Preparing to buy but what mortgage

berbasulk

I have recently paid off the mortgage on my main property and have a cash surplus enough to afford a deposit of around 25% on a second property that I would like to buy. The plan is to rent out my current home and then move into the place I am looking to purchase.

I am looking at taking out an interest only mortgage so that the rental income on the rental property covers the majority of the mortgage payments. I believe this is the best approach as it is a buyers market and I want to be in the strongest position possible when it comes to putting in an offer on the property I want to buy. I think this is a better option than trying to sell what I've got first.

I will then either sell the rental property when the market recovers or just keep it as a long-term investment. The question is what is the best mortgage product for my circumstances? Do I fix long term, would an off set be best or do I get a discounted rate. I would also like to know if technically I am a first time buyer?

I welcome any feedback and I there are any brokers out there that think they have the expertise to offer advice tailored to my circumstances then would like to hear from you.