Many homeowners with mortgage free homes are borrowing money against their homes to finance investment deals. This could be seen as a form of betting if the investments are high risk.

There are low interest rates available for loans. Some landlords who own their own homes and are debt free have borrowed equity in their homes to finance buy to let property. With costs rising for buy to let deals due to increased stamp duty and taxes on buy to let properties, many investors are looking for alternative investments. Bonds and equities are attractive to some investors, but increasingly commercial property is seen as a sound investment.

With property price growth expected to slow down, many investors feel that they cannot rely on the capital growth of properties. They are looking at yields. David Adams, the manager of Mayfair Estate Agents, John Taylor said that commercial or mixed use development investors can attain yields of between 6% and 7%.

Other wealthy owner occupiers are borrowing money on their homes to finance more high risk deals such as Bitcoin and fine wines.

Borrowing money from the equity in a house to finance investments is risky if the loan is not repaid. This could result in the repossession of the home. An alternative strategy is to apply for a commercial mortgage for the purchase of commercial property. If the loan cannot be repaid then the commercial property can be sold to pay it off without risking the family home.