Mortgage question help!

ladyjaneausten

we have an interest only mortgage for 37k with 7 years left to run.

due to personal changes, we want to change this to a buy to let mortgage and have a 10k cash deposit. we are looking at doing this with a different lender as we have heard that santander aren't great with buy to let deals..

our question is does the new mortgage pay off santander and then we owe this to the new lender? so our borrowing is still 37k plus any fees??

i have got confused as somebody in work said i need 37k to pay off santander and then 37k for the new lender....

Dave_Ham

So you want to pay off Santander and take an extra £10k??

If this is the case and I got the jist, then you will pay off Santander entirely and bank £10k - fees.

You would then have a mortgage to a new lender for £47k

These people in work, bad as someone down the pub said.....

Good luck

ladyjaneausten

thanks for the reassurance. i was convinced that we were just moving the lending and type of mortgage so that the amount doesn't really change!
the 10k is a deposit for the buy to let.

But when somebody says something, it puts a doubt in your mind.

Dave_Ham

Sorry, I may have got this wrong.

Your mortgage is £37k and why do you have or want the £10k??

If you pay this off, the mortgage to your new lender on a buy to let would be £27k - that said depending on house price, there may not be a need to repay the extra £10k unless you want to...