Borrow more or borrow later?

stayathomedad_2

We currently have only need 50% LTV on our remortgage but we are considering borrowing 70% LTV so that we can use the money as a deposit for second property or buy to lets. We have checked and our income would cover borrowing for second property and rent would potentially cover buy to let mortgage.

Should we just borrow what we need now or borrow full 70%?

We can get more interest in top savings account than we would be charged on mortgage so we wouldn't lose out even if we did nothing.

Is it better to borrow the extra now or go back later and ask for the extra amount?

Should I get a deal where it allows 70% LTV even though I only need 50% would this help the extra borrowing request?

We have been stuck in a longish fixed rate deal and felt like we had no options so wondering if having the cash in hand would be better for future investment next time around.

getmore4less

Could look at offset for complete flexibility.

Thrugelmir

stayathomedad wrote: »

rent would potentially cover buy to let mortgage.

And if the property generates no income? Do you have a back up plan.

stayathomedad_2

getmore4less wrote: »

Could look at offset for complete flexibility.

I have had a look. We have had offset before and it was very good but it looks like it is more difficult to get them these days, some lenders want massive salary's before they will allow an offset mortgage. There are also not many low fixed rate offsets.

stayathomedad_2

Thrugelmir wrote: »

And if the property generates no income? Do you have a back up plan.

Yes, that wouldn't be a problem for us