Moving house -mortgage

ziof3ster

Hi,

I have a portable mortgage on my first residential flat.

Since bought I've refurbished everything so let's assume the value has increased.

Let say I find another property that I like, and I want use my mortgage for the next property (that will be residential). keeping the same LTV so I wont pay any ERC etc.

Can I use another lender for a BTL?
WHat will be the value for the new lender (generally the surveyor match the agreed selling price, but in this case I'm kind of selling to myself, so I have interest to keep it low).

Sorry for the questions looks stupid but never had this problem before and curious to see what are the options!

cheers
Gio

Meeper

So you want to keep your existing place, rent it out, and move into a new place? Have a BTL mortgage on your existing property and port your existing mortgage to the new one? That's what I'm reading.

If that's the case, yes, you can do that, in theory. You are not selling to yourself at all. You are re-mortgaging onto a rental basis as opposed to residential. The valuation of the property will be whatever it is deemed to be by the surveyor sent out by the new mortgage company.

Hope all that makes sense.

ziof3ster

Meeper wrote: »

So you want to keep your existing place, rent it out, and move into a new place? Have a BTL mortgage on your existing property and port your existing mortgage to the new one? That's what I'm reading.

If that's the case, yes, you can do that, in theory. You are not selling to yourself at all. You are re-mortgaging onto a rental basis as opposed to residential. The valuation of the property will be whatever it is deemed to be by the surveyor sent out by the new mortgage company.

Hope all that makes sense.

Hi Meeper,

it makes sense, it was exactly the clarification I was looking for.

Thanks
Gio

getmore4less

Deposit? fees?

If you don't have then you will need to release funds by getting a bigger mortgage on your current place.

As a BTL this wil be limited on LTV and may be more expensive than the cuurent one.

What will you gross yield on rental be? net yield & profit?