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New mortgage or remortgage?
UKSBD
Posts: 842 Forumite
In general is it better to get a new mortgage or remortgage?
These are my circumstances:
Current property value approx £250k mortgage on it approx £500
(just to keep the mortgage going)
Looking at buying another property approx £200k (keeping existing)
Would it make sense to remortgage existing property to raise £170k
therefore meaning I would be a cash buyer and not have to worry about
obtaining a mortgage on the 2nd property.
After approx 6 to 12 months I would then look at renting out the existing
property.
Would the benefits gained from being a cash buyer and not having to
worry about obtaining a mortgage for 2nd property outweigh the probable
rate increase when renting out the existing?
Just to add, the 2nd property would be rough and requiring work on it,
hence wanting to be a cash buyer and keeping existing property for
at least 6 months.
These are my circumstances:
Current property value approx £250k mortgage on it approx £500
(just to keep the mortgage going)
Looking at buying another property approx £200k (keeping existing)
Would it make sense to remortgage existing property to raise £170k
therefore meaning I would be a cash buyer and not have to worry about
obtaining a mortgage on the 2nd property.
After approx 6 to 12 months I would then look at renting out the existing
property.
Would the benefits gained from being a cash buyer and not having to
worry about obtaining a mortgage for 2nd property outweigh the probable
rate increase when renting out the existing?
Just to add, the 2nd property would be rough and requiring work on it,
hence wanting to be a cash buyer and keeping existing property for
at least 6 months.
0
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