I have a property that has no mortgage and is let. Can I borrow against it?

Posted on 25 June 2014 by Manda

I have a property that has no mortgage and is let. Can I borrow on the property?


Within certain parameters there's no reason why you cant borrow against your unencumbered rental property.

Most Buy To Let lenders cap the borrowing at 75% of the property value, and also need the rental income to be at 125% of the monthly mortgage payment at a notional rate of typically 5%. Some also require that you have a minimum level of earned of self-employed income, though this is varies, as lenders are now tending to focus more on a borrowers overall indebtedness and how they would support any rental voids, should they occur. Another piece of criteria is that a number do require you to also be an owner occupier as well.

I think it would be looking at your options in a bit more detail, and you can do this by contacting one of our consultants on 0344 346 3672, and they'll be able to give you a much clearer picture of how we can help you.



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