REFINANCING BREAKDOWN Step-by-step guide

REFINANCING BREAKDOWN Step-by-step guide | Property Investment UK

Рет қаралды 12,869

Күн бұрын

Refinancing can be tricky to understand if you don't know how it works! So today I will be breaking down HOW REFINANCING WORKS! Refinancing is extremely common and nearly everyone will probably refinance at some point in their lives so it's best to make sure you have the right understanding of it all! Let me know if the video has helped, and drop a comment below if there are any more topics that are a grey area to you and I'll try my best to cover it!
** Please note the calculations are to a rounded figure and not the exact figures.
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00:00 - Intro
00:08 - What is it?
01:36 - Refinancing
02:50 - Inflation

Пікірлер: 46

@carlajarrett173 8 ай бұрын

Brilliant video! Thank you, you've explained it so well!!!!! Funny too.

@JamieYork 8 ай бұрын

Glad it was helpful! Thanks for watching!

@j-bandz9543 4 ай бұрын

Hi just wanted some advice I have a house in the uk that has no mortgage that I am living in with family but they are retiring and going to move overseas for good so I wanted to know the best way to utilise this house to get passive income and also be able to get more properties to increase my income where I can look after my family and not work a 9-5 anymore. Also will I be able to rent the house out and also refinance at the same time ?

@seanbyrne49 3 ай бұрын

Hey mate! I own a house out right for £250k can i change to buy to let and pull out money from it? Are you limited to how much I can pull out based on earnings or is just the standard 75% I can take out it. Thanks.

@georgep19844 5 ай бұрын

Hi Jamie Quick question about refinancing. If my property is in a Ltd company, I refinance, how can I personally take that money tax free in my own name or bank account? Or does the refinance money have to stay in that Ltd company And I cant use it personally?

@matth3172 Жыл бұрын

Hi Jamie love the content! I have one question I hope you could maybe do a video on.. Do all investors only have interest only mortgages or would they have one residential mortgage and the rest interest only? I currently have around 100k of equity on my residential mortgage and was going to remortgage and invest in several BTL’s.. im wondering whether to do that and then keep the original mortgage as interest only? Thanks

@azzcoulton123 Жыл бұрын

I’m thinking of doing the same did you go for it

@0runny Жыл бұрын

Come on Jamie, this is kids stuff, we need a deep-dive - please talk about SONIA futures and the short-term end of the Stirling curve.

@JamieYork Жыл бұрын

Oh nice! I’ll prep some more advance videos if you’d like

@NayiMureyi Жыл бұрын

JY kills me 😂 great video

@JamieYork Жыл бұрын

Ahh I don't want be doing that now aha! Thanks for watching!!

@craigbeesley9601 Жыл бұрын

Another thing to consider may be for people that don't have kids and eventually plan on selling. If you remortgage constantly, and in 30 years say have remortgaged at 400k, the capital gains tax bill could be waaaay more than the amount of equity remaining in the property. Therefore having a CGT bill that's unpayable.

@slendeavours Жыл бұрын

You should hold them in a Ltd Company, keep the properties within the Ltd Company and you change ownership of the shares in the Ltd Company.

@bestuksparky Жыл бұрын

I like watching these videos but to be honest they do make it sound easier than in real life. I have a couple of properties that I rent out and remortgaging is a pain in the backside

@JamieYork Жыл бұрын

Thanks :) it’s certainly not easy. Simple, not easy

@slendeavours Жыл бұрын

You should be using a broker and if you are, you're using the wrong one

@OperationAndrew. Жыл бұрын

When you refinance - can you extend loan term?

@nrclever8167 Жыл бұрын

Yes but up to the lender

@vishc3577 Жыл бұрын

Jamie you have missed out on the stamp duty - where does that go ?

@JamieYork Жыл бұрын

There is no stamp duty when refinancing

@carlandrews7348 Жыл бұрын

Hi Jamie be nice to hear your thoughts. Refinancing great, but current rates ?? Looking to get 4th property typical 25% down 75% mortgage. However stress test is now 7.6% at 145% of rental income. Thoughts ? Hearing from some lenders BTL down 90% on new mortgages 🤷‍♂️

@sqwark1977 Жыл бұрын

Presume you’re buying in your own name rather than through an investment co here?

@carlandrews7348 Жыл бұрын

Even the best company rates make it borderline to clear cash flow at the moment. It’s good to listen and hear what other investors are doing in the current climate though. 👍

@sqwark1977 Жыл бұрын

@@carlandrews7348 not really. Accord are currently doing 3.49% trackers on a 25% deposit for company borrowers. I’m just about to close on a £95k single let for £625 pcm rent that will yield a 14.85% roi. Even if the base rate rises to an average of 5.49% the roi is still a not too shabby 9.71%. Better than any back return right now. You just need to find deals that let you buy today at tomorrow’s price.

