Updating post from Reddit.
I have a BTL that’s valued at 210k and the mortgage is 127k. How much cash can I release if I remortgage for a residential purchase?
Thanks
£30,500. That leaves your BTL with the minimum 25% deposit.
Thats at 75% LTV, it can be pushed to 85%.
Fair enough but you're going to get hammered for the interest rate; I assumed the OP wouldn't want that.
You can get an 85% LTV mortgage, which would mean £178,500. After you pay back £127k, you would be left with £51,500.
However, the maximum loan also depends on the rent achievable on the property, which may cap the upper limit.
You may also consider getting 75% LTV or 80% LTV as the 85% LTV Mortgages are more expensive, the more equity you can leave in the BTL Property the better.
Which lenders allow 15% LTV and what are the rates roughly please?
You can get headline rates below 3% but there are large fees, it would be hard to get a true cost much below 6% and probably a bit more if you hold the property in a company. And as others have said you are going to need rental income of at least 125% of the monthly mortgage amount and probably 140% to get the best rates.