Hi there,
Just trying to understand If I am doing the cross colltarisation here?
I've two properties and combined equity in both is enough for me to fund 20% deposit for another investment property.
My broker suggests that I create the new loan account of e.g 100K (50K equity drawn from each property). If I do that
on the loan papers it will say security of this 100K is for Property 1 & 2. Is this cross colltarisation?
OR
I was thinking setup seperate loan accounts for each equity release i.e. 50K (by releasing equity from property 1) & 50K (by releasing equity from property 2). In this method when future equity is availale I can draw down to respective loan accounts for each loans.
which is the appropiate recommended method.
thanks
Just trying to understand If I am doing the cross colltarisation here?
I've two properties and combined equity in both is enough for me to fund 20% deposit for another investment property.
My broker suggests that I create the new loan account of e.g 100K (50K equity drawn from each property). If I do that
on the loan papers it will say security of this 100K is for Property 1 & 2. Is this cross colltarisation?
OR
I was thinking setup seperate loan accounts for each equity release i.e. 50K (by releasing equity from property 1) & 50K (by releasing equity from property 2). In this method when future equity is availale I can draw down to respective loan accounts for each loans.
which is the appropiate recommended method.
thanks