Selling up and using monthly mortgage payments to buy another house?

mlz1413

scrooge if you want to sell then sell, if you want to buy something cheaper or somewhere cheaper then do so but don't buy a 2nd property.

put the £185,000 (if you get this much) into 4 different banks (not linked) at a maximum of £50k per bank, add the £840pm to your savings.

If that much cash doesn't help your children out in future years then quite frankly nothing will.

BTL is not something to enter into now, if you really want to 'be a landlord' then go ahead but don't do it for anyone but yourself.

neas

indeed.. hoard 15 properties now... so your children aren't affected by people like you buying extra property..... and ramping up prices.

Do you understand the reason why houses are so expensive? Supply, Demand, and the belief everyone was 'missing out'.

The obvious solution would be... sell your house.. pay someone rent on a smaller property for 2 years (same as mortgage payments)

Use the 180k you had profit to buy outright 2 houses in 5-6 years time...

scrooge786

well we would be buying our home to live in for the £185k and the monthly £840 would go towards paying for a second house.

hethmar

scrooge, have you seen what the consensus is above? BTL arent something to go into at the moment. In any event you would probably need at least 20% of a second house value as a deposit for the BTL mortgage.

If you can sell your house and want to be mortgage free then thats a different matter. But as someone else has said, where are you thinking of moving to and how will it affect commuting etc. Have you factored in the extra costs of travel and the costs involved in selling and buying the property?

scrooge786

well i havent really done alot of research thats why im looking for advice as to what sort of factors to look into and i guess we would need time to save up for a deposit on the second house IF we did sell up.

mjdh1957

scrooge786 wrote: »

well i havent really done alot of research thats why im looking for advice as to what sort of factors to look into and i guess we would need time to save up for a deposit on the second house IF we did sell up.

Unfortunately what you appear to be doing is starting a business (because buying property to let out is a business) without any idea of what it involves.

I would suggest you do some research into the landlording business (have a read through some of the stories you will find on this forum for a start) then make a business plan based on real figues, including allowances for maintaining your property, times when you are between tenants, if your tenants get into rent arrears, and interest rates rising to 15%.

This is probably the worst time to think about starting a new BTL business, especially as you only have a vague idea of what it involves.

Hope that helps.