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  • Mortgages & Finance

    Remortgaging for a BTL mortgage deposit

    So I'm going to remortgage my residential home to raise a deposit for my first buy to let (approx 40k) in around 2 years.
    Im playing around with numbers to work out my ROI,
    So my question is..... How do I factor in equity into my money in invested calculations, as effectively I Will have a 100% mortgage on my buy to let property
    (25% through my remortgage and 75% through my BTL mortgage).
    Will I need to add in the add in the interest I'm paying on my deposit (40k) or even possibly higher mortgage payments on my residential home?
    Could anyone help and give an example please?
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    Yes. Effectively 100% loan on your BTL. As long as you pass affordability test, ie. your higher residential mortgage, you are good to go.

    Just be aware that if you have a higher LTV for your residential mortgage and have a 75% LTV mortgage on your BTL, if the property market continues to drop in 2 years, you will have negative equity and may have trouble to remortgage further.

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    I am not sure 100 % levarge is wise in 2019


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Just spoken to my mortgage lender about this they said I can remortgage for money for a BTL mortgage but when I said it would be through a LTD company they said no.

    Is there anyway around this?

    they have given me the number for the commercial mortgages dept to see if they will secure it against my residential property.

    im with NatWest

    many thanks

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    Hello Mark,

    Yes, some lenders are like that. You need to use a lender that meets your circumstances and allows you to raise capital for such purposes.

    Many will view this as raising capital for commercial reasons, yet you could argue that BTL in personal names is also commercial.

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    You can contact me via Direct Message, or 07788 219647 or call the team on 01206 654444 for personalised quote and advice


    Hi John thanks for the reply.

    So if you were me where would you go from here?

    Would I have to remortgage with a lender that would meet my requirements then after a certain period of time remortgage again to pull some money out of my residential property?

    or whilst remortgaging with a suitable lender could I pull money out at the same time as the remortgage?

    just for information I’ve had my current mortgage for 12 months.

    Many thanks

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    Mark,

    You could just remortgage away from your current lender to raise the money needed. Beware of possible Early Redemption Charges with your current lender.

    Give me a call on 07788 219647 tomorrow so we can have a chat.

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    You can contact me via Direct Message, or 07788 219647 or call the team on 01206 654444 for personalised quote and advice