Remotgage rental property

Z1ppy_2

Evening,

we bought our first flat 18 months ago and since then, have bought a new house. we are renting the flat now as for obvious reasons, there is no real benefit in selling at the moment.

the mortgage on the flat was a 2 year fixed deal which expires in may 09. there is very little equity in the property as first time buyers we didnt have a huge deposit at the time. (property value around 170K, mortgage at time of remortgage, around 158K)

we have told the lender we are renting the property. obviously we are a little way off at the moment but are we going to struggle to re mortgage in May?

thanks in advance.

grogdog

yes

max ltv 85% and rent would need to cover 110-125% of monthly mortgage payments, or if this doesnt work and you need to use your income as well as the rent then max ltv will be 75% which just isnt there on your figures.

i think your only chance is existing lender offering you something.

if you are currently renting it out ensure you have a landlords buildings policy.