Mortgage on House Owned Outright

moneysavergirl2

I own my home outright and have a BTL that I own outright. I would like to take out a mortgage on my home - how can I do this & get the best rate? Will it have to be a BTL mortgage? Or is there any other way of releasing equity at a low interest rate? Is there any way to take out a mortgage at the current 'normal' mortgage rate?

Thanks!

Neutrinno

Yes you can take out a residential mortgage on the property you own outright. The rate will depend entirely on your circumstances, speak to a broker and they can give you some advice and an idea on rates.

Mortgage_Adviser

The rate on the residential home is likely to be lower than on the buy to let. Same applies to the lender fees.

However if there are affordability, age issues or you need an interest only mortgage it may be that you find it easier getting a buy to let mortgage.

Also, depending on the purpose of the capital raise there could be more options on a buy to let or a residential field For example soem lenders may not like people raising money against the buy to let to pay off personal debts etc

moneysavergirl2

Thanks for your comments.
What reasons for taking out a mortgage on my residential property would be acceptable to a lender for normal mortgage rates? Eg I would like to buy a new car, go on honeymoon, upgrade my kitchen? Or are there any other reasons?

Whats_your_forte

Those are all acceptable. Normal No-Nos are tax bills and to invest/put in a business as these require more specialist lenders.

High Street lenders would be happy with those reasons. Though word of caution on a Car as it is a depreciating asset that might need to be replaced so not the best idea to put it on a say a 20 year mortgage.

dimbo61

I am hoping your looking at taking out a residential mortgage in order to clear the expensive debt on the BTL rather than buy a flash car !
We recently sorted this out with our lender and pay a whole lot less interest each month.
You can still offset the Interest you do pay 

moneysavergirl2

Yes! Thanks, how did you sort out yours in a way that cost less interest?
i do need a new car, though am thinking 2nd hand Clio!