Is a re-Mortgage possible?

[scrumperto]

Hi...I bought a flat over 7 years ago which is rented out - I now want to buy another flat with my new husband. The only way we can raise equity is to remortgage my flat. My only problem is that the flat is currently rented out and my current mortgage provider said I can't change terms of my agreement whilst the property is rented out. Does this stop me from going to another provider to see if I can remortgage with them? Thanks for anyone who can help?

[Oneeyedvic]

Yes, another company will quite happily provide a mortgage for you - BUT - rememebr that you will need around a 20% deposit (which will leave you less equity) and the rental income must be around 130% of the mortgage payments.

[scrumperto]

Thats great news - should be able to raise that deposit. Thanks so much for your help.

[Uzoma]

Actually, you probably only need a 15% equity & a few lenders will do it for 10%. However, to leave your current lender the terms may include an early repayment charge which could eat into the amount that you would want to use for your deposit. Similarly, some lenders will do it with the rental income being just 100% of the mortgage payments or a little bit higher. A good independent consultant should be able to help you with that.