Is it possible to take out a second mortgage on our home to use as deposit for a buy to let property?

Our house is now worth around £330,000 and we have £90,000 left to pay on the mortgage. We have a very low lifetime tracker mortgage rate of 1.69 per cent. We are thinking of buying a house to let and thought we could increase our mortgage and use that money as a deposit for a buy to let mortgage. Is it possible to take out a second mortgage on our house to use as deposit for the buy to let house (we want to keep the tracker as the rate is very low)?

Firstly, go back to your mortgage lender and ask them if they’ll give you a further advance. You probably won’t be offered the same rate but you might find that this is the cheapest option. If your lender is not interested, you could consider taking out a second charge mortgage but this will be more expensive. Buy to let rates are currently extremely competitively priced, and you might actually find completely refinancing the most cost-effective route. Whatever you choose, it’s worth talking to a broker to help you find the best route. Call us on 0845 345 6788.