House equity. What to do with it?

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I have around £600,000 in equity on my house. I have no plans to move and quite a reasonable income, and my mortgage borrowing capacity is £170,000

I don’t really fancy moving but I’d like a second property. Where do I start to understand if this is possible, how much I could spend and what it would cost me per month?

Thanks!

Mortgage advisor?
We have £900k equity with no plans to move or downsize. For us it will be extra retirement fund and money for our children when we eventually downsize in about 30/40 years time!

That’s a good start point. I need to understand more about debt leverage.

What is the house worth?
How much is the mortgage?

£170k of borrowing capacity doesnt indicate a reasonable income? (assuming 5 x earning multiple)

What would you do with the second property? Letting it? If so, the amount you can borrow against it would be based on the rental amount. Or do you plan to remortgage your main home and raise capital to buy a second home outright? You don’t say if you have a mortgage on your main home. There are potential tax implications to consider and it all depends on what you are looking to do.

I remortgaged my house to take equity to buy a second property, although I turned the first property into the one I rented out and live in the second property. This is called Let to Buy. I used L&C for the mortgage advice who were excellent, and took the mortgage with Skipton. I was only allowed to remortgage to the original purchase price of the property, not sure if that’s because I was letting out the property in question though.

What I would say is make sure you do the maths on the tax you will owe on the rental before you go any further, it’s a lot more than it used to be and does have a real impact on whether you will break even / profit. Also, if you buy the rental property in cash (which I think is what you are suggesting) it will be tax less efficient than if you have a mortgage on it and a smaller mortgage on your own home, as you do still get some tax benefits in terms of mortgage interest costs on rented property.