17:04 PM, 9th July 2014, About 7 years ago 20
I am new to BTL and have a question about the concept of releasing equity. My situation is the following:
I own a three bedroom house which I bought six months ago with a residential mortgage with Nationwide. The mortgage has 2 year fixed interest rate and is for £188K which is 80% of the purchase price (£235K). I had a market valuation done on the property just last week and the report from the estate agency suggest that the current market value is between £275-285K.
I am in the process of buying my first BTL property but the problem is that I need to show that I have £25k deposit which I do not have as savings so want the use the equity from my current property. I will not going to use this money because I am buying the property with 25% discount which is exactly the deposit but in order to get a BTL mortgage I need to show that I have the amount.
It can literally be just for 24 hours- just to show that I have the deposit.
The problem is that I called Nationwide and they told me that they don’t do further advances to fund BTL purchases.
Can you please advise what other options I have? Short term lending? Remortgaging? Bridging?
I have only heard about these concepts but have no idea how they work and which one will be best for me.
Any advice will be much appreciated!
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