Remortgage to BTL to get deposit for a new mortgage?

[madmax666]

The initial message was deleted from this topic on 08 July 2013 at 22:14

[Maryben]

You would need to re-mortgage on a 'let to buy' scheme not 'BTL'. The new lender will normally require confirmation of the property you are purchasing before completing the re-mortgage. It would be mortgage fraud if you switched to a 'LTB' and remained living in the flat while you looked for a property to puchase.
Ben

[Sarnie]

madmax666 said:

I'm interested in a house for sale and have made an offer but it was rejected as the sellers are only looking for buyers that don't still have their own property to sale.
I was looking at various options of getting a second mortgage but the deposit required is a little out of range without obtaining another form of finance and didn't fancy bridging loans or maxing out credit cards, then I thought about BTL.

My current flat is worth £135k and only has £9k remaining on the mortgage, I could re-mortgage this for BTL leaving a £55k deposit which would then leave me with £71k + savings to use as the deposit for the new house.
I could then continue to live in the flat until the new house was available to move into.

Does this sound reasonable? I just sounds too easy and I'm wondering if I've missed something.

Thanks

It's a fairly simple process, but one of the main factors is that you will need a lender who accept you as a First Time Landlord and it will be fully dependant on your income figures.