Borrowing against a btl for home improvements

mr_auspicious

I have applied for a remortgage on a buy to let property. I was out of a fixed term with my previous lender, I applied for a new mortgage with a different lender to pay off the existing mortgage and for some extra - when asked for what it was for I said to pay off the small mortgage on my home and to do some work on it. The lender seemed happy enough with that, I have an approval in principle certificate pending a valuation and them checking the information I have provided.

I am now thinking about going back to them and asking for some more to add another bedroom to my home. I am under borrowed against the btl, I would still be under 50% ltv and the rental income would very comfortably cover the mortgage payments

Are they likely to turn me down for the extra if the extra is to be used for a different property to the one I am borrowing against?

Thanks in advance

kingstreet

It shouldn't be an issue.

Lenders are particularly interested in their risk, so a sub 50% LTV and rent exceeding monthly mortgage interest by 25% assuming a rate of 6% pa and it should be fine with any lender.

mr_auspicious

kingstreet wrote: »

It shouldn't be an issue.

Lenders are particularly interested in their risk, so a sub 50% LTV and rent exceeding monthly mortgage interest by 25% assuming a rate of 6% pa and it should be fine with any lender.

Thanks very much. Rent is just over 125% of the mortgage payments at 6%. Do you know why it's 6%?

kingstreet

6% covers the bulk of the BTL market.