Mortgaging our rented "home" property

jmwspur

We are in the unusual situation of owning only one house (no mortgage) but having to live in a different house tied to my husband's job. We rent out our home (worth about £170,000) and want to use it to raise some capital (about £50,000).

Are there any mortgage lenders who will allow us to remortage on the basis of it being our home or will we have to get a Buy to Let mortgage? That would seem to me to be rather unfair and and inappropriate as we are not purchasing a property.

Any help would be much appreciated.

herbiesjp

There will be a question on any mortgage application form that asks will this be your main residence. If it is not then you could look at a BTL - however there could be a way to still get you some "normal" high street rates

What is the capital rasing for?

Fairdo_2

Why does it seem unfair?

It seems to be very appropriate to Remortgage on a Buy To Let basis at the moment as you are renting that property out.

Buy To Let is extremely competitive these days and could be a viable option for you.

As herbiesjp states, there could be High Street Lenders that may consider this on a normal residential basis.

For example, C&G have a clause that allows "for future occupation" if this tied accomodation is for a certain timescale (working life) then they may do this on a residential basis.

However, some Buy To Let lenders may be able to compete very favouribly anyway.

LouLouHelen

I don't think you will be able to get round the 'main residence' question legitimately.

C&G offer 'residential' mortgage rates to Buy to Let customers. Also my friend has just taken out a Bristol & West mortgage of 5.15% fixed on a Buy to Let basis which doesn't seem a bad deal at all.

What about a secured loan instead - how much do you want to raise?

jmwspur

Thank you all three of you for some good pointers.

We want to raise the £50,000 - or maybe a bit more, to provide our daughter with capital for a deposit on a flat, which would be a long term investment for us. We felt it was simpler to raise the money on the house we presently own rather than negotiate some sort of joint mortgage for her property.

We will look at BTL again and investigate C&G and Bristol & West.

Thank you