my thoughts - I would incur penalty and probably not raise a very useful amount of finance! Great video 😃 thanks again
You likely would. Glad you liked it!
Holy shit, this is gold. I can't believe I've stumbled across this channel, I feel like I've found some buried treasure or something. Thank you Jamie!
Your channel just found me, nice info bruh. In my opinion, the five year mark is the way to go. It gives you more of a cushion to pivot in any direction you want to go, with the comfort of being able to sleep at night w/o the worry of losing your property in a downturn.
Jamie. Just bought first 3 BTL on 5 year fixed rate 75:25 LTV. As you say seemed just as cost efficient as 2 or 3 year and will look to remortgage and take out what I need at that point. Either to re invest or take out. Thanks for your help and advice in getting me going. Much appreciated 👍👍
Good stuff!
How are you getting on Tony?
Hi Jamie! Another brilliant video. I agree with the 5 year deal is much better longer term. Keep up your great work
Thanks so much!
Been waiting for this one!! Perf timing Jamie
You're welcome :)
@@JamieYork thanks for the vid jamie some good points. Although just a very novice question to clarify: The money once you have taken it out, is that not a loan rather than a lump sum of cash handed to you?
I think this is the only video of yours without a dislike😂 Great vid! Cheers mate 👍🏽
Give it time young one 😉
Another great video, very good content as per usual. 💪🏻👍
Appreciate it!
Just looking at getting my 1st BTL and came across your videos which are very good, thanks for the information.
Hey Jamie, absolutely loving the videos so please keep it up! completed on my first BRRR on Friday and getting stuck in with works. If possible it would be great to see a video on timelines/order, end to end, of a BRRR for a leaseholder property in detail. For example how to get freeholder approval quickly (can this be done before exchange), how much lead time to organise builder etc and when to begin advertising your property. Thanks, Alex
Will do!
i love this guy
I love you too 💪
Excellent video, thank you.
Glad you liked it!
Great value just what a needed to hear going forward on BTL purchases cheers Jamie 👍🏻
Great video 👍
Time to refinance and multiply
Thank you
Really like your presentation style...straight upfront and on point with a twist of attitude. Any essential reading for new property investors you would recommend?
I've just released a video about this last week!
Hi Jamie,
I hope you're doing okay. Thank you again for your videos.
I would like to "EDUCATE" myself. You have mentioned something in this way in a previous video. I appreciate your honesty and I would like to see if I would be eligible to have more knowledge from you, and even to make some deals later, speaking in an optimistic way.
Thank you!
Sur etching. Hit me on Instagram and let’s have a chat @jamieyorkaspire
@@JamieYork I do not have an account on Instagram. May I contact you via email?
Great video! How would refinance play oit in ”reverse mode” lets say real estate prices decline. How would these play out? Now you would be paying the same loans on a cheaper real estate property? I liked the breakdowns in this video.
Really helpful. Thanks a lot! 😀
Glad it was helpful!
Brilliant content
Thanks Andrew :)
Another great video, congrats. My battle plan is to get my 24 BTL BRR property portfolio to 40 equity, 60% debt by 2026, in 5 years time. I'm not sure how I get more properties without more capital or more debt, and am worried about rising interest rates
You can do it!
Also, if you need to release equity early in the mortgage, you can have further advance from your mortgage company.
Interesting
i often hear remortgaging but i wasn't too clear on how it works. This video breaks everything down and makes it much more clear. Great video! Really appreciate your content! Hope you keep up the good value videos.... At the beginning of next year, i wanna start a portfolio and i should have about 100k to divvy out to projects. Whats the best way to get in touch with you
Sounds good to me! DM me on Instagram @JamieYorkAspire :)
In my experience, even if the property is written up to the target value, the mortgage will just reduce the loan and switch to a ‘loan to cost’ basis, to stop you pulling all your money out and ensuring ‘skin in the game’.
So if we use the original example of the value at £115000 compounded at 5% for 5 years it would have a new value of around £148000? and for arguments sake the mortgage was still outstanding £86000 if you sold at that point would you be around £48000 in profit?
Another great video Jamie, thanks for picking another important topic to cover
Regarding “Infinite return on your investment”; it is worth to mention the opportunity cost of the remaining capital, ie. you have two options 1) keep the house and the remaining equity in the property and rent it out so you have a rental income yield on that remaining capital
2) sell the house, realise the profit and go into another project.
With your target return rates, would not the second option fit more in your strategy?
