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Consent to let residential mortgage (5 yr fixed), can I take out equity in the future to buy home
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I think you require a loan to value of a maximum of 75% would that be the case?"You've been reading SOS when it's just your clock reading 5:05 "0
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That's generally the maximum LTV for a BTL, but it is still subject to the rent being sufficient (with some spare for maintenance) to justify the mortgage.sammyjammy said:I think you require a loan to value of a maximum of 75% would that be the case?
Assume OP also wants a mortgage on the property they are buying, a residential mortgage would have a lower interest rate than a BTL, so it would be cheaper overall to take a higher residential mortgage.
But there is still the pain of an extra 5% SDLT because they are buying a second property without selling the first.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Hi,silvercar said:
That's generally the maximum LTV for a BTL, but it is still subject to the rent being sufficient (with some spare for maintenance) to justify the mortgage.sammyjammy said:I think you require a loan to value of a maximum of 75% would that be the case?
Assume OP also wants a mortgage on the property they are buying, a residential mortgage would have a lower interest rate than a BTL, so it would be cheaper overall to take a higher residential mortgage.
But there is still the pain of an extra 5% SDLT because they are buying a second property without selling the first.
OP also wants a mortgage on the property they are buying- yes that is correct.
so essentially I will be a landlord for this current property , pay Stamp duty, pay early exit fee (since fixed term ends in oct 2026), convert to BTL and will take out equity from the property to buy the next home i will reside in
I will have at think ... i will speak to broker to get better understanding of cons/risk
thanks for the reply0
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