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?
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.
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