Re-mortgage buy to let - then buy another house

Odd_Job

Looking for a little advice, please!

I'm not sure how sensible or how stupid this may be, so please feel free to rip it to shreds and strongly advise against it, should you see fit.

I know I should speak to some kind of official financial mind about it, but would like some thoughts from MSE people first.

I have a mortgaged property which I'm currently renting out (I now live in a rented property in another part of the UK.) The house is valued at £126k approximately and the remaining mortgage is roughly £70k. At the moment, after fees and suchlike, the rent pays the mortgage and provides a couple of hundred quid on top of it each month.

What I'm interested in...would I be able to release some of this mortgage in order to put a deposit down on another house, with the intention of also "buy to letting" with the second house? For example, use £30k (putting the mortgage back up to £100k) and use that £30k as deposit on another buy to let property?

Hope it makes sense! Any advice or thoughts appreciated.

Leon_W

Realistically I think the figures are too tight.

Probably the maximum you could remortgage to on a BTL basis would be 75% LTV which would free up £24500.

You then have to buy something, again with a 25% deposit. The mortgages themselves are not going to be at the best rates because of the LTV and the lenders arrangement fees are usually nothing less than massive.

Overall perhaps a risk too far at the moment ?

Odd_Job

Thank you for that.

I noticed another similar post from "Grifo."

Has anybody else got any experience or thoughts on this?