Raising a mortgage against non-principal residence

cordial

My current lender (Accord) is unable to lend against properties other than owner occupied and I need to borrow money using as security other property which I own.

Can anyone advise which lenders may currently be used to lending in this specific market at reasonable rates?

MortgageMamma

Do you have a mortgage on the other property or is it unencumbered?

cordial

There is more than one and they are owned outright.

herbiesjp

Any BTL lender will be ok for this - assuming the properties are let out

cordial

I don't necessarily want the money for the purpose of house purchase.

inmypocketnottheirs

cordial wrote: »

I don't necessarily want the money for the purpose of house purchase.

It does not matter what you want the money for. You can do a BTL remortgage and take the funds in cash. As long as the security stacks up to the lenders criteria, typically 85% max of valuation, rental covering 120% of payments.

HTH

herbiesjp

cordial wrote: »

I don't necessarily want the money for the purpose of house purchase.

That's fine

As long as its for a legal purpose you should be ok - subject to the lender's tiers for various reasons of capital raising

cordial

Thanks for the replies.

Having now contacted a number of lenders, I view it as curious that they insist on viewing any arrangement as a BTL situation, even though the properties acting as security are already acquired.

I regard this as stretching the perception of matters to breaking point. The money is likely to be used for entirely different purposes. To me this appears as a gloss imposed so as to allow them to charge a higher rate.

herbiesjp

Are the properties you are looking to raise against let out?

cordial

Some are. Some aren't. Some/all have been in the past. Some/all may or may not be in the future.

My point is that they are a fixed asset already owned and I wish to raise the money using their market value as property as security and not any rent income which, as you can see, is a distinctly variable matter.

herbiesjp

Well they do use the market value as security

However they look to agree the mortgage amount not based on your own personal income, but rather on the expected rental income of the property

Both property values and rent are variable - both can go up or down

If one of the properties is a second property/family property, then you could look at other options, however your own personal income would need to be able to cover all amounts

HTH