Help with further getting a further advance on mortgage

reddevil375

Hello everyone,
Needed some help in getting my head around how I can get a further advance mortgage from my current provider
Would a bank allow me to get a advance on my mortgage to buy more BTL?
Background
I currently have an offset mortgage with YBS fixed for 2 years that I took out in March 2018. I have 70K left to pay on the mortgage, but I have opened an offset saving account with them and deposited the £70k into that account and set up so the monthly payment comes out that account. In theory I am mortgage free and the only reason I did this way was to keep my options open. I always wanted to pay off mortgage when I hit 40 but did not quite manage but now aged 42 I have done it (well in theory anyway 😊) I am happy to let this keep going on since I am not really paying any interest and I don’t have a need to put this savings anywhere else ( I know I can invest elsewhere but I prefer this method)
My company pays into my pension each year the full allowance I am allowed so that is all good. I have some more savings elsewhere in current account and ISA to cover me for around 1 years emergency fund.
PLAN
I would like to see if I can get a advance on my mortgage for around £200k on a interest only and put this money into a offset account so that’s it available if I need it. I would like to add to my property portfolio (currently have 2 x BTL with low mortgages on them). I would like to buy new property in a company setup for cash if the right deal comes along and then 6 months after look to re-mortgage on a BTL mortgage. I feel that I can get better deals as a cash buyer and turn the money around within 6 months and put back into my offset account. I want to make better use of the equity I have in my house. My house value is around £530k to £550K. I have enough money now to put deposits on houses and go down the BTL mortgage route but feel I will be better buying cash and then re-mortgage at 75% LTV or if house can be improved then get slightly more out.

Question
I have had a look online at the YBS site and they say they do offer existing customers an advance offset mortgage but it states that they need to know why. It mentions home improvements and other things but do you think they would borrow me to buy additional property if I told them I want to use the equity to grow my port folio. I will only use the money when needed otherwise it would just sit in the offset account and I would not really be paying interest.
Is this possible? Do I need to speak to a mortgage advisor or can I speak direct to YBS?

Thanks in advance for your help
Steve

ACG

Give YBS a call. They should be helpful.

reddevil375

Thanks ACG, will they ask anything I need to be worried about or do I just tell them my plan as above? I spoke to someone a few days ago and he said he tried similar but was declined

ACG

They cant withdraw your mortgage.
They may refuse to lend you more but that would be as bad as it gets.

A_Random_Man

it's very likely the lender will lend for this I work for another mortgage provider and this is a common transaction in essence it is capital raising, but as previous posters say you're best off speaking too them

YHM

YBS don't deal with brokers, so yes a conversation you need to have directly with them.

If they won't allow it, there are options available to you with mainstream lenders that would consider you releasing equity from your property to purchase BTL properties.