900k equity how can borrow ?

Nadsbmw

Currently have 900k equity in a BTL property.
Wanting to raise approx £150k.
Rental income is £3000 current mortgage payments £677.
Have been advised that existing lender are unlikely to give further advance what are my other options ?
Currently self employed with modest income but given the amount of equity and rental income surely there must be some avenues open.
TIA

ACG

How much is the property valued at?
How much is the current mortgage balance?

Nadsbmw

property valued at 1.2m , current mortgage balance £285k

Keezing

Have you considered selling it?

ACG

I can not see any reason why it can not be done.
If your current lender will not do it, you could try a new lender/speak to a broker.

AnotherJoe

Nadsbmw wrote: »

Currently have 900k equity in a BTL property.
Wanting to raise approx £150k.
Rental income is £3000 current mortgage payments £677.
Have been advised that existing lender are unlikely to give further advance what are my other options ?

A different lender !!

Nadsbmw

Keezing wrote: »

Have you considered selling it?

extreme solution .. has been in the family for decades .. not really an option but thanks anyway !

BTL lenders that don't require a minimum income seem to be few and far between, I think I am currently with the one that usually lends to those in my situation.
Any other lenders , 2nd charge, secured loan options perhaps ..........

Thrugelmir

Nadsbmw wrote: »

Currently self employed with modest income but given the amount of equity and rental income surely there must be some avenues open.

If the property generates no income how are you going to service a £435k debt? Interest rates may well not remain at current low levels indefinately. At 6% your mortgage interest will be over £2k a month.

amnblog

There should be lender sources that will do this case ( assuming no other complications aside from earned income ). Speak to a good broker.

getmore4less

£1.2m, £3kpm, gross yield 3%

I would be reviewing, that rent seems very low.

£285k, £677pm 2.85% that's quite competitive is that a fix or variable?


How much of the current rent are you dependent on?
ie. what's the max you could use to cover a debt.

Nadsbmw

Yield is pretty low could potentially increase by another £200-£300 but house needs a refurb and that is reflected in the rent.

Yep 2 year fixed deal soon coming to an end.

Would say dependant an approx 1/3 of rental income, have some self employed income and income from another BTL.