Can I re-mortgage with buy to let

Big_Dog_Daddy

Hi apologies if this has been done elsewhere.
My wife was left a house after her mums passing. I was wondering if she could re-mortgage that house as a buy to let and then we use that equity to pay off some of our mortgage, whilst renting out her mums old house?
Is there a special name for this type of mortgage?
There is no mortgage on the mums house so could we use all the value/equity of that house?
Could we get 100% of the value as a buy to let mortgage
Really sorry if these are basic questions, we are very green when it comes to money matters

Thanks for your time

K_S

@Big_Dog_Daddy

- for most lenders, this will be seen as a capital-raise BTL remortgage (even though the property is currently mortgage-free)

- generally speaking, and assuming the rent stacks up, you should be able to extract up to 75% LTV (loan to value) at mainstream rates. There are a few lenders who will consider lending 80% and even 85% on BTL mortgages but the rates will jump significantly and tests are harder to meet

thegentleway

This usually isn't a good idea as B2L rates are higher than residential. You will probably be better off renting the property without a mortgage and using profits to overpay on your mortgage.

Big_Dog_Daddy

Thanks for the replies. certainly food for thought!! Much appreciated