@tomce217 Жыл бұрын

Refinancing - means borrowing more. Borrowing more means reducing cashflow. Reducing cashflow means risk for your portfolio if 1) interest rates going up 2) Some tenant decides stop paying rent 3) Unexpected maintenance cost and etc. Good luck! Don’t listen to youtubers, think about risk!

@tomce217 Жыл бұрын

@@chrislamph doesn’t matter if you will buy another property. Another property will require higher investment from you. Also as u increased loan on first property by refinancing it- it will impact your cashflow even more

@tomce217 Жыл бұрын

@@chrislamph dude, my current portfolio in double digits. What you talking is BS. You can refinance safely once you owning more than 50% of the property.. else you risking a lot to reduce your cashflows to extreme. Also you comparing apples to oranges here. Check out latest interest rates for BTL SPV at LTVs like 75 or 80.. for average landlord- it would be disastrous.. not because it wouldn’t cover, because of Lenders “stress test” which is now 125-135%.. so in the end you have no idea what you talking as you following hype and youtubers which claim owning 100s of properties, but when you checking for annual statements+charges you finding like 4-7 properties.. So don’t want sound arrogant and nothing against you- what I am saying- is a lot of scam!

@tomce217 Жыл бұрын

@@chrislamph check Company house on his companies. I don’t believe in anything those youtubers telling.. if they would be successful- they wouldn’t make youtube videos - think about it. Also I haven’t seen any youtuber which would start from “scratch” with his own money and make millions and hate that, because they full shit. I know this, because I started from scratch and I know about risk and how much time and effort it takes if u working with your own money without scammed investors.. all money they make - is from their courses, youtube, houses flips and etc. BTL is minimal portion in his business

@tomce217 Жыл бұрын

@@chrislamph I haven’t any - perhaps we looking at diff annual statements :) most accounts not even filled for recent years.. and I cannot see any company which would have more than 1mln in assets which would be owned by him. Also if you will read trust pilot reviews or other forums about him- you will realise - it’s a weird story behind all this :) I attended one of zoom meetings and asked some very valid questions- none of my questions were answered- because they couldn’t allow to expose themselves :)

@SJ_LSF_9 4 ай бұрын

Great view on inflation haha. Only if its high it works though which is unlikely on a consistent and longer timescale. Inflation target is 2% not 10… the system knows how to not fk themselves

@jacekfellmann5640 Жыл бұрын

Great video. Could tou make one about how to pay 0 tax on capital gains? I belive you need to start trust and reinvest gains? Thanks.

@JamieYork Жыл бұрын

Great suggestion!

@blazing48s Ай бұрын

But what about the new loan? Does this not mean you now have more debt to pay off?

@station-7 7 күн бұрын

Of course. They don’t just give you money for nothing.

@douglasprovost768 Жыл бұрын

How do kids take over your property and pay no tax ?

@callumtyler686 Жыл бұрын

Gift them shares in the company over a period of time where the value of the shares does not exceed capital gains tax allowance and make sure that you do this at least 7 years before you die. You also have annual allowance for inheritance tax of £3k

@douglasprovost768 Жыл бұрын

@@callumtyler686 ok, so not at death and only for small value companies.

@JamieYork Жыл бұрын

Video coming soon about this

@gamewidben Жыл бұрын

So my new value is 420k and the remaining mortgage is 260k, roughly how will I be left with?

@JamieYork Жыл бұрын

£160k minus any other debt and fees

@gamewidben Жыл бұрын

@@JamieYork when you say any other debt do you mean the remaining mortgage of 260k?

@JamieYork Жыл бұрын

Is £260k your new mortgage or the old one?

@gamewidben Жыл бұрын

@@JamieYork 260k is old mortgage. So what's currently remaining

@shraddhamittal3626 Жыл бұрын

At the first looks, it looks like a wow video, but to be honest - you should take care of two points - 1) Your numbers are not correct. In this video, how can you first mortgage amount be 85K for a 125K property with LTV of 25% ? That would be 93.75K and hence leaving lesser in your pocket. 2) You are taking at the surface level without considering other charges, complexity and practical challenges. Please think that this kind of video might give insufficient information and despite any disclaimer, they may take incorrect action and it may impact them (and their family) - particularly the beginners.

@JamieYork Жыл бұрын

Cheers for watching! As mentioned the numbers are estimated / rounded to help it easier to follow along

@WendyFTBC Жыл бұрын

Your very first sentence is misleading and incorrect. Refinancing is not free money. You have to pay interest on it and eventually also pay the principal back. Please don't be so reckless to call it free money.