Buy To Let in negative equity

Posted on 10 June 2017 by Gerry

I currently have a residential £97k mortgage on a property that that is now only worth £81K. I want to remortgage (due to my current lender charging me large yearly fees for permission to let) to a BTL and have an extra £40K to put in the deal, what are my best options?

Hi Gerry,

If you pay down the mortgage using the £40,000 then that would bring the loan to value dowen to just over 70% which will give you the option of remortgaging to a standard Buy To Let lender. The loan amount granted is dependent on the level of rental income likely to be generated by the property, and many Buy To Let lenders do require to have a minimum level of earned income.

I'd need more information regarding the property and your personal financial situation before I could really say anything more definite.

If you'd like to talk to one of our consultants in more detail about your enquiry, then please let me know and I'll arrange a suitable time.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.


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