Using Residential Equity To Fund A Buy-To-Let Purchase
The latest industry news and guides from Active Mortgages.
The latest industry news and guides from Active Mortgages.
Our client, an experienced portfolio landlord, came to us looking to remortgage their residential property in order to raise funds for a new buy-to-let purchase. The strategy was to release equity from their home to use as the deposit for the BTL — a common but often tricky approach due to lender criteria. The client’s residential property was valued at £700,000, and they needed to raise £90,000 from it to help fund the new investment.
While the overall structure was straightforward, the client’s portfolio status added complexity. Many lenders factor in all existing mortgage commitments when assessing affordability – which can severely restrict borrowing potential, even for well-performing landlords. We had to find a lender that was not only comfortable with portfolio landlords but also assessed affordability in a way that worked for this client’s goals.
We secured:
✔ A 2-year fixed mortgage on the residential property on an interest-only basis at 4.09% — releasing the £90,000 required.
✔ A 2-year fixed BTL mortgage at 75% loan-to-value on the new property, at a competitive rate of 4.64%.
This structure allowed the client to access the funds they needed without disrupting their broader portfolio and while maintaining flexibility for future refinancing.
✔ £90,000 released from the residential property.
✔ Buy-to-let purchased successfully using the released funds.
✔ Both mortgages secured on competitive 2-year fixed rates.
✔ Client avoided common affordability pitfalls faced by portfolio landlords.
The client completed the purchase with ease and was very pleased with the service and outcome. The process was smooth, tailored to their needs, and backed by a clear strategy that delivered results.
✔ Releasing equity from your home can be a smart way to fund property investments – if structured correctly.
✔ Portfolio landlords need tailored solutions that account for lender-specific affordability rules.
✔ Working with a broker who understands both residential and BTL lending is essential for strategic property growth.
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