Re-mortgage and releasing cash from deposit

wormy73

Hi,

I'm due to re-mortgage soon but would like to release some of my deposit that i put in on buying my flat and then changing the mortgage to BTL.

I bough the flat for £118500 with a £40000 deposit. When the time comes to re-mortgage what needs to be done in order to get some cash back and what effects does it have on the new mortgage/ repayments etc.


Thanks in advance.

Andrew

lisyloo

What is the flat now worth? and how much is the outstanding mortgage?

When the time comes to re-mortgage what needs to be done in order to get some cash back and what effects does it have on the new mortgage/ repayments etc.

If it is allowed (which depends on the values) then you simply remortgage for a higher figure. When the old mortgage is paid off the the extra will be sent to you.
The new mortgage (if allowed) would obviously have high repayments because it's a bigger loan.

Give us some figures and we can tell you whether it's possible.
It might not be possible in the current climate.

ISN-IFS

wormy73 wrote: »

Hi,

I'm due to re-mortgage soon but would like to release some of my deposit that i put in on buying my flat and then changing the mortgage to BTL.

I bough the flat for £118500 with a £40000 deposit. When the time comes to re-mortgage what needs to be done in order to get some cash back and what effects does it have on the new mortgage/ repayments etc.


Thanks in advance.

Andrew

Hello Andrew,

That shouldn't be a problem if all credit commitment have been kept upto date. the 40k deposit is approx 37% deposit and with most BTL the lenders will require a minimum deposit. Therefore

37% - 15% deposit = 22% approximately in money terms should be around £26,000 excluding costs.

There are other factors such as rental calcualtion. with all thing been equal you can get a decent BTL rate from 6.29%. (but this changes regularly ...it may go either UP or DOWN)

I hope this helps but I most emphase that one needs all the figures before decisions can be made.

Charles.