Is this possible?

cuffylad

Me and my partner currently own two properties both on repayment mortages in our own names only. One Is rented out and the other is lived in by us both. We want to move to a larger property but would like to keep both properties as an investment.


Property Details:

Property 1: Value £70k in my partners name on a repyament mortgage. Has 13k Equity, and is currently rented out and has been for 3 years.

Property 2: Value £100k in my name only on a repayment. Has £30k equity, we both currently live in this property.

My question is can we switch both properties to interest only mortgages (taking out the full equity at this point) and rent them both out. Then use the equity gained from doing this to use as a deposit for a new property for us both to live in (repayment mortgage in joint names).

Would mortgage compaines look at it that im over exposing myself and not allow me to do this?

Hope all this makes sense.

kingstreet

If you attempt to remortgage these properties, the maximum LTV you'll be allowed today is probably 80%, maybe even 75%. You certainly aren't going to get the 100% BTL remortgage you seem to be requesting.

cuffylad

My friend just got 90% LTV when he did exactly the same thing, so if I take that as a example we would have £29k as a deposit on a new house?

So this is possible? Its just what LTV we would get on the two houses we are transfering to BTL?

kingstreet

90% on a BTL capital raising, interest-only, remortgage?

I've just searched Mortgage Brain and it tells me there are no products available, either via a broker or direct from a lender. It comments that the first reason for rejection "LTV is too high" for some lenders and the choice of repayment method doesn't suit the requirements of others.

I'm sure if others have ideas I can't think of, they'll be along to put me right at some point.

Have a chat to an independent broker or two. A second opinion can always help.