Mortgage swap around? Possible?

ManicMum

Hi there folks

just wondered if someone can get their head around this.

I have 2 mortgages. One is a residential £105k on property worth about £150k. Other is a BTL of £138k on property worth about £200k. There are no tie-ins on either of the mortgages at the moment. If I sold the residential and moved back to my BTL property, taking this mortgage with me, I am taking it that i would have to come up with £40k to pay off my BTL lender, unless I could raise another £40k on this residential mortgage.

Failing that, I guess I would have to sell one of the properties.

Is that the scenario? I know it may sound stupid but just getting someone else's opinion to confirm my thinking does help. So much noise in my house I can not think straight most of the time, so you guys really help me.

Thanks loads.

Bloo_Loo

how old are the mortgages? and are you positive about your valuations.

lenders are fussy about such things as you may have read.

you may be liable to early repayment charges on either loan.

best to talk to your lenders and get some figures to change. I assume you are getting no rent on your BTL as you are moving there.

Thrugelmir

ManicMum wrote: »

Hi there folks

just wondered if someone can get their head around this.

I have 2 mortgages. One is a residential £105k on property worth about £150k. Other is a BTL of £138k on property worth about £200k. There are no tie-ins on either of the mortgages at the moment. If I sold the residential and moved back to my BTL property, taking this mortgage with me, I am taking it that i would have to come up with £40k to pay off my BTL lender, unless I could raise another £40k on this residential mortgage.

Failing that, I guess I would have to sell one of the properties.

Is that the scenario? I know it may sound stupid but just getting someone else's opinion to confirm my thinking does help. So much noise in my house I can not think straight most of the time, so you guys really help me.

Thanks loads.

Sell your residential home. This will discharge your mortgage on this property.

Then remortgage the BTL property onto a residential mortgage. Using the prooceeds from the residential house to reduce the amount you need to borrow.

This should enable you to get a very competitive rate on a low LTV