Posted on 18 May 2013 by Julie
Our house is worth approximately £300k and we owe £65k on the mortgage. We would like to move but can't sell and are thinking of letting our existing property to buy a new one. We would like to increase the mortgage on the existing property to about £200k and use this as a deposit on the new house (together with some savings). We could only afford to do this if the mortgage on the let property were on an interest only basis. I think this would be the most tax efficient route as we are both 40% taxpayers and only the interest is tax deductible. Our current lender (rbs) will not allow us to convert to interest only, even though it does offer btl mortgages on an interest only basis. Are there lenders offering let to buy mortgages on an interest only basis?
At that Loan to Value(LTV) Buy To Lenders will allow you to do this on an interest only basis, so this does sound like a way to take this forward and get you moving. There an increasing number of homeowners who are going down the 'Let to Buy' route, as it allows them to have more control over when they sell, and also can improve their buying power.
If you'd like to have a look in more detail at what options may be open to you, then please let me know and I'll arrange a convenient time for you to speakwith one of our consultants.
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