Advice Needed Please- What makes more sense?

charsi16

we have been looking to buy our second property and this has taken nearly 6 months plus..we now seem to like something but wanted to get some advice from seniors and more experienced.

The new property we like is for 320000 . I already have a another property which we bought for 240000 appx 5 years back, the balance on that property is 140000h. Its with scottish widows SVR of 3.99%.
I intend to rent out the first property when we can move into the second.

What i would like to ask is , should I remortgage the 1st? and get a new fixed rate?

should I release the equity from that house? what will I need to do?

I already have a deposit for the 2nd property, if I do get my equity released and combine it with my deposit, will that get me a better deal?
Or should I not touch that mortgage at all and get a brand new mortgage for the second house ?
What will make more financial sense? My current mortgage provider without explaining any thing said that I could PORT my current mortgage, what does that mean for me ?

charsi16

Any advise welcome

charsi16

is there no one who could give their advice on this?

cte1111

If it were me, I would sell the first house and use the equity to reduce the mortgage on the second house. Becoming a landlord can be costly and hard work.

If you want to keep the first house, then you will need to convert the mortgage to a buy to let mortgage. You may be able to port the existing mortgage (i.e. keep the same rate but have it secured on your new house rather than the old one).

charsi16

Thanks. i am not able to sell it. Bought it just before the peak..has gone down in value. But popular area, so will rent out quick. May sell in 2-3 years time.
How will porting help? will tha t mean that I get a new BTL on the house? and ask scottish widows to port the balance 140k and get another 180k from them ( 140+180=320K value of the second prop)?