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Can you do a buy-to-let to release the money out of your house?

emeraldbugle
emeraldbugle Posts: 1,063 Forumite
Part of the Furniture 500 Posts Combo Breaker
in Mortgages & endowments
As the title says, we want to put ourselves in a better position for moving house.

Can we change our mortgage to buy to let and still take out another mortgage on the new property?

Comments

  • Mr_helpful
    Mr_helpful Posts: 3,233 Forumite
    Yes its called a let to buy As long as the rent covers existing mortgage you are treated rather like a first time buyer again.
    I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)
  • toonfish
    toonfish Posts: 1,260 Forumite
    tc8764 wrote: »
    The Guild of Independent Mortgage advisers
    This company can help. They search all of the market and dont charge any fees.


    you really are an irritating little maggot - post something worthwhile or go away
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.



  • Mr_helpful
    Mr_helpful Posts: 3,233 Forumite
    tc8764 wrote: »
    The Guild of Independent Mortgage advisers
    This company can help. They search all of the market and dont charge any fees.
    www.goima.co.uk

    So what? so do I but I dont need to post my website as spam
    I like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    tc8764 wrote: »
    The Guild of Independent Mortgage advisers
    This company can help. They search all of the market and dont charge any fees.
    www.goima.co.uk
    \
    You are breaking site rules and have been reported to abuse. your IP address will shortly be banned.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Back to the OP, yes, you can rent out your existing property, if its residntial on a residential mortgage you may be better getting consent to let from your existing lender rather than remortgaging on a buy to let, and then the income your get from your rental plus the capital taken from your property would be used for your new mortgage calculation, this is known as let to buy, and lenders such as abbey and northern rock do it, but always take professional advice as its not as simple as it looks
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    emeraldbugle wrote: »
    As the title says, we want to put ourselves in a better position for moving house.

    Can we change our mortgage to buy to let and still take out another mortgage on the new property?

    Yes indeed you can. Depending on what deal you have with your existing lender you may want to request consent to let from them.

    Alternatively you may want to change to a BTL scheme and raise some funds from that property. Either way the rental income that will be recieved will need to more than cover the mortgage payments (all lenders are different in their rental coverage, but 130% is a good rule of thumb)

    HTH
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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