Split Banking is something that a lot of people recommend these days, and it can be hard to set up and manage without the help of a mortgage broker. The split banking strategy keeps your investments at different banks so you can play the banks off each other whilst keeping your own home protected. We explore some of the key benefits of this strategy below.
Having your investment properties at different banks will mean your own home is protected. If something unforeseen happens, and you are unable to meet the repayments on one of your investment properties, then the bank cannot take your home as security. If you have all of your properties together, then the bank can end up selling your home to repay the debt you owe them. Split banking can help to give you peace of mind, knowing that your own home is not at risk.
Greater Variety of Policies
Banks have different attitudes and policies towards different things. When banks are assessing your mortgage application, they each treat things slightly differently. By using multiple lenders, you can pick and choose the best bank to fit your specific situation.
Sale Proceed Protection
If you decide to sell one of your properties to fund your retirement, you would want to make sure the bank can’t take that money to pay down debt. This is something that we have seen people get unexpectedly caught out by and can be prevented with a split banking strategy.
If Split Banking is something you’re interested in pursuing, we can talk you through the process. Just get in touch with us here.
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