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How Releasing Equity In Your House Could Make You A Millionaire


By James Alliss

Here is yet another way for you to become a millionaire.

A lot of people are paying a standard variable rate on their mortgage and due to the low interest rates and recent house price increases; the chances are you have a lot of equity in your home.

You are therefore asset rich!

You need to be cash rich!

Have you ever considered a remortgage? If you haven’t then perhaps you should.

Let me explain…

There are a lot of deals being offered by different lenders but one of the best is to remortgage to a lender where the lender will pay your valuation fees, arrangement fees and legal fees.

Sounds good right…?

The majority of lenders will allow you up to 90% LTV (Loan to Value) but some will lend you up to 95% and one lender will actually lend you 125% LTV.

Yes, they will lend you 125% of what your home is worth!

I can not discuss this lender for legal reasons but if you do some research yourself you should be able to find this information.

Let me tell you a little more about how you can use this 125% LTV option.

You can split the loan into two parts:

90% Secured
35% Unsecured

The mortgage will give you interest on your money, a payment holiday option for times when you want to get away for a break. It will also offer you overpay and underpay facilities.

If you have a bonus at work or you’ve made some money on your stocks then why not pay some extra off your mortgage one month? This is when the overpayment facility comes into play.

If you are having financial problems then why not take advantage of the underpayment facility – you get the idea!

The unsecured facility gives you access to cash only when you need it so you only pay interest on what’s been used. The Lender even gives you a credit card all charged at the same mortgage rate.

Have you heard of Self Certification?

Using Self Certification you can release the equity in your home by simply signing a contract with the lender that proves to them you can make the mortgage repayments.

Basically, as long as you can prove that you can make the mortgage repayment using various income streams (not normally allowed by most lenders) then you can borrow the money.

Now, if you have your mortgage on an interest only basis you keep the repayments down. So buy a few houses using this Self Certification method and let them out.

Figures have show the property doubles every 8 years approximately so the more houses you have, the more equity you have. Once you’ve made enough equity in each house you could sell them and pay off your residential mortgage!

Here is an example:

1) Buy a house for £100,000 interest only self cert mortgage;

2) Let the house out. The rent from this will pay the mortgage;

3) 7-8 years later the house is worth £200,000 but your mortgage is only for £100,000. You have therefore gained £100,000 to use on whatever you like!

Do this multiple times and you could easily become a millionaire!

I hope this makes sense to you.



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