Buy to let and re mortgage ... please advise..

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    Buy to let and re mortgage ... please advise..

    Hello All

    I am a first time poster so please be kind .. I know most of you lot are probably seasoned professionals but my dilema is .

    In 2013 i inherited a property , i did it up and rented it out , it is still being rented at present ..(No Mortgage) current value about 275000.

    I live in a property that is mortgaged im hoping to move to a larger property, the current property is valued at 195000 with mortgage of 85000. which is the best way to get the capital for the new property ..

    Is it better to have a large buy to let or main mortgage ..

    Kind regards


    The cost of borrowing money is generally cheaper on residential mortgages opposed to buy to let’s (as far as I’m aware) but you could remortgage the rental up to 75% LTV to release capital and this would help offset your tax bills.

    A good financial advisor will help you make the right decision for you.

    Hope that helps!


      If you keep your gearing on the BtL to a reasonable amount then the proceeds can be used towards the depositof any new primary residence, that way you can still retain a fair return, benefit although modestly from the current tax regime and have the opportunity of acquiring a property that meets your aspirations; having said that remember that mostlenders will any rental income when the BtL is in mortgage but as long as the costs are covered the interest payments will not be included in theaffordability assessment of the new maim mortgage.
      With the property market proving fragile in certain areas of the U.K. I would not advocate, unless it is essential, obtaining high percentage loans.


        Thank you both for your quick responses ... another quick question if i may if i am selling the home i live in and remortgage BTL 75% , will i still have to pay the extra stamp duty charges because its a second home .....will the class the BTL (inhertied ) as the first home .. Thanks again


          If you let your present property because the market is against you but you buy a new primary residence , you will initially pay the 3% SDLT premium but if yourformer home is subsequently sold within a specific period ( I think it is 36 months) you are entitled to a rebate.

          Inherited property is a potential issue but not insurmountable.


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