Borrow money from Residential mortgage after purchase

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  • Borrow money from Residential mortgage after purchase

    Hi All,

    Just finishing up the final bits on our second BTL and have a quick question for those in the know.

    My residential mortgage provider is allowing me to borrow an additional £30k on my house. However, this would need to be at a different, higher rate since my current mortgage is a fantastic base rate tracker and they obviously don't want to lose any further money! This was pre-approved some months ago and has not been progressed so no doubt I will need to resurrect this.

    At the moment, I basically need to front approx. £60k for the BTL. I have the money as cash or I could borrow some of it from my folks.

    If the additional £30k is approved & received after I complete on the BTL, can I offset this once I receive the funds as I would be using it to pay off a loan to my folks or to reinvest my cash?

    Since I am not claiming for amounts above the purchase price of the property and only claiming for interest on loans to fund the property albeit after completion, would love to know your thoughts.

    Thanks in advance.

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