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Buy to Let options?

Jaybee1945
Jaybee1945 Posts: 2 Newbie
Tenth Anniversary Combo Breaker
edited 16 April 2013 at 7:43PM in Mortgages & endowments
Hi,
I have two houses one in which I live and the other is let. They are both mortgage free and I would like some advice on the best way to borrow to but another house to let. I am retired and the idea would be to buy a smaller property now (around £160k) to eventually move into in about five or six years time after selling the house I live in. This would enable me to pay off the loan in full and release the equity. The house I rent out is worth approx (£100k) and my house is worth approx £300k
I am looking for the cheapest way to realise the deposit and the best interest only terms to pay the mortgage. Really would appreciate some advice..

Comments

  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Probably best speaking to a broker. You should be able to raise the deposit on he new property from your existing btl and then be able to offset rent against mortgage interest.

    You have a property but its still worth considering the risks as well as the benefits, including the right property, yield etc. similarly voids may have to be paid out of other income.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    How much are you looking to raise? How much rent do you get per month on the current rental property?

    What is your income?

    Definitely a broker case as many BTL lenders are broker only.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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