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Buying a further property
baggyjim
Posts: 5 Forumite
I currently have a house that I let in Lincoln, this has an approximate value of 130 k, my outstanding mortgage is 24k with Nationwide on their SVR which is currently 3%.
The property we live in, we paid 250k for in June 2005, the outstanding mortgage on this is currently 122k. This is on a Woolwich lifetime tracker + 0.18 above BoEBR , so currently stands at 1.18%.
We are interested in buying an additional property to let out, but do not know how to go about this , we have plenty of equity in the two properties but would welcome any advice.
We don’t really have any cash deposit to put down, and are looking to buy a terrace property around the 100k mark.
Thanks in Advance
The property we live in, we paid 250k for in June 2005, the outstanding mortgage on this is currently 122k. This is on a Woolwich lifetime tracker + 0.18 above BoEBR , so currently stands at 1.18%.
We are interested in buying an additional property to let out, but do not know how to go about this , we have plenty of equity in the two properties but would welcome any advice.
We don’t really have any cash deposit to put down, and are looking to buy a terrace property around the 100k mark.
Thanks in Advance
0
Comments
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I think if you borrow money against one property for the purpose of buying another then that interest can be claimed against the rental income.
So that would mean you could mortgage the 2 exsisting houses to the maximum available to allow purchase of your 3rd.
The problem you may encounter is mortgages for BTL are currently at very low LTV's at the moment.
Personally I would sit tight with your current 2, as you have no cash any major repair work, voids or bad tenants will be very costly.0 -
Increase the mortgage on your current properties to raise the funds to buy the new one.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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