An equity release scheme will enable you to access some of the funds that are tied up in your property. One of the great things about these schemes is that you are able to use the funds in any way you see fit. For example, you may opt to have monthly payments to top-up your income so you have a better quality of life, or you may want to help your children purchase their first property. But one thing a lot of people want to know is whether they will be able to use the money to purchase another property.

Can I use equity release to buy another house?

Yes, you can use your equity release to buy another house, whether this is a buy-to-let property or a holiday home. A lot of people see equity release as a viable option when they want to purchase a new property. If you have found a home that is out of your budget and you want to pay off your current mortgage instead of borrowing more and having greater monthly repayments, you can use equity release to clear your current mortgage and also get the extra funds that are needed to purchase your new property. 

Of course, whether or not this is going to be the right solution for you all depends on your personal situation. This is why seeking expert advice and using an equity release calculator to work out whether this is a viable option makes sense. 

Using equity release to buy a holiday home

Releasing equity from your primary residence is an option to consider if you want to buy a holiday home. However, it is important to point out that you will still need to live in your primary residence for a minimum of half of the year. Plus, so that there is no added standard mortgage requirement, you will probably be looking to buy the property outright.

Can you release funds from a buy-to-let property?

As a landlord, you may be interested in releasing funds from your buy-to-let property. You will need to produce details of your property portfolio and your AST agreement when making an application to do this. While simply selling your property is an option, capital gains tax will typically be incurred, which is why equity release can be a more attractive proposition. The process involved is typically the same as it would be if you wanted to release equity on your primary residence. 

So there you have it: an insight into whether or not it is suitable to purchase another property when taking out an equity release loan. While this is an option you can take up, we do recommend you use an equity release calculator so you can determine whether or not an equity release mortgage is going to be the right solution for your current financial situation.