Posted on 10 February 2016 by David
We own 2 properties outright with no loans attached, our own home is worth £825,000 and a holiday property in Cornwall situated on a resort and recently valued at £450,000. This property is let out throughout the year by the resort management company and has earned us around £25000 for each of the last 4 years. Bookings for this year are strong. We would like to take some of the equity out of the Cornwall property (£150000) and invest this in buy-to-let properties. We have spoken to NatWest about this proposal and whilst they would be happy to fund, they were only able to offer a repayment loan against the Cornwall property for a term of 13 years (I am 56 and my partner 55) which obviously makes this part of the package expensive. Would you be able to offer an interest only payment loan against this property?
Both your properties are unencumbered, and you wish to raise money on your existing Cornwall BTL property at approximately 33% LTV which is excellent as this is a low LTV. Most lenders restrict capital raising to around 75% LTV, so you should have variety of lenders to choose from. There are many lenders in the BTL market offering interest only lending and I think we should be able to help you.
I think you will benefit from speaking to our Independent Mortgage Advisers. This is because we would need further information such as how many properties you are looking to purchase, projected rental income as well as other personal details such as employment history and financial details prior to suggesting an appropriate lender.
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