We are looking at remortgaging a Buy-to-Let property in Great Shelford, Cambridge valued at £280,000 (one just sold for that price next door). How much can we borrow? We would prefer a 5 year fixed if possible. Proceeds to repay existing mortgages and purchase another BTL.
Ask the Specialist response:
Many thanks for the enquiry.
Typically the maximum loan to value you can achieve on a buy to let is 85% of the property value (loan to value), subject to status, rental income etc. However, at 85% the mortgage rates and fees will be higher than other buy to let mortgages at lower loan to values.
The rental income achieved and your income would be essential factors that would have to be assessed to determine the maximum mortgage amount.
We usually find the better buy to let rates at 75% of the property value. At this level currently the lowest rate is just over 2% on a five year fixed. However if you borrow 85% of the property value the rate rises to over 5% on a 5 year fix.
To obtain a more accurate indication on what you could be eligible for, I would contact one of our advisers for a 10 - 15 minute initial conversion on 020 77 100 400.