Want to move, have 2 mortgages 1 is BTL in neg equity with payment plan

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ash693

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Some background first... Have 2 mortgages with same bank our home loan and a buy to let. Home is now out of negative equity by about 20k and the buy to let is still on neg equity by about 40k and interest and part capital for some time. Would like to sell up and move to a house for the family with bit more space. Basically be looking to borrow about 30k more that what is currently owed on the home loan. Ideally would love to sell the buy to let but will wait another while as its increasing in value. I rang the bank and was told as I not meeting the full payment on the buy to let that I won't qualify for a mover mortgage on principal residence. The repayments a month won't change much as be over a slightly longer term. Any advice on how I should talk to the bank about this?
 
ash693 said:
Some background first... Have 2 mortgages with same bank our home loan and a buy to let. Home is now out of negative equity by about 20k and the buy to let is still on neg equity by about 40k and interest and part capital for some time. Would like to sell up and move to a house for the family with bit more space. Basically be looking to borrow about 30k more that what is currently owed on the home loan. Ideally would love to sell the buy to let but will wait another while as its increasing in value. I rang the bank and was told as I not meeting the full payment on the buy to let that I won't qualify for a mover mortgage on principal residence. The repayments a month won't change much as be over a slightly longer term. Any advice on how I should talk to the bank about this?
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Hello,

If you can afford to buy a larger house and take on more debt by way of a new / increased homeloan, can you not afford to make the full repayments on the buy to let ?

I would have guessed that if you can do one, you can most likely do the other and I suspect thats what the Bank is thinking also.

If you have an agreement in writting between the Bank and yourself on the level of repayments being made on the buy to let and assuming you are meeting the terms agreed, you could potentially try another lender to see if they will provide the new homeloan (conditional on you selling your existing house and repaying the existing homeloan, or first refinancing the existing homeloan over to the new lender). This assumes your homeloan is not also providing security for the buy to let debt.
 
Hi MrEarl, the house isn't much bigger still a 3 bed but just away from the area we are in. Yes agreement in place for another 2 1/2 years. Never missed any payments. Home loan isn't providing security for the buy to let either. Yes we will be increasing our debt but if over a longer period not increasing monthly payment. Plan to sell the buy to let as soon it has increased enough in value and hopefully not have much of a deficit owed on it. Just to start again is all we want....thanks for the reply
 
About changing lender..our home loan mortgage is one of the many that was once a tracker, fixed and was never returned! It's not a conversation I have had with them but did contact the central bank. So with the central bank review ongoing would it make sense to change lender?
 
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