Buy to let mortgage for debt consolidation.

Rocky_Road

Hi guys. I have a property which has no mortgage and I had been hoping to get a buy to let mortgage to consolidate credit card debt. However two high street banks have told me that I am unable to obtain a buy to let mortgage for this purpose. Does anyone know of a lender that would permit this or have any other ideas as to how I can use the equity in my house to consolidate my credit card debt. All help appreciated.

kingstreet

BTL is broker-centred, so it may be a good idea to seek out a good whole market broker for the best approach to the market.

A capital raising remortgage of an unencumbered BTL property isn't something I think I've ever been asked to do, so I wouldn't have any lender suggestions, I'm afraid.

Thrugelmir

You would need to apply to a secured loan rather than a mortgage. A secured loan will incur a far high rate of interest than a mortgage.

Debt consolidation is not the purpose of mortgage lending.

Let_Us_See

What the two banks mean is that they do not allow it. However, there are numerous BTL lenders that will allow you to capital raise for debt consolidation on an unencumbered property. See a broker.

PS. I take it you have another property which is your main residence?

Wh05apk

Thrugelmir wrote: »

You would need to apply to a secured loan rather than a mortgage. A secured loan will incur a far high rate of interest than a mortgage.

Debt consolidation is not the purpose of mortgage lending.

I've heard it all now.

SOME lenders will not allow it, but SOME will, don't even think about a secured loan, the rates will be far higher than a BTL.

Simon_gloster

Some lenders would allow a BTL for any purpose if the loan was >£25k so that it ease no longer CCA regulated. Under that and for home imps only with survey and proof needed.

It rings alarm bells to lenders if you have this income luxury and in debt......sell it is the likely response if you get an Aip.

friendlychap

Hi Rocky Road,

Yes it can be done, but obviously it depends on a fair few other factors as well....

BTL lenders that do accept remortgage for debt consol are:

BM Solutions
Woolwich
Virgin Money
Leeds BS
Kent Reliance
Precise Mortgages
Platform
Aldermore
Accord
Kensington

Obviously the choice of who you went to would be down to which lenders criteria you fit, and then what type of BTL mortgage deal suited you best, but hopefully theres something to start you there,
If you need any further, just give me a shout






















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motch

Rocky_Road wrote: »

Hi guys. I have a property which has no mortgage and I had been hoping to get a buy to let mortgage to consolidate credit card debt. However two high street banks have told me that I am unable to obtain a buy to let mortgage for this purpose. Does anyone know of a lender that would permit this or have any other ideas as to how I can use the equity in my house to consolidate my credit card debt. All help appreciated.

How about,
Residential mortgage for "house renovation" or other, then pay off CC.
Loan, to then pay off CC.
Balance transfer to pay CC onto % deals.

Wh05apk

motch wrote: »

How about,
Residential mortgage for "house renovation" or other, then pay off CC.

Because that would be fraud, and we don't recommend that on here!

motch

fair enough, so you can get a BTL mortgage to pay off CC though?

Crashandburn

Yes you can. Just need to get one that states this in their criteria from the outset