Take money out of house or re-mortgage flats ??

ads2312

Hi

After a bit of advice on the best way to generate some cash.
I have about 20k left to pay on my mortgage for my house that I live in, It's a one account with virgin mortgage, the term was for 23 years but only 12 years in so well ahead. House is worth about 280k.
I've got 2 flats which I rent out which are paid for outright. This is my business and only income at the moment but my partner works and she earns about 30k.
I want to buy another flat which is cash only but I don't have that much cash, maybe 15k, need 70k.

So the question is, what's the best way to get the money needed ?
Would it be best to re mortgage the flats and get them on BTL mortgages or take the money out of my house which I believe I can do without re mortgaging, being a one account mortgage.
Obviously the payments on my mortgage will go up but wouldn't cost anything to take out, where as a BTL mortgage would have significant set up costs.
Going to see my bank to see what they think but thought I ask on here first, think taking it out of my house make most sense ?

thanks in advance

Thrugelmir

Virgin name was dropped some time ago. Isn't the account managed online or by phone. Rather than any branch service.

ads2312

sorry yes isn't virgin anymore and yes no branch service. Was going to see my business banking which is Barclays for advice.

ads2312

anyone got any ideas ?

Wh05apk

Generally the cheapest way will be to take it from your existing mortgage, if you can draw this back down, presumably it will be quick and easy, if it requires underwriting, then if you are not working you may struggle.


Don't forget where ever the mortgage is secured, you can still offset the interest against rental profits.


Also check the terms of your existing mortgage as there may be restrictions on the one account as to what you use the funds for, they may exclude "business" use.

StuC75

I would personally prefer to have the home paid off and 'untouchable', instead carrying the 'debt' on the rental properties for which the interest element would have tax benefits.. Then any worse case 'collapse' would only impact the business side and not the home you live in...

Wh05apk

StuC75 wrote: »

I would personally prefer to have the home paid off and 'untouchable', instead carrying the 'debt' on the rental properties for which the interest element would have tax benefits.. Then any worse case 'collapse' would only impact the business side and not the home you live in...

But the home would not be "untouchable" if you owed money, the creditors would chase you for any funds, it might just mean it would be harder (and hence more expensive for you in terms of legal fees etc)


The interest element would have the same tax benefits where ever it is secured.

ads2312

sorry for my late reply, didn't think anyone wanted to answer !! cheers

Spoken to One account and she said if I want 50k then its within our facility so no problems, just take it out. Problem is now i've found someone selling 2 flats in same block, good discount for buying both but going to cost me 50k extra ! So now have a few choices, re mortgage our house with the one account (she said I can have up to 3 properties on one mortgage), not sure how that works ! or just get BTL on one and take cash from existing mortgage for other.Or BTL each. So confusing !! going to need to speak to them again.
thanks