Equity in buy to let.

stu1960_2

Hi folks after some advice please.
I own a btl property value £135,000 approx.The mortgage outstanding is £69,000. There is no other charge on the property.
The mortgage has 14 years to run current repayments are £489.06 per month, 2.45%interest.
The rent is £650 per month.
Is it possible to borrow on the equity of a buy to let?
I would be hoping to borrow £25,000.

kingstreet

You should be able to remortgage upto 75% of the loan to value. The rent will need to be 125% of the monthly mortgage interest, assuming a rate of 6%.

For a £94k mortgage, the monthly interest would be £470 and the corresponding rent would need to be £588.

Fees payable would depend on lender/product.

Dave_Ham

Issue being you currently have an incredibly good product and therefore the rate is artificially low.

Move lender and clearly you would lose this.

Most lenders will not be happy to use equity as a deposit.

If you get a secured loan, the higher interest will mitigate the good work being done on the first charge current mortgage.

Do you really need the £25k that bad to rock the boat on your current deal?

stu1960_2

Thanks for the replies.
I was hoping to remortgage on the same rate but now realise this is not a option.
I,ve spoken to 2 financial advisers today and they have both said its do-able but they would strongly advise against it as i would lose my very low interest rate.
Very refreshing to be given good, impartial, advice and free as well.