The rules of raising capital on buy-to-let properties

​Whatever type of buy-to-let mortgage you have – consumer, investment or portfolio landlord – the rules about releasing capital from your property by remortgaging are the same. Lenders will only consider your application if you’re making it for property reasons, for example if you want to reinvest in another property or if you want to make improvements to your existing property to increase its value and/or its rental value, remembering that rental value is likely to be a key factor in determining how much lenders are willing to offer you. This means you can’t look upon your buy-to-let property as an opportunity to provide capital to fund school fees or a holiday of a lifetime!

Supporting your mortgage application

The different types of buy-to-let mortgages come with different levels of regulation and scrutiny. If you have a consumer buy to let (available to people who have converted their former home to rental) it’s assumed that you don’t have experience as a professional landlord, so there is additional regulation to protect you; this may mean that you have to provide additional documentation for any revised mortgage application. If you are a portfolio landlord, you are likely to find that lenders will view your entire portfolio and assess your aggregate borrowing when considering your application.