Mortgages for 3 properties

F1005705

Hello,

We currently have a mortgage on our main home (repayment) and a holiday home (interest only). We are going to rent out our holiday home (short hold tenancy) and have had consent to let from our mortgage provider as we have another 4 years tie in. We are now looking to buy another apartment to rent out and can raise the deposit by taking some of the eqity from the holiday home.

I am stuck on the best way to approach things. Do I port our current holiday home mortgage to the proposed new apartment and take our a buy to let on the current holiday home. Or do I take out additional borrowing on the current holiday home leave the mortgage as it is and take out a new mortgage on the new property as a buy to let. Our intention would be to let this new property out in 6 months time. I think I will need to do a buy to let as I don't think earnings would hit the thresholds to cover 3 mortgages.

I am aware that I can offset interest against tax so would like interest only mortgages on the two rentals.

Any other ideas?

amnblog

A number of ways to do this.


It depends on


the properties
your income
rental incomes
tax status
rates available


To complex to get sensible advice here.

silvercar

I am aware that I can offset interest against tax so would like interest only mortgages on the two rentals.

Doesn't matter where the mortgages are secured, it is the purpose that counts.

We are going to rent out our holiday home (short hold tenancy) and have had consent to let from our mortgage provider as we have another 4 years tie in.

So that one is sorted. Leave it as is.

. We are now looking to buy another apartment to rent out and can raise the deposit by taking some of the equity from the holiday home.

You haven't got permission, as far as I can see, to increase the mortgage on this.

Simplest option may be to increase the mortgage on your main home to get the deposit. You will need an income that justifies the higher mortgage. I know that some lenders get sniffy when the increase is used to fund a purchase, but could be doable if your LTV will still be acceptable and you have the income and clean credit.

Then you will also need a BTL mortgage on the new place.

A lot of borrowing, so be comfortable that you can afford to maintain 3 properties.