Releasing some equity to buy BTL

NOVAMET21

Question. Is it possible to release some equity to put deposit for BTL?

I have mixed answers where some say yes by remortgaging and some say no because the lender might not allow it.

How do people get some equity?

Thanks

K_S

@novamet21 Yes it is possible but it depends on the lender as not all lenders will permit raising capital for this purpose.

NOVAMET21

K_S said:

@novamet21 Yes it is possible but it depends on the lender as not all lenders will permit raising capital for this purpose.

Thanks. What's the criteria for approval or is it very much lender dependent?

Just curious to know as this seems to be what most people do.

K_S

NOVAMET21 said:

K_S said:

@novamet21 Yes it is possible but it depends on the lender as not all lenders will permit raising capital for this purpose.

Thanks. What's the criteria for approval or is it very much lender dependent?

Just curious to know as this seems to be what most people do.

@novamet21 The base criteria for approval is just that - that the lender allows you to raise capital for the purpose of using as a deposit/funds on a BTL purchase in your personal name.

The secondary criteria (will differ from lender to lender) might include requirements like - LTV caps, needs to complete simultaneously, need sight of the BTL mortgage offer, need to pass affordability with the BTL in the background (depending on the specific lender they might ot might not see it as self-financing), etc etc.

I might be making it sound more complicated than it is. It's not unusual at all and plenty of lenders will permit subject to meeting their criteria.

Given the increasing prevelance of Ltd. Co. SPVs, it's important to note that buying through an SPV (as opposed to buying in your personal name) would normally be seen as borrowing for a business purpose, which a lot of mainstream lenders may not consider.