Is it possible to use equity in BTL as deposit on new personal mortgage?

Shanno

Hello,

I currently have a Buy to Let mortgage of £69,000 outstanding on a property bought for £108,500. The property is rented out at £475 per month and the repayment on mortgage is about £400 per month.

I have recently split up with my long term partner and need to move out of his home. I would like to keep the BTL as an investment and ideally would like to purchase a new house for myself. I have a salary of £30k before tax and no major outgoings except c/card. However I have no savings for a deposit. Is it possible to use the BTL equity as a deposit on a new personal mortgage? I can't seem to find any information about this on the internet.

I would be looking to buy something between £125-130k depending on what I can borrow.

Any advice?

somethingcorporate

The only way would be to re-mortgage the BTL to release equity, although looking at the figures there would not be much in there to take out until you are up at high LTV and very expensive rates.

You should go and see a good independent broker to explore the options for you.

Dave_Ham

Subject to not being able to refinance this to get funds out which as stated will be tough, but not impossible..

There are a couple of 100% mortgage deals out there, but largely require some specific family criteria and obligations..

Aside from that it is a point blank non runner using equity as a deposit..

All the best

Thrugelmir

Shanno wrote: »

and no major outgoings except c/card.

How much unsecured debt do you have?

Coupled with fact you currently have no deposit saved , you may be better off moving back to the BTL and getting your personal finances back in order.

jonnyenglish

I think most BTL mortgages have a maximum LTV of 75% which, taking into account your house value and current LTV, would not leave you much of a deposit anyway should you remortgage.