Offset mortgage with buy to let as repayment

mr_auspicious

Hi

Kind of following on from a previous post

Me and my partner are going to be borrowing up to £150k to refurbish and extend a house we're moving in to.

She owns a buy to let property and is self-employed and always has a large amount in savings accounts to pay for her tax bill (at present over £40k.) The amount in savings accounts will obviously vary as she pays her tax due and on account at the end of every January.

Would an offset mortgage make sense and would it be possible to use the buy to let property as proof of an investment that could be used to repay the capital at the end of the mortgage? She has a large btl mortgage but about £600k equity in the flat.

We were hoping to increase the btl mortgage by the amount of the money we wanted to borrow when the fixed rate term was up, but after a quick look one the internet at what we might be able to borrow, without even thinking about the possible need for an HMO mortgage that now seems unlikely

csgohan4

you would need a broker to fully individualise your options. An offset would be an option, but the interest rates would be higher than a comparable non offset product.

mr_auspicious

csgohan4 wrote: »

you would need a broker to fully individualise your options. An offset would be an option, but the interest rates would be higher than a comparable non offset product.

Thanks.

Do you know if an interest only mortgage is a possibility for this sort of thing?