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  • FIRST POST
    • Rd350lc
    • By Rd350lc 4th Sep 17, 10:11 PM
    • 3Posts
    • 0Thanks
    Rd350lc
    Can you remortgage against owned outright home for buy to let ?
    • #1
    • 4th Sep 17, 10:11 PM
    Can you remortgage against owned outright home for buy to let ? 4th Sep 17 at 10:11 PM
    Would somebody please be able to advise as we are thinking of getting into the buy to let market.

    We currently own outright a 300k property and have a 40k deposit saved .
    We are thinking of buying a flat or similar for around 150k in the Dorset area that we could let out as either a holiday let or permanent let for around 15 years until retirement age and hopefully get some use out of it ourselves.

    What type of mortgage would we need, a traditional , buy to let or is it possible to remortgage at a better rate ?

    We are aware of the costs involved in purchasing a second home , but don't know if it possible to raise funds against our current property to buy a second home to let out .

    Thanks in advance
Page 1
    • glosoli
    • By glosoli 4th Sep 17, 10:34 PM
    • 633 Posts
    • 365 Thanks
    glosoli
    • #2
    • 4th Sep 17, 10:34 PM
    • #2
    • 4th Sep 17, 10:34 PM
    If the mortgage is secured against your main residence then it would be a residential mortgage you would require. You would approach a bank for an unencumbered home equity release application, and you would require a solicitor to act on your and the bank's behalf. Raising funds against your property to purchase another property is a valid reason to raise capital.

    It should be a relatively straight forward process to be honest.
    • Rd350lc
    • By Rd350lc 5th Sep 17, 12:17 AM
    • 3 Posts
    • 0 Thanks
    Rd350lc
    • #3
    • 5th Sep 17, 12:17 AM
    • #3
    • 5th Sep 17, 12:17 AM
    Thanks for taking the time to reply
    • Lilla D
    • By Lilla D 5th Sep 17, 10:45 PM
    • 308 Posts
    • 154 Thanks
    Lilla D
    • #4
    • 5th Sep 17, 10:45 PM
    • #4
    • 5th Sep 17, 10:45 PM
    Further to glosoli's post, all of which I can only agree with, just some thoughts about the other points raised:
    - if you wanted to get a mortgage on the new property, you'd have to specify whether your intention was to rent it out as a normal BTL or as a holiday let. Not many lenders allow holiday lets and they all have their T&Cs.
    - if you decided to get a normal BTL mortgage, then most lenders would want 20-25% deposit and your lender options will also depend on the property itself (e.g. new built above a shop or an ex-council with only 70 years left on the lease) and the rent you can potentially achieve as well as your personal income, credit history, etc.

    A broker can go through the above with you and present you with options and figures to compare raising money on your current home for the full purchase price of the new flat or just some money on your home and taking a mortgage on the new flat as well. Then you should be in a better position to make an informed decision.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Old Git
    • By Old Git 6th Sep 17, 12:09 AM
    • 4,222 Posts
    • 3,693 Thanks
    Old Git
    • #5
    • 6th Sep 17, 12:09 AM
    • #5
    • 6th Sep 17, 12:09 AM
    I mortgaged my own house to buy a rental property. When it came time to remortgage the rental income was included as income to get a better deal .I have never had a BTL mortgage.
    "Do not regret growing older, it's a privilege denied to many"
    • dimbo61
    • By dimbo61 6th Sep 17, 3:35 PM
    • 9,456 Posts
    • 5,124 Thanks
    dimbo61
    • #6
    • 6th Sep 17, 3:35 PM
    • #6
    • 6th Sep 17, 3:35 PM
    You really need to speak to / Employ a Mortgage Broker for this
    • Rd350lc
    • By Rd350lc 6th Sep 17, 8:57 PM
    • 3 Posts
    • 0 Thanks
    Rd350lc
    • #7
    • 6th Sep 17, 8:57 PM
    • #7
    • 6th Sep 17, 8:57 PM
    Thanks all , mortgage advisor on the case as we speak !
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