Remortgaging

joecox92

Hope somebody can help me here:

I am soon moving out of my apartment which I own outright to move into a new home.

I am going to rent out my apartment but would like some of the equity out of this. Is this a remortgage to a buy to let, or a buy to let mortgage, I dont quite understand what I need to look for

Cheers

Joe

kingstreet

BTL remortgage of an unencumbered property.

amnblog

Not straightforward due to questions as to whether you are actually resident or not and do intend to leave.

Lots of ways to trip over on this one.

Make sure you use a mortgage broker.

Leon_W

More of a Let to Buy . Some lenders differentiate between the two.

amnblog

See

we already have an alternate view

told you it wasn't straightforward

Leon_W

amnblog is quite correct as it is a bit of a minefield knowing what to look for.


I'd say it was a Let to Buy situation, that is you are letting your old property and moving to a new one. Now, in theory, all the ones you mention could be available, a straightforward BTL mortgage, a BTL remortgage product * (see pedant note below) or a Let to Buy mortgage.


* In order to re-mortgage something, in my opinion, it should have a mortgage in the first place and not be unencumbered (mortgage free). Some lenders will not offer "remortgage" products on unencumbered properties (it has to be a purchase product) and yet some will, these will generally include a free legal and valuation package. Pick the bones out of that.


More confusion.

kingstreet

Hm. Yes, also an LTB remortgage of an unencumbered property, quite right Leon.

joecox92

Well thanks for responses guys

Does ltb apply if I already have deposit made and mortgage on place on new house? I am not using remortgage to fund the purchase

The property did have a mortgage with Natwest, would that help

J

joecox92

Also, not old enough for an LTB anyway or have the income as I have looked at this route before.

Does anybody know, which bank classes it as BTL remortgage and which as a BTL purchase?

kingstreet

"Not old enough for a Let To Buy."

What does that mean?

FWIW no-one treats it as a purchase if you already own it. Leon's comment surrounded the issue of it being classed as a remortgage, which it is, even if there's no existing mortgage.

Your previous mortgage is not relevant.

As suggested, a whole market broker would be your best bet for this, as many of the products/lenders open to you are not available direct.

joecox92

Aye will speak to my Mortgage Advisor.

I look at releasing equity to get my deposit. A LTB with the mortgage works who were the only ones that I fit the criteria on (age restrictions and salary restrictions - at the time I was 21) However, they would not lend on an apartment like mine, more like a maisonette.