Loan against Property?

[IsThisCrazy]

Please help!

I have two houses (owned, not mortgaged) that I rent out, each now worth £200k. My sole income is the rental income, I have no other employment.

Would I be able to take out a loan of £100k on each property (£200k total)? I've never taken out a loan and have no idea where to start.

Any advice welcome, thank you!

This article outlines the basics.

www.money.co.uk/loans/should-you-borrow-against-your-home.htm

You’re in a fantastic position with so much equity and not having to work. Do you really want £200K of debt racking up interest? Will the income off two rental properties of that value, subject to tax, still give you enough income to live off AND pay back your borrowing?

Thank you so much for your reply!

The plan would be, buy another house with the 200k loan + selling current house, and then find work part time to cover the cost of the re-payments.

Or I can simply purchase another house with the funds of current house, not take out a loan, find work anyway (I want to work) to save 200k over 10-15 years, and save interest costs.

If you remortgage your buy to lets your potentially taking a lot more risk consider if your tenants stop paying you have no rental income but would have to pay the loan I expect any lender would want it secured against the property as you have no source of other income. You could contact a broker but expect a high rate of interest on any loan due to you being reliant on rental income only which may not make it worth while

That makes sense. Better to not get a loan, still move but find work and apply for a standard mortgage.

Thank you.