Posted on 22 August 2013 by Godfrey
Hi, I own a flat outright, and wanted to know if I can get a mortgage on this one, in order to purchase another property on a Buy To Let basis. I have a mortgage on my home as well.
Without knowing any of the exact figures involved, I can't see why we wouldn't be able to raise a mortgage on your unencumbered flat, to allow you to purchase a new Buy To Let property.
Typically most lenders would cap the borrowing on the flat at 75% of the value (though there are a few who do go higher), and you would use the funds raised to put towards the deposit on the new investment property. The actual loan size is also dependent on the level of rental income received, with lenders typically looking for the rent to be a minimum of 125% of the monthly payment at either the pay rate or a notional rate (say 5%). Either way in your case there seems to be easily enough rent to cover this.
At the same time we would then arrange a Buy To Let mortgage for you on the new purchase.
If this sounds of interest to you, then please let me know when you are available, and I'll arrange for you to speak in more detail to one of our consultants.
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