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sammy07
11-02-2010, 19:14 PM
hi there, am thinking of releasing equity from my current buy to let property so can buy another abroad. does this mean my buy to let mortgage would go up and payments would be more even if I'm using equity. also would there be any issues with the mortgage company releasing equity as it is a buy to let mortgage? any advice or previous experience on this. thanks :)

Poppy35
11-02-2010, 21:50 PM
if you are releasing equity from your house you will be given money therefore you have to pay this back so of course your payments will increase.

the lender will ask for what purpose you need the money which you will have to tell him and the amount it lends depends on your personal circumstances and what the loan to value will be. A lot of BLT lenders are only lending with a 75% and below LTV so you will need to do your sums.

havensRus
12-02-2010, 08:25 AM
hi there, am thinking of releasing equity from my current buy to let property so can buy another abroad. does this mean my buy to let mortgage would go up and payments would be more even if I'm using equity.


Not sure why you think using equity should not make a difference.

Equity is difference between the perceived asset value and the liabilities (=mortgage in this case).

Releasing equity = borrowing more money against the property (over and above current mortgage).

So, yes mortgage would go up. As a result repayments would also go up.



also would there be any issues with the mortgage company releasing equity as it is a buy to let mortgage?

Depends on the Lender and, as already pointed out, your circumstances. There will be questions to answer of course.

The additional borrowing, which is what it is, will likely be subject to a different interest rate than what you currently have on the existing mortgage. It will also be limited by the maximum LTV that the Lender will allow.

The alternative will be to remortgage the property, either with same Lender/different product, or to another Lender where you may be able to get more favourable rate.
Talk to a good broker.