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Can I raise a Buy To Let mortgage on my unencumbered property?

Posted on 7 March 2013 by Nic


I own a property outright that has been valued at £450000 and I believe that the rental value would be about £2000 per month. I am looking to borrow £275000 on a let to buy mortgage that would be financed by the rental income. Is this viable?

Nic,

On the face of it, this looks very viable indeed. The Loan To Value (LTV) is good, and the estimated rental income looks excellent too.

The only sticking points I could see would be if there was any adverse credit in your credit file, or if you're not working, or there's any restrictive covenants on the property.

If you'd like to see what options would be open to you, then please let me know and I'll arrange a convenient time for one of our cionsultants to contact you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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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.

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