A few questions on a buy-to-let remortgage with a few wrinkles

JUAN8888

I have a btl with a LTV of around 20% (£50K owing on around £250K value). The current monthly rental is around £1500 (net after agent commission)

I moved back with parents but I'm now looking to buy my own place by raising the deposit on the btl and have a few questions for anyone who knows how this works:

1) I work through my own limited company but I've been drawing a minimal salary and hardly any dividends in the last year which means my "personal" income isn't too high on the last tax return. Will lenders only look at my income physically drawn from the company or consider the net (undrawn) profits in the company. Current T/O is around £40K and net profits before tax are around £25K (the exps include salary of £7K and pension contributions of £4K, both of which are discretionary/variable).

2) The btl mortgage is with Santander. How easy is it likely to be to raise a further £100K (ie. £150K in total) on the btl for a deposit on my place, ie. a LTV of around 60%.

3) The btl has a second charge on it for £15K. Do I have to get their permission for the remortgage/increase.

If any advisors feel they can help in this, I'm happy to receive a PM (I'm in W. London)

ACG

Raising the money on the BTL shouldnt be too problematic as the bulk of it is based on the properties rental income (although some lenders do require your income to be £25-30k minimum).

If your then looking to do a normal reisdential mortgage for the remainder this is where your income will be taken into account and you would need to find a lender who is prepared to take profit of the business into account rather than drawn - there is the odd 1 or 2.

Without wanting to sound like im beating the broker drum - this really is one for a broker and you would be far better sitting down with one as most BTL products are only available through brokers anyway. This could be fairly complex (but not unobtainable - depending on the full circumstances).

amnblog

Santander dont do BTL for self employed applicants so I cannot see how you will raise extra with them.

kingstreet

I suspect if you remortgage the BTL, you'll be required to repay the second charge, unless the charge holder is willing to grant a deed of postponement.

TBH the new first charge holder may be unwilling to accept an application unless the second charge is repaid.