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Double Mortgage Dilemma
JamesLanc
Posts: 1 Newbie
Hi guys,
I currently have a (normal residential) mortgage on a property in Southampton that is currently let out (I was working away from home for sometime). Permission was sought and agreed from the mortgage provider. The house was brought in 2006 for £160,000 with a mortgage of £149,000. There is £34,000 outstanding. The mortgage is a tracker at 0.25% above UK base-rate - clearly quite a good deal.
I will shortly (6-8 months) be moving with work to a new location and want to buy a second property to live in probably in the region of £160,000-170,000. I would keep the first property rented out. I can muster a deposit of circa-£65,000.
What is my best course of action? Should I:
1. Pay off the £34,000 on mortgage A and then apply for a new residential mortgage to buy the new property with a deposit of £31,000?
2. Go for a new residential mortgage using the full deposit and just pay both mortgages concurrently? (Is this allowed?)
3. Re-mortgage my existing property (now probably worth circa-£180,000) using a buy-to-let mortgage and buy the new one outright? I'm not sure this would be hugely beneficial with the changing tax regimes?
Any thoughts greatly appreciated.
I currently have a (normal residential) mortgage on a property in Southampton that is currently let out (I was working away from home for sometime). Permission was sought and agreed from the mortgage provider. The house was brought in 2006 for £160,000 with a mortgage of £149,000. There is £34,000 outstanding. The mortgage is a tracker at 0.25% above UK base-rate - clearly quite a good deal.
I will shortly (6-8 months) be moving with work to a new location and want to buy a second property to live in probably in the region of £160,000-170,000. I would keep the first property rented out. I can muster a deposit of circa-£65,000.
What is my best course of action? Should I:
1. Pay off the £34,000 on mortgage A and then apply for a new residential mortgage to buy the new property with a deposit of £31,000?
2. Go for a new residential mortgage using the full deposit and just pay both mortgages concurrently? (Is this allowed?)
3. Re-mortgage my existing property (now probably worth circa-£180,000) using a buy-to-let mortgage and buy the new one outright? I'm not sure this would be hugely beneficial with the changing tax regimes?
Any thoughts greatly appreciated.
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