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Convert to Buy to Let
sfielder78
Posts: 3 Newbie
I have an existing mortgage on a property where I have built up a decent level of equity c30%. I am considering buying another property for me to live in keeping this one to let out.
Does anyone know if it is possible to take out a buy to let mortgage on my existing property of say 15% of it's value proving me with sufficent capital to secure a mortage on the new property at a reasonable rate.
Thank you
Does anyone know if it is possible to take out a buy to let mortgage on my existing property of say 15% of it's value proving me with sufficent capital to secure a mortage on the new property at a reasonable rate.
Thank you
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Comments
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The equity is 30% of the value, or the existing mortgage is 30% of the value?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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Presuming, you owe 30% of the value, you can remortgage onto a BTL product upto 75% of the value of the property to raise capital for the deposit on a new residence for you.
The rental income will need to be 125% of the mortgage interest payment, assuming a rate of about 6%pa. Some lenders want a high personal income on top of that.
The loan to value on the purchase will be restricted by many lenders as you have the let in the background, but this is compensated for by you raising a big enough deposit on the let.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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