Cryptocurrencies in the form of bitcoin and altcoin, the bitcoin alternative, have made its big leap to the investment industry. With this new investment option, experienced investors were joining the bandwagon. However, investing on cryptocurrencies entails one big question. Do banks permit you to liquidate your home loan in order for you to unseal your equity to purchase cryptocurrencies?
Investing in Bitcoins, is it good?
Somehow, it is reasonable to have at least a small portion of cryptocurrency as fraction of the total varied investment tactics. On the other hand, it is also recommendable if you must place all your bucks in just one asset category. For example, savvy investors used to diversify all their assets from shares, cash, and property into managed funds, business, and others. But, keep in mind that borrowing money to invest in an asset that is volatile entails an extreme risk.
Amount of equity to release in order to purchase Bitcoin
Basically, the amount of equity that can be released in order to buy Bitcoins would be based on your investing experience. The net asset position and income is also a factor in releasing the equity amount. Experts may assist you to estimate this value. Moreover, there are online equity release calculator which is also a big help in determining it. Furthermore, a low income with asset position along with no experience in investing will result to a lesser equity release.
The value of equity release for bitcoin purchasing do not have any rules to follow. It basically depends on the idea which the lender founds “reasonable”.
The amount to borrow and requirements for borrowing
Here are requirements in order for you to borrow through your equity for the purchase of bitcoins:
- Must possess real estate in order to secure for the home loan
- Up to 80% of the total value of your property is available for borrowing
- Limits on equity value for releasing is also available
Turnaround time for home loan liquidation
Proper timing is really important especially in investing. This may apply even in investing in all shared funds existing in the stock market and can grow your cryptocurrency investment. In case you decide to invest in cryptocurrency, you can control the quick mortgage liquidation using your equity with the following:
- No need to have valuation as it is not required
- You are covered by the policy of your lender
- You must be a pay as you go employee
- Have great mortgage repayment status
- Can provide all the documents immediately
Having all the requirements mentioned above, a good interest rate must be provided for you with just a span of two weeks. But, through equity liquidation, this may really take about 3-4 weeks time. Moreover, a private mortgage can also be given in a faster timeline but expect that it is already expensive.