What Would You Do?

costingbunny_2

This is the situation.

Want to buy a house for £165,000.
Have £120,000 set aside for a house
Could find another £45,000 if necessary but would rather not touch this money
Live in a mortgage free house which is up for sale.

Would you re-mortgage the house for £45,000 and then rent out or just wait for a buyer?
Would you use all the cash you have in the world and keep mortgage free on both houses?
Can you get some kind of bridging loan?

Thanks everyone

Yorkie1

I would prefer to retain some money for a rainy day, both to do unexpected repairs to the property/ies, and in case my usual income stream dried up.

Personally I'd get the small mortgage. Are you planning to coincide the sale of the property you currently live in, with the purchase of the new place?

costingbunny_2

Yorkie1 wrote: »

I would prefer to retain some money for a rainy day, both to do unexpected repairs to the property/ies, and in case my usual income stream dried up.

Personally I'd get the small mortgage. Are you planning to coincide the sale of the property you currently live in, with the purchase of the new place?

No, we want to buy now & the house hasn't sold. Is it better to re mortgage (may end up renting though) or mortgage the new house? The latter would be easier I guess so we can rent out house without any issues?