Mortgages - Is this possible?

[xyz123]

Hi - I was just wondering if someone can tell me if this is feasible. I realise i am asking on an internet forum and not disclosing full details but i am just trying to get an idea in my head of how releasing equity to purchase a new property works.

Me and OH are full time permanent employed. Total salary, £80k combined. No loans/credit cards. No adverse credit history.

Current house is worth about £350,000 and outstanding mortgage is £50,000. Looking to buy another house worth about £550,000. We have about £50k deposit available. If i want to convert existing house to BTL and borrow to buy next house, is it possible?

In my mind, BTL have 25% deposit, so if i remortgage current house to BTL, i can release aprox. £200,000. This together with £50k deposit and a £300k new mortgage should allow us to buy the new property.


I realise the pitfalls about landlords, extra stamp duty etc but just trying to understand whats feasible.

Thanks

[Sarnie]

It's possible but you need a Let-To-Buy product not a Buy-To-Let.......not all BTL lenders will lend on a LTB basis because of the change in regulation between the two.

The amount you can borrow on the LTB is dictated by the rental value of your property.....it needs to satisfy the lenders stress testing calculations.....

[xyz123]

Sarnie said:

It's possible but you need a Let-To-Buy product not a Buy-To-Let.......not all BTL lenders will lend on a LTB basis because of the change in regulation between the two.

The amount you can borrow on the LTB is dictated by the rental value of your property.....it needs to satisfy the lenders stress testing calculations.....

Thank you. I was hoping would have a chance to reply knowing your good reputation here. I wasn't aware of a let to buy product. I will have a look to get some more information. Its early days so just wanted to get my head around how it works. When time comes, I will get in touch with you to take it forward. I hope that's OK.

Thanks

[Sarnie]

Of course, no problem at all