confused about porting a mortgage and refinancing - please help !!

aween

IS it likely my original lender will lend me more money on top if I ask for consent to let ? My mortgage repayments are £1150 a month and the rental value is £2500. If they will it may be a possibility to use that as the deposit for the new property and then get a new residential mortgage for the balance.

getmore4less

Unless you have a cash deposit you need to raise £610k MORE than you currently borrow.

That will be £350K from the new BTL loan and a further £260k on top of the £260k you already have to port.

So your current lender will now be lending £520k and the extra £90k comes from the surpluss from the (£350k- £260k)

Thrugelmir

aween wrote: »

Thank you so much for your reply - I feel really frustrated by the advice I was given before by the mortgage company. I have spent money now on paying for a buy to let mortgage because of what they said to me....

What's the issue?

getmore4less

Can I port my existing 260,000 mortgage onto the new property, and refinance the existing property onto the buy to let mortgage for £350,000 to pay the balance of the £610,000 on the new property - is that how it works ???

Think about it, if it worked like that

you start with property worth £625k and debt of £260k, assets £365k

Then end up with property of £1235k and debt of £610k assets £615k

If it worked like that we would all be doing it.

getmore4less

Thrugelmir wrote: »

What's the issue?

I guess its the £520k mortgage on the new place

Wh05apk

aween wrote: »

IS it likely my original lender will lend me more money on top if I ask for consent to let ? My mortgage repayments are £1150 a month and the rental value is £2500. If they will it may be a possibility to use that as the deposit for the new property and then get a new residential mortgage for the balance.

Normally lenders will effectively "freeze" your mortgage, not allowing additional borrowing once you request consent to let, so your only option may be to get a BTL remortgage, increasing the borrowing to help fund the new purchase.

Have you gone through a broker on this, or are you "muddling" through yourself?

aween

my lender wont let me go through a broker at the moment as they are not offering any new products..... i asked a broker about the btl though and explained everything..... more than once..

I suppose i could apply to extend the existing residential mortgage before i ask for consent to let and use that as a deposit, then get another mortgage for the balance ?

just to clarify, consent to let is treated like a btl mortgage by lenders ??

Wh05apk

aween wrote: »

just to clarify, consent to let is treated like a btl mortgage by lenders ??

Normally yes, but check with your proposed lender or a broker.

aween

not very keen on my broker right now!!

Thrugelmir

aween wrote: »

my lender wont let me go through a broker at the moment as they are not offering any new products.....

Whose your lender?