Looking to remortgage

Kabby50

Hi all new user this site and wondered if anybody could give me some advise? Luckily at the moment I am residing with family and friends... I have a flat that has an approx value of 115k that I have let out to tenants for the last eighteen months, the outstanding mortgage is 40k. All the income minus allowable expenses are declared to HMRC.... I am now hoping to secure funds to purchase another property which I will reside in so I am looking for a residential mortgage...
My question is, what is the best way to do this?
Lump it all together as one big loan?
Leave them separate ie a buy to let mortgage on the let property and a residential one for the new property?
A further advance from the letting mortgage, and use this as a deposit for the new purchase?
Any advice would be appreciated
PS the let property is currently let with a residential mortgage with permission of the bank

Crashandburn

Doubt HSBC will lend you any more on the current mortgage on the basis the property is let.

You could switch this mortgage to a Buy to Let mortgage and take some capital out of the property, probably up to 75% loan to value to keep within some decent rates.

This then gives you capital to go forward and buy the new residential property. As long as the new Buy to Let is self financing ie will cover itself according to the new residential lenders rules, then this should be fairly straight forward.

Only downside is that you wont be able to claim all the interest on the buy to let against your tax return. Only the element you used to obtain the asset in the first place