Can we get a Buy To Let mortgage to raise capital for my mother to downsize?

Posted on 26 January 2015 by Marcus

Hi There, I own a property with my mother worth just over £700,000 she is 60 and is not sure about being eligible for a buy-to-let roughly how much capital could we raise from the property to buy her something to downsize to? Marcus.


This is a difficult question to answer without knowing the full financial picture. Typically, most lenders cap Buy To Let mortgages at around 75% of the property value, however the rental income likely to be generated as well as personal income and credit profile, will all play a part in determining the maximum borrowing level.

Lenders use the rental income to regulate the levels of borrowing, and normally want the rent to cover 125% of the mortgage mortgage payment at a notional rate, usually 5%. Therefore if you were looking to achieve say 75% of the £700,000 then the rent needed would have to be approx £2,734 per month. Also for many lenders you would need to demonstrate personal income to cover potential rental voids, and to cover your current liabilities and commitments too. Your mothers age will be a factor too, s this could limit the maximum term that a lender would look at.

All in all, I think it would be worth talking to one of our consultants, on 0344 346 3672 to get a better idea of exactly what your options are, and then how best to proceed.



More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders

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.

You are currently offline. Some pages or content may fail to load.