I currently have a BTL property with an £88k mortgage on it. The property is worth £250k. I am a few months into a two-year fixed rate 4% mortgage with Birmingham Midshires.
I would like to increase my mortgage on this property in order to provide a deposit for another BTL property. The mortgage deal I am on allows up to 60% LTV, so I had vaguely assumed that I could simply apply for a further draw down up to the full 60% at the same rate (which would give me up to a further £62k).
My mortgage broker has informed me, however, that if I want to take a further draw down on this mortgage, I would have to pay 6.19% interest on it. Does anyone know if this is normal? Is another option?
All the best