Can I take a loan out against my deposit in my BTL house?

[Mehdi]

I have a property which is currently being rented out, I still have another year to go before I can remortgage, and look at the possibility of releasing more equity from the house.

I was thinking, with all the 3.6% loans upto £25k currently on offer, would it be possible that I can take out a £20k loan, and then add my savings onto it and buy another property? As I know with the new mortgage requirements, they take into account any debts etc you may have- could the £20k loan be taken out against the deposit that was initially put into the house? or would they just reduce £20k from the max mortgage they would offer me?

As i'm just trying to look for the most efficient way to get a second property sooner than later.
Med

[Sarnie]

Mehdi said:

I have a property which is currently being rented out, I still have another year to go before I can remortgage, and look at the possibility of releasing more equity from the house.

I was thinking, with all the 3.6% loans upto £25k currently on offer, would it be possible that I can take out a £20k loan, and then add my savings onto it and buy another property? As I know with the new mortgage requirements, they take into account any debts etc you may have- could the £20k loan be taken out against the deposit that was initially put into the house? or would they just reduce £20k from the max mortgage they would offer me?

As i'm just trying to look for the most efficient way to get a second property sooner than later.
Med

You can't take an unsecured loan out against the deposit you have in another property.

You can take out a loan purely for your deposit as long as the lender accepts a loan as the source of the deposit and that your overall affordability fits their criteria.....