Our mortgage is due to finish in 2015. Can we remortgage to a different lender?

Posted on 9 June 2013 by Jan


My husband and I own a 5 bed detached worth £475,000 to £500,000, with a £115,000 Santander mortgage to pay off in July 2015. Is it  possible to extend the mortgage to new lender? Our income from pensions, rental property, part time work is about £40,000 per annum. The rental property is worth £145,00 to £170,000. We could sell that and pay off mortgage but it does provide net income of £7,000 to £8,000 net per annum.

Jan,

There are a couple of options that we could look at. Firstly we could look to remortgage you away to another lender on a residential basis. The loan to value is good, and the total income is a plus point point too, however it may be that the term of the mortgage would be restricted due to your ages.

The second option would be to capital raise against the Buy To Let, and repay the main residence. Most Buy To Let lenders will cap borrowing at 75%LTV and will assess the loan against the rental income being generated. Buy To Let lenders may also be able to offer a longer term than their residential counterparts, and interest only is fairly standard with them. This would then leave you mortgage free on your main residence.

If you'd like to find out more, then please let me know and I'll arrange a convenient time for you to talk to one of our consultants.

Regards,

Simon

simon.collins@johncharcol.co.uk

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