The situation
The mechanics matter: rental cover has to support the higher loan, the property has to value in line with expectations, and the release has to be used for a purpose the lender accepts (further investment usually fine).
How we approach it
We pre-assess likely valuation, run affordability at current stress rates, and route the deal to a lender comfortable with a capital-release remortgage. Fixed vs tracker vs interest-only all evaluated for your strategy.
What that looks like in practice
- Typically 65-75% LTV cash-out on standard BTL
- Rental cover stress-tested at current lender rules (usually 5.5% at 145%)
- Interest-only routine where hold strategy supports it
- Ltd Co and personal both accommodated
- Product transfer vs full remortgage compared — sometimes the incumbent lender is cheaper
Typical timeline
- Week 1Property value estimated, affordability run, product shortlist.
- Weeks 2-4Application, valuation, underwriting.
- Weeks 4-8Offer, legals, drawdown.
Common questions
What can I use the equity for?
Further property purchase is universally fine. Personal use often triggers regulated advice. Business use fine on a purely investment property.
Will I pay CGT on the release?
No — releasing equity via a mortgage is not a disposal. CGT only triggers on sale.
How long does it take?
6-10 weeks from application to drawdown for a straightforward case.
Fund the next deal without new cash
Send the property details and current mortgage — we'll model realistic release and post-refinance cashflow.