Natwest buy to let remortgage

halzar

Hi, I have a property let out, which I own without a mortgage, however my accountant believes this is pointless, so I have a remortgage going through at present with natwest, originally I was using the money to buy another BTL, but that has fallen through and I don't wish to be rushed into finding another, so thought I could just hang onto the money while I search, but Natwest have said it must be for that reason or home improvements, so finally my question to yourselves is.... Can I get quotes for a loft conversion or to have new central heating put in all my properties etc. Or will that not work? Also when they say home improvements do they mean for that property or my home improvements, because I work like work done on my house
Regards and thanks

Thrugelmir

How much equity are you withdrawing?

halzar

60% in total of the valuation

antrobus

Presumably your accountant has worked out that you would get tax relief on the interest payable on your 60% LTV loan, and that by taking that capital amount and spending it on another BTL, you can effectively increase your return. Albeit by accepting some extra risk.

Don't be tempted to start thinking about spending that capital on just about anything simply in order to get that tax relief on the interest.

Thrugelmir

halzar wrote: »

60% in total of the valuation

Then hardly likely to be for improvements.