If you already own a home in York and want to invest in a rental property, you may be able to use the equity in your current home as the deposit.
This is a common route for homeowners who want to enter the Buy to Let market without dipping into savings, and it’s one that many lenders support.
As a mortgage broker in York, we often work with age 55+ clients who remortgage their home to release equity and use those funds to buy their first or next investment property. Here’s how it works.
What is equity, and how can it be used?
Equity is the difference between your property’s current value and the amount still owed on your mortgage.
If your home in York has risen in value or you’ve paid down a significant chunk of the mortgage, you may have enough equity to release a portion of it for your Buy to Let deposit.
Instead of saving up cash separately, you’d remortgage your current home for a higher amount, then use the funds released from that remortgage as the deposit on your Buy to Let purchase.
How much equity do you need?
The amount of equity required will depend on the value of the property you want to buy and the deposit percentage your lender expects.
Lenders typically want a deposit of at least 20% to 25% of the property’s value, so your equity needs to comfortably cover that.
We’ll calculate how much equity you could release based on your property’s value and your remaining mortgage balance, then check what you could afford to buy with it.
Do you have to own your home outright?
No, you don’t need to own your current home outright to release equity.
Many people still have a mortgage and can remortgage to a higher amount, as long as the new monthly payments remain affordable and the loan stays within acceptable limits.
Lenders will assess your income, credit history, and current mortgage deal to confirm what’s possible.
Our team will guide you through this and make sure any equity release fits your budget.
Can you use equity to buy a second property?
Yes, and it’s one of the most common ways homeowners in York enter the Buy to Let market.
You can release equity from your main residence and use that as the deposit for a rental property, either locally or elsewhere, while taking out a separate Buy to Let mortgage in York for the rest.
This can be a smart way to start building a property portfolio without needing a large cash lump sum.
You’ll still need to pass standard Buy to Let criteria, including rental income stress testing and loan-to-value checks, but we’ll help you navigate that.
Date Last Edited: June 17, 2025
