Can I remortgage a mortgage free buy to let?

A

Ardsbeg

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6
Are there any property lenders that will lend to your personal name rather then limited company - cannot find any that will lend against 5 plus properties.
Thanks
Seamus
 
Who owns the properties?

They can't secure a loan to Mr Ardsberg if the properties are owned by Ardsberg Limited.

I suppose that they might secure the loan on the shares in Ardsberg Limited.

Why are the properties in a limited company? You should probably address that first.

Brendan
 
Do you mean that you want to raise a loan secured against property which is in your own name.

This is old info, but the issue was that this is considered property finance by the bank, which is very restricted, all they can see is loans to buy property.

However if you have a business proposition or the like which you are trying to finance and want to secure the loan on existing property, you need to convince the bank that it's business lending rather than property lending.
 
I have one investment property in personal name with BOI as mortgagee - bought a second with cash but BoI wont mortgage it, apparently they are not accommodating of building a property portfolio in own name.
 
Questions still out there - anyone know if there are any Buy to Let lenders to personal name that would let you build up a property portfolio. Would be strange if there wasnt as I keep reading everyone say buy property in personal name for tax reasons which makes sense but not achievable of there are no lenders.
 
OK
So you have one investment property with a mortgage.
You have another investment property with no mortgage.

You want to take out a loan secured on the investment property to buy another property.

(Your mention of a limited company seems irrelevant to the question?)

If you have 30% of the price, banks will lend you the balance.

I am not sure why they would not let you borrow 50% of a mortgage-free property as the deposit on another.

Probably because this was part of the reason for the financial crash.

When property prices fall, they end up with a non-performing loan.

It also explains why those that do lend for this charge a sub-prime rate.
 
Last edited:
Ardsbeg said:
on a interest and principal mortgage you would be cashflow negative after all costs are taken into account on anything above a 50% LTV
Click to expand...
Agh...but just think of the capital appreciation ....
(Thats what used to be said to sell /justify buying a buy to let pre-crash)

Brendans last three sentences in post 9 explain the risk and consequences of leveraging/cross charging for the bank.

Q. What is wrong with making a decent/supernormal profit on a mortgage free property? That would be cash flow positive.
 
Some lenders, as other posters have mentioned, would consider it, but you might need to explain why you are looking to secure fresh borrowing against property with no lending currently secured. If it is to upgrade said properties, potentially, as the added value would make them more valuable.
But it sounds like you are revenue raising to use cash for another reason, which might make any lender baulk.
 
Hi @Ardsbeg

Did you find something?

I am in a similar situation. I have a property, bought on cash, which I rent out. I am looking for a lender to mortgage this property. I will use the cash generated to buy second buy-to-let property - preferably on Cash. Cash buying provides flexibility, negotiation power and quick closure.
 
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