Mortgage advice please

charsi16

Hi, Wanted to see if I could get some regulars and more experienced people give me some idea about what to do.

I bought a property a few years back( 2006) for 240k and due to some unforseen reasons I have had to move out of the area. Now I bought at the peak and currently similar properties are asking for 250k. At one point they were selling for 275k. I still have 150K outstanding with the lender.

Anyway, now that I am going to be away for a few years, I was thinking of buying another property for appx 300k and renting out the other property. That property would rent for 850pcm.

For the new property, I shall be looking at mortgages.
1/ Should I take out the best rate available for a 75-80% for the 300k property or

2/should I port my previous older lender to the new property and get further lending from them ( FOR THE 300K PROPERTY). This would mean I would have to remortgage the old property to a Buy to let mortgage.

I know without interest rates this is difficult to advise on. Say I am on 3.99% at my older property. The new rates that will be offered on 300k 75% LTV will be just below 4%. BTL interest rates offered are just below 5% for 60%LTV.

Hope someone can help me where I would be able to save money.

G_M

Impossible to advise. Best start would be to contact your current lender and discuss. If you keep the mortgage there you'll need their permission to let it out anyway, so ask a) if they'll agree b) to confirm same a new rate and c) any fee.
At same time, ask if they'll lend on new place and at what rate and
whether they'd port your mortgage.

That should give you an idea.