Need to raise some cash

andy1000

I have a house my parents left me , it is worth around £200,000 , i would like to raise £100,000 to do some work on my own house and clear some debts etc. If I rent out the house I have been left will this become a buy to let situation and make it difficult/impossible to raise money against it ? what is the best mortgage company to approach? Thanks

herbiesjp

There should be no problem in raising funds from this property - as it is let out it should be a BTL mortgage

As long as the rental income can support the mortgage amount requested you should be fine

There are plenty lenders that could look at this - either use a comparison site to find a good deal or go via a whole of market broker

andy1000

I hadn't really considered the rental income paying the loan , I could pay this from my salary - my credit rating is only Fair having had a bust up with a car leasing company 3 years ago - I don't know if this has an effect?

LandlordLee

It sounds to me you need to start doing some serious reading about BTL mortgages and being a landlord and what it entails..

Of course rental covers your mortgage that is the whole point. Why would you raise money against it and leave it empty? And pay out of your own salary?

What you need to do is get a BTL mortgage on the house of 100k and if it is worth 200k you would not have a problem (50% LTV). If your credit has been ok in the last 12 months you again should be fine.

Get some estate agents out and see what it would let for and then you can work out how much you can borrow as the rental will need to be 125% of your loan.

You might make a little profit every month.

Good Luck

andy1000

Thanks for that , i have only just got the house so just looking at the options - I have had an agent out this morning and they say they can let it for £995 ( they have a waiting list apparently) for houses in this area . So i will try to see what lender will offer the best deal.