Remortgaging and BTL Help

Moore69

I need some advice I have a £55k mortgage (coming into year 3 of a 5 year fixed with HSBC) on a property worth £250-275K.

My aim is to remortgage to take £100k out then buy a BTL property worth £300-350k. Current rental is about £1350 pm. Is this at all feeasable?

foxy-stoat

Moore69 wrote: »

I need some advice I have a £55k mortgage (coming into year 3 of a 5 year fixed with HSBC) on a property worth £250-275K.

My aim is to remortgage to take £100k out then buy a BTL property worth £300-350k. Current rental is about £1350 pm. Is this at all feeasable?

On this information, no idea. Speak to a broker who advertises BTL mortgages or your current lender.

kingstreet

When you use the term "remortgage" are you planning to ask your current lender for a further advance, rather than a remortgage which would be a new mortgage with a new lender to replace the old one and raise the extra funds?

The further advance would mean no early repayment penalty to repay the existing mortgage (if any). You would need to establish what rates your existing lender will offer for this. Not likely to be headline rates for new first charge business.

As for the BTL, each lender has its own rental income/affordability model and this will be tight if you assume the lowest mortgage amount and 6%/125% coverage.

An independent broker will help do the job properly rather than the back of a fag packet we can do on here...