BTL Further Advance to Buy Extra Property

vectistim

I'm a little bit out of touch with lender requirements, so this is a (at this stage) largely hypothetical question about capital raising.

Lets say property A already has a BTL mortgage and its rent would be sufficient to cover a noticeably larger mortgage.
Would a lender go for capital raising on property A to buy property B such that the capital raising plus cash in hand would leave property B mortgage free?
Property B is likely to fall below minimum valuation levels for a BTL mortgage in its own right.
ie: Are lenders likely to accept capital raising of this sort?
Thank you.

harvey115

Capital raising sounds fine in this context.

BTL are only available with 75% LTV or lower. So, if your existing BTL is below 75% LTV you can raise capital to be at that level (meeting the renting criteria of course).

You need a broker though, you may have to remortgage if the current lender is not willing to give further advance on your current mortgage.

Wh05apk

Not normally an issue.

kingstreet

You'll need to ask the lender, I'm afraid.

Remortgaging to another lender is an option if the current lender won't give you additional borrowing.

vectistim

Thank you, I might start looking into this a bit more seriously then.