If we want to raise capital on our home to purchase a BuyTo Let, do we have to tell our existing lender what we're doing?

Posted on 17 May 2013 by Sue


Hi, We have 18 months left before we have paid off our mortgage. Our house is worth approx £250,000. We would like to extend our existing mortgage to allow us to buy another property at £75,000, as a buy to let. Do we need to tell the mortgage company that this is what we are using the money for?

Sue,

The lender will ask you the purpose for the funds so you'll have to tell them anyway. There shouldn't be any problems as most lenders will allow capital raising for 'any and all legal purposes', and typically will allow this upto 75%LTV.

If for any reason your current lender is unable to assist you, then please let me know and I'll arrange a convenient time for you to speak to one of our consultants.

Regards,

Alistair

contact@johncharcol.co.uk

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.