Using extra facility on offset mortgage to finance a buy-to-let purchase

edtheshred

I have extra borrowing available on the offset mortgage for our family home that I'd like to use to help finance a buy-to-let property.

The money is available to me now with a phone call but I will need to provide the bank with the reason for needing the extra funds (usually home improvements etc.).

Simple question: Is financing the purchase of another property for buy-to-let a legitimate reason for the additional borrowing against my current property? i.e. Will the bank refuse to lend me the extra money for this purpose?

Thrugelmir

Will the new lender accept the source of the deposit as well?

Borrowers leveraging with debt would a major concern to the majority of underwriters when considering applications.

edtheshred

There isn't another lender. I have a large cash deposit and the additional borrowing on my own property would be the balance. No new mortgage required.

amnblog

They should be Ok with it within certain loan to value limits.

Ask them.