UK Landlord Forum / Life

Anyone do this? Is it a good idea? Im not talking about investments with any risk attached like stocks and shares for example, but remortgaging and then putting the equity into a guaranteed savings plan or something like that to make it grow.

I realise using the money and putting it back into propertys for letting or redevelopment is proabably the best way to see bigger returns, but does anyone do this as a way of getting no risk, guaranteed growth on their equity? is it even worth doing?

Hmmm....I was thinking about remortgaging to invest in other properties last year. But I changed my mind because I wanted to keep the equity in my current properties. In a declining market, it's risky remortgaging. I'm glad I didn't release equity.

I know a few people that remortgaged last year, to invest in other properties. But because the market slipped, they're now in negative equity in quite a few of properties. They're really going to struggle when it comes to remortagaging. They wouldn't have been in this position if they didn't remortgage.

I would only remortgage if I had A LOT of equity, and would still be in the green zone if the market took a 35-40% hit. But I'm just really paranoid about stuff like that, so I'm not as risky as a lot of other successful investors out there.

Ultimately, I think it depends on deficit. If you're going to be spending more on interest after remortgaging, than you're going to make, then what's the point? The rate of return needs to be worthwhile in order to take the risk.