Well Jamie I saw this and thought "At last, someone is going to explain about getting another mortgage" (refinancing a property). Unfortunately I believe you could have explained this a lot better than you have. What you do not make clear to the uninformed is that they will be taking out a Larger mortgage than the original. So more debt. Never mind that you 'get money back' which I find totally misleading. However, thanks for trying to explain it in simple terms, which is hard to do with a difficult subject !!
Your increasing the total debt yes.. but why does that matter if the tenant services the debt ? It doesn’t
@@andrewfallon2719 thanks for your comment. However, there are times when you have no tenant, so you must cover this, and if you have too many mortgages then you may find yourself in difficulties in paying this. I am defo with Jamie on the 'low risk' scenario. Lots of investors find themselves in derp water by buying too many too soon, as greed gets the better of them.
He’s keeping his LTV the same or reducing so he does not have more debt as a % of assets which is the key thing
I'll try again later and hopefully I'll get it right!
Can you do a video on how you would invest 100k inheritance in property?
Great suggestion, I will do £100K :)
Waiting for this video
Thanks for sharing all this info! So let me get this straight…If your renting it out, and at year 5, it’s now worth 27% more, and your refinance, what about your renters? As your mortgage for it has now gone up, so you’ll naturally need to increase the rent right??
That is correct
After watching a few of your videos I now regret buying my first home with a 5 year fixed rate and renovating , I cant remortgage it to get my money out to buy more!
You can remortgage but you will pay a fee to exit, check your paperwork may not be silly money, I’m looking at pulling one of mine early off a 5 year deal, it will cost me £2,000.
Hey Danny, Depends on what you're wanting to do. After my initial refinance (after a refurb) I go for 5 year fixed rate :) So don't worry
Hello Jamie, the information you pass to us its very good and explained, one thing, however I do not understand. I want to buy my first BRR, but I can do the repairs and improvements myself, would that still improve the property price or the bank i will refinance with will ask for proof of labour? (Receipts of work done, not the stuff bought and repaired). Because by doing most of the repairs and improvements myself it would greatly increase the profits made. Hope I've explained myself properly as my main language isn't english, looking forward to hear your point of view on this, thank you!
That’s an interesting question, no reply ?
I've refurbed 2 properties and am in the middle of a 3rd using my own labor and barely getting other trades in, I've refinanced the first and am looking at the second and not once has either lender (different companies) asked for receipts of work - as long as it looks good and all works they're not bothered
@@stanc4812 thanks for the reply 👍
Could you make video in detail about Let to buy as this strategy is till new for lots of people, and why not let to buy instead of refinance to cashout the equity and use it to buy a BTL
Good one! I'll make sure its on the list!
Hey,
1000 properties... that's a lot of hassle to manage (even w managing agents). I think you rather wanna have as little properties as possible but have them as high value as possible. (same return but much less mental/mgmt. efforts). Plus say a boiler in a 80k house costs the same as in a 300k houses but on the former it wipes out 6 months of profit, on the latter it wipes out 1 (same fixed costs but different revenues). I know higher value properties tend to yield less but that can be circumvented with doing HMOs. This i rather want to have 10 HMOs then 100 small BTLs. Let me know your thinking though.
Could you advising me please .
I’ve got 100 k available from Parents to pay off my mortgage and to be mortgaged free .
Would you recommande my to pay it off and refinance the property to be able to get 75% loan to buy a second property.
Or should I use that 100K as a deposit to buy the second property ? Thank you so much .
Your videos are so helpful and you are so passionately about helping other . Amazing !
Option 2
Thanks Jaimie for the video, good insight. Quick question, as you refinance your mortgage and take out a higher loan, your monthly payments increase eating into the margin you constantly get therefore I see that as a drawback?
Hi Jamie, can you clarify if the equity released from refinancing is an extension of your mortgage or money handed back without interest? Thanks and great content btw!
And also arent you meant to be atleast 55 years old to release equity?
I bought a 238k house cash in December 2020 I believe its worth 285k-315k I won't to buy a buy to let property to rent out how do I refinance
At risk of sounding naiive here, how would you mortgage a property you intend to refinance? By that I mean is it subject to early redemption fees for the remortgage itself? How would you avoid the fees?
If you explain to a mortgage broker what you're wanting to do then they can find one with little early redemption fees. You'll always pay something but sometimes a higher percentage is better because there is little fees. Be honest with a broker and they will be able to help (usually!)
What touchscreen board is that? Nah U send the link?
Samsung Flip
When you put a 25% deposit for the initial deal. When you refinance it does it require any more deposit since its a larger amount? Or is that just forgotten about now because the deal is active.
