Changing existing home to buy to let

Deano996t

Hi all, im new here and this is my first post. Im not that knowledgeable on mortgagaes but id just like to know if my plan is a feasable option.
I currently have a 4 bed semi in greater london. I have a lot of money tied up up it . Im currently on a normal residential mortgage.
I woukd like to re mortgage my house and change it to a buy to let mortgage. That way i should be abke to take a lot of my equity out and only leave 25% i think is right, in order to have a buy to let. Then with the money i take out i can buy a second property outright .

Can anyone tell me if this is possible and if so what are the first steps to take
Regards
Dean

AnotherJoe

If you are going to stay in your current house, you just need to remortgage to take the equity out and then buy the new house which will be a BTL, with the cash.

If you are going to let out your current house to release enough equity to buy a new house you will live in, then yes you'd want to get a BTL mortgage for the current house.

Note that you will need to pay an extra 3% SDLT on the new house you buy whichever you do.
Your current lender may or may not be happy to remortgage, see a broker if they arent.

kingstreet

First step is a rental income assessment by an ARLA registered letting agent as the rent will determine how much you can borrow.

Typically, it's the lower of 75% and rent of mortgage interest at 5.5% x 145%.

Then a broker.

As this is a 'let to buy', expect to be asked for proof of the onward purchase.