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Buy to let remortgage
80schild
Posts: 240 Forumite
We are thinking of remortgaging our property onto a BTL mortgage and renting it out to allow us to relocate as we live in an area with high rental demand but no buyers!
We have 58k remaining on the mortgage. Our mortgage advisor says she has 2 valuations done by BTL companies on our house which came out at 90k. she was acting on behalf of buy to let investors who were meant to be buying our house but its fell through so she has passed this information onto us and has advised us that instead of letting someone else buy our house for next to nothing to rent out then we should rent it out ourselves.
I was dead against at first but having throught it through am seriously considering it.
The broker said something about raise a BTL mortgage of 65k then we have 7k in our pockets to cover any repairs, tennent free months.
Looking at our finances we should be able to cover the payments on tennent free months without dipping into the 7k but its good as security-plus we have an 'emergency fund' from parents too!
Just wondering how BTL remortgage works. This 7k in our pockets thing confuses me as isn't that like the old 115% mortgages that no longer exist??
I am speaking with the broker on Monday but just wantes a bit more information beforehand if anyone can help!
We have 58k remaining on the mortgage. Our mortgage advisor says she has 2 valuations done by BTL companies on our house which came out at 90k. she was acting on behalf of buy to let investors who were meant to be buying our house but its fell through so she has passed this information onto us and has advised us that instead of letting someone else buy our house for next to nothing to rent out then we should rent it out ourselves.
I was dead against at first but having throught it through am seriously considering it.
The broker said something about raise a BTL mortgage of 65k then we have 7k in our pockets to cover any repairs, tennent free months.
Looking at our finances we should be able to cover the payments on tennent free months without dipping into the 7k but its good as security-plus we have an 'emergency fund' from parents too!
Just wondering how BTL remortgage works. This 7k in our pockets thing confuses me as isn't that like the old 115% mortgages that no longer exist??
I am speaking with the broker on Monday but just wantes a bit more information beforehand if anyone can help!
0
Comments
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If your property is worth £90K then having a BTL mortgage of £65K gives you a LTV of about 65%
Being a landlord can be FUN with all the things that go with it ! Landlord insurance , gas safety check, electric safety checks etc not to mention getting good tenants that PAY the rent.0
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