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Cash or Mortgage
shazronnie
Posts: 49 Forumite
We are in a very fortunate position to be mortgage free and also own another property which we rent out.
We want to move somewhere bigger and also hoped to rent out our current house.
The snag is we dont actually have any cash as we have just done up both properties.
Do we get a mortgage? or a bridging loan? or sell one of the properties? Would it be silly to go back to having a mortgage whilst having to paid for houses sitting there?
What do you think?
Sorry if this is in the wrong section.
We want to move somewhere bigger and also hoped to rent out our current house.
The snag is we dont actually have any cash as we have just done up both properties.
Do we get a mortgage? or a bridging loan? or sell one of the properties? Would it be silly to go back to having a mortgage whilst having to paid for houses sitting there?
What do you think?
Sorry if this is in the wrong section.
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Comments
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Sell one - you won't have the hassle of managing an extra property - and you won't have debts
Also the rent which you will be using to pay the new mortgage will lessen due to paying tax on it0 -
Wot I thinkshazronnie wrote: »Do we get a mortgage? or a bridging loan? or sell one of the properties? Would it be silly to go back to having a mortgage whilst having to paid for houses sitting there?
What do you think?
by DVardysShadow
I heard that the way to catch a monkey is to put figs inside a large vessel with a narrow neck. The monkey reaches in and grabs a fistful, but his fist with the figs is too large to allow him to withdraw his arm from the vessel. And he is too stupid to try and take figs out one at a time.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
shazronnie wrote: »We are in a very fortunate position to be mortgage free and also own another property which we rent out.
We want to move somewhere bigger and also hoped to rent out our current house.
The snag is we dont actually have any cash as we have just done up both properties.
Do we get a mortgage? or a bridging loan? or sell one of the properties? Would it be silly to go back to having a mortgage whilst having to paid for houses sitting there?
What do you think?
Sorry if this is in the wrong section.
If you want 3 houses remortgage one or both of your two existing houses as a BTL and use some of the funds released for a deposit on your new house with a residential mortgage. Pay the BTL mortgage with the rental income.
I personally would sell the one you are in at the moment to have a healthy deposit on the bigger place.0 -
I think the recession has reminded us that it can be somewhat risky to have all one's financial worth tied up in property. Do you have the time to manage two rental properties? Can you still pay the mortgage on your new house if one or both of your tenants don't pay their rent?Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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