Buy to Let mortgage

marsman802

Hi
I own a BTL which is currently circa 60% LTV on an interest only basis.
I'm looking at trying to raise some capital from it and bumping up the LTV a bit more.
My issue was that I think my rental income calculation is running on the limit for what I want to do.

At the minute I'm £298pm on 1.69% with rental income of £1100pm. Clearly a stress test to 5% (£884pm) and 145% of income means I need a rental of £1282pm even on present numbers.

Speaking to someone else they seemed to suggest that there are still options to capital raise despite this through "secondary lending" or something to that effect.

Anyone heard of this?

jstallan

Not all lenders use 145%. If you are a basic rate tax payer then the likelyhood is that it could be as low as 125%..

The best option at the moment to get more cash out of the property is to fix for 5 years as the 5% stress rate can be lower.

If you have more than 3 BTLs you be subject to further underwriting rules that came into pay this month.