How can I use my current property to purchase a buy-to-let property?

Posted on 18 February 2008

I currently own outright a property worth £165,000. I earn between £35,000-£40,000 per annum and am looking to obtain a BTL property. I could command about £400-£450 a month in rent for the location and would like this to pay a prospective mortgage. Any advice?

Hi Paul,

Yes this is quite straightforward.  A buy-to-let mortgage would allow you to borrow around £70,000 for a monthly rental amount of £400, so the rest would need to come from a cash deposit from you.

Most people raise this as a remortgage from the equity in their own property. Simply apply for a remortgage as normal, your reason for borrowing is 'to raise capital to invest in property' .  Your income will easily allow this.

Category: Buy-to-let, Raising capital out of property

 

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