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Extending residential mortgage - interest only option?

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Hi all, 

Has anyone got experience of extending their residential mortgage to fund an investment purchase, but with the extra amount on an interest only basis?

house value is £300k, current mortgage balance about £175k. Would want to borrow about £40k.

also, anyone who has successfully taken money out of their home property for investment out here?

im out of investable funds for now, however may have an off market deal on the horizon so just thinking of my options. 

Would probably look to do this one in a ltd company, have 3 x personals and thinking about tax imprecations and also re-investment 


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  • 2 weeks later...

It depends on who your lender is. Do they offer interest only residential mortgages? If so, then they might be open to an interest only further advance. But you need to demonstrate how you will pay off the principal

Ltd co vs personal is a topic that is discussed all of the time. Everyone's case is different, as there are advantages of owning in your own name. Mortgages are much cheaper, accountant costs are cheaper, and basic rate taxpayers aren't impacted by Section 24. Ltd co isn't better for everyone!

I think the below articles could be very helpful in your situation:

Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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