Also when you refinance at the higher 75% how much does this effect the monthly repayments
Hi Jamie. Great video as always with usefull knowledge. I got a quick question regarding 2 or 5 years options when getting mortgage out. Lets say I done remortgage on my residential property and got 50k in bank, will be better to buy 2 properties let say for 100k each with 25% LTV for buy to let on or one more expensive? Also put on 2 or 5 years? I know your preference is 5yrs but if you begin investing would 2yrs would not be better to build up portfolio and re-mortgage after 2yrs (hopefully prices goes up ;) and try to buy another property or maybe 2? Thanks for all your great videos.
why does nobody mention the monthly morgage payments when making examples like this?
As its different for each individual
Hey Jamie
Hope yr having a good Xmas
I looked at remortgaging a rental property and they said they would only remortgage the property if I had the a direct contract with the tenants. I have a contract with the Student housing letting agent but not a direct contract with the students.
I have also done this with a private rental as well.
So im researching how to get round this as at the moment I'm a third party.
Thanks so much Paul
Jamie, Amazing as usual!! I think exactly like you. I have been a bit unlucky with my buy to let. I had offered accepted but I was not able to proceed (bid out, property not accepted by my lender). Hopefully, soon I can give u a good news of an exchange. Question:y house I have a mortgage on in London, can I only remortgage or refinance if I have a full time job? Not part time? Thx
Depends how much you're earning!
@@JamieYork at the moment as due to travelling, I’m only keeping my weekend job for an office. I guess, I need a job that shows I can repay my current mortgage and the one that I’ll take on again against my residence.
If say in 5 years time you look to refinance. What happens if in that time your personal income has dramatically reduced compared to when you initially got the first mortgage, and now with the refinance your borrowing increases. Can you do it? Do they still consider personal income or does it not matter if you have continued to pay your mortgage regardless. Cheers
After a couple it’s mostly down to the portfolio income bud
@@JamieYork cheers mate
@@JamieYork thanks I had the same question in my mind to
I've been watching a lot of Samuel Leeds' content recently, who had an initial plan to have around 1000 properties too. He showed his plan to Alan Sugar who told him it was rubbish, and advised to do a small amount of bigger deals rather than 1000 smaller ones. What are your thoughts on this?
Hey Micheal, could there be more profit in large deals? Yes. Would there be more risk? Yes. I like boring, vanilla buy to let’s. It’s all about what you want and what you want to achieve. I want to get rich slowly 😀
@@JamieYork if anyone knows Jamie he would rather get rich slowly and get to keep it than to go into something quicker and riskier! One thing he hates is the thought of getting money and then losing it
Taking a step forward then having to take a step back!! 😂
You borrow more money so you get some in return but the monthly payment is also more, right?
Thanks for all the fabulous and encouraging videos. Could you please make one about off-plan property? I'm considering this but would love to know your views on it before I splurge lots of cash. Thanks!
In short. DONT do it. I’ll do a video on their but I REALLY am not a fan
Hi Jamie. I have 2 buy to lets. My first is 5 year fix, and Iv had it for 2 and a half years interest only. I bought it for 100,000 and it’s now worth between 130,000 - 140,000. So I was thinking of refinancing at 2 years instead, and using the money I pull out to put into a third house. As I don’t have any money of my own I can use for a third house. So I’m thinking it’s a great idea to grow my portfolio! Would you say this is a good idea?
Also maybe you could do a video on it, but I was wondering, what is better overall…selling a house and using the capital to buy more houses, Or refinancing a house and why?
Thanks, Alec :)
Do you recommend this strategy for my first property? My worry is putting in most of my savings in a property and taking years before I can buy another property?
Hi Abir, I’m no expert but id look more into flipping when first starting, build up some capital and then look into BTL
You can flip but least you're putting your money in something which literally is as safe as houses
Thanks for the video. In your example of 75% LTV for re-financing, how is it that the 25% deposit you put in for the second mortgage is not considered "cash-in"? I'm trying to understand what other advantage re-financing brings other than getting another mortgage product with a cheaper interest?
who can explain me. what is point to take bigest mortgage ?? lets say I buy house 9 years ago, for 125k now it is worth 250k so what point to me take new mortgage with 250 k then for me left to pay only 80k ??? maybe I don;t understand somethig ?
Hi jamie, do your mortgage payments sky rocket if you refinance?
Not all the time no!
