terricraw Posted January 13, 2009 Report Share Posted January 13, 2009 Hi After moving in with my partner I kept on my previous flat and have let it out since last June. I applied for consent to lease from my lender which was approved. My mortgage stands at £32,000 and my flat was recently valued at £70,000. I wish to carry out work on my property and asked my lender for a loan in order to carry out this work which was refused on the grounds that I am letting it out. Would it be worthwhile to remortgage the flat as a buy to let in order to release some of the equity in it or should I just take out a normal bank loan to do this work. It seems rather silly given the equity in the property. I am a newbie here so excuse my ignorance! Thanks hazle Link to comment Share on other sites More sharing options...
Mortitia Posted January 13, 2009 Report Share Posted January 13, 2009 Hi Hazle, If it were me I would take the cheapest option. A regular loan should be quite cheap at the moment whereas a Buy to Let mortgage will come with charges and fees. I've just done one with Nat West - the valuer was £235, set up fee £899 and solicitor charges on top of that +VAT. Good Luck Mortitia Link to comment Share on other sites More sharing options...
terricraw Posted January 13, 2009 Author Report Share Posted January 13, 2009 Thanks for your prompt reply Mortitia. Will probably just go with normal bank loan. Regards Hazle Link to comment Share on other sites More sharing options...
Selkirk Posted January 13, 2009 Report Share Posted January 13, 2009 Hold on a sec. If you have a BTL mortgage you can claim on the interest part that you pay the lender, not so sure you can do this with a personal loan. Additionally, a BTL rate could possibly be cheaper than a personal loan. If I was doing improvements I would try the lender for a top up rather than a remortgage (probably have exit fees), however, i would be relucant to remortgage unless I got a decent rate, remember the high fees they charge now too. Why not have a chat with a local mortgage broker, some charge a fee some don't take your pick, but I'm sure you'll get some more options. I agree with Mortitia, take the cheapest route - but find out what that is first. cheers Selkirk As an aside, I read most posts but only reply when I think I've something to add, just to say then top stuff Preston! Link to comment Share on other sites More sharing options...
terricraw Posted January 13, 2009 Author Report Share Posted January 13, 2009 Hi As stated in my initial post I have tried to get a top up from my lender but this has been refused due to the fact I am letting out my flat. I should have stated that I am on the SVR at the moment so there would be no exit fees if I were to change to a BTL mortgage. Thanks again Hazle Link to comment Share on other sites More sharing options...
Gee Posted January 14, 2009 Report Share Posted January 14, 2009 Hi Hazle I'm guessing that when your current lenders gave permission for you to let the property, they would have imposed conditions such as permission granted for a limited period or to the current tenancy only . In that case they might not give approval if you reapply at the end of this period, because they want to force you to taketheir buy to let mortgage. If I'm correct, it looks like you may as well remortgage now, than borrow on a personal loan and have to remortgage later. Cheers Gee Link to comment Share on other sites More sharing options...
web2dude Posted January 19, 2009 Report Share Posted January 19, 2009 There are lots of good mortgage deals out there at the moment. Depends how much money you're after really. I'd recommend going to a broker too. Some of the BTL criteria are quite steep at the moment though. Link to comment Share on other sites More sharing options...
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