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mortgage help
ianfullagar
Posts: 1 Newbie
i currently have a buy to let property which i paid 155000 for and rents for 700 per month, its current value is around 140000 and we have 139000 on mortgage. it is mortgaged with mortgage express on the svr and they will not allow us to switch to a fixed deal as we have no equity in the property
i have sold the property which we lived in and have around 250000 in the bank. i am currently looking to buy another property to live in which will cost 350000 could somebody please advise am i better paying the mortgage off on the buy to let and borrowing an extra 139000 on the property we are to live in or are we better off leaving the buy to let as it is and using all 250000 for the deposit on the new house
i have sold the property which we lived in and have around 250000 in the bank. i am currently looking to buy another property to live in which will cost 350000 could somebody please advise am i better paying the mortgage off on the buy to let and borrowing an extra 139000 on the property we are to live in or are we better off leaving the buy to let as it is and using all 250000 for the deposit on the new house
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Comments
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If you keep a mortgage on the B2L you can claim the interest portion against tax on the profit which would seem a big incentive to keep the mortgage.
Not sure what interest rate your SVR is, but a quick look at money supermarkets website shows B2L lending at 4.25% upto 5.99% at 75% LTV max with large arrangement fees, so if you pay off this mortgage you won't be able to borrow as much against the same property again and I can't imagine a fixed rate deal will benefit you that much either.
Why don't you just borrow the £100,000 extra you want for next place as a residental mortgage and leave your B2L as it is?0
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