You are not considering during the 5 years before to get a remortgage, you have to pay the mortgage, so you have to add into the capital invested into the property that amount, at least £25000
Unfortunately not… with rentals, they are almost all interest only
So I have remortgage my house for second time without evaluating it, when I have bought it was 95000 and bought it as first time buyer with 5000 deposit. Since then I haven’t evaluated and now is worth around 145k on a quick sale. I was wrong not to do a reevaluation, right ?
I have often wondered why people spend £10 million plus on properties. However, if you can continually refinance as the asset goes up these high costs seems less extravagant and more a judicious investment.
If only I had that spare £10 million.
You can find that £10M ;)
Either I don't get something or your math explanation are off... you bought a house for 80k, spend another 20k to make it better to remortgage it for 90k as value increases, but firstly for mortgage you still pay it every month etc, which means before evaluation you will need spend extra few grands on top as you can't make house better in a day, secondly you take another debt of 90k to cover your previous debt of 60k and leaving you with extra money but in reality is not extra money, you have 30k cash and 90k debt which you need to pay back each month and because all debts nowadays are compounding you end up broke fast.... probably I just didn't get something...
Hi Jamie. I managed to save £30000, I'm a first time buyer and would like to purchase my first residential 3 bed house. I'm not keen on new builds and also the not keen on the help to buy scheme. Any pointers you can give me to get onto the ole ladder? I'm in the Milton Keynes Bedford area! Thanks Jamie.
Do you NEED a 3 bed or are you just WANTING 3? IF you need it then cool, best looking at properties which need value adding to them :)
nope - on my 46782th video and I still don't get it! haven't even bought my first property yet!
What happened to all the monthly mortgage repayments? If 5 years down the track, the original mortgage has to be paid off surely the 5 years of repayments are deducted from this figure. Or is the assumption that this is an interest only mortgage? Pls clarify
With buy to let it’s almost always interest only
@@JamieYork Thanks for the reply. Can I ask why this is. I am new to this and considering an investment purchase. I would have thought paying off some of the mortgage balance would be beneficial?
can you clarify the deposit when you remortgage for the 130k? Originally you put in 20k deposit when buying the property at 80k,. When you remortgage at 130k you need 32.5k for the deposit right? (25% of 130k) since you already put in 20k deposit when buying do you just need another 12.5k or do you need another 32.5k? does it come out of the equity? Sorry - i just can't get my head around that bit
I thought you had to be 55 to release equity? How comes theres no conditions here?
Not at all. You can release equity whenever you want… who told you in was 55?
When remortgaging, how important is the early repayment fees? As it appears like when you change mortgage supplier you will get stung with their % charge
Get a good broker and they might be able to find you a product (it will have a higher interest %) with a smaller Early Repayment fees
Hi Jamie
I have a rental property with around 50k of equity in the property should get another BTL on this this property using this equity?
What about remortgaging after fixed term with same lender?
I've got 96k left with a LTV of roughly 60%... Im considering pulling 30k out to buy a 80k ish house. Any advice? im 29 and would probably do a 35 year interest only mortgage.
Sounds good
So if you get a bridging loan to purchase a property, can you just remortgage that?
Yep… obviously make sure to get your numbers right
@@JamieYork if property purchase price 300k, 200cash 100 via bridging. It’s a fully let hmo, so can I get an interest only remortgage to pay back the 100k borrowed bridge?
When remortgaging though you still need to leave 25% in so can’t withdraw all that money.
yes you do
@@JamieYork do you do further advances aswell ?
Hello Jamie I have one question about geting started, don't wanna really Ask there. Is there any way of geting in touch with you ?
Sure thing. Dm me on insta @jamieyorkaspire
Hi, I bought below the 40k second home tax bracket in scotland and am looking to refinance at 50k... Does Jamie or anyone else know if I will be charged the tax when it's revalued/remortgaged?
Apologies for dumb question - but could it happen that after remortgage value of the property goes down? And what would be the consequences of this?
Hi Jamie, so just to confirm, Say I bought a house 5yr ago for 170000, its now valued at 210000, I refinance at 75% which gives me 157500, I have a 110000 mortgage so after playing that I have 47500 to invest in another property? With 52500 in equity still in house A? Essentially increasing mortgage A to free up cash for the next investment? Then rinse and repeat this process on each property every 5 years?
You've got it!
@@JamieYork i think I've seen another person message about something similar to my next question but i imagine to increase your portfolio you would also use other revenues of income to create further deposits to invest in time between those 5 year refinancing, a video on how you would plan and time say a 10 year plan from 1 property to portfolio and how much cash you'd look so have as a base amount for each investment would be really good to give an idea on a realistic timeline for creating a portfolio at your steady get rich slow rate would be awesome
What about 25% deposit for the new higher mortgage??
what about if property doesnt increase in value is a refi ever worth it then?
Do you think property will stay as it is? Or do you think it will increase?
@Jamie York im thinking in terms of a long leasehold flat, for example where it may become less valuable overtime compared to comps with longer terms. Coupled with the lets assume a stagnant market for example in 5 years time when a fixed rate would burn off and its time to refi, but the mortgage market is not great with interest rates high and property prices are declining. Would this situation mean its better not to refinance? As surely those 5 yrs of interest payments would have gone to waste?
Thanks for this! You mention that you like to take longer fixed terms so that you give time for the value to rise through corrections. Is there a possibility that a correction could take place right before the end of the fixed term when you need to refinance? And can that result in you having to find money from elsewhere if the new mortgage doesn't cover the old one?
There is a possibility but that can happen at any time
Hey Jamie
Do you know how toget round the issue with the contracts with having a contract with the letting agent instead of the individuals or people renting the house.
I'm trying to remortgage my properties
Is it down to the lender etc as the lenders my mortgage broker went didnt except the contract as they have said its third party as my contract is with an estate agent? Do I need to try a different lender who excepts third party contract with letting agents?
You should have a management agreement with the estate agent, AND a contract with the tenant that the agent arranged, else the agent isn't doing their job, assuming that it's and AST (assured shorthold tenancy)... If you're saying that it's a corporate let agreement with the agent, then the agent is paying you direct ... most lenders will be okay with that... if you're getting paid by the direct tenant you MUST have a direct contract, usually an AST, which your agent should sort immediately, as well as right to let, etc.
@@JamieYork thanks so much Jamie and happy new year
I’m looking at buying a bigger house and i have enough money to pay for the deposit without having to sell my current house, so is it possible to remortgage my current house to a buy to let mortgage to rent it out?
Yes, I did this a couple of years ago and I'll be doing it again soon. There are the standard fees such as extra stamp duty etc but that's just part of parcel of business.
Yes you can!
Hi Jamie,
Loving your videos! With refinancing your property every 5/10 years will that affect your credit history or is that perfectly acceptable to do?
Thank you
doesn't affect it
Help..I am confused..if you increase the mortgage to release equity then the 25% deposit required must also increase??
Yes but you can use the equity
@@JamieYork thank you..the penny has dropped. Love the channel Jamie..please keep up the good work
@@Cappaghgrove Same, that made so much sense. Thanks for asking that, I was thinking the same.
Would your deal packaging company do all this for me?
We'd tell you what to do
apg
Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)
It means trap
Nononononono
I own and live in a property worth about £120k with £50k equity. Do I get bigger mortgage to buy more expensive property or use the equity to invest in BTL or flip???
To Rosa Linda: my opinion for what it is worth: it rather depends on your financial circumstances, do you earn enough to safely buy another? Is your job pretty secure? Can you cover the refurb costs? And comfortably pay back the increased mortgage? How experienced are you in BTL or Flip? When you are a novice there are many pitfalls but if you are prepared to take the risk then go for it!! Try to steer clear of the rough parts of town!! Good luck 🏠😉
@@joline2730 Many thanks Jo Line. No experience in BTL and to be honest not comfortable with letting property out at all but I have to start somewhere..right? 🤔 with flips on the otherhand I took a project on when bought the house I live in so it might not be much but definitely feel more confident with that. What's the best mortgage to buy a property to flip though?
@@rosalinda-qc6xd hi again Rosa, I only do flips and they are a safer bet. I don't like rental, too much aggro for me (been there, done that). I am in it for short quick return not long haul. Each to their own. If you are not doing BTL then you can just shop around for a good mortgage, or just take a second charge on your existing property with your existing lender. Buy another property with the money, you don't necessarily have to tell the lender what the money is for, just say "improvements" which it will be, right? Improve the second house then sell on. Job done.
Rosa, Do you need a more expensive property right away or do you just want one? I'm very biased because I like my boring, vanilla buy to lets!
@@JamieYorkthanks for your reply Jamie. Love the channel it feels 'real' if that makes sense. Keep them videos coming. 👍
To answer your question..don't need it but would like to move somewhere nicer in terms of area at some point. Doesn't have to be straight away. Not sure if using my equity to buy a property to flip is my best bet?
:)
👍
Overcomplicated explanation
Thanks